A business process is defined as a series of tasks or a set of activities performed by a group of stakeholders to achieve an organizational goal. The processes are performed by people or systems in a structured manner to attain a pre-defined objective. Efficient and streamlined execution of business processes directly contributes to the success of business operations and growth.
A business process has also been defined in simple terms as a set of activities and tasks that, once completed, will accomplish an organizational goal.
Each step in a business process denotes a task that is assigned to a participant. It is the fundamental building block for several related ideas such as business process management, etc.
Types of business processes
1. Operational processes
Operational processes, also known as core business processes, are those that provide direct value to the customers and the organization itself. They are primarily responsible for generating revenue. Some examples of operational processes include the manufacturing of products, the order-to-cash process, and the delivery of products to customers.
2. Support processes
These processes enable and support the core processes to be performed seamlessly. Although they do not contribute to revenue generation, they assist internal departments in creating a collaborative environment where the core processes can be aligned to work better. Human resources, finance management, administration, and operations fall under supporting processes as they help expand a business.
3. Management processes
These processes are responsible for planning, monitoring, managing, and controlling the core and supporting processes from start to end. These processes are goal-oriented and ensure that business operations are carried out efficiently and seamlessly. Their focus is to monitor business functionalities internally and externally, analyze opportunities and challenges, and ensure continuous improvement of all processes.