Business Processes
Business Processes
A business process is a collection of linked tasks that find their end in the delivery of a
service or product to a client. A business process has also been defined as a set of activities and
tasks that, once completed, will accomplish an organizational goal. The process must involve
clearly defined inputs and a single output. These inputs are made up of all of the factors that
contribute (either directly or indirectly) to the added value of a service or product. These factors
can be categorized into management processes, operational processes and supporting processes.
The definition of the term business process and the development of this definition since its
conception by Adam Smith in 1776 have lead to such areas of study as Operations Development,
Operations Management and to the development of various Business Management Systems.
These systems, in turn, have created an industry for BPM Software that seeks to automate
process management by connecting various process actors via technology.
A process requires a series of actions to achieve a certain objective. BPM processes are
continuous but also allow for adhoc action. Processes can be simple or complex based on number
of steps, number of systems involved etc. They can be short or long running. Longer processes
tend to have multiple dependencies and a greater documentation requirement.
A. System-intensive processes
These are the processes in which millions of transactions take place every day, which interact
with packaged applications, custom applications, external applications, and very occasionally
with humans. Examples include trade reconciliations, supply chain management, and line
provisioning in the telecommunications market.
B. Human-intensive processes
In such processes there is a lot of interaction and involvement of people in each step of the
business application – people talking to databases, documents and other people. They require
human judgment and intuitions for decision-making during individual steps of the business
process. Examples of human-centric processes include claims processing, loan approvals,
accounts payable, mortgage origination, customer service, travel requests, purchase requests and
work submitted by insurance agents and adjusters.
If you notice these predominantly deal with routing of work from one individual to another and
support how each person will interact with that piece of work. This type of process does not
generally incorporate many systems into the workflow.
C. Document-intensive processes
These processes require users to review documents for approval, enter data from those
documents into a back-office system, and make decisions. Action is driven by information found
in scanned images or electronic forms, or possibly electronic documents created in Microsoft
Word or other tools. If your processes have a strong need for image capture, forms processing,
and document management, make this BPM category your highest priority.
D. Decision-intensive processes
These processes require users to review documents for approval, enter data from those
documents into a back-office system, and make decisions. Action is driven by information found
in scanned images or electronic forms, or possibly electronic documents created in Microsoft
Word or other tools. If your processes have a strong need for image capture, forms processing,
and document management, make this BPM category your highest priority.
E. Conclusion
BPM can be applied to any business process regardless of function, department, organization, or
industry. Organizations that are successful in exploiting BPM technology start out by solving a
specific business process problem with a clear, short-term ROI. BPM adds an independent
process layer to provide a complete view of all the activities necessary to execute a particular
business process. It can manage the flow of these activities whether they involve applications,
people, or a combination of both. Right selection of BPM tools, coordinates all aspects of a
process, ensuring that it is executed quickly, accurately, and efficiently.