Business Process
Definition
A business process is a series of steps performed by a group of stakeholders to achieve a concrete goal. These steps are often repeated many times, sometimes by multiple users, and have been optimized for efficiency and repeatability. Business processes can be manual or automated and can occur within a single organization or between multiple organizations.
History
The concept of business processes has been around for centuries, but it was not until the late 20th century that it became a popular topic of study and application in the business world. The term "business process" was first coined in the 1960s by American economist Adam Smith, who recognized the economic benefits of dividing labor into specific tasks and processes.
Types of Business Processes
There are three types of business processes:
1. Operational Processes: These are the core processes that make up the value stream. Examples include purchasing materials, manufacturing products, marketing services, and delivering products or services to customers.
2. Supporting Processes: These support the core processes and include accounting, recruitment, technical support, and IT services.
3. Management Processes: These govern the operation of the system. Examples include corporate governance, budgeting, strategic planning, and performance management.
Each of these types of business processes requires a different set of activities and specialized knowledge.
Business Process Management
Business Process Management (BPM) is a discipline that uses various methods to discover, model, analyze, measure, improve, and optimize business processes. A business process that is well-managed can result in improved business agility and performance, with a reduction in costs and increased revenue.
Business Process Modeling
Business Process Modeling (BPM) is the activity of representing processes of an enterprise, so that the current ("as is") process may be analyzed and improved in future ("to be"). It is a way of visualizing what a business does by describing how tasks are performed, who performs them, and what steps they must take to reach a specific goal.
Business Process Reengineering
Business Process Reengineering (BPR) is the practice of rethinking and redesigning the way work is done to better support an organization's mission and reduce costs. It involves the radical redesign of core business processes to achieve dramatic improvements in productivity, cycle times, and quality.
Business Process Outsourcing
Business Process Outsourcing (BPO) is a method of subcontracting various business-related operations to third-party vendors. It is a cost-saving measure that allows companies to outsource non-core tasks to specialists, freeing up their resources to focus more on the growth of the company.
Conclusion
In conclusion, business processes are essential for any organization's functioning and growth. They help in streamlining activities, improving efficiency, and achieving business goals. With the advent of technologies like BPM, BPR, and BPO, managing and optimizing these processes have become more manageable and beneficial.
