Business processes refer to the manner in which work is organized, coordinated, and focused to produce a valuable product or service. Business processes also refer to the unique ways in which organizations coordinate work, information, and knowledge, and the ways in which management chooses to coordinate work. Every business can be seen as a collection of business processes. Business processes are designed to add value for the customer and should not include unnecessary activities. The outcome of a well designed business process is increased effectiveness (value for the customer) and increased efficiency (less costs for the company). There are three types of business processes:

  1. Management Processes: The processes that govern the operation of a system. Typical management processes include corporate governance and strategic management
  2. Operational Processes: The processes that constitute the core business and create the primary value For example, taking orders from customers, and opening an account in a bank branch.
  3. Supporting Processes: Theses processes support the core Examples include Health & Safety, accounting, recruitment, call center, technical support.


The performance of a business firm depends on how well its business processes are designed and coordinated. Many business processes are tied to a specific functional area, such as sales and marketing, while others cross many different functional areas and require coordination across departments.



Table given below describes some typical business processes for each of the functional areas of business.





Business Processes and Information Systems

In order to operate, business must deal with many different pieces of information, they must organize work activities that use this information to operate efficiently and enhance the overall performance of the firm. Information systems make it possible for firms to manage all their information, make better decisions and improve the execution of their business processes