Business Process Definition, Benefits, and Examples
A business process helps companies organize work, maintain operations, reach goals, and deliver results for customers and employees.
What is a business process?
A business process is a series of workflows that enable a company’s operations. These workflows are composed of a series of tasks that need to be completed in a particular sequence in order to achieve a specific goal.
Why business processes are important
A business process serves as a company’s lifeline and creates order among stakeholders, company goals, and the steps required to reach those goals.
In addition to keeping teams organized, having a business process:
- Improves team productivity, efficiency, and collaboration.
- Standardizes tasks and process procedures.
- Provides visibility for teams and managers.
Business process examples
In areas like finance, HR, development, and support, examples of common business processes include:
- Purchase process: Keeps track of each procurement and gets necessary approvals hassle-free and on time.
- Hiring and onboarding process: These two interconnected processes streamline your company’s hiring process, from drafting and gathering all the necessary documentation and signing contracts, to formalizing the hiring and onboarding of new team members.
- Strategic planning process: Reevaluates company principles, plans, and goals by creating tasks that will have to be followed in a standardized way by your team to keep on top of progress and milestones.
- Customer support process: Establishes a smart workflow to set deadlines and alerts for help tickets to build a positive relationship with customers.
While some business processes seem straightforward, one thing to keep in mind is that sometimes what is referred to as a single business process is actually a family of related processes or subprocesses.
For example, the procurement process may include approving vendors, generating purchase orders, receiving goods, paying invoices, and other subprocesses. Below is a visual breakdown of the procurement process:
How to build a business process in 6 steps
Establishing a business process begins with establishing company goals. Once a goal is set, follow these six steps to creating a business process:
|Step 1||Collect important information, like team members, roles, and timelines.|
|Step 2||Establish process boundaries to set process start/end tasks and triggers.|
|Step 3||Identify suppliers, vendors, and customers to determine how a process starts and its outcomes.|
|Step 4||List and order actions to map the steps in between the process start and endpoints.|
|Step 5||Connect business strategy and process with business rules to make decisions easier and handoffs to represent a change of responsibilities between teams.|
|Step 6||Review and gradually optimize the process workflow and execution.|
Best practice: Clearly defining the boundaries of a process will make it easier to manage and organize. Well-defined processes can also help you avoid scope creep.
7 related business process terms
Whether you’re new to business process management or are a seasoned expert wanting a quick business process refresher, keep these seven terms in your back pocket for your next process planning meeting:
- Business Process Management (BPM): A formal approach to analyzing and improving the processes that enable a company’s operations. The first step to implement this approach is to identify the critical processes within an organization. Furthermore, they need to be analyzed to understand how they can be improved, implement these changes, and measure the outcome.
- Business process mapping: The act of creating a workflow diagram with the goal of gaining a clearer understanding of how a process and its parallel processes work.
- Business process modeling: The practice of representing business processes in visual form.
- Business process automation: A way to use technology and automation to perform complex business tasks with reduced human intervention and effort. Business process automation is also known as workflow automation or process automation.
- Business process standardization: A uniform way to complete an important business process and allows the process to be performed the same way every time. Business process standardization maximizes the efficiency and effectiveness of processes.
- Business process design (BPD): The creation of new, easily scalable workflows from scratch. Takes place at the start of product/service production or delivery.
- Business process reengineering (BPR): A strategy used to analyze and improve workflows and business processes within an organization. It can minimize errors and costs, streamline operations, increase efficiency, improve services or products, and increase profitability.
Check out Pipefy’s workflow glossary for all things related to workflows, including key terms and information on processes, tasks, and other related concepts.
Learn about BPM for better processes
Building an efficient business process is essential to driving business growth, and business process management is the key to successfully keeping on track and reaching goals. One way to master BPM is finding the right software to facilitate collaboration across all business units.
With Pipefy’s low-code platform, teams are able to centralize and streamline workflows, automate manual tasks, connect processes, create execution standards, and integrate with existing business software for seamless and reliable business processes.