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A business process, business method, or business function is a collection of related, structured activities or tasks performed by people or equipment in which a specific sequence produces a service or product (that serves a particular business goal) for a particular customer or customers. Business processes occur at all organizational levels and may or may not be visible to the customers.[1][2][3] A business process may often be visualized (modeled) as a flowchart of a sequence of activities with interleaving decision points or as a process matrix of a sequence of activities with relevance rules based on data in the process.[2][3][4][5] The benefits of using business processes include improved customer satisfaction and improved agility for reacting to rapid market change.[1][2] Process-oriented organizations break down the barriers of structural departments and try to avoid functional silos.[6]

Overview

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A business process begins with a mission objective (an external event) and ends with achievement of the business objective of providing a result that provides customer value. Additionally, a process may be divided into subprocesses (process decomposition), the particular inner functions of the process. Business processes may also have a process owner, a responsible party for ensuring the process runs smoothly from start to finish.[2]

Broadly speaking, business processes can be organized into three types, according to von Rosing et al.:[6]

  1. Operational processes, which constitute the core business and create the primary value stream, e.g., taking orders from customers, opening an account, and manufacturing a component
  2. Management processes, the processes that oversee operational processes, including corporate governance, budgetary oversight, and employee oversight
  3. Supporting processes, which support the core operational processes, e.g., accounting, recruitment, call center, technical support, and safety training

There are other definitions of the classification of processes proposed by [7]

  1. Strategic processes, which are managerial, directive or steering processes. Management has an important role in each of these. This type of process is related to strategic planning, partnerships, etc.
  2. Operational processes, which are business processes, are of a productive or "missional" nature. These processes generate a product or service to be delivered to customers. These are considered to be unique or specific to each organisation.
  3. Support processes, which are auxiliary in nature, support for operational and strategic processes. These are responsible for providing resources and are presented in most organizations.

A business made up of many process may be decomposed into various subprocesses, each of which have their own peculiar aspects but also contribute to achieving the objectives of the business. The business review analyzes processes, that usually include the mapping or modeling of processes and sub-processes down to a group of activities at different levels. Processes can be modeled using a large number of methods and techniques. For instance, the Business Process Modeling Notation is a business process modeling technique that can be used for drawing business processes in a visualized workflow.[1][2][4][6] While decomposing processes into process classifications, categories can be helpful, but care must be taken in doing so as there may be crossover. At last, all processes are part of a largely unified customer-focused result, one of "customer value creation."[6] This goal is expedited with business process management, which aims to analyze, improve, and enact business processes.[2]

History

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Adam Smith

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An important early (1776) description of processes was that of economist Adam Smith in his famous example of a pin factory. Inspired by an article in Diderot's Encyclopédie, Smith described the production of a pin in the following way:[8]

One man draws out the wire; another straights it; a third cuts it; a fourth points it; a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations; to put it on is a peculiar business; to whiten the pins is another ... and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which, in some manufactories, are all performed by distinct hands, though in others the same man will sometimes perform two or three of them.

Smith also first recognized how output could be increased through the use of labor division. Previously, in a society where production was dominated by handcrafted goods, one man would perform all the activities required during the production process, while Smith described how the work was divided into a set of simple tasks which would be performed by specialized workers.[3] The result of labor division in Smith's example resulted in productivity increasing by 24,000 percent (sic), i.e. that the same number of workers made 240 times as many pins as they had been producing before the introduction of labor division.[8]

Smith did not advocate labor division at any price or per se. The appropriate level of task division was defined through experimental design of the production process. In contrast to Smith's view which was limited to the same functional domain and comprised activities that are in direct sequence in the manufacturing process,[8] today's process concept includes cross-functionality as an important characteristic. Following his ideas, the division of labor was adopted widely, while the integration of tasks into a functional, or cross-functional, process was not considered as an alternative option until much later.[9]

Frederick Winslow Taylor

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American engineer Frederick Winslow Taylor greatly influenced and improved the quality of industrial processes in the early twentieth century. His Principles of Scientific Management focused on standardization of processes, systematic training and clearly defining the roles of management and employees.[3] His methods were widely adopted in the United States, Russia and parts of Europe and led to further developments such as "time and motion study" and visual task optimization techniques, such as Gantt charts.

Peter Drucker

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In the latter part of the twentieth century, management guru Peter Drucker focused much of his work on the simplification and decentralization of processes, which led to the concept of outsourcing. He also coined the concept of the "knowledge worker," as differentiated from manual workers – and how knowledge management would become part of an entity's processes.[10][11]

Other definitions

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Davenport (1993)[12] defines a (business) process as:

a structured, measured set of activities designed to produce a specific output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus's emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action. ... Taking a process approach implies adopting the customer's point of view. Processes are the structure by which an organization does what is necessary to produce value for its customers.

This definition contains certain characteristics that a process must possess. These characteristics are achieved by focusing on the business logic of the process (how work is done) instead of taking a product perspective (what is done). Following Davenport's definition of a process, we can conclude that a process must have clearly defined boundaries, input and output, consist of smaller parts and activities which are ordered in time and space, that there must be a receiver of the process outcome—a customer – and that the transformation taking place within the process must add customer value.

Hammer & Champy's (1993)[13] definition can be considered as a subset of Davenport's. They define a process as:

a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer.

As we can note, Hammer & Champy have a more transformation-oriented perception and put less emphasis on the structural component – process boundaries and the order of activities in time and space.

Rummler & Brache (1995)[14] use a definition that clearly encompasses a focus on the organization's external customers, when stating that

a business process is a series of steps designed to produce a product or service. Most processes (...) are cross-functional, spanning the 'white space' between the boxes on the organization chart. Some processes result in a product or service that is received by an organization's external customer. We call these primary processes. Other processes produce products that are invisible to the external customer but essential to the effective management of the business. We call these support processes.

The above definition distinguishes two types of processes, primary and support processes, depending on whether a process is directly involved in the creation of customer value or concerned with the organization's internal activities. In this sense, Rummler and Brache's definition follows Porter's value chain model, which also builds on a division of primary and secondary activities. According to Rummler and Brache, a typical characteristic of a successful process-based organization is the absence of secondary activities in the primary value flow that is created in the customer oriented primary processes. The characteristic of processes as spanning the white space on the organization chart indicates that processes are embedded in some form of organizational structure. Also, a process can be cross-functional, i.e. it ranges over several business functions.

Johansson et al. (1993).[15] define a process as:

a set of linked activities that take an input and transform it to create an output. Ideally, the transformation that occurs in the process should add value to the input and create an output that is more useful and effective to the recipient either upstream or downstream.

This definition also emphasizes the constitution of links between activities and the transformation that takes place within the process. Johansson et al. also include the upstream part of the value chain as a possible recipient of the process output. Summarizing the four definitions above, we can compile the following list of characteristics for a business process:

  1. Definability: It must have clearly defined boundaries, input and output.
  2. Order: It must consist of activities that are ordered according to their position in time and space (a sequence).
  3. Customer: There must be a recipient of the process' outcome, a customer.
  4. Value-adding: The transformation taking place within the process must add value to the recipient, either upstream or downstream.
  5. Embeddedness: A process cannot exist in itself, it must be embedded in an organizational structure.
  6. Cross-functionality: A process regularly can, but not necessarily must, span several functions.

Frequently, identifying a process owner (i.e., the person responsible for the continuous improvement of the process) is considered as a prerequisite. Sometimes the process owner is the same person who is performing the process.

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Workflow

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Workflow is the procedural movement of information, material, and tasks from one participant to another.[16] Workflow includes the procedures, people and tools involved in each step of a business process. A single workflow may either be sequential, with each step contingent upon completion of the previous one, or parallel, with multiple steps occurring simultaneously. Multiple combinations of single workflows may be connected to achieve a resulting overall process.[16]

Business process re-engineering

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Main article: Business process re-engineering

Business process re-engineering (BPR) was originally conceptualized by Hammer and Davenport as a means to improve organizational effectiveness and productivity. It can involve starting from a "blank slate" and completely recreating major business processes, or it can involve comparing the "as-is" process and the "to-be" process and mapping the path for change from one to the other.[17] Often BPR will involve the use of information technology to secure significant performance improvement. The term unfortunately became associated with corporate "downsizing" in the mid-1990s.[18]

Business process management (BPM)

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Though the term has been used contextually to mixed effect, "business process management" (BPM) can generally be defined as a discipline involving a combination of a wide variety of business activity flows (e.g., business process automation, modeling, and optimization) that strives to support the goals of an enterprise within and beyond multiple boundaries, involving many people, from employees to customers and external partners.[19] A major part of BPM's enterprise support involves the continuous evaluation of existing processes and the identification of ways to improve upon it, resulting in a cycle of overall organizational improvement.

Knowledge management

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Knowledge management is the definition of the knowledge that employees and systems use to perform their functions and maintaining it in a format that can be accessed by others. Duhon and the Gartner Group have defined it as "a discipline that promotes an integrated approach to identifying, capturing, evaluating, retrieving, and sharing all of an enterprise's information assets. These assets may include databases, documents, policies, procedures, and previously un-captured expertise and experience in individual workers."[20]

Customer Service
Customer Service is a key component to an effective business plan. Customer service in the 21st century is always evolving, and it is important to grow with your customer base. Not only does a social media presence matter, but also clear communication, clear expectation setting, speed, and accuracy. If the customer service provided by a business is not effective, it can be detrimental to the business success.[21]

Total quality management

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Total quality management (TQM) emerged in the early 1980s as organizations sought to improve the quality of their products and services. It was followed by the Six Sigma methodology in the mid-1980s, first introduced by Motorola. Six Sigma consists of statistical methods to improve business processes and thus reduce defects in outputs. The "lean approach" to quality management was introduced by the Toyota Motor Company in the 1990s and focused on customer needs and reducing of wastage.[22][23][24]

Creating a Strong Brand Presence through Social Media

Creating a strong brand presence through social media is an important component to running a successful business. Companies can market, gain consumer insights, and advertise through social media. "According to a Salesforce survey, 85% of consumers conduct research before they make a purchase online, and among the most used channels for research are websites (74%) and social media (38%). Consequently, businesses need to have an effective online strategy to increase brand awareness and grow." (Paun, 2020) Customers engage and interact through social media and businesses who are effectively part of social media drive more successful businesses. The most common social media sites that are used for business are Facebook, Instagram, and Twitter. Businesses with the strongest brand recognition and consumer engagement build social presences on all these platforms.

Resources: Paun, Goran (2020). Building A Brand: Why A Strong Digital Presence Matters. Forbes. Sourced from[25]

Information technology as an enabler for business process management

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Advances in information technology over the years have changed business processes within and between business enterprises. In the 1960s, operating systems had limited functionality, and any workflow management systems that were in use were tailor-made for the specific organization. The 1970s and 1980s saw the development of data-driven approaches as data storage and retrieval technologies improved. Data modeling, rather than process modeling was the starting point for building an information system. Business processes had to adapt to information technology because process modeling was neglected. The shift towards process-oriented management occurred in the 1990s. Enterprise resource planning software with workflow management components such as SAP, Baan, PeopleSoft, Oracle and JD Edwards emerged, as did business process management systems (BPMS) later.[26]

The world of e-business created a need to automate business processes across organizations, which in turn raised the need for standardized protocols and web services composition languages that can be understood across the industry. The Business Process Modeling Notation (BPMN) and Business Motivation Model (BMM) are widely used standards for business modeling.[2][3][4] The Business Modeling and Integration Domain Task Force (BMI DTF) is a consortium of vendors and user companies that continues to work together to develop standards and specifications to promote collaboration and integration of people, systems, processes and information within and across enterprises.[27]

The most recent trends in BPM are influenced by the emergence of cloud technology, the prevalence of social media and mobile technology, and the development of analytical techniques. Cloud-based technologies allow companies to purchase resources quickly and as required, independent of their location. Social media, websites and smart phones are the newest channels through which organizations reach and support their customers. The abundance of customer data collected through these channels as well as through call center interactions, emails, voice calls, and customer surveys has led to a huge growth in data analytics which in turn is utilized for performance management and improving the ways in which the company services its customers.[28]

Importance of the process chain

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Business processes comprise a set of sequential sub-processes or tasks with alternative paths, depending on certain conditions as applicable, performed to achieve a given objective or produce given outputs. Each process has one or more needed inputs. The inputs and outputs may be received from, or sent to other business processes, other organizational units, or internal or external stakeholders.[1]

Business processes are designed to be operated by one or more business functional units, and emphasize the importance of the "process chain" rather than the individual units.

In general, the various tasks of a business process can be performed in one of two ways:[1]

  1. manually
  2. by means of business data processing systems such as ERP systems

Typically, some process tasks will be manual, while some will be computer-based, and these tasks may be sequenced in many ways. In other words, the data and information that are being handled through the process may pass through manual or computer tasks in any given order.

Policies, processes and procedures

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The above improvement areas are equally applicable to policies, processes, detailed procedures (sub-processes/tasks) and work instructions. There is a cascading effect of improvements made at a higher level on those made at a lower level.[29]

For example, if a recommendation to replace a given policy with a better one is made with proper justification and accepted in principle by business process owners, then corresponding changes in the consequent processes and procedures will follow naturally in order to enable implementation of the policies.

Reporting as an essential base for execution

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Business processes must include up-to-date and accurate reports to ensure effective action.[30] An example of this is the availability of purchase order status reports for supplier delivery follow-up as described in the section on effectiveness above. There are numerous examples of this in every possible business process.

Another example from production is the process of analyzing line rejections occurring on the shop floor. This process should include systematic periodical analysis of rejections by reason and present the results in a suitable information report that pinpoints the major reasons and trends in these reasons for management to take corrective actions to control rejections and keep them within acceptable limits. Such a process of analysis and summarisation of line rejection events is clearly superior to a process which merely inquires into each individual rejection as it occurs.

Business process owners and operatives should realise that process improvement often occurs with introduction of appropriate transaction, operational, highlight, exception or M.I.S. reports, provided these are consciously used for day-to-day or periodical decision-making. With this understanding would hopefully come the willingness to invest time and other resources in business process improvement by introduction of useful and relevant reporting systems.

Supporting theories and concepts

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Span of control

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The span of control is the number of subordinates a supervisor manages within a structural organization. Introducing a business process concept has a considerable impact on the structural elements of the organization and, thus also on the span of control.[31]

Large organizations that are not organized as markets need to be organized in smaller units, or departments – which can be defined according to different principles.

Information management concepts

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Information management and the organization's infrastructure strategies related to it, are a theoretical cornerstone of the business process concept, requiring "a framework for measuring the level of IT support for business processes."[32]

See also

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References

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Further reading

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Revisions and contributorsEdit on WikipediaRead on Wikipedia

Business process

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A business process is a set of logically related tasks performed to achieve a defined outcome. These processes form the backbone of organizational operations, transforming inputs such as resources, , and labor into valuable outputs like products, services, or decisions that meet needs or strategic objectives. In essence, they provide a structured sequence of activities that ensure consistency, repeatability, and alignment with goals across departments. Business processes are typically categorized into several types based on their function and scope. Core or operational processes directly contribute to value creation, such as , , and , which interact with external stakeholders to deliver goods or services. Support processes, including , IT support, and , enable the core processes by providing necessary internal functions without direct customer interaction. Management processes oversee , monitoring, and control, such as budgeting and , while strategic processes involve high-level like and market entry to guide long-term direction. The significance of well-defined business processes lies in their ability to enhance organizational efficiency and adaptability. By standardizing workflows, they reduce errors, minimize redundancies, and optimize , leading to cost savings and improved . Effective processes also foster compliance with regulations, mitigate risks, and enable , allowing organizations to respond swiftly to market changes or growth demands. Ultimately, they drive by ensuring consistent quality and , forming a critical foundation for practices that continuously refine operations.

Definition and Fundamentals

Definition

A business process is defined as a series of structured, repeatable activities or tasks performed by people, equipment, or systems to achieve a specific organizational , typically transforming inputs such as resources, , or materials into desired outputs like products, services, or results. This definition emphasizes the orchestrated nature of the process, where individual actions are linked to produce value for the or its customers. Essential elements of a business process include its sequential structure, which outlines the order of activities to ensure logical progression; , allowing the same steps to be executed consistently across instances for reliability; measurability, enabling the tracking of metrics like time, , or to support evaluation and improvement; and alignment with broader business objectives, ensuring the process contributes to strategic goals such as or . Archetypal examples of business processes include , which involves steps from receiving a order to shipping the product, and customer onboarding, where new are guided through setup, training, and initial usage to achieve quick value realization. The terminology of business processes has evolved from early industrial concepts, influenced by Smith's 18th-century ideas on the division of labor that highlighted task specialization for productivity, to standardized definitions in the ISO 9000 family, which describes a process as a set of interrelated or interacting activities transforming inputs into outputs.

Key Characteristics

Business processes are distinguished by their customer-centric orientation, which prioritizes delivering value aligned with needs and expectations throughout the . This attribute ensures that processes are designed to enhance experiences by integrating data and operations to anticipate and fulfill demands, such as using for service optimization. A core characteristic is their cross-functional nature, involving coordinated efforts across multiple departments to achieve unified goals rather than isolated departmental tasks. This integration facilitates enterprise-wide efficiency, as seen in frameworks that group activities from various functions into cohesive workflows. Business processes are inherently outcome-oriented, focusing on achieving specific, measurable results through a sequence of logically related tasks. Unlike mere task execution, they emphasize defined business outcomes, such as improved performance metrics or , often enabled by digital tools for tracking and delivery. Adaptability represents another key trait, allowing processes to respond flexibly to environmental changes, technological advancements, or market shifts. Organizations achieve this through experimentation, analysis, and decentralized , enabling rapid adjustments like predictive churn reduction or operational pivots. Measurable aspects are integral to processes, providing quantifiable indicators of and enabling continuous . These include cycle time, which tracks the duration from initiation to completion; cost, assessing ; , evaluating output reliability; and throughput, measuring the rate of successful completions. Such metrics traditionally drive optimizations in efficiency and alignment with strategic objectives. In contrast to ad-hoc activities, which rely on impromptu decisions and lack consistency, business processes emphasize to ensure repeatable, reliable execution. This involves deriving a master process model that unifies variants, reducing redundancies and supporting for organizational growth. is essential, capturing workflows, roles, and controls to facilitate , auditing, and expansion without proportional increases in errors or effort. Per lean principles, processes must be value-adding to justify their existence, meaning every step directly contributes to customer-perceived value while eliminating such as , waiting, or defects. This focus, rooted in mapping value streams and pursuing perfection, ensures processes enhance flow and pull-based fulfillment rather than perpetuating non-essential activities.

Historical Development

Early Foundations

The concept of business processes traces its roots to early economic theories that emphasized structured work organization for efficiency. In his seminal 1776 work, An Inquiry into the Nature and Causes of , illustrated the benefits of the division of labor through the example of a pin factory, where tasks were broken down into specialized steps performed by different workers, resulting in a dramatic increase in —up to 4,800 pins per worker per day compared to just one pin if each handled the entire alone. This proto-process thinking highlighted how sequential specialization could transform individual efforts into coordinated production, laying foundational ideas for modern business workflows. A key advancement in process occurred in 1798 when American inventor introduced the system while fulfilling a U.S. government contract to produce 10,000 muskets. Whitney's approach involved manufacturing components to precise, uniform specifications using machinery like filing jigs and gauges, allowing parts from different units to be assembled without custom fitting and enabling faster repairs and scaling. This innovation marked an early shift toward repeatable, modular processes in manufacturing, reducing variability and foreshadowing assembly-line efficiencies. During the 18th and 19th centuries, the rise of industrial manufacturing further exemplified emerging sequential processes, particularly in textile mills. In Britain, inventions such as Richard Arkwright's in 1769 mechanized spinning, integrating steps like , , and into continuous factory operations powered by water or steam, which boosted output from handloom production of mere yards per day to thousands in mechanized settings. These mills demonstrated how breaking production into linear stages—raw fiber preparation, yarn spinning, fabric weaving, and finishing—facilitated and influenced broader . Philosophical underpinnings of process thinking were formalized in Henri Fayol's 1916 Administration Industrielle et Générale, where he outlined administrative theory emphasizing the organization of work into logical sequences as one of five core management functions (, organizing, commanding, coordinating, and controlling). Fayol argued that effective administration required structuring activities into orderly flows to ensure unity of direction and scalar chains, providing an early framework for viewing business operations as interconnected processes rather than isolated tasks.

Scientific Management

Scientific management, pioneered in the early 20th century, represented a systematic approach to optimizing business processes through empirical analysis and standardization, building on earlier ideas like Adam Smith's division of labor. Frederick Winslow Taylor formalized these principles in his 1911 book The Principles of Scientific Management, advocating for the scientific study of work to replace inefficient rule-of-thumb methods with precise, evidence-based techniques. Central to Taylor's framework were time studies, which involved observing and measuring worker movements to identify inefficiencies, alongside standardization of tasks to ensure consistency across operations. Worker training was emphasized to equip employees with the skills needed for optimized performance, fostering a structured process that divided labor into elemental tasks for maximum efficiency. Key concepts in Taylor's system included the pursuit of the "one best way" to perform each task, determined through scientific experimentation rather than . Functional foremanship divided supervisory roles among specialized experts—such as speed bosses for pacing and for —to provide targeted guidance and reduce bottlenecks in processes. Incentive systems, like differential piece-rate wages, motivated workers by linking pay directly to output, encouraging adherence to the scientifically designed process while aligning individual efforts with organizational goals. A notable example of Taylor's methods was the experiment conducted at between 1898 and 1900, where he redesigned the loading process for workers handling 92-pound ingots. By introducing rest periods, task simplification, and motivational incentives, Taylor increased daily output from an average of 12.5 tons per worker to up to 47 tons for select individuals like Henry Schmidt, demonstrating gains of approximately 300% through process redesign. Influencing Taylor's work, introduced Gantt charts in 1910 as a visual tool for scheduling and , using horizontal bars to depict task timelines and dependencies in operations. These charts enabled managers to monitor progress, identify delays, and coordinate workflows, enhancing the predictability and efficiency of business es in industrial settings.

Modern and Digital Evolution

In the mid-20th century, elevated the concept of business processes beyond manual labor, emphasizing their role in knowledge work and introducing (MBO) as a systematic approach to align individual and organizational goals through defined processes. In his 1954 book The Practice of Management, Drucker argued that effective management requires viewing the organization as a set of coordinated processes, shifting focus from hierarchical control to objective-driven workflows that enhance productivity in emerging knowledge economies. This perspective built on the efficiency legacy of but extended it to intangible, decision-based activities. The 1980s and 1990s marked a pivotal shift toward radical process redesign, spurred by Michael Hammer's advocacy for (BPR). Hammer's seminal 1990 Harvard Business Review article, "Reengineering Work: Don’t Automate, Obliterate," urged organizations to dismantle inefficient processes entirely rather than incrementally improving them, often leveraging to achieve dramatic performance gains in key metrics like cycle time and costs. This BPR movement, which gained traction in the early 1990s alongside works like Thomas Davenport's 1993 contributions, catalyzed the formal emergence of (BPM) as a discipline, integrating , analysis, and continuous improvement to adapt to global competition and technological advances. From the 2000s onward, redefined business processes through scalable technologies, particularly , which decoupled processes from rigid on-premises infrastructure. The launch of (AWS) in 2006 introduced accessible cloud platforms that enabled widespread process automation, allowing organizations to integrate data across silos, automate routine tasks via APIs, and scale operations dynamically without heavy capital investments. This era saw processes evolve into interconnected, data-driven ecosystems, with automation tools like (RPA) reducing manual interventions in areas such as and customer service. A key standardization milestone came with the 2015 revision of ISO 9001, which embedded risk-based thinking into process management, requiring organizations to proactively identify, assess, and mitigate risks throughout their systems rather than reacting post-incident. This update promoted a holistic process approach, ensuring processes are resilient and aligned with strategic objectives amid increasing complexity. As of 2025, the integration of (AI) has driven hyperautomation, combining RPA, , and to optimize processes in real-time. Gartner forecasts that by 2025, hyperautomation will influence one-fifth of all business processes, enabling predictive optimization that anticipates disruptions and automates decision-making in dynamic environments. This AI-driven evolution continues to transform processes into adaptive, , fostering agility in an era of rapid technological change.

Classification and Types

Core Processes

Core processes encompass the essential, end-to-end activities that an undertakes to produce and deliver value directly to , such as , , and service delivery, which collectively fulfill customer requirements and drive generation. These processes form the backbone of a firm's primary operations, transforming inputs like raw materials and customer orders into outputs like finished goods or fulfilled services. According to the U.S. , core processes include operations (e.g., producing goods), and (e.g., informing and transacting with buyers), and customer services (e.g., post-purchase support), all of which are integral to the firm's basic business mission. Representative examples illustrate their role in value creation. In , the assembly line process sequentially combines components to build products, such as automobiles, ensuring efficient production that meets market . In , order processing spans from order receipt and picking to packing and shipping, as exemplified by Amazon's fulfillment centers, where reduces cycle times from 90 minutes to 15 minutes per order, enabling rapid delivery and enhancing . These processes are characterized by their customer-facing nature, which involves direct interaction with external stakeholders and exposure to market dynamics; high variability, particularly in service-oriented activities where demand fluctuates unpredictably; and a profound direct influence on profitability, as inefficiencies can lead to increased costs or lost revenue, while optimizations enhance competitive positioning. In Michael Porter's seminal model (1985), core processes correspond to primary activities—including inbound (receiving and storing inputs), operations (transforming inputs into outputs), outbound (distributing outputs), and sales (promoting and transacting), and service (post-sale maintenance)—which collectively handle the creation, delivery, and support of offerings to generate superior value and .

Support and Management Processes

Support processes are auxiliary activities that provide the necessary infrastructure and resources to enable an organization's core operations, without directly interacting with external customers. These processes ensure the smooth functioning of primary business activities by handling internal needs such as , technology upkeep, and financial oversight. For instance, recruitment involves activities like job postings, candidate screening, and to build a capable that supports operational execution. Similarly, maintenance encompasses tasks such as software updates, system troubleshooting, and to keep digital tools reliable for daily workflows. Finance processes, including processing and budgeting, manage financial records and resource allocation to prevent inefficiencies like redundant reporting. These support functions indirectly contribute to overall efficiency by aligning internal capabilities with the demands of core processes, such as production or . Management processes, in contrast, focus on oversight, coordination, and strategic direction to guide and evaluate the performance of both core and support activities. They involve to set objectives, monitoring to track progress, and to enforce policies and mitigate risks, ensuring alignment with organizational goals. Examples include , such as to anticipate resource needs, and performance monitoring through metrics like times to identify bottlenecks. processes, like , evaluate potential disruptions—such as delays from inadequate —and implement controls to safeguard operations. Performance auditing serves as another key example, systematically reviewing processes for compliance and to drive continuous . These processes provide the directional framework that sustains long-term competitiveness by linking day-to-day execution to broader . A seminal concept in processes is the , introduced by Robert S. Kaplan and in 1992, which links operational oversight to strategic objectives through a multifaceted system. This framework addresses the shortcomings of purely financial metrics by incorporating four perspectives: financial (e.g., profitability), customer (e.g., satisfaction levels), internal business processes (e.g., in core activities), and learning and growth (e.g., capabilities). It enables managers to monitor and govern processes holistically, ensuring that tactical decisions support strategic alignment and foster sustained value creation. Early adopters reported improved managerial insight into organizational performance, demonstrating the tool's role in integrating processes with forward-looking goals.

Components and Structure

Inputs, Outputs, and Activities

In a business process, inputs represent the resources, , , or materials that enter the system to initiate transformation. These can include raw materials in , customer orders in service operations, or in information processing, all of which serve as the foundational elements required for the process to function. According to ISO 9000:2015, inputs are the resources needed to carry out activities within a process, ensuring that the transformation yields intended results. Activities form the core of the business process, consisting of sequential or parallel steps that transform inputs into outputs through actions such as , computations, or physical manipulations. These activities are interrelated or interacting operations that add value, such as assembling components in production or analyzing in financial reporting, and they must be managed to achieve and consistency. The NASA Procedures and Guidelines define a business process as a collection of such activities that convert inputs into valuable outputs. Outputs are the results or deliverables produced by the activities, which may take the form of tangible products, services, reports, or processed that meet customer or stakeholder needs. For instance, in a process, outputs could include ready for distribution, while in administrative processes, they might be approved documents or updated databases. ISO 9001:2015 emphasizes that outputs must align with the objectives of the process approach, providing measurable results from the input transformations. The flow of a business process is often mapped using the model, which delineates the end-to-end structure by identifying Suppliers (providers of inputs), Inputs, (key activities), Outputs, and Customers (recipients of outputs). This high-level tool helps in scoping and visualizing the process boundaries, ensuring clarity in how elements interconnect without delving into detailed steps. Developed as part of methodologies, SIPOC facilitates process definition and improvement by highlighting potential gaps in the flow.

Roles, Resources, and Metrics

In business processes, roles define the involvement of individuals or groups in executing activities, ensuring and coordination among stakeholders, owners, and performers. Stakeholders provide input or oversight, process owners maintain overall responsibility for design and improvement, while performers carry out the operational tasks. A key tool for assigning these roles is the RACI matrix, which categorizes responsibilities as Responsible (those who perform the work), (those ultimately answerable for completion), Consulted (those whose expertise is sought), and Informed (those kept updated on progress). This framework, widely adopted in , clarifies task ownership and reduces overlaps or gaps in responsibility. Resources encompass the , financial, and technological assets allocated to support execution, optimizing utilization to achieve desired outcomes. These include tools such as software for , budgets for operational costs, and technologies like enterprise systems that enable flow and integration. Effective allocation ensures resources align with demands, minimizing waste and enhancing , as seen in practices where organizations forecast needs based on volume and complexity. Metrics evaluate process performance through key performance indicators (KPIs) that measure and . Efficiency ratios, such as throughput—defined as the number of outputs produced per unit of time—quantify how quickly a process delivers results relative to inputs. Effectiveness measures assess and goal alignment, including metrics like error rates or customer satisfaction scores, which indicate whether outputs meet intended standards. These KPIs provide actionable insights for monitoring and refinement. A related consideration in role assignment is span of control theory, which posits that supervisors can effectively oversee 5-7 direct subordinates to maintain process oversight without overwhelming managerial capacity. This principle, rooted in classical management studies, influences how roles are structured to balance hierarchy and autonomy in process teams.

Management and Lifecycle

Business Process Management Principles

Business Process Management (BPM) is a discipline that employs various methods to discover, model, analyze, measure, improve, and optimize business processes, ensuring they align with organizational objectives and adapt to changing conditions. This systematic approach treats processes as strategic assets, enabling organizations to enhance efficiency, responsiveness, and overall performance without disrupting core operations. At its core, BPM is guided by foundational principles that emphasize strategic alignment, customer focus, and continuous monitoring. Strategic alignment ensures that business processes directly support organizational goals, bridging the gap between high-level and day-to-day execution by prioritizing initiatives that deliver measurable value. Customer focus places the end-user at the center of , identifying and addressing gaps between expectations and delivery to boost satisfaction and . Continuous monitoring involves ongoing measurement and control of processes using key performance indicators (KPIs), allowing for real-time adjustments and sustained optimization. These principles, as outlined in established BPM frameworks, promote a holistic view of operations rather than isolated tasks. Adopting BPM principles yields significant benefits, including enhanced , , and improved compliance. Agility allows organizations to rapidly adapt processes to market shifts or customer demands, reducing response times and fostering . stems from eliminating redundancies and inefficiencies, often leading to lower operational expenses through streamlined workflows. Compliance is strengthened by standardizing processes to meet regulatory requirements, minimizing risks and ensuring consistent adherence across the enterprise. A key concept in BPM is process ownership, where designated individuals or teams are accountable for the end-to-end performance of specific processes, promoting cross-functional collaboration and clear responsibility. Governance structures complement this by establishing oversight mechanisms, involving stakeholders such as process managers and auditors to enforce standards, monitor execution, and integrate BPM with broader management systems. Together, ownership and governance ensure processes remain aligned with strategic priorities while maintaining accountability and transparency.

Process Lifecycle Stages

The business process lifecycle encompasses a structured sequence of phases that guide the management of business processes from to ongoing enhancement, ensuring alignment with organizational goals. This iterative cycle typically includes five core stages: (planning), modeling (), execution (), monitoring (tracking), and optimization (refinement). Guided by principles, the lifecycle promotes systematic refinement through feedback loops, allowing processes to evolve in response to and changing requirements. In the design stage, organizations plan the process by defining objectives, identifying key stakeholders, mapping high-level workflows, and establishing initial requirements to ensure the process supports strategic aims. This phase involves collaborative input from cross-functional teams to outline scope and potential risks, laying the foundation for subsequent development. The modeling stage focuses on creating detailed representations of the process using standardized notations such as , while incorporating to test scenarios and predict outcomes. tools, like those integrated in BPM software suites, enable virtual testing of process variations under different conditions, helping to identify bottlenecks before real-world deployment. During execution, the modeled process is implemented through or manual , often leveraging management systems to enact tasks across participants and resources. This stage emphasizes reliable deployment, ensuring seamless integration with existing and adherence to defined rules for task routing and completion. Monitoring involves real-time tracking of process performance using key performance indicators (KPIs) such as cycle time and error rates, typically visualized through dashboards in BPM platforms. These tools provide ongoing visibility into operational efficiency, enabling early detection of deviations and supporting . In the optimization stage, insights from monitoring data are analyzed to refine the process, addressing inefficiencies and incorporating improvements for better alignment with business needs. This refinement may involve minor adjustments or major redesigns, closing the loop back to the design phase as needed. The lifecycle operates as a continuous cycle, with feedback mechanisms—such as performance analytics and stakeholder reviews—driving iterations to foster adaptability and long-term value. The APQC Process Classification Framework, developed in the early , provides a standardized of processes that facilitates and consistent process management across industries.

Modeling and Analysis

Modeling Techniques and Notations

Business process modeling techniques and notations provide standardized visual representations to depict the sequence of activities, decisions, and interactions within processes, facilitating communication among stakeholders and enabling for validation. These methods enhance clarity by illustrating workflows in an intuitive manner, support to test scenarios, and prepare models for automation by aligning with executable specifications. Common techniques include flowcharts, swimlane diagrams, and , while prominent notations encompass (BPMN) 2.0 and (UML) activity diagrams. Flowcharts represent the simplest technique for modeling business processes, using symbols such as ovals for start/end points, rectangles for activities, and diamonds for decisions to map sequential flows from inputs to outputs. This notation originated in the for but remains widely adopted for its straightforward depiction of linear or branched processes, aiding in identifying bottlenecks without requiring specialized software. diagrams extend flowcharts by incorporating horizontal or vertical lanes to assign responsibilities to specific roles or departments, clarifying and handoffs in collaborative processes. For instance, in an process, lanes might separate , warehouse, and shipping teams to visualize interactions and reduce miscommunication. Value stream mapping (VSM) focuses on and service processes by diagramming the flow of materials and information from supplier to customer, distinguishing value-adding from non-value-adding steps to highlight such as delays or . Developed in the 1990s as part of the , VSM uses icons for processes, , and transportation to create current-state and future-state maps, promoting efficiency improvements through targeted eliminations. This technique is particularly effective for end-to-end process visualization in production environments, where it quantifies lead times and cycle times to guide lean transformations. BPMN 2.0, released by the in January 2011, standardizes a graphical notation for creating executable business models that bridge business analysts and IT implementers, supporting both high-level overviews and detailed . It employs core elements like events (circles for triggers), tasks (rounded rectangles for activities), sequence flows (arrows for order), gateways (diamonds for decisions, such as exclusive gateways that route based on XOR conditions), and pools/lanes (rectangles partitioning the diagram by roles or organizations) to model complex interactions. For example, in a approval , a pool might represent the bank while lanes delineate customer and underwriter roles, with an exclusive gateway deciding approval based on thresholds, enabling direct execution in engines for . This notation's meta-model and ensure and readiness for tools, reducing errors. UML activity diagrams, part of the standard maintained by the since 1997 (with version 2.5.1 current as of 2017), model dynamic behaviors including business workflows through pseudostate nodes, actions, and control flows similar to enhanced flowcharts. They support partitioning via swimlanes for parallel activities and decision nodes for branching, making them suitable for specifying process logic in software-aligned business modeling. Unlike purely graphical notations, UML activity diagrams integrate with other UML views for comprehensive system design, emphasizing object flows and concurrency to simulate process execution and verify requirements.

Analysis Methods

Analysis methods in business process management involve systematic techniques to evaluate performance, diagnose inefficiencies, and identify improvement opportunities. These methods combine qualitative and quantitative approaches to assess how processes operate in practice, revealing deviations from optimal flows and pinpointing areas of waste or constraint. Root cause analysis, for instance, helps uncover underlying issues contributing to process failures, while quantitative tools like provide data-driven insights into actual execution. Root cause analysis is a foundational method for diagnosing problems in business processes by systematically identifying the primary factors leading to undesired outcomes. One widely adopted tool is the fishbone diagram, also known as the Ishikawa or cause-and-effect diagram, which visually categorizes potential causes into groups such as methods, materials, machinery, measurement, manpower, and environment (the 6 Ms). Developed by in the as part of practices, this technique facilitates structured brainstorming sessions to explore root causes rather than symptoms, making it applicable to diverse business contexts like manufacturing delays or service bottlenecks. Bottleneck identification through represents another critical quantitative method, enabling the prediction and of constraints that limit process throughput. Simulation-based approaches use software tools such as or to create dynamic representations of business processes, allowing analysts to test scenarios and measure metrics like equipment utilization, waiting times, and load-to-capacity ratios under varying conditions. This method excels in complex systems where static analysis falls short, as it captures real-time interactions and multifactor influences, often revealing dynamic bottlenecks that shift with changes. For example, in lines, simulations have been shown to accurately detect constraints by analyzing times and buffer capacities, supporting proactive adjustments. Process mining offers a robust quantitative approach to analyze processes by leveraging event logs—digital records of process executions from systems like —to discover, monitor, and conform actual behaviors against intended models. Pioneered in the early , this technique employs algorithms, such as the α-algorithm, to extract process models (e.g., in format) directly from logs containing timestamps, tasks, and case identifiers, thereby revealing deviations like unexpected loops or skips in workflows. Conformance checking within compares discovered models to predefined ones, quantifying discrepancies in terms of fitness (how well the model replays the log) and highlighting inefficiencies for targeted . This data-centric method, grounded in empirical event data, provides objective evidence of process performance, contrasting with subjective assessments. Qualitative methods complement quantitative ones by incorporating human insights and comparative evaluations to diagnose process issues. Interviews with process participants, such as structured discussions or focus groups, elicit detailed narratives on challenges, pain points, and informal workarounds that may not appear in logs, fostering a holistic understanding of process dynamics. against industry standards involves systematically comparing an organization's processes—through site visits, surveys, or shared best practices—with those of peers or leaders, often using qualitative metrics like process maturity levels or employee satisfaction ratings. For instance, practice benchmarking gathers insights on how activities are conducted via people and procedures, identifying gaps relative to standards set by organizations like APQC. These methods emphasize contextual factors, ensuring analyses account for and external benchmarks. Value analysis serves as a specific diagnostic tool for waste reduction in business processes, quantifying efficiency by evaluating the ratio of function to cost. The core formula is value = function / cost, where function encompasses the utility or performance achieved and cost includes resources like time, materials, and labor. Originating from value engineering principles in the mid-20th century, this approach systematically reviews process elements to eliminate non-value-adding activities, such as redundant steps, aligning with lean methodologies to minimize while preserving essential functions. In practice, it guides prioritization by scoring process components, ensuring improvements focus on high-value enhancements.

Improvement and Re-engineering

Re-engineering Approaches

Business process re-engineering (BPR) involves the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical performance measures such as cost, quality, service, and speed. This approach, pioneered by Michael Hammer and James Champy in their 1993 book Reengineering the Corporation, emphasizes starting over rather than incrementally tweaking existing workflows, often leveraging information technology to enable transformative changes. Key approaches in BPR include clean-sheet design, where processes are reimagined from scratch without constraints from legacy systems or assumptions, allowing organizations to challenge outdated practices and build efficient structures aligned with strategic goals. IT-driven utilizes not merely for but to obliterate inefficient steps entirely, such as integrating data flows to eliminate manual interventions and enable real-time . Cross-functional integration further supports this by breaking down departmental , involving multidisciplinary teams to redesign end-to-end processes that prioritize value over functional boundaries. A seminal case of BPR application occurred at in the late , where the accounts payable department, previously employing over 500 staff to match invoices with purchase orders and receipts, was radically redesigned using IT systems to automate verification against receiving documents, eliminating the need for altogether. This clean-sheet overhaul reduced headcount by 75%, from 500 to 125 employees, while enhancing accuracy and speed in payments. Despite its potential, BPR carries significant risks, with studies estimating failure rates of 50-70% for projects that do not deliver intended dramatic results. A primary factor in these failures is cultural resistance, as employees and managers often fear job losses, disruption to established routines, and inadequate involvement in the redesign, leading to lack of buy-in and challenges. methods, such as mapping, can help identify re-engineering opportunities but must be paired with robust to mitigate these human-centered obstacles.

Continuous Improvement Strategies

Continuous improvement strategies in business processes involve iterative methods that focus on incremental refinements to enhance efficiency, quality, and adaptability over time. These approaches emphasize ongoing evaluation and adjustment rather than one-time overhauls, fostering a culture of sustained progress within organizations. By integrating employee involvement and systematic tools, they aim to minimize waste, reduce defects, and align processes with evolving customer needs. Kaizen, a Japanese philosophy meaning "continuous improvement," promotes small, incremental changes made daily by all employees to refine processes and systems. Originating in post-World War II Japanese businesses and popularized by Masaaki Imai in 1986, Kaizen encourages widespread participation to identify inefficiencies and implement solutions through structured events, such as five-day workshops, leading to long-term gains in productivity. It relies on standardized work practices to maintain stability while pursuing enhancements, often linking to broader quality management efforts. Lean methodology, rooted in the (TPS) developed in the 1950s, centers on eliminating waste—such as overproduction, excess inventory, and unnecessary motion—to streamline operations and deliver value efficiently. TPS, pioneered by and at , introduced just-in-time production, where parts are supplied exactly when needed, minimizing storage costs and improving flow; this system originated from Kiichiro Toyoda's vision for efficient part gathering and expanded across plants by the late 1950s. Lean's waste elimination principles, including seven types of muda (waste), have been widely adopted beyond to optimize service and knowledge-based processes. Six Sigma employs a data-driven DMAIC framework—Define, Measure, Analyze, Improve, Control—to systematically reduce process variation and defects, targeting near-perfection in output quality. Developed as a quality improvement strategy in the late 1980s, it measures performance using sigma levels, where a six-sigma process achieves 3.4 (DPMO), representing 99.99966% defect-free performance. This metric establishes a benchmark for reliability, with lower sigma levels correlating to higher defect rates, enabling organizations to prioritize high-impact improvements. A foundational tool for these strategies is the cycle (Plan-Do-Check-Act), which provides a structured approach to testing and implementing changes for ongoing refinement. Introduced by in 1950 during seminars in as the "Deming Wheel," it evolved from Walter Shewhart's earlier cycle and was adapted by Japanese executives into PDCA to support initiatives, emphasizing planning, execution, evaluation, and standardization. Deming later refined it to PDSA (Plan-Do-Study-Act) to highlight learning from results, making it integral to process lifecycle optimization.

Enabling Technologies

IT and Automation Tools

Information technology (IT) and automation tools form the backbone of modern business process execution, enabling organizations to standardize, integrate, and streamline operations across departments. These tools encompass (ERP) systems and workflow automation software, which facilitate processing and task orchestration without relying on manual interventions. By centralizing data and automating routine activities, such tools enhance and support scalable process management. ERP systems, such as , originated in 1972 when five former employees founded the company in to develop standard software for real-time business information processing. SAP's initial product, the RF system (standing for "Real-time Financials"), was a modular solution that ran on mainframes, marking the beginning of integrated that connected disparate business functions like and inventory management. Today, ERP platforms like SAP integrate core processes such as , production, and , providing a unified view of organizational data to support . Workflow automation software, exemplified by , allows businesses to create automated workflows between applications and services, thereby optimizing repetitive tasks and improving process flow. Introduced as part of Microsoft's Power Platform, Power Automate uses low-code connectors to link tools like , databases, and CRM systems, enabling the of approvals, notifications, and data transfers across teams. This software supports business process flows that guide users through predefined steps, reducing dependency on custom coding and accelerating deployment. A key role of IT in business processes involves integration through application programming interfaces (APIs), which enable seamless data exchange between disparate systems. APIs act as intermediaries that allow and tools to communicate in real-time, automating and eliminating silos—for instance, updating levels automatically when a sales order is processed. This integration fosters , ensuring consistent data flow and enabling end-to-end process visibility. The benefits of these IT and tools include significantly reduced errors and faster execution times. By standardizing and enforcing predefined rules, and systems minimize human mistakes, such as duplicate entries or compliance oversights, leading to up to 88% improvements in data accuracy in some implementations. also expedites processes by handling routine tasks instantaneously, boosting and allowing employees to focus on value-added activities, with reports indicating up to 37% fewer errors in capture processes. The evolution of these tools traces back to the 1960s, when mainframe computers introduced systems for of business data, progressing to client-server architectures in the and , and culminating in software-as-a-service (SaaS) platforms in the 2000s that delivered cloud-based, subscription-model access to scalable . This shift from hardware-intensive mainframes to accessible SaaS has democratized process tools, making them viable for small and medium enterprises while enhancing flexibility and cost-efficiency.

AI and Emerging Technologies

Artificial intelligence (AI) has transformed business processes by enabling through (ML) techniques, which analyze historical and to forecast outcomes such as process delays, resource needs, and performance bottlenecks. In (BPM), ML algorithms, including models like random forests and neural networks, enhance process enhancement by adding predictive descriptions to models, such as estimating completion times or costs, and support process improvement by identifying redesign opportunities based on event log analysis. A of 46 studies from 2010 to 2024 highlights ML's role in predictive BPM, particularly in integrating operational data with to achieve improvements in forecasting accuracy for tasks like and . , which emerged as a distinct technology in the early , automates repetitive, rule-based tasks such as and , marking a boom in during that decade as organizations sought cost reductions and gains. By , RPA had gained significant enterprise and interest as an technology, with surveys indicating it handled well-defined data transactions previously performed manually, leading to (FTE) savings of 20-50% in . Forrester's noted RPA's differentiation from traditional BPM by focusing on software bots that emulate human actions across applications, driving widespread enterprise implementation by the late . A key trend in 2025 is hyperautomation, which integrates RPA with AI, , and to automate end-to-end workflows, enabling adaptive and intelligent operations beyond isolated tasks. According to Forrester's Predictions 2025, hyperautomation balances AI innovation with reliable traditional tools, with GenAI expected to orchestrate less than 1% of core business processes while 25% of projects combine cognitive and physical using GenAI and edge intelligence, and citizen developers delivering 30% of GenAI-infused apps. This approach addresses limitations of standalone RPA by incorporating AI for decision-making, such as , ensuring scalable aligned with business goals. Emerging technologies like the (IoT) facilitate real-time monitoring in business processes by deploying sensors to collect and transmit data on assets, enabling proactive adjustments in operations such as inventory management and equipment maintenance. reports that IoT devices optimize processes by monitoring parameters like temperature and energy use, with applications in supply chains reducing downtime through predictive alerts and improving overall efficiency. McKinsey's analysis emphasizes IoT's role in factory settings, where it provides end-to-end visibility to address bottlenecks instantly, contributing to an estimated $3.9-11.1 trillion annual economic impact by 2025 across sectors. As of 2025, integrations with and networks have further enhanced IoT's processing capabilities in business processes. Blockchain enhances security in supply chain processes by providing immutable, distributed ledgers that ensure tamper-proof tracking and verification of transactions, mitigating risks like counterfeiting and fraud. Deloitte's case studies illustrate this through real-time shipment tracking using Fabric, where 's cryptographic security enables transparent collaboration among stakeholders, reducing traceability time from days to seconds while maintaining . In pharmaceutical applications, supports end-to-end auditability for drug trials, streamlining and enhancing trust in global processes. Since 2022, generative AI models like have enabled interfaces for business process , allowing users to describe workflows in plain text and generate models, diagrams, or optimizations automatically. A 2024 study proposes the IDEATe framework (Identify, , Evaluate, Adapt, Test), where tools like facilitate ideation and prototyping of business models by processing prompts to suggest process refinements, improving and reducing time in iterative scenarios. This capability extends to BPM by automating the translation of textual requirements into executable process structures, fostering in dynamic environments.

Workflow and Knowledge Management

In business processes, workflow refers to the automated or semi-automated movement of documents, information, or tasks from one participant to another according to predefined rules, routes, and roles, enabling efficient coordination across sequential or concurrent activities. This structure often involves rules-based decision-making to route tasks dynamically, such as in approval chains for document management, where a loan application under $10,000 might be routed to a junior officer, while larger amounts escalate to a vice president for review. Workflow management systems (WFMS) support this by defining, executing, and monitoring processes, transforming abstract business procedures—like hiring or purchasing—into executable sequences of tasks connected by transitions and logic operators such as AND or XOR. Knowledge management (KM) within business processes focuses on capturing and leveraging —the intuitive, experience-based insights difficult to articulate—through systematic documentation to prevent and enhance organizational learning. Strategies include monitoring employee activities, conducting practical sessions, and creating in-house training programs that externalize tacit elements into explicit forms like process guides or case studies. The integration of workflows and KM systems embeds knowledge capture and delivery directly into operational flows, using tools like wikis or dedicated KM platforms to provide context-aware recommendations during task execution. This approach extends WFMS with knowledge-intensive tasks that track usage and quality, as seen in systems like Microsoft Exchange 2000, which automates document approval while capturing related insights in real time. A foundational concept here is Nonaka's SECI model (1995), which describes knowledge creation through four modes—socialization (sharing via interaction), externalization (articulating it into explicit forms), combination (integrating explicit knowledge), and internalization (absorbing it back as tacit)—applied within processes to spiral knowledge upward for innovation. Such integration leverages business processes as a conduit for knowledge lifecycle management, classifying it into templates, instances, and related data to align KM with workflow execution and enhance overall performance.

Quality Management and Policies

Quality management within business processes focuses on embedding systematic approaches to prevent defects and ensure consistent performance across all operational stages. (TQM), which emerged prominently in the 1980s, promotes a company-wide commitment to by shifting from reactive to proactive that inherently minimizes errors. This philosophy underscores the integration of principles into every business , fostering long-term efficiency and through cultural and structural changes. A pivotal contribution to TQM came from , whose 14 Points for Management, outlined in his 1986 book Out of the Crisis, advocate for process-wide defect prevention by eliminating reliance on mass inspections and instead building quality directly into products and services from the initial stages. Deming's principles emphasize leadership commitment, employee involvement, and continuous training to address systemic issues that cause variations in processes, as demonstrated by their adoption at in the early 1980s, which reversed substantial financial losses and restored profitability by 1985. These ideas transformed business processes by promoting and a focus on prevention over correction, influencing global standards in . Policies and procedures form the regulatory backbone of business processes, distinguishing high-level directives from operational details to enforce compliance and . Policies represent formal, overarching rules that define an organization's principles, such as ethical conduct, regulatory adherence, and risk tolerance, guiding decision-making without specifying exact methods. In , these ensure alignment with strategic objectives and legal requirements, serving as the foundation for across departments. Procedures, by contrast, provide granular, sequential instructions on executing policies within specific processes, detailing roles, tools, and checkpoints to achieve repeatable outcomes and reduce variability. This delineation supports process governance by bridging intent with action, enabling audits and while adapting to evolving business needs. Effective oversight of business processes relies on reporting tools like dashboards, which deliver real-time visibility into execution by visualizing key performance indicators, workflow progress, and . These interactive platforms aggregate data from process instances to highlight bottlenecks, compliance gaps, and efficiency trends, allowing managers to intervene promptly without disrupting operations. In contexts, dashboards facilitate proactive monitoring, such as tracking defect rates or adherence to procedures, thereby supporting data-driven refinements that align with TQM's emphasis on prevention. The for Standardization's ISO 9001, first issued in 1987, institutionalizes these elements by requiring organizations to document processes as part of a comprehensive . The current version, ISO 9001:2015, mandates the establishment of controlled, auditable procedures for core activities like planning, operation, and monitoring, ensuring and consistency to meet customer and regulatory expectations. A revision (ISO 9001:2026) is expected to be published in late 2026, with anticipated enhancements including greater emphasis on , resilience, sustainability, and . Since 1987, ISO 9001 certification has compelled businesses to formalize policies and reporting mechanisms, promoting a culture of continual improvement that complements TQM principles without prescribing specific methodologies.

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