A collection of processes is what makes the business. Different processes come together to form an efficient business model. For a business to flourish it is important that the processes are optimized and the function smoothly in the organization. The primary function of processes is to add value to the business. There are different types of processes which are used to enhance the business. Basically, there are three categories under which all the types of business processes fall under.
A) Primary Types of Business processes :
These types of business process are extremely important and fundamental for business. The deal with the basic values and work alongside the vision and mission of the business. As the name suggests the primary process is a very basic process through which the business ensures delivery of services or products to their clients.
These processes are paid close attention to since they are an integral part of the organization. The ultimate aim of primary processes is to optimize themselves so that they add value at every step of the business as well as to the end product which internal value to the client. This improves the processes and has a direct effect on business output.
There are different types of business processes under primary processes. These are as follows:
Sales standalone type of business process which can make a company. Serious is considered as a primary business process because it is the ultimate revenue generator for any and every business and without revenue business cannot survive or run. Most of the startups have a strong sales system in order to get more revenue and profit generation to run the organization.
Even the Conglomerates focus on the sales process in order to generate higher profits and gains or retain market share in the market. Without sales, any organization cannot survive and that is the reason why the money spent on the sales department is the second highest of the expenses in the entire organization. The company may or may not have any other department but it is essential to have a sales department. Be it a small organization or roadside vendors or a multinational organization, without sales, none of the businesses can survive.
2) Customer service:
Since sales is an essential and primary type of business process the next one is customer service. Once the sales orders are generated it is essential that there is a back in the team which process is the orders and provides them to the customers. Customer service also helps in managing the situation when customers required information about the product or service for assistance with the technicalities of the product. Good customer service can retain customers as well as bring back lost customers better than size department.
3) Finance department:
Once the business picks up and the money starts flowing and it is essential to manage the finances. There should be a dedicated department to manage the incoming and outgoing server the finances properly so that profits are eating expenses are reduced and all the employees are paid on time.
The finance department also looks after expense management and investment management. It is essential that expenses are kept under control and all the necessary expenses are performed so that the savings and the profits left after reducing all the expenses or much higher. The finance department also deals with daily activities like expense approvals salary disbursement and taking care of all the miscellaneous and recurring expenses.
4) Operations processes:
Supply chain management and operations on the primary skill are an essential part of the business and that is why are categorized under primary processes. Once the sale starts generating inventory management and stock management should be done in a proper way in order to supply the clients with the products or services. Supply chain management is also essential for proper management of deliveries and to receive deliveries stock management and warehouse management. Basics of operations are necessary without which business cannot survive.
Production or manufacturing of the product is of paramount importance for any business to run. It is crucial that the organization has a product or service to sell and that is where the production and manufacturing come into the picture. Once the product is designed, crafted and approved the initial production of how the product begins in the production or manufacturing facility.
This includes recruiting of the labors who are involved in the production facility right from manufacturing of the product till packaging and dispatching it. In case of services, the production and manufacturing and services would mean crafting of services are deciding on a standard flow of services. Once the services are standardized, they are delivered accordingly to the customers.
While this is true in case of the companies that provide tangible products, in case of the companies that provide intangible products or services they would have to have a ready process which the customers can avail. Having a product or service to sell is the basic requirement of any organization. It does not matter if the product is on or not. The product may be manufactured by whom company or bought from other company and resold to the end customer, what matters is having something to sell.
B) Support Types of Business Processes
These are the types of business processes which are not involved in the delivery of the final product to the clients but they create a suitable environment for the functioning of primary processes.
They are not directly involved in generating value to the customer but support processes are important for the functioning of businesses. This process includes management processes, accounting process, human resources and such other processes to facilitate the smooth working of a company. Improving these processes makes a business strategy planning and fundamentally strong.
Following are few types of business process classified under support processes:
6) Accounting process:
The finance department is a basic requirement of every organization but Accounting processes are essential for the smooth and efficient performance of the finance department. Accounting department deals with the cash flow and the authenticity of the transactions in the organization.
It is the duty of the accounting department to let know when profits are reducing and losses are increasing. Accounting department ensures that all of the assets and liabilities are maintained correctly in the balance sheet. It also deals with accounts receivables and accounts payables, a collection of payments against sales, number of credit days to be allocated for the customer and such other functions.
7) Management process:
While it is essential that the top management is present in the company irrespective of its size, the middle management comes into the picture when there is an expansion of the organization.
Thus, middle management process falls under the secondary support process. Middle management is also responsible for getting the work done from the front line and reporting to the seniors about the work completion and target achievement. Management processes, like having a long chain of command is also a part of the support process. Work completion and delegation of authority becomes easier when Management process is present.
8) Human Resources:
While it is important to have a human resources department, it is not exactly crucial and organization working doesn’t stop without having a Human resource department. Hence it is classified under the support process. Usually, the recruitment is usually done by the heads of the organization in a small company or startups. But as the workload and the corporate ladder increases are essential to have a dedicated Human resource department.
The department ensures smooth working of people in the organization, helps to resolve disputes, increases the communication between departments, encourages human values, helps in the career flow, is responsible also for appointing people in the organization induction of new candidates and smooth exit of the older candidates. Human resources deal with improving the candidates and the company equally and ensure mutual growth.
C) Management processes:
These types of business processes are similar to the support processes which do not add value to the end consumer. Management processes are concerned with orientation and monitoring and analyzing the day to day business activities. These processes reason increasing the business by introducing your articles and incorporating innovation into the business.
These are usually goal-oriented processes which I am at designing and redesigning was achieving the tangible and intangible targets. They also help in maintaining the enterprise brand and ensure standing out in the market by providing their customers with added value in intangible terms. Management processes include leadership and executive decisions which are executed at the frontlines. Deciding on the targets, new product launches, expansions or closing of different departments.