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What is a Business Process?

What is a Business Process? 4

Defining and understand what a process is and why processes matter in business. A Business process or business method is breaking down complex business processes into a series of smaller steps performed activities or tasks checklist which have their own attributes and contribute to achieving the overall defined goal of the business.

Examples of business processes:
Onboarding a new client
Sales Process
Deploying software
Backup Processes
Customer Service
Billing & Accounts

First Business Process

Processes are a lot more interesting than you think and used to increase productivity as Scottish economist Adam Smith in his famous example of production of a pin in a factory explains.

”One man draws out the wire; another straights it; a third cuts it; a fourth points it; a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations; to put it on is a peculiar business; to whiten the pins is another ... and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some manufactories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them.”

Adam Smith (1723 – 1790) economist, philosopher and author

Discovering how the output could be increased by dividing work into sets of simple checklist tasks which would be performed by specialised workers.

Dividing work into a set of simple tasks output could be increased through the use of labour division.

Task division was set at appropriate levels to skills and division by experimenting with the production process.

This experiment the division of labour resulted in productivity increasing by 24,000%, i.e. the workers made 240 times as many pins than before labour division.

Historic Business Process

Frederick Winslow Taylor – Improved industrial processes and documented in his book The Principles of Scientific Management xalling it also Taylorism which focused on standardisation of processes in the early twentieth century.

Henry Ford – The evolution of mass production with the first moving assembly line which revolutionised the manufacturing processes. Instead of one artisan creating a product alone, everyone was taught to do one of 84 simple repetitive jobs.

The Benefits Of Using Business Processes

Benefits of business process management can be simple or complex based on the number of steps, the number of systems involved in achieving a certain objective.

Increased productivity
Improve efficiency
Prevent failures & mistakes
Collaboration and delegation

BPM Business Process Management managing and improving your company’s business processes which can be structured and repeatable or unstructured and variable bringing people and technology together.

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