Business processes: examples and explanation

 

Business processes are the heart of your organisation. Without well-functioning business processes, your organisation cannot operate efficiently. In this article, we explain what business processes are and why they are so important. We also share practical tips for improving your business processes.

What is a business process?

A business process is a recurring chain of activities. This chain is focused on the customer and aligned with the organisation. In many ways, business processes are the foundation of an organisation.

Ultimately, all processes are connected. If one process in one department runs into problems, it can affect the entire organisation. A kind of domino effect occurs. That is why efficient business processes are essential for a future-proof organisation.

There are three types of business processes:

  • Primary processes, also known as operational processes
  • Management processes, also known as controlling processes
  • Supporting processes

Different types of business processes

Primary business processes

Primary business processes are directly related to the core purpose of the organisation. In many companies, primary processes are linked to production, service delivery and sales.

Management processes

Management processes focus on managing the organisation and designing, monitoring and improving processes.

Supporting business processes

Supporting processes exist to make primary processes possible. Examples include administration, finance, HR and IT.

How can you improve business processes?

The principle is simple: well-running business processes are crucial to the health of an organisation. Control over business processes is therefore essential.

Still, many organisations are hesitant to tackle their processes. As a result, processes are often less efficient than they could be. Emails are missed, files are stored in physical archives, and contracts need to be emailed, printed, signed, scanned and emailed again. Above all, everyone follows their own way of working. That is not future-proof.

You can improve business processes by digitising and automating them. Start by mapping your business processes so you can see what already works well and where there is room for improvement. Once you have reviewed your processes, you will probably discover that many of them can be performed digitally and automatically.

You can choose different tools for different departments, or one integrated software package. Small organisations can often still manage with several separate tools. But as a company grows, separate tools become less efficient. Integrations are expensive, and communication between tools can be difficult or even impossible.

Larger and growing organisations usually gain more efficiency from using one software package for all key business processes.

 

Control over your business processes from start to finish

Your organisation has countless processes, from simple to complex. In the end, all these processes are connected. Primary processes, management processes and supporting processes are all essential to your organisation.

Ready for smoother business processes? Discover how ERP software can help you streamline and automate your organisation.

Examples of business processes

Every organisation has many different processes. Examples of business processes include:

 

  • Processing a customer order
  • Requesting and approving leave
  • Electronic invoicing
  • Updating inventory and purchasing stock
  • Submitting and approving expenses
  • Onboarding new colleagues
  • Recruitment and selection

To show how complex business processes can become, let’s take a closer look at the final example.

Example process: recruitment and selection

The recruitment and selection process involves many steps. In its most basic form, the process looks like this:

 

  • The vacancy is published.
  • An application comes in by email, through the website or via a portal.
  • You schedule a job interview.
  • You hire the candidate and enter their details.
  • You send the contract proposal.
  • The new employee prints the contract, signs it, scans it and emails the signed version back.
  • The new employee can start. And do not forget proper onboarding.

 

With HR software, this process can largely be automated. As an example, this is what the recruitment process can look like when using integrated software:

  • The vacancy is created in the HR software and automatically published on your careers website.
  • The application comes in through the careers website and is being analyzed by AI.
  • Applicants receive access to the portal, where communication takes place.
  • Applicants enter their own details in the portal.
  • You schedule the job interview through the portal.
  • You send the contract proposal through the portal.
  • The applicant signs the contract digitally.
  • The new employee automatically enters the onboarding process for a smooth start.

Mapping business processes

Do you want efficient, effective and flexible processes? Then start by mapping your business processes. Describe the desired way of working and define every step. Keep it simple and clear at first. Process descriptions can quickly become complicated because of all the exceptions. Start by describing the standard process, then add the exceptions later. And when you standardise processes in software, take the opportunity to review them critically. Can the process be made more efficient? Are all steps still necessary? Can certain actions be automated?

Example of mapping a business process

A mapped process makes it clear to everyone how a process should run. For example, you could map the process for reporting a security issue. By describing and visualising the process, everyone knows which steps to follow, who is responsible and what happens next.

Insight is the first step towards improvement. Once a process is clearly mapped, it becomes much easier to improve and automate it.

Automate your business processes with AFAS Software

Many administrative business processes within your organisation are connected. From managing customer relationships to paying employees, and from registering project hours to financial administration. That is why AFAS developed one complete ERP system in which all these activities take place and come together. The result? You no longer lose time on duplicate data entry, you work highly efficiently and you can focus on your core tasks with confidence.