Types Of Business Processes
Through various types of business processes, a business enterprise reaches its desired goal. Various processes are planned and implemented in a very effective manner so as to attain maximum profits and efficiency. Business processes can also be referred as a flowchart of activities or a series of inter-related activities which help in attaining the desired results. If properly implemented, these processes serve the customers in the best possible manner.
The various types of business processes can be classified in different ways. Every organization follows different processes and hence there are various groups- according to the first group, business processes may be divided as follows-
* Human-Intensive Processes: Human efforts of decision-making and interaction to solve problems are the main activities involved in this type of process. This process revolves around human nature and power to take right decisions. The various activities and processes classified under the human-intensive processes are- loan approval, claim processes, travel and purchase requests, customer services, accounts payable, etc. These processes are solely based on human efforts. The ultimate aim depends on the dealings and interaction between people.
* System-Intensive Processes: In this type of process, millions of transactions take place on a daily basis. Human efforts are minimal. Computer systems have pre-defines packages to perform a certain specified action and hence results greater efficiency. Certain types of system-intensive processes are- trade reconciliations, line provisioning which relates to telecommunication markets and also supply chains. These have huge volume of transactions which can only be done through integrated systems.
* Decision-Intensive Processes: The various steps involved here are- 1) users first review the documents for the purpose of approval, 2) data entry from the documents approved, and 3) then take decisions keeping in mind the facts generated from those documents. All the decisions taken by the people are based on the information derived from documentation. Among all the types of business processes this process is the highest priority of the business enterprises if there is a high need for form processing.
* Document-Intensive Processes: Certain examples of this process are- invoice processing, opening of the new account and litigation support. Medical record, loan approval, claims processing, etc are industry related processes covered under this intensive technique. It is very much related to the above process. The difference is that first documents are approved and then decisions are taken.
According to the second group the various types of business processes are as follows-
* Management Processes: These processes involve corporate communication, budgeting, corporate governance and strategic planning. These activities are core to the management and hence they are named as management processes. Decisions regarding the various activities are taken systematically by the use of various intensive and extensive procedures. They generally are not the day to day activities of the business process and hence require greater efficiency.
* Operational Processes: They are also known as the primary processes of the business enterprise. These processes involve following core activities- ideas and activities relating to production, lead to sales and order to cash. The above activities relate to the production and sales of the various products and services. Decisions are taken keeping these factors and activities in mind.
* Supporting Processes: They are the secondary processes among the different types of business processes in this category. These secondary processes include the services relating to the customer care, accounting and employee life cycle management. These processes support the primary activities and hence the decisions are taken accordingly.
The above division is based on the various activities of the different enterprises.
