Any company for it to gain momentum and stability has to ensure that it has established business processes.
A business process is a series of steps taken by a company to attain its objectives.
These objectives may be the realization of a particular percentage of turnover or geographical expansion, distribution lines, variants in offerings, etc.
Without the establishment of business processes, the direction of the organization as a whole is impaired and may not achieve its success rate.
How a business process is charted should be:
- Changeable
- Value-adding
- Repeatable
- Measurable
If any business venture at the onset itself affirms certain principles based on which these processes are made, then the chances of any loss is nil, and the scope for more substantial profits is immense.
The following assumptions must be used and complied by entrepreneurs for creating business processes:
- Performance is the key metric for measuring venture success
- Stakeholder like customers, employees are everything
- Traceable, all processes must be traceable to its origin to thwart frauds or steal
- Segmented segmentation enables better control and management
- Renewal upgradation are routine but inevitable for growth of any venture
Customer-centric satisfying customers is the cardinal principle based on which the sustainability of the firm is ensured.
Change is inevitable and so changing the processes, budgeting patterns, and everything from time to time will lead to innovative product offerings.
The benefits of an organization having business processes are:
- Establishment of the task of each employee
- Saving costs
- The negation of redundancies in routine things
- Efficiency in management
- Bring agile automation
- Better collaboration and integration
- Create a hierarchy
- Bring standardization in offerings
- Gain Brand image and reputation
- Quality in products and services
- Risk reduction and management
- Affirm accountability
Types of business processes
There are three types of business processes:
- Core value process
It is that process that contributes over 90 per cent of the revenues.
Without these processes, the sustenance of the firm itself is endangered.
This core value processes include the manufacturing of offerings:
- Production processes
- Warehousing and inventory processes
- Raw material ordering processes
- Marketing, promotion and advertising
- After-sales services
- Support process
It is the next in line of processes that support the core processes to save time.
Without support processes, the smooth operations of the core elements of the firm get evasive.
It amounts around 30 per cent of the revenues to include activities like:
- Human resources
- Customer care
- IT processes
- Management processes
The last but not the least is the management processes which are essential functions for the proper functioning of the organization as a whole to run.
The management processes include the task of taking care of the compliance of the company and other regulatory requirements.
These processes are crucial to gauge the performance of the company with the existing set of control processes as well as undertake risk management.
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Process of creation of business processes starts from:
Product development
It is to include all initiatives for making the idea into a marketable offering worth gaining quick market foot and sales.
Developing such a product does not mean copying that of the competitors, value-added and unique is the key here.
Sales Management
The whole bunch of things for enabling higher salability in terms of:
- Order processing
- Sales presentations
- Final sales
- After-sales service
Procurement process
How the business is handling the tasks of managing varying relationships with vendors, suppliers, etc.?
This involves effective:
- Negotiations
- Order fulfilment,
- Invoice creation
- Creation of records for accounts payable
Financial planning
Targets for the required amount of finance should be set and changed from time to time.
In consonance with the changing situations, a separate process to control and undertake surveillance hoe money flows throughout the firm is essential.
For this, annual and other financial records should be made along with a pitch for any external equity funding in future.
Accounting function
Accounting for the expenditures and income of the company will establish accountability.
Automation in this domain area is prevalent in the realm of accounts receivables, budget making, and tax outflows checklist.
Customer and employee support
All efforts are for reducing their churn rate and for giving them a pleasant environment and feedback mechanism.
Identify the elements that can make the customers as well. As employees happy is a crucial task that can enable their retention secure.
Business processes control and monitoring
Once all these processes are established, taking care of their perfect workings and deliverability is warranted.
How all these are working in tandem with each other, along with its efficiency, will only lead to the seamless attaining of the firm’s objectives.
For this, steps are taken for the processes:
- Improvement
- Optimization
- Feedback
- Analysis
All this will ensure that with the right feedback insights, remedial steps can be taken for correcting any particular element in the process.
As well upgrade them technologically for speed and convenience.
