Growth and Optimization
What is Business Process
What is Business Process: understand the foundation of efficiency
What is a business process? What is a task in a business process? Those questions might seem simple, but you'd be surprised at how many business owners, managers, and executives need to understand them fully.
A business entity must fully understand business processes and how vital they are to reach its full potential. Our goal is to help you understand what the term means and to share how improving your business processes can take your operation to soaring new levels.
What Is a Business Process?
In layperson's terms, a business process is a set of activities that accomplish a specific business goal. There can be hundreds of business processes within an organization, and they can fit into subcategories under a departmental umbrella.
We'll take the finance department, for example. The finance department is typically responsible for managing the business's income and expenditures.
Thus, these individuals would oversee payroll budgets, traveling expenses, manufacturing costs, etc. Expense reimbursement is another area this department would likely handle, and the process would look something like this:
Employer Sets Expense Reimbursement Guidelines
The first step in this process is setting the guidelines and policies for expense reimbursement. Decision makers determine which items their employees are eligible to receive reimbursement for, how much they can receive, and when they should submit their claims.
Mileage is an excellent example of something a business might reimburse its employees for. Traveling salespeople may be eligible to receive $1 per mile if they have to use their personal vehicles, for instance. They may be eligible for these funds once per pay cycle, once a month, or every quarter.
Once the employer sets the policies, they must distribute them to the workers, so they understand the claims procedure they must undergo to receive their reimbursement. This "procedure" is only part of the overall process, and it has a very specific set of detailed instructions set by the financial department.
Employee Tracks and Records Expenses
An employee completes his or her job-related tasks and tracks the expenses to prepare for the reimbursement request. Such tracking may include stockpiling receipts or using specialized software that streamlines and simplifies the process. Concur Drive is an example of an app that can help ensure employee mileage is recorded and reimbursed accurately. It has the ability to track workers' driving miles, receive receipts, and show the employer real-time expenses.
Employee Submits a Claim
The employee submits a request for reimbursement using the technological tools provided or an alternative method as per the finance department's instructions. This process may include completing an online form, calculating mileage, and submitting all fuel, maintenance, and repair receipts.
Employer Verifies the Expense
The employer reviews the documentation and calculates the total for all payable expenses. They then approve or deny the claim after checking it against the guidelines.
Employer Reimburses the Worker for the Expenses
The employer pays approved claims according to the methods determined in the reimbursement policy. Examples of payment methods include direct deposit, check, and pay card.
All the above-mentioned tasks are part of a business process. The purpose of that particular business process is to utilize mobile employees the most productively while providing them with a benefit that helps them succeed.
Why Business Processes Matter
Numerous additional business processes exist that are paramount to a company's success. These are some of the top reasons such processes matter:
They Boost Efficiency
Business processes make operations vastly efficient. They teach workers and management staff how to do things more easily and with fewer hiccups.
They Help Raise Awareness
Implementing business processes helps raise awareness of problematic areas, risk potential, and the need for procedural improvements. They can also shed some light on potential solutions.
They Introduce Adaptive Opportunities
Undergoing specific business processes opens the doors to adaptive opportunities. An example of an adaptive opportunity is using business process software. Such software carries an array of benefits, which we will discuss later in this piece.
They Increase Clientele and Sales
Business processes can bring more clients and sales to any organization. For example, marketing campaigns can make people more aware of the company's products and services and their need for them.
Offering referral programs can also multiply the list of faithful consumers. Existing customers feel appreciated when they know they can receive a monetary "bonus," and potential clients usually trust the words of friends and family members. Thus, pushing referrals can play an integral role within the operational umbrella and promote growth.
Examples of Business Processes
Various types of business processes exist. Primary business processes include the operational procedures that create, sell, and deliver products and services. These include marketing and sales, payments, and shipping processes.
A good operations business definition and example is launching a marketing campaign. That process has a specific goal of garnering new potential clients. Another one of the most understandable day-to-day business operations examples is pitching a product to a prospective client.
It's crucial that you understand the definition of business operations in contrast to supportive and management processes. So, we'll explain that, too.
Supportive processes include various back-end procedures, like the above scenario above where the finance department reviews a worker's reimbursement claim. They can also include financial reporting, budget forecasting, or researching funding options.
Management processes are those that involve governing workers, policies, finances, or expansion capacity. Managing labor costs is one of those processes.
All business process implementation can be broken down into multiple procedures that complete them. It is vital that all these processes run efficiently and merge together to achieve the business's largest goals. Business process software can make that happen.
Benefits of Using Business Process Software
Business process software can add a new layer to your business's success. Here's how using it can help:
Reducing Time Spent on Tasks
Time is something you never have enough of. However, you can save more of it by using tools that significantly reduce the time spent on a task. For example, automating recurring financial tasks can open time slots for more vital tasks.
Saving Money on Payroll
Business process software can reduce payroll tasks. It can eliminate the need for as many employees or reduce the instances of overtime.
Making Tasks Easier
The business process software can also simplify specific tasks. Many such products include AI-centric operations that don't deviate from the target goal.
Improving Collaborative Efforts
This unique software can allow workers and management staff to communicate and collaborate on projects seamlessly. That feature alone makes it worth the investment.
Heightening Organizational Control
Business software can also make it easier for management personnel to oversee project implementation. They may have access to live data, reporting, notation, and other features that can enrich the process.
Business Process Cycle Steps
Businesses processes typically have five steps:
- Define the goal.
- Map the process.
- Set the actions.
- Test the process.
- Implement the process.
Business software can help in all the above-mentioned steps and even contribute to some additional ones, like creating business processes. These tools have an array of features that will pay for themselves over time and surpass ROI expectations. Concur Travel is an example of one product that can save money within a business process. This smart program can keep business travel expenses compliant with budgeting guidelines while finding the most cost-effective booking options. A wealth of additional invaluable products is at your fingertips.
We strive to suggest products that fall within reasonable price ranges and offer tremendous results. You can contact SAP Concur for more information about intelligent software solutions and other tools that streamline and simplify your processes. An agent will be happy to assist you in broadening your horizons by helping you choose success-story-worthy options.