What is Business Process? 7 Practical Examples to Boost Efficiency

Quixy Editorial Team

March 14, 2024

Tim owns a company that develops websites. After winning a major upcoming contract, he must determine if adding a team member would benefit him. Most of his time is spent double-checking mistakes and missing details in his project management system. If he assigned these tasks to a new team member, he and his designers would be able to take on more significant contracts.

There is a simple website design project under contract at the moment. Tim could save time, decrease frustration, and cross-train his employees if he could organize his business processes so everyone had an organized set of instructions.

Tim is losing time and money because he does not have formal documentation for his business processes. How much does it cost you? 

What is Business Process?

A Business Process is a set of related, structured activities and steps performed by individuals or equipment within an organization to achieve the organization’s basic objectives like profit maximization and customer satisfaction.

Business processes can be repeated at all organizational levels and may or may not be visible to customers.

Several related ideas about Business Process Management (BPM), Process Optimization, Process Mapping, Process Simulation, and Process Automation are often viewed as flow charts or workflows of logical steps.  

A business process is similar to a race, intending to get from the starting line (the beginning) to the end. Depending on what’s vital for success in a particular business, different parts of the process may need more attention than others.

Let us take an example from the employee offboarding process to get a better understanding:

• Recognizing resignations/terminations
• Negotiating the retention of the employee
• Procedures for notice and final settlement
• Project planning and task assignment
• Handover and knowledge transfer of project details and company information
• Legal and Compliance Requirements
• Notification to Team and Clients
• Security and Data Protection
• Interviews at exit

An employee offboarding process typically involves these activities. By acknowledging and negotiating with the employee, the business attempts to retain him or her. Following the resignation, the employee and company can clarify the terms of their contract through the notice period and final settlement procedures. As a result of the project planning and handover activities, the business can prevent employee resignation from affecting daily processes. Additionally, the exit interview gives the company a chance to improve its policies and operations through detailed feedback.

Your operations depend on business processes, so improving them is strategically important. 

Types of Business Processes: Navigating Terrain

In the bustling business landscape, processes are the roads leading to success. These processes, like diverse paths through a forest, take on various forms depending on the destination. Let’s explore the different types of business processes that weave the tapestry of operations:

1. Operational Processes

From inventory management to order processing & customer support, they ensure the core functions are executed efficiently.

2. Management Processes

It involves planning, organizing, and controlling resources to achieve strategic goals.

3. Supporting Processes

Supporting processes provide the infrastructure and resources required for the organization to function smoothly.

4. Development Processes

Innovation is the heartbeat of progress. Development processes focus on creating and improving products, services, and systems.

5. Sales and Marketing Processes

Sales processes involve lead generation, negotiation, and closing deals, while marketing processes encompass brand positioning, advertising & customer engagement.

6. Customer Relationship Management (CRM) Processes

Customers are the lifeblood of any business. CRM processes are designed to nurture and maintain relationships with customers.

7. Supply Chain Processes

Supply chain processes include procurement, manufacturing, logistics & distribution, ensuring products reach the right place at the right time.

8. Financial Processes

Budgeting, accounting, financial analysis & reporting processes guide organizations in managing resources, predicting trends & making informed choices.

9. Compliance and Regulatory Processes

Compliance processes ensure adherence to legal, industry, and internal standards, minimizing risks and maintaining ethical conduct.

10. Quality Assurance Processes

Quality assurance processes ensure products and services meet or exceed predefined standards, guaranteeing customer satisfaction and loyalty.

Each type of business process plays a distinct role, contributing to the harmonious functioning of an organization. Just as a diverse ecosystem sustains a thriving forest, a mix of these processes forms the foundation for a prosperous business. The above list isn’t complete, because businesses processes are anything process that takes place in a business.

Why are business processes important?

Business processes are vital for several reasons. They streamline operations, maintain consistency, enable scalability, ensure compliance, simplify training, enhance problem-solving, and boost customer satisfaction. Additionally, they foster innovation, support data-driven decision-making, and enhance competitiveness in a dynamic business environment.

Reasons to Have Well-defined Business Processes

Well-defined business processes are the backbone of any successful organization, offering a multitude of advantages. Firstly, they boost efficiency by eliminating confusion and inefficiencies, completing tasks faster and with fewer errors. Secondly, these processes ensure unwavering consistency, guaranteeing that every task is executed uniformly, thereby upholding the quality of products or services. Thirdly, they foster scalability, facilitating business growth without compromising on quality. Fourthly, clear processes ensure compliance with regulatory and industry standards, preventing costly violations. Additionally, they expedite training, minimize the learning curve for new employees, and make problem identification more straightforward.

Moreover, they enhance customer satisfaction, as efficient processes lead to quicker responses and improved service quality. Furthermore, established processes create a solid foundation for experimenting with improvements and innovations. They also generate valuable data for analysis, enabling data-driven decision-making. Finally, streamlined processes provide a competitive advantage by enabling cost-effective and timely product or service delivery, positioning businesses ahead of the competition in today’s dynamic business environment.

Also read: 10 Key Business Processes you can Accelerate with Document Generation Software

Basic Steps of Business Process Implementation

The 7 steps of a business process can vary depending on the methodology or framework used, but here is a commonly referenced approach:

1. Setting goals

Identify and explain the process’ purpose. Describe how success can be measured. What are the benefits of this process for our overall business goals?

2. Identifying inputs and Outputs

It involves understanding the resources that are required as inputs to execute the process, as well as defining the desired outcomes that are produced as a result.

3. Process mapping

Outline the process. Flowcharts can be created by hand or with software. Each task along the way is outlined in this blueprint.

4. Assign process tasks

Is anyone involved in this assignment? You can minimize manual effort by allocating your team members based on their abilities and/or designing the system in an automated way.

5. Test

Test the process before rolling it out across the company or department to ensure you get the results you want.

6. Process implementation

After testing the process, it is time to run it globally if you are satisfied with the results. You will need to communicate properly with all those who will handle the tasks and train them to achieve better results.

7. Analyze the results

Consider ways to mitigate the risk by reviewing the process and looking for threats it may pose later.

Also Read: Business Process Mapping: Definition, Steps and Tips

7 Example of Business Processes

Businesses practice different processes according to their type, industry, location, etc., but a few are practiced across all segments of businesses worldwide. Using examples, we will make this easier to understand.

1. Onboarding process for clients

Professionalism, courtesy, and expertise are essential when onboarding new clients. When you acquire a big client, the last thing you want is your team sitting there wondering, “Okay, so what next? 

Onboarding will be a thing of the past if you have a clear, defined process. As an example, let’s take a marketing agency.

• Set up an initial meeting. Become familiar with the client’s business, the industry, the competition, etc.
• Assess the goals and assets of the company. Make sure you know what your clients want from you, and how you can utilize their strengths to accomplish those goals
• Establish KPIs. To ensure that you’re bringing in results, the client will want to measure your progress
• Make an action plan. Your team’s plan for the week, month, year, etc.

Client pitch. Assess whether the proposed strategy is acceptable to them. Start over if necessary. All the tasks should be assigned to the appropriate team members.

2. The Sales process

The process of making a sale is fundamental across all industries, offerings, and segments. In most businesses, the following steps are followed:

• Proposal sharing
• Quotation sending
• The negotiation process
• Ordering products/services
• Maintaining sales records
• Product or service delivery
• Post-Sale Follow-up
• The billing process
• The payment process
• Renewals and Retention

There are repetitive steps in this process, and the workflow and structure can be modified to meet the business’s needs. Does your sales team not perform to its full potential?

Also Read: Top Business Process Management Stats to help you add efficiency

3. Process of procurement

To purchase the materials you need for your business, you follow these steps:

• Identifying a product’s need.
• Contact the purchasing department with a purchase requisition.
• The purchasing department reviews procurement requests.
• A budget approval request with all financial details is sent to the financial department.
• When a quotation request is approved, the purchasing department sends it out to suppliers, and they submit their bids.
• The vendor is then selected and a contract is signed.
• Upon receiving the goods, the purchasers inspect the quality of delivery.
• Orders and invoice slips must match for invoice payment to be approved.

4. Providing customer service

In global business operations, customer service is also an important process. The process involves the following steps:

• Using CRM, receive customer complaints and issues.
• Recognize the customer’s concern.
• CRM login information for the issue.
• Solve the problem.
• Inform the customer of the status.
• Process of recruitment.
• Process of invoicing.
• Processing of orders.
• The onboarding process for new customers.
• Keep track of your accounts.
• Process of conducting market research.
• Development of a product.

Read eBook: 11 Steps to Fix a Broken Process

5. Process of content marketing

Unless you organize your content marketing into clear business processes, it can be a very hectic mess. If you don’t work on this, you’ll end up with 20 articles still in the works, confused designers, and confused followers, waiting desperately for their weekly articles.

You can establish content marketing workflows in a variety of ways depending on your strategy.

Let’s take a look at a very basic publishing process as an example…

• A content writer begins drafting an article and finishes it. Please include a description of any custom images you intend to use.
• The marketer gathers influencer contact information for advertising and marketing as soon as the article is completed.
• A proofreader points out errors in grammar, style, spelling, etc.
• The designer creates custom images and sends them to the content writer.
• Comments are considered, mistakes are corrected, and images are added.
• In addition to ensuring that the article meets best practices for SEO, the SEO expert also publishes it.
• To ensure the article is read, the marketer uses a combination of advertising and email outreach.

6. The Management process

Business decisions are made using management processes. Among them are setting goals, budgeting, and forecasting future sales.

The following are examples of managing business processes:

• Plan your strategy.
• Allocating resources.
• A marketing campaign.

7. Delivery management systems

To manage the delivery system, businesses need a business process. To ensure timely delivery of products, the delivery management system needs to be streamlined. Route optimization, automated dispatch, vehicle tracking, proof of delivery, and safe delivery of products are all part of the delivery management process. With delivery management software, companies can get insightful business analytics, improve customer communication, and enhance customer satisfaction.

Types of Systems For Business Process

Processes in business come in different sizes and shapes based on their intended purposes. Considering processes within their categories can be helpful when approaching, designing, and optimizing them.

Also Read: Top 10 Business Process Management Tools for your Business

The operational process

An operational (core business) process provides direct value to a company’s customers and employees. These processes directly generate revenue. Among the examples are product manufacturing, the order-to-cash process, and the delivery of products to customers.

Process support

Your company’s processes make money and are essential to delivering its end product. These processes include production, marketing, and sales.

HR departments don’t directly affect your clients, but without them, you can’t assemble a successful team. It is impossible to do well in production, marketing, and sales without a skilled team.

Processes at the core

These are the processes that make your business money and deliver your end product to your customers. Production, marketing, and sales are examples of such processes.

Benefits of Optimizing Business Process

Optimizing business processes isn’t just a strategy; it’s a catalyst for operational excellence, enhanced efficiency, and superior outcomes. From cost savings to elevated customer experiences, discover the transformative benefits that await through process optimization.

1. Improved Efficiency

Streamlining and optimizing your processes can eliminate redundant tasks, reduce bottlenecks, and make operations more efficient. This means less time wasted on unnecessary steps and more focus on activities that truly add value. You and your team can accomplish tasks more quickly and with fewer errors, leading to increased productivity and a sense of accomplishment.

2. Enhanced Collaboration

Process optimization encourages cross-functional collaboration and communication. As workflows become clearer and more transparent, team members can easily understand their roles and responsibilities within the process. This fosters a sense of teamwork, promotes knowledge sharing, and encourages collaboration across departments. By working together seamlessly, you can achieve better outcomes and overcome challenges more effectively.

3. Increased Customer Satisfaction

When you optimize your business processes, you can better align them with customer needs and expectations. By identifying and addressing pain points in the customer journey, you can provide a more seamless and satisfying experience. Whether it’s faster response times, improved product quality, or personalized services, optimized processes can help you deliver exceptional customer satisfaction, leading to increased loyalty and positive word-of-mouth referrals.

4. Enhanced Agility and Adaptability

Optimized processes make your organization more agile and adaptable in a dynamic business environment. By regularly reviewing and improving your processes, you can quickly respond to market changes, customer demands, and emerging trends. This flexibility allows you to stay ahead of the competition, seize new opportunities, and navigate challenges more effectively.

5. Reduced Costs

Process optimization often leads to cost savings. By eliminating waste, minimizing manual efforts, and streamlining workflows, you can reduce operational expenses. For example, automation tools can eliminate repetitive manual tasks, freeing up time and resources for more strategic initiatives. Cost savings can be reinvested in areas that drive growth and innovation within your organization.

6. Empowered Employees

Optimized processes empower your employees to work smarter, not harder. By providing clear guidelines, efficient workflows, and access to necessary information, you enable your team to perform their best. Empowered employees are more engaged, motivated, and satisfied in their work. They can focus on high-value activities, unleash their creativity, and contribute meaningfully to the success of the organization.

Challenges of Business Processes

Even the best-designed business processes can face hurdles during implementation and ongoing operation. This section will explore some common challenges businesses encounter and how to address them.

Common Roadblocks in Process Implementation

Employee Resistance

Change can be disruptive, and employees may resist new processes due to fear of the unknown, potential workload increases, or a lack of understanding.

Solutions: Clear communication about the process’s benefits, comprehensive training, and involving employees in the development process can help overcome resistance.

Lack of Resources

Implementing new processes may require additional resources like time, budget, or personnel.

Solutions: Carefully plan and prioritize process implementation, considering resource constraints. Effectively utilize existing resources and explore options like phased rollouts or outsourcing specific tasks.

Technology Integration Issues

Integrating new processes with existing technology systems can be complex and lead to disruptions.

Solutions: Thorough compatibility testing before implementation and involving IT staff early in the process can minimize disruptions.

Challenges Specific to Process Types

Managing Complex Supply Chains: Global supply chains involve multiple stakeholders, logistics, and regulations.

• Challenges: Ensuring visibility throughout the supply chain, managing disruptions, and maintaining compliance with various regulations.
• Solutions: Implementing robust supply chain management software, fostering strong communication with partners, and proactively monitoring potential risks.

Ensuring Regulatory Compliance: Businesses in many industries must adhere to strict regulations.

• Challenges: Keeping up with changing regulations, accurately documenting processes, and ensuring audits are successful.
• Solutions: Investing in employee compliance training, utilizing compliance management software, and conducting regular internal audits.

By understanding and proactively addressing these challenges, businesses can ensure a smoother implementation and ongoing success of their business processes.

Key Tools and Technologies for Optimizing Business Process

When it comes to optimizing your business processes, there are several tools and technologies available to support your efforts. These tools are designed to streamline workflows, automate repetitive tasks, and improve overall efficiency. Here are a few human-friendly examples of commonly used tools and technologies for business process optimization:

1. Workflow Management Systems

These systems help you design, automate, and track your workflows from start to finish. They provide a centralized platform where you can visualize your processes, assign tasks, set deadlines, and monitor progress. With workflow management systems, you can streamline collaboration, improve task accountability, and ensure smooth process execution. Small tasks such as sharing PDFs online or sending daily work reports may not seem particularly time-consuming, but without the right tools, these tasks can take up a lot of your employees’ time.

2. Business Process Management (BPM) Software

BPM software offers a comprehensive solution for managing and optimizing your business processes. It provides a range of features such as process modeling, performance monitoring, and process improvement tools. BPM software enables you to identify bottlenecks, analyze process data, and make data-driven decisions to enhance efficiency and effectiveness.

3. Customer Relationship Management (CRM) Systems

CRM systems allow you to manage and analyze customer interactions and data throughout the customer journey. Integrating CRM with your business processes allows you to automate customer-related tasks, enhance communication, and provide personalized experiences. CRM systems help you build stronger customer relationships and improve overall customer satisfaction.

4. Collaboration and Communication Tools

Effective collaboration and communication are crucial for optimizing business processes. Tools like project management platforms, team messaging apps, and video conferencing software enable teams to collaborate in real-time, exchange ideas, and share information seamlessly. These tools promote transparency, reduce miscommunication, and foster a collaborative work environment.

5. Enterprise Resource Planning (ERP) Systems

ERP systems integrate various business functions and processes into a unified system. They facilitate the management of core business activities like finance, inventory, human resources, and supply chain. Well-known ERP solutions include SAP, Oracle ERP, and Microsoft Dynamics 365.

It’s essential to assess your processes, identify pain points, and select tools that align with your goals. By leveraging these tools and technologies, you can drive process optimization, enhance productivity, and achieve better business outcomes.

Benefits of using Business Process Software

Utilizing Business Process Software offers a myriad of advantages to modern enterprises. By leveraging this innovative technology, businesses can

• Streamlines operations
• Boosts efficiency
• Fosters improved collaboration among teams
• Enhances productivity
• Ensures accuracy in data management
• Identifies operational bottlenecks for optimization
• Empowers organizations to adapt and innovate
• Helps stay ahead in competitive landscapes

No-Code: The Catalyst for Optimizing Your Business Processes

One of the most significant advantages of no-code development lies in its ability to streamline and optimize business processes. Whether it’s automating repetitive tasks, integrating disparate systems, or creating custom workflows, no-code platforms provide intuitive visual interfaces and drag-and-drop functionality, empowering users to design and implement solutions tailored to their unique requirements.

Also, no-code development fosters collaboration and fosters a culture of innovation within organizations. Business users and subject-matter experts can actively participate in the development process, sharing their domain expertise and contributing to the creation of efficient and user-friendly applications. This collaborative approach not only accelerates time-to-market but also ensures that the resulting solutions truly align with the needs of the business.

No-code development represents a game-changing paradigm shift for businesses seeking to optimize their processes and accelerate digital transformation. By enabling anyone to build applications and automate workflows without any coding, organizations can unleash their creativity, enhance productivity, and drive innovation. Embracing no-code development is not just a trend but a strategic imperative for businesses aiming to stay ahead in today’s dynamic and competitive marketplace.

The Crucial Quest to Improve Business Processes

Improving business processes is not merely an option; it’s a strategic imperative for sustained success in today’s dynamic landscape. Effective processes are the veins through which the lifeblood of an organization flows. By enhancing processes, businesses can unlock a multitude of benefits, from heightened efficiency and reduced operational costs to elevated customer satisfaction and accelerated growth.

Embracing process improvement leads to streamlined workflows, quicker response times, and better resource allocation, all of which contribute to a competitive edge in the market. Moreover, as industries evolve and customer expectations evolve, businesses that continuously optimize their processes are better poised to adapt, innovate, and stay ahead of the curve. Ultimately, the pursuit of improved business processes isn’t just about efficiency; it’s about cultivating a culture of excellence and resilience that propels organizations toward their goals and beyond.

Conclusion

Increasing efficiency and productivity at work is a key benefit of business process automation. Additionally, they facilitate orderly and prompt customer service at all levels. 

Every organization has its business processes. Value is delivered to customers and business processes generate revenue.

Frequently Asked Questions (FAQs)

Discover the answers to common questions surrounding the optimization potential, implementation, and challenges of integrating no-code development into your organization.