The benefits of Business Process Analysis
Good Business Processes are imperative to achieve your business goals. Maybe you think that your organisation or your particular department does not have business processes. In reality, they are occurring at all organisational levels - some visible to customers, while others are not. Even if your company is just starting out business processes are happening – for example the set of activities that happens from when you first approach a customer to when you sell him your product is a sales process. And the more mature your organisation becomes, the more critical are processes to the success of your business.
By analysing business processes, you can identify and fix problems that arise in the daily running of your company and ultimately help your business grow in many ways.
Benefits of analysing business processes:
- Improve Acquisition of Customers and Customer Care
With a good business process, the sales of your products or services and customer care will run smoothly, and you will grow your customer base.
- Reduce Unnecessary Rework
The truth is, most large companies waste a lot of work hours on redoing tasks and fixing mistakes. By analysing your processes, you can minimise rework and reduce the number of unnecessary, cumbersome and tiring tasks that are not helping your bottom line. Cutting administrative tasks also makes it possible to complete more in the same amount of time and save human resources for work generating higher value to the company.
- Better Management
As your business expands, it becomes more difficult to manage. Great business processes aid management to control and steer the company and drive business results.
- Efficient Communication
For a company’s growth to skyrocket, there’s a need to communicate and cooperate efficiently both horizontally and vertically - across different departments, branches, and levels of the hierarchy. Well-run business processes can make that happen.
- Effective Tracking
In large companies, it’s difficult to monitor the performance of staff and to track customers effectively. But by analysing your business processes, you’ll not only track them but also identify how they affect your business.
If you’re concerned about your company’s growth, you should look no further than optimising your business process.
Are you aware of the problems in your business processes?
Business processes are a critical element for a company’s growth, but poorly optimised, inefficiently executed processes also represent a risk:
- Loses of performance and productivity
- Lagging production, faulty products, poor services
- Lost revues, squandered resources
- Increased costs, inefficient distribution of work
- Security risks, frauds, compliance risks
Common challenges that have adverse effects on a business process:
Wrong order of process steps, unnecessary steps, not following the correct process flow, human errors or wasteful allocation of workers or other resources, can halt or slow down the process at a particular stage, this will inevitably affect your business results.
Duplication of work occurs when different processes are joined together. This leads to inefficiency, and repetition of unwanted and unnecessary tasks.
It’s challenging to integrate legacy systems with new ones or even connect your current systems within a process. Inefficiently performing systems constitute a significant problem that leads to malfunctions and communication gaps.
- Poor organisation
Another prominent issue with business process is lack of organisation, which occurs mostly when employees are just loosely following rules without understanding why they are being asked to do things a certain way.
- Process Complexity
As the company grows the processes tend to grow ever more complicated, as more and more systems are used the process becomes too complicated for the stakeholders to have real insight into how things are happening.
More benefits a Business Process Analysis can bring to your company
- Enabling Innovation
Business process analysis will identify the bottlenecks that have endangered the company so far, uncover opportunities for improvement and come up with new ways to reorganise or simplify existing processes. In our experience the easiest changes - such eliminating an unnecessary process step or introducing new guidelines increase the overall productivity, without having to invest in new technology or make changes to existing systems within the company.
- Data based insight for decision making
Most problems which arise with the business process are primarily due to the lack of transparency. When a company wishes to improve its results, the managers are often asked to cut costs, and the apparent way is massive layoffs. These happen without managers having data-based insights into individual performance or understanding how losing a particular group of employees will affect the overall process.
- Uncovering the causes and hidden details
Business process analysis will give you insights into the actual flow of business processes and help you not only identify inefficiencies, exceptions, unusual transactions, bottlenecks, deviations, weaknesses & risks, but also find their causes.
- The baseline for new IT investments, automation or digital transformation
Business process analysis helps you identify key areas that need to be addressed when you are looking to implement new technology. When you analyse, optimise and rethink each process before investing in new technology you achieve tactical changes that increase efficiency, this makes the process reap large benefits for the company.
- Power your continuous improvement strategy
Process analysis accelerates optimisation efforts. Real-time insights into actual business process steps create endless opportunities for improvement.
Learn how Minit software automatically maps and analyzes business processes.
Simona Parnicka Marketing Manager at Minit
05. 04. 2018