Business Processes: Definition, Types, Functions, and Benefits

The business process is an important stage in building a business. Starting a business definitely requires a careful plan and strategy. 

This is intended to achieve common goals and desires. In addition, business processes will also be passed. 

Business processes cannot be ignored and need to be considered properly in order to achieve the desired goals. 

Want to know the meaning of business processes and what are the stages and examples? Come on, take a look at this article!

What is a Business Process?

If you have a business, business processes will always be there and needed. A business process is a series of activities carried out by a company to achieve goals. 

Later, the activity will be structured correctly to get the desired goal. Usually, the activities carried out are related to the products produced.

In a company, business processes are usually divided into several sub-process stages with different tasks and activities. 

Later each person will do their own specialization. So, it can be concluded that the purpose of business processes is to achieve company goals based on customer needs. 

Understanding Business Processes According to Experts

The following of business process is as follows:

1. Weske

Business processes are all activities that can be carried out properly and assisted by information systems. However, it can also be done manually. 

2. Kelly R. Rainer 

Kelly stated that business processes are interrelated activities to produce products or service that have value for the company.

3. Magal and Word

Furthermore, according to Magal and Word, a business process is a series of activities that produce something, where each activity is carried out based on events. 

4. Ummler & Brache 

Business processes are all activities that are carried out and have the aim of producing products or services. 

5. Hammer & Champy's

Hammer & Champy's explains that business processes are activities that require one or more inputs to produce outputs that have value for customers. 

Types of Business Process

In its application, there are several types of business processes. The types of business processes are as follows:

1. Main process

The main process is the core of the business process. This process is very fundamental. This is because the company sends the final product to the customer. 

Each step in this process aims to add value to the final offer. There are three phases in the main process, namely:

  • Production 
  • Marketing
  • Service to customers

2. Secondary process

Next is the secondary process, which is the support process. This means that secondary processes do not add value to the final product directly. 

However, this process still makes an impact on the main process to keep it operating efficiently and effectively. 

Secondary processes also support day-to-day operations and focus on internal company. 

3. Process management 

The last is the management process, which aims to set goals and standards which will lead to the work of the primary and supporting processes in an efficient and effective manner. 

The management process also regulates operations, corporate governance, and strategic management. 

Business Process Stages 

In running a business, there are stages that need to be passed. The stages of the business process are as follows: 

1. Analysis of business activities 

At this stage, the owner and management of the company will work together to determine the business they want to run. 

The process of analyzing business activities will also help you to find out what actions are in accordance with the needs and goals of the company, so that they are more effective and efficient.

2. Determination 

The next stage is determination. At this stage, the company management will determine the activities to be carried out. 

This could be related to operational costs so that the business can run and get the expected results. Usually, this determination is made based on the results of the analysis of business activities earlier. 

3. Implementation 

Next, the stage of the business process is implementation. In this implementation stage, the owners and management of the company will carry out the execution of the things that have been determined previously.

Each section will later carry out their respective roles and duties. This is of course to achieve the desired goals together. 

4. Evaluation 

Finally, the stages of the business process is evaluation. Evaluation is an important step to do because it can find out what things are felt to be lacking after running it. 

The owners and management of the company can also find out what are the strategies for the future after conducting an evaluation. That way, human resources and strategies can be further optimized. 

Business Process Example 

If there is a company that wants to launch a product with a new iOS, then the steps taken in the business process are as follows:

  • Conduct market research to find out what the market wants
  • The company will look for the best resources to develop the product based on market needs
  • The company will conduct other market research to validate the product market suitability hypothesis
  • Reviews from innovators and early adopters will be used as they can further refine the offering 
  • The company will then form a marketing strategy to promote the product 
  • The company will launch a beta version of the app
  • Finally, the application will be released on the App Store

Business Process Function 

In practice, business processes also have several important functions in them. The business process functions are as follows:

  • Provide solutions for managers to overcome problems in the company
  • As an indicator tool for customers. The point is to predict when the process will start and end
  • Provide information to all workers involved. Later the workers will become more understanding and know their respective duties

Business Process Benefits 

Business processes also have many benefits in practice. The following benefits of business processes are: 

  • Provide information about the condition of the company
  • More focus on consumer and customer needs
  • Companies become more responsive to existing challenges 
  • Reducing human error by placing workers according to their expertise 
  • Can be used as a reference for projecting the business as a whole and in real time
  • Companies can be faster and more responsive to identify new business opportunities
  • Making the company's competitive value better so that it can survive the competition

That's an explanation of business processes, from understanding to the stages of business processes. So far, it can be seen that business processes are an important part of an effort to achieve its goals. 

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