Business processes are a fundamental part of how organizations operate, and they are closely linked to organizational strategy, competitive advantage, and information systems.

A business process is a set of related activities or tasks performed in a specific sequence to achieve a particular goal or deliver a product or service. These processes can be operational (like order fulfillment or manufacturing), managerial (like budgeting or performance review), or supporting (like recruitment or IT support).

The processes are performed by people or systems in a structured manner to attain a pre-defined objective. Efficient and streamlined execution of business processes directly contributes to the success of business operations and growth. 

Business Process Lifecycle:

Step 1: Define your goals

What is the purpose of the process? Why was it created? How will you know if it is successful?

Step 2: Plan and map your process

What are the strategies needed to achieve the goals? This is the broad roadmap for the process.

Step 3: Set actions and assign stakeholders

Identify the individual tasks your teams and machines need to do in order to execute the plan.

Step 4: Test the process

Run the process on a small scale to see how it performs. Observe any gaps and make adjustments.

Step 5: Implement the process

Start running the process in a live environment. Properly communicate and train all stakeholders.

Step 6: Monitor the results

Review the process and analyze its patterns. Document the process history.

Step 7: Repeat

If the process is able to achieve the goals set for it, replicate it for future processes.

Business Process Improvement:

Business process improvement (BPI) is a practice in which enterprise leaders analyze their business processes to identify areas where they can improve accuracy, effectiveness and efficiency and then make changes within the processes to realize these improvements.

BPI works by identifying the operations, employee skills or enabling technologies that could be improved or added to encourage smoother procedures, more efficient workflow and overall business growth.

This process, also known as functional process improvement, is part of the broader management discipline of business process management.

Benefits of BPI:

1. Cut Costs: Streamline operations and reduce unnecessary spending.
2. Eliminate Redundant Efforts: Remove duplicate tasks or roles that waste time and resources.
3. Ensure Workflow Loyalty & Regulatory Compliance: Enforce consistent processes that align with policies and legal standards.
4. Improve Product/Service Quality: Enhance the end output to better satisfy customers and stakeholders.
5. Reduce Errors: Minimize human and system mistakes through better processes and checks.
6. Speed Up Output: Increase process speed to deliver results faster and more efficiently.

Steps of Business Process Improvement (BPI):

1. Identify the Process or part of process to Improve
   • Choose a process that needs improvement.
   • Use process mapping to understand how it works.
2. Find the Problems
   • Look for bottlenecks, delays, errors, or waste.
   • Get input from people involved in the process.
3. Find the Root Cause
   • Ask “why” the problems are happening.
   • Use tools like cause-and-effect diagrams.
4. Design a Better Process
   • Simplify steps, remove waste, or use new tools/technology.
   • Make sure the new process is realistic and helpful.
5. Put the New Process in Place
   • Train staff and apply the changes.
   • Use change management to help people adjust.
6. Check the Results
   • Measure performance after the change.
   • Make sure the process is better, faster, or cheaper.

Business Process Re- engineering(BPR):

Business Process Re-engineering (BPR) is a strategic approach to improve an organization’s performance by rethinking and redesigning its business processes. The goal of BPR is to achieve significant improvement in parameters like cost, quality, service, and speed.

Objectives:

1. The aim is to improve customer satisfaction by improving the quality and speed of services delivered.
2. It involves questioning the basic assumptions and principles of current business processes.
3. It involves the collaboration of cross-functional teams to ensure all the aspects of the processes are considered.
4. Its successful implementation requires effective change management strategies to handle resistance to change.

Steps to BPR:

1. Identify Processes: This step involves identifying processes for re-engineering that require the improvement most and will offer the greatest benefit from re-engineering.
2. Understand Existing Processes: Conduct a thorough analysis of current processes to identify inefficiencies and bottlenecks.
3. Define Objectives: Set clear and specific goals for the re-engineering process such as cost reduction, faster service, improved quality, and many more.
4. Form a Cross-Functional Team: Form a team of members from various departments to bring diverse expertise to the re-engineering process.
5. Redesign Processes: Rethink and redesign processes from the ground up, focusing on eliminating non-value-adding activities.
6. Implement Changes: Execute new process designs and ensure that all necessary resources are available to facilitate a smooth transition.
7. Monitor and Optimize: Continuously track the performance of re-engineered processes and make changes as needed to ensure that they meet the desired outcomes.

Types:

1. Integration-Centric BPM

This type of BPM is for processes where computer systems do most of the work. It connects different software like ERP and CRM so they can share information without needing people to help. It helps things move faster and more smoothly between departments.

2. Human-Centric BPM

This BPM is for processes where people are the most important part. It helps with tasks that need human decisions, approvals, or teamwork—like hiring someone or approving a budget. It gives easy tools, reminders, and tracking to help people do their jobs better.

3. Process-Centric BPM

This BPM focuses on improving big, complex processes that go through many departments. It helps make these tasks more organized and automatic. It’s useful in areas like supply chains or customer service, where many steps need to work well together.