Business process is a collection of structured activities or task to produce a specific out. For example – product or service.
The term BPM is the noun form of business process modeling and refers to a structural representation, description of diagram, which defines a structural representation, description or diagram, which defines a specified flow in a business.
The underline objective of BPM is the optimum utilization of resources at minimal cost to create value in business and it’s processes
The basic objective or purpose of business process modeling is to create some kind of value it may be to earn profit, improve on quality and improve on support services.
Every business process requires a goal and to achieve a goal business objective is required to achieve in structured manner. Like there should be specific Input, Specific output, Resources.
Business process modeling techniques are concerned with Mapping and Workflow to enable understanding, analysis and positive change.
Three main types of business process are
- Management process – Management process consist of corporate governance and Strategic management. Strategic management means a long term planning to achieve goals may be 3-5 years. Corporate governance is basically the mechanism to control and direct business process.
- Operational process – Operations process consist of Purchasing, Manufacturing, Marketing and Sales. Operational process is a short term planning may a year or less to achieve objectives to achieve a business goal.
- Supporting process – Supporting processes support the core processes Like Human Resource, Accounts Management, Sales & Support Management, Technical Support
For business process modeling various tools is being used. It provides business owner with the ability to model there business process, Implement those models and the same time execute the models and refine the model as required to get transparency into business process.
A Classic and simple example of Business process Modeling could be a fruit Juice vendor. Where a customer orders a juice.
- Where customer placing an order for a juice
- Juice maker process a fruit through a grinding machine add sugar to it
- Pour into a glass
- Place the order to customer
- Collect bill