Business success solely depends on its business processes. A well-planned and designed business process translate to optimal business operations. Business processes are a sequence of steps that are executed to achieve a specific business goal. Processes are repeated several times and are carefully planned and designed to produce specific results. Continuous optimization of business processes is required in order to maintain their relevance and effectiveness.
Businesses choose from different business process management methods for continuously improving and optimizing their business processes. Depending on the end goal, business processes may be categorized as core processes, support processes, and management processes. Core or primary processes play a direct role in revenue generation for the business. Product development, marketing, and after-sales support are some examples of core business processes.
Support processes serve internal customers, they do not interact with customers directly. Finance, HR, and Admin are examples of support processes. Management processes are those used for measuring business outcomes. Now that we have understood the different types of business processes, let us delve into the importance of business processes.
A well-planned and designed business process helps businesses to:
Minimize costs and risks: All the steps (tasks) in a business function are organized and sequenced by the business process. Assignment of tasks is done clearly, which avoids any confusion in the roles and responsibilities of the stakeholders. Business processes minimize the costs and risks by laying out the most efficient process workflow by eliminating redundancies and repetitions. Future upgrades and market trends are anticipated and included in the business process design.
Minimize human error and bias: Designing a business process helps in identifying repetitive, mundane tasks that can be automated. Workflow automation helps increase the efficiency of the process and minimize human error and bias.
Improve compliance: Standardizing processes enable better compliance with regulations and policies. Automating the business process brings more transparency and accountability into the process.
Improve time management: Automating repetitive processes helps save time. The process can be completed in less time with lesser effort.