Business Process Analysis vs Business Analysis
It is very common to confuse business process analysis with business analysis. There may be some overlaps between the 2 concepts, but they are distinct disciplines. BPA focuses on specific process analysis and business process modeling. Business analysis on the other hand is applicable to the larger business operation landscape. The focus of BA is more on financial forecasting, cost analysis, budgets, hiring, and budget cuts. Business process analysis collects data and makes recommendations based on the core processes of the organization. Business analysis is used to identify any business requirement or issue in the organization, which could involve financial controls, market research, hiring practices, and cost-cutting.
Benefits of Business Process Analysis
Business process analysis provides several benefits to the organization. It gives the management a clear idea of how current processes are performing and areas for improvement. The main benefits of business process analysis are:
Improves efficiency of current business processes – BPS improves time-to-value for product applications. A thorough BPA exercise lowers the time in operational cycles for workflows, like employee onboarding or patient intake process, or customer in-take process.
Reveal capacity issues – improper resource utilization or limited resource availability or overuse of resources are some of the capacity issues in a process. BPA helps identify the capacity limit, and how it affects the process, and ways to improve it. The findings of the BPA can be used for scaling up the resource requirements of the process. BPA can help in identifying the changes you need to make so that the process is closely aligned to organizational growth.
Clarify the rules and policies – as organizations move more toward remote work models and increased adoption of digital devices, the misalignment between security and device usage tends to increase. BPA helps identify an optimal path for faster IT approval processes and brings about uniformity in security policy enforcement.
Improves risk management – risk management is a priority for organizations. Risk management and compliance is a costly endeavor for organizations for maintaining compliance and even more costly when compliance issues arise. Process analysis can reveal spots in the process where the compliance mechanism has faltered.
Identify the cost savings – redundancies in tasks and labor are revealed via BPA. The tasks in the process that can be digitized can be identified through process analysis. Doing away with these redundancies results in cost savings for the organization.
Eliminate process bottlenecks – siloed channels for communication, development, and execution cause process bottlenecks. BPA can expose these gaps and resolve approval process bottlenecks.
Optimize deployment and release processes – BPA focuses on optimizing the deployment and release process so that they are event free.
Strengthen company culture – efficient processes help build a positive work environment. The areas for improvement identified by BPA can be acted upon to improve process efficiencies. Optimized and streamlined processes foster a positive company culture.
Business Process Analysis Methods
As mentioned above, BPA is part of the business process management umbrella. The most popular BPM approaches are Six Sigma and Lean Six Sigma models. Other methods include root cause analysis, SWOT analysis, and Gap analysis. The business process analysis template used by the business varies according to the nature and scope of the business. Analysis of agile business processes requires a combination of various analysis methods. Let us examine each of these methods in greater detail.
Root cause analysis – this type of analysis is used when the foundation of the process needs to be analyzed. Root cause analysis can be used to identify the base of the process to ensure that it connects back to the company’s larger goals.
GAP analysis – any missing steps in the process can be identified through GAP analysis. All the gaps in the process and missing steps in the process as compared to larger company goals.
SWOT analysis – stands for Strengths, Weaknesses, Opportunities, and Threats. This type of analysis enables a comprehensive analysis of the business process. They provide deep insights into how the processes are performing and how they can be improved.
Six Sigma analysis – this model defines various techniques and management tools designed to make business processes more efficient and effective. This model is based on a statistical approach that represents the standard deviation of the bell curve from the center. This approach is highly effective in identifying and reducing errors. DMAIC and DMADV are the main methodologies in the Six Sigma approach. Customer focus, assessing the value chain, and eliminating the defects and outliers are the main points that Six Sigma focuses on.
Lean Six Sigma approach – this is a smart combination of the Lean methodology that focuses on removing waste and optimizing the workflow. Lean Sigma focuses on eliminating waste, while Six Sigma focuses on identifying and removing the cause of the issue. Delivering from your customer’s perspective, eliminating all workflow waste, and continuous improvement are the main areas that Lean Six Sigma focuses on.