Business Process Analysis: Definition, Techniques, and Examples - Tallyfy (2022)

Business process analysis is an analysis method that helps to increase the efficiency and effectiveness of a process. It assesses how well the process achieves its end goal. Business process analysis identifies and examines every part of the structure, including the process itself, the participating parties, the information exchange, and others. Accordingly, it can help identify potential improvements within the process, making it easier to carry out a re-engineering initiative sometime down the line.

In most cases, business process analysis can be helpful with:

  • Finding the reasons behind systematic delays
  • Clearing out the “right” way of doing the process
  • Determining whether or not the process is operating at maximum potential capacity
  • Finding out whether the process should be improved or re-engineered

Business Process Analysis: Definition, Techniques, and Examples - Tallyfy (1)

Why You Need Business Process Analysis

Every business has to constantly evaluate its processes and think of how to improve them. As the time goes, new technology becomes available, making the as-is process obsolete or easy to improve. Or, the as-is process may be using up too many resources, or simply be inefficient due to outdated technology. This is when business process analysis comes in handy. It allows you to have a very thorough and detailed look at the process and its components and see how it can be improved.

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(Video) Tallyfy - What is Business Process Modeling?

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By using this optimization method, a firm can:

  • Clear up the documentation for the process. At some point, every business amasses a lot more paperwork about the process than it needs. Doing a thorough business process analysis helps sort out which parts of the documentation are still relevant and which can be disregarded & thrown away.
  • See if the process is expensive or wasteful. Nobody wants to have a process that eats up more resources than it should.
  • Find causes for inefficiencies and delays within the process. Some businesses may not even realize that a process is not working as it potentially could. Business process analysis helps to dissect the process into smaller chunks, making it easier to understand & analyze. This, in turn, makes it easier to understand if a process is underperforming & if it’s possible to be improved.
  • Uncover unnecessary risks within the process.

Overall, business process analysis allows you to study the processes in detail and examine them from different angles to improve efficiency. The data you obtain is useful to both assess how well the current processes are working and develop new ones.

How to Do Business Process Analysis

Business Process Analysis: Definition, Techniques, and Examples - Tallyfy (2)

Before you begin business process analysis, you first need to determine what do you want to achieve in the end. Business process analysis is often a step in a bigger initiative – business process management (BPM) or business process improvement (BPI). After all, once you’re done with the analysis, you probably want to do something with the findings, and for that, you need the right methodology.

(Video) Tallyfy - Introduction

BPM is a methodology of continuous re-examination and improvement of business processes. BPI, on the other hand, means improving one specific process.

Business process analysis is a very critical component of both – you can’t change anything about a process, after all, without throughout analysis. Business process analysis gives you the data needed to find process weaknesses, possible improvements, as well as determine whether the said improvements are worth carrying out.

Whatever you choose as the end goal of your business process analysis, here are the five steps you need to follow:

1. Determine the process to analyze

Regardless of what bigger objective you are after, the first thing to do is to identify which process you are going to analyze. Typically, you would analyze business-critical processes. These would include processes that have a direct influence on the end product, revenue, expenses, and other critical components. You might also want to fix processes that you’re certain are underperforming. This would be an especially good choice if you want to carry out BPI.

On the other hand, you could also analyze a new process you recently implemented, as a means of ensuring that it’s working as intended.

When selecting the process to analyze, be sure to note the exact start and end point. Since processes can be really intertwined, your analysis might get messy and last forever.

(Video) BPR Principle 1

2. Collect necessary information

Once you’ve settled on the process, you need to collect as much information as possible to analyze it. In this step, your main goal is to go through all the sources of information about the process, be it skimming the documentation or interviewing the people involved.

Do not worry if it feels like you spend too much time on it or have too much information. Being thorough at this point of business process analysis will save your precious time in future.

3. Map the process

To be able to move on to the analysis, you have to put your findings into some structured form.

Business process mapping involves visualization of the business process. When mapping the process, your goal is to filter all the relevant information you collected and present it in a neat and structured way. Business process mapping allows you to clearly visualize the process you are dealing with and better understand the roles of various stakeholders. It makes it much easier to see what works and what doesn’t, what risks are associated with various components of the process, and generally see the big picture.

There are a number of ways to map a business process. You can go old-school and construct workflow diagrams and flowcharts. One benefit of this method is that it is available to anyone who can find a pen and a paper around or construct a diagram in MS Word. You can also use any of the common process mapping tools, be it a value stream map or SIPOC (Supplier Inputs Processes Outputs Customer) diagram, depending on your goal.

You can also up your game and use workflow software. Unlike the pen-and-paper option, the software allows you to keep track of processes in real time, seeing whether there are any holdups or delays. It also allows for some degree of automation, as the software itself is in charge of making sure that the process is completed in a timely manner.

(Video) SIPOC Diagram explained (with example)

4. Analyze the process

Now that you have all the needed information, it’s time for analysis. With all the data you’ve gathered at this point, you should already have a clear idea of what you can improve. To find even more potential improvements, however, you can also ask yourself such questions as:

  • What are the most important components of the process? What is their impact? Would improving just these components alone be enough?
  • Are there any systematic delays or issues in the process? Can you see the reason why it happens? Is there a way to fix them? How big is their influence on the output?
  • Does a particular component of the process require too many resources? Is there a way to change it?

These are just a few of the questions to keep in mind. As you dig deeper, you will understand better what exactly needs to be taken care of.

5. Determine potential improvements

The point of everything you’ve done so far is to understand how you can make your business process better. Using your findings from the previous steps, you can sort out the flaws and come up with potential improvements.

The kind of improvements that would work for your business depends on your specific situation. There is no one size fits all solution, and you may need to go creative to come up with potential improvements. Make sure to keep in mind the long-term effects of any changes you’ll make – while something might seem amazing in the short-term, it might turn out to be disastrous down the line. For example, by improving process speed, you might have also doubled the defect risk rate, which puts you back on square one.

Depending on your findings, you might also decide whether you’re making small, modest changes to the process, or completely reengineering it. While the later might take more resources and time, the effects can be very consequential.

Conclusion

Business process analysis is essential in finding potential improvements within your processes, as well as for bigger initiatives such as BPM or BPI.

(Video) What is business process

Now that you know how it works, it’s time to put it into practice – theory, after all, can only take you so far.

Give it a go, and tell us how it works out down in the comments section!

FAQs

What is business process analysis with example? ›

Business process analysis, or BPA, is a method designed to help you review your processes. Processes are repeatable groups of tasks or steps in a workflow that produce a certain result. For example, you might have an onboarding process for new hires or a process for reviewing quarterly goals.

What is the meaning of business process analysis? ›

Business process analysis (BPA) is an approach to analyzing business operation processes. It is a detailed, multi-step examination of each part of a process to identify what is working well in your current process, what needs to be improved and how any necessary improvements can best be made.

What are the 3 types of business process analysis? ›

Business Process Design - Three Types of Business Processes
  • Operational process.
  • Supporting process.
  • Management process.

How do you perform a business process analysis? ›

Business process analysis consists of 6-steps:
  1. Identify and define your goals.
  2. Identify the process to be analyzed.
  3. Collect information.
  4. Map out the process.
  5. Analyze the process.
  6. Identify the potential for business process improvement.
7 Oct 2020

What is an example of process analysis? ›

Informational process analysis essays tell about how something is done without giving directions to actually do it. Some examples of this type of essay might include how a hot dog is made or how a phase transition from a gas to a solid occurs.

What tool is used for BPM? ›

Business Process Management Tools Summary
Tool
1monday.com Best BPM for marketing and creative teams
2Process Bliss Best for ease of use and centralising process with workflow management
3Kissflow Best cloud-based BPM software
4Qntrl Ensure process compliance through granular task control
6 more rows
3 Jan 2022

Why is business process analysis important? ›

Business process analysis (BPA) is one proven method that organizations use to examine and improve their processes. More specifically, BPA offers 3 significant benefits including improved visualization and understanding of processes, highlighting bottlenecks and weaknesses in workflows, and identifying cost reductions.

Why is process analysis important? ›

Process analysis is the first step to making processes better. It helps businesses uncover inefficiencies and plan changes to improve things.

What is the meaning of process analysis? ›

Process analysis is a form of technical writing and expository writing "designed to convey to the reader how a change takes place through a series of stages".

What are the 4 types of processes? ›

An abbreviated answer is given below. The main manufacturing process types are project, jobbing, batch, line and continuous. Project processes produce products of high variety and low volume.

What are the types of BPM? ›

There are three main types of business process management, including:
  • Integration-centric BPM. This type of BPM is used between existing software systems, such as CRM, ERP and HRMS. ...
  • Document-centric BPM. This type of BPM is used when a document, such as a contract, is the basis of the process. ...
  • Human-centric BPM.

What is the purpose of a business process? ›

A process forms the lifeline for any business and helps it streamline individual activities, making sure that resources are put to optimal use.

What are process analysis tools? ›

Business process analysis tools are primarily intended for use by business end users looking to document, analyze and streamline complex processes, thereby improving productivity, increasing quality, and becoming more agile and effective.

What methods can be used for process analysis? ›

5 Business Process Analysis Techniques to Know
  • Gap analysis.
  • Value-added analysis.
  • Root cause analysis.
  • Observation analysis.
  • Examining the experience.
5 Mar 2021

What is a process analysis paragraph? ›

In composition, process analysis is a method of paragraph or essay development by which a writer explains step by step how something is done or how to do something. Process analysis writing can take one of two forms, depending on the topic: Information about how something works (informative)

What are the three basic steps of the analysis process? ›

The three basic steps in the data analysis process are: assess the. quality and reliability of the data, sort and classify data, and perform statistical tests and analyze the results.

What makes a good process analysis? ›

Make sure you include transitional words within and between paragraphs, as these are required to show the sequence of the process in logical order. Your analysis will likely be across several paragraphs, so make sure each paragraph describes a separate part of the process to avoid confusion for your reader.

Is an example of BPM? ›

BPM is usually defined as a discipline or practice, but it is also an umbrella term to describe tools. Here's a fundamental example: BPM is usually defined as a discipline or practice – similar to DevOps, for example – rather than something you buy or otherwise simply implement and complete.

What is BPM life cycle? ›

The BPM lifecycle standardizes the process of implementing and managing business processes inside an organization as a series of cyclical stages. It consists of five phases including design, model, execute, monitor, and optimize.

Why is BPM needed? ›

BPM enables organizations to align business functions with customer needs, and helps executives determine how to deploy, monitor and measure company resources. When properly executed, BPM has the ability to enhance efficiency and productivity, reduce costs, and minimize errors and risk – thereby optimizing results.

What is the scope of process analysis? ›

During Define Scope process, product analysis is done to produce a detailed scope in the end. During product analysis, objectives and description of the product stated by the customer or sponsor are analyzed. After analysis, it is expected to reach tangible project deliverables.

What is the objective of process analysis? ›

The objectives of a process analysis are: To understand the steps in the process. To discover existing and potential problems in the process. To identify waste in the process.

What is the meaning of question and answer? ›

Q & A is a situation in which a person or group of people asks questions and another person or group of people answers them. Q & A is short for 'question and answer'.

What are the 5 core business processes? ›

At the core, every business is fundamentally a collection of five Interdependent processes, each of which flows into the next:
  • Value-Creation. Discovering what people need, want, or could be encouraged to want, then creating it.
  • Marketing. ...
  • Sales. ...
  • Value-Delivery. ...
  • Finance.

What is types of processes? ›

  • 1 Structured Process (Production Process) Structured processes can be production processes producing products and services. ...
  • 2 Case-type Process (Semi-structured, loosely structured) ...
  • 3 Research Process. ...
  • 4 Engineering Process. ...
  • 5 Artistic Process. ...
  • 6 Conclusion for the Software Engineering Process.
17 Jun 2021

What is BPM full form? ›

Business Process Management (BPM)

What is BPM and how it works? ›

“Business process management (BPM) is a disciplined approach to identify, design, execute, document, measure, monitor, and control both automated and non-automated business processes to achieve consistent, targeted results aligned with an organization's strategic goals.

How do you manage a process? ›

Here are five strategies to optimize your process management:
  1. Create ownership. Once you establish or optimize processes, it's important to create a process owner. ...
  2. Build a culture of continuous improvement. ...
  3. Standardize repeated processes. ...
  4. Optimization before automation. ...
  5. Value performance over perfection.
1 Feb 2022

How many types of business processes are there? ›

There are Three Broad Types of Business Processes. Every business is different, and the categories into which business processes fall will depend on what your business does. A specific type of task could be a support process in one business and a core process in another.

What is business process diagram? ›

A business process diagram is a diagram that depicts a directed flow of activities that are specified by using a subset of Business Process Modeling Notation (BPMN). Tip: You can create business process diagrams using the new diagram editor, which is now the preferred tool for creating graphical artifacts.

What are the two methods of business processing? ›

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.

What is process plan? ›

Process planning is a preparatory step before manufacturing, which determines the sequence of operations or processes needed to produce a part or an assembly. This step is more important in job shops, where one-of-a-kind products are made or the same product is made infrequently.

What are the basic components of business processes? ›

A process consists of three basic components: Inputs: They start the process.
...
Terms in this set (24)
  • Analysis phase.
  • Design phase.
  • Implementation phase.

How do you create a business process? ›

Follow these eight steps to develop an effective business process.
  1. Review the current business process. ...
  2. Start by defining the goals of the business process. ...
  3. List activities and look for inefficiencies and places to automate. ...
  4. Develop a process map. ...
  5. Assign process tasks and management. ...
  6. Test and implement the process.
27 Apr 2022

What is business process design? ›

What is business process design? Business process design is a method used to create a new workflow from scratch. New organizations engage in business process design when they start thinking about the ways that they will produce and deliver their products and services.

What is a common process? ›

We define a common process as one where: Everyone will use this process i.e. every department, every business unit. The steps in the process will be the same, except where local legislation dictates otherwise.

What is a process analysis paper? ›

A process analysis essay explains how to do something, how something works, or both. The process analysis essay opens with a discussion of the process and a thesis statement that states the outcome of the process. The organization of a process analysis essay typically follows a chronological sequence.

What are business process requirements? ›

Process requirements are documented expectations, targets and specifications for business processes. They may be collected from multiple groups of stakeholders such as business units, customers, internal customers, users and subject matter experts.

Why is business process analysis important? ›

Using business process analysis helps you identify the detrimental elements in an operation and identify how to overcome obstacles. Without a proper analysis, your teams will waste a lot of time and effort solving the wrong problems or switching from one software to another.

What is the meaning of process analysis? ›

Process analysis is a form of technical writing and expository writing "designed to convey to the reader how a change takes place through a series of stages".

What is the importance of business process analysis in trade? ›

Business process analysis is central to trade facilitation initiatives that have to do with making changes in 'as is' operations and processes. It is also useful in project and solution design wherever improvements are needed to streamline the 'to be' processes that link concerned parties.

What is the difference between business analyst and business process analyst? ›

Business analysts mainly work on the analysis part of the business processes whereas business process analysts work more on the operational part of business processes. Business analyst Roles and Responsibilities: Understanding the domain and its business processes.

What are benefits of process analysis? ›

Business process analysis (BPA) is one proven method that organizations use to examine and improve their processes. More specifically, BPA offers 3 significant benefits including improved visualization and understanding of processes, highlighting bottlenecks and weaknesses in workflows, and identifying cost reductions.

What are process analysis tools? ›

Business process analysis tools are primarily intended for use by business end users looking to document, analyze and streamline complex processes, thereby improving productivity, increasing quality, and becoming more agile and effective.

Why is process important? ›

Why are processes important? They are important because they describe how things are done and then provides the focus for making them better and how they are done determines how successful the outcomes will be. If you focus on the right processes, in the right way, you can design your way to success.

What are the methods of process analysis? ›

These techniques are:
  • Gap analysis.
  • Value-added analysis.
  • Root cause analysis.
  • Observation analysis.
  • Examining the experience.
5 Mar 2021

What is the objective of process analysis? ›

The objectives of a process analysis are: To understand the steps in the process. To discover existing and potential problems in the process. To identify waste in the process.

What is a process analysis paragraph? ›

In composition, process analysis is a method of paragraph or essay development by which a writer explains step by step how something is done or how to do something. Process analysis writing can take one of two forms, depending on the topic: Information about how something works (informative)

What are the categories of BPM? ›

There are three main types of business process management, including:
  • Integration-centric BPM. This type of BPM is used between existing software systems, such as CRM, ERP and HRMS. ...
  • Document-centric BPM. This type of BPM is used when a document, such as a contract, is the basis of the process. ...
  • Human-centric BPM.

What is the scope of process analysis? ›

During Define Scope process, product analysis is done to produce a detailed scope in the end. During product analysis, objectives and description of the product stated by the customer or sponsor are analyzed. After analysis, it is expected to reach tangible project deliverables.

What is the meaning of BPM? ›

For example, if your heart contracts 72 times in one minute, your pulse would be 72 beats per minute (BPM). This is also called your heart rate.

What are the skills of a process analyst? ›

Business Process Analyst job description

They are required to be good with great interpersonal and communication skills, report writing abilities, an aptitude for analyzing data, and great business acumen. They need to be able to evaluate employee needs, internal workflows and business processes.

What is a business process specialist? ›

The Business Process Specialist (BPS) / Business Process Consultant is a liaison to the individual business areas within the organization, evaluating, planning, and implementing improvements in business processes and practices.

Who is business analyst manager? ›

The business analyst manager performs various functions that involve bridging the gap between the technology and reporting teams of a company; ensuring efficiency and increased productivity by managing projects and business analyst teams in collaboration with implementation and operations team.

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1. Consultant Responds: What Is A Business Process Consultant?
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2. Intro to Business Transformation [Steps to Business Process, Organizational, and Technology Change]
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