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What Is Business Process? Why Are Business Processes Important For Business Growth?

Why Business Processes are important for businesses

If you are running a business, or plan to launch a business, then you must know what exactly is a business process, and how to model business processes. The benefits of understanding and optimizing business processes are paramount, especially when you are aiming to grow and expand, and/or looking to raise venture funds.

This whole concept of learning about the business process is fascinating and intriguing since it unlocks several key findings and secrets, which even you, as a founder, might not have been aware of.

So, let’s dive straight into it!

What is Business Process?

A business process can be defined as a set of tasks and activities, which eventually lead to the completion of a business goal. Depending on the business, and its objectives, business processes tend to shift, alter and mold, since the final goal of every organizational task is different and unique.

However, there are some things common in every business process: Clearly defined inputs, instructions, and clearly defined final goal.

The term business process first finds a mention in 1776, by Adam Smith, who is known as the Father of Economics, and wrote two classics which are considered as Bible for Capitalists: The Theory of Moral Sentiments (1759) and An Inquiry into the Nature and Causes of the Wealth of Nations (1776). This description of the business process of a pin factory by Adam Smith was inspired by a famous article of Diderot’s Encyclopédie.

Since then, entrepreneurs, economists, business scholars and authors have been defining and refining the entire premise of the business process to induce more clarity and more reflections of the businesses, all over the world.

Learn more about – How To Streamline Business Processes? 4 Ways To Manage The Workflow & Processes Of Your MSME

What are the Core Business Processes?

As shared earlier, different organizations and businesses may have different business processes. For example, for a recruitment agency, the business process of finding a rare talent will be different, compared to say a gaming app, attempting to launch its most ambitious mobile game ever.

However, there are some core business processes, which are fairly common to all businesses, anywhere in the world.

Some of the Core Business Processes Are:

  • Human Resource Management: Managing, and optimizing employee’s welfare, motivation and productivity
  • Accounting & Finance Management: Managing the most crucial aspect for a business, that is money. Financial management, capital management and more
  • Sales & Marketing: Customer acquisition, Selling and creating awareness of the products and services of a business
  • Product Development: Manufacturing, creating products and services for customers/clients
  • Delivery of Service: Shipping, transportation and logistics operations for ensuring that the products/services created reach their users
  • Quality Testing, Process Improvement: Quality checks and inspections for the products and services being offered, and workflow for process improvement
  • Customer Service/After Sales Service: Ensuring that all the queries of your customers are resolved, and after-sales service is being provided
  • Technology Management: Information Technology, computers, IT infrastructure for running operations of a business

All these business processes are interlinked and interrelated with one another, every business needs them, in one form or the other.

Business Process Modeling: What Exactly It Is?

Business Process Modeling or BPM is an integral part of the overall process of Business Process Management and helps in executing Business Process Improvement.

In layman’s terms, business process modeling is an illustration or mapping of the entire business processes of an organization and presenting it in a way that helps all employees, management and investors to understand the same, seamlessly. There are various tools and software to create business process modeling, as shared earlier, it depends on three factors: Clearly defined input, instructions, and clearly defined output.

Here is a good example of a business process modeling in the image below:

Not only does such a clearly defined and modeled business process provides clarity to all the entities involved, but it also helps to plug the loopholes and find out the issues which are obstructing growth and expansion. Some of the popular ways to create business process modeling include Process Flowchart, BPMN or Business Process Model and Notation, Data Flow Diagram, Gantt Charts, Role Activity Diagram and more.

Why is Business Process Mapping Important for Business Growth?

On a broader term, creating a business process model or Business Process Mapping provided clarity, and introspection into the entire business flow. Once you know what’s missing from the whole picture, you can take better, smart business decisions.

Some advantages of creating a business process model are:

1. Optimization of Business Operations

By mapping and modeling the entire business operations of your company, you can optimize them by understanding the flaws and problems. You can analyze the inputs, outputs, efficiency and productivity of the entire team, and take the next steps accordingly.

2. Introduce Best Practices, Benchmarks, Standardization

It may happen that the same tasks are being done differently by different teams within the same organization. While one team can accomplish it within three days, the other team is taking ten days. The management can introduce the best practices, create benchmarks for efficiency and introduce standardization, across all the verticals.

3. Greater Transparency

When every employee and manager of your company is aware of the exact role and contribution of the entire organization, then there comes a greater level of transparency. Once this happens, everyone knows what exactly they are supposed to do, and they are more engaged and active in their respective roles. Overall, a win-win situation.

Learn more about – What is KPI & KRA? How Setting Right KPI & KRA Can Help Measure Team Performance?

4. Competitive Edge

You, as an entrepreneur, should always be aware of two facts: Where you are right now, and where are you going? The best to get a competitive edge is by knowing these two facts. And by developing a business process model, you can have this information, with a single glance. If you wish to get ahead of your competition, then business process modeling is the best way forward.

Meet the Experts for More Support

Consult with a business process modeling & mapping expert at MSMEx and take your business to the next level of productivity. MSMEx provides a unique platform for you to connect with industry experts and business advisors who can help you grow beyond your expectations.

Related Read About –

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