What is a Business Process
It is a collection of activities that are designed to produce a specific output for a particular market or customer. It emphasizes on how the work is done within an organization. A process is thus defined as “specific ordering of work activities across place and time, with a beginning, an end, and clearly defined inputs and outputs”.
A business process should have a model for better understanding. The model should contain the following:
- Specific inputs
- Specific outputs
- User resources
A number of activities that are performed in some order
Effect more than one organizational unit. Horizontal organizational impact.
Creates value to the customer that may be internal or external.
Now let us understand these:
Goals: every business process has a defined goal. This is the main reason the organization does the work. It should be defined in terms of benefits the process has for the organization as a whole.
Output: a business process will definitely produce one or more outputs of value to the business. It can be internal use to satisfy external requirements. An output may be a physical object such as a report or receipt or an overall business result as to completing a particular customer order. An output one process can be taken to another process as well.
Resources: a resource is always an input to the organization and is typically consumed during the process. For example a customer is taken and is successfully processed and signed off.
The above model helps us in understanding the business process in a better way. Let us the objective of business process.
- To identify the different kinds of organizational objectives like operational and strategic.
- To assess the objectives of compatibility and clarity.
- To agree for the priorities of those objectives which are incompatible.
- To create a business process design which achieves the objectives.
- To identify appropriate measures that will influence the actions of people who are related to the process.
The objectives and goals of a process are controlled by inputs which affect the process, like people, data or systems that we use. The process design includes quality assurance, innovation, compliance and alignment. If the process input is not up to the mark, then the output will carry similar qualities. Process design looks at business rules and regulations for compliance.
A good business process is often described as “SMART”
S stands for specific that defined what needs to be done in the business
M stands for measurable that mentions clear metrics
A stands for actionable providing the basis for a solution
R stands for realistic were problems can be solved in reality
T stands for time bound a clear statement as to when the solution expires.