What is a Business Process?

In today’s rapidly evolving business landscape, there is a growing sense of ambiguity surrounding the concept of business processes. The term is prevalent in modern discourse, featured in boardroom discussions, digital transformation initiatives, and operational strategy sessions alike. Yet despite its frequent use, many leaders and teams lack a clear understanding of what a business process truly entails and how it should be integrated into their organizations. This article aims to clarify this foundational topic—providing a comprehensive overview of what business processes are, demystifying their role within various business models, and explaining why establishing and optimizing these processes is not just beneficial, but critical for sustainable growth and competitiveness in any industry. By exploring these themes, you will discover how clearly defined business processes can support strategic alignment, enhance operational resilience, and lay the groundwork for scalable, value-driven transformation.

What is a Business Process?

Business processes refer to interrelated activities which have a specific sequence and are performed by people or teams to achieve a specific goal (product/service) for a particular user or consumer. Business Process are implemented to achieve a predetermined organizational objective and occur at all levels of the organization. Also, they are the basis for the development of related concepts such as Business Process Management (BPM) and Robotic Process Automation (RPA), among others.

Business Processes, Procedures, and Functions.

While a business process is a series of related tasks that generate the desired result, a procedure is a clear and stipulated way of performing tasks within a business process. The procedure details, among other things, the teams and the people responsible for each part of the process as well as the specifications for each part.

A business function is an organizational unit of the company with a specific set of activities that help companies carry out their general objectives and processes.

The Importance of Business Processes

The need and advantages of having business processes are evident given that through these, we achieve our organization’s goals. By identifying and highlighting the most important processes, we ensure:

• Efficient production and delivery of the value proposition.
  
  

• Improvement of processes and optimization of individual activities such as the use of resources.
  
  

• Costs reduction.
  
  

• Identification of the main processes that contribute to the achievement of business objectives.
  
  

• Streamline communication between people, functions, and departments.
  
  

• Establishment of approval levels, control on the level of responsibility, and optimal use of resources.
  
  

• Prevention of chaos in your daily operations.
  
  

• Standardization of procedures that complete important tasks.

Essential attributes of an ideal business process

A good business process has 4 characteristics that identify it:

• It is clearly defined: A business process must have a well-defined start and endpoint. Between both points, there is a finite number of coordinated and interdependent steps.
  
  
• It is repeatable: When executed indefinitely, a business process must generate consistent results over and over again.
  
  
• It creates value: The ultimate goal of each activity and each task in the process must be the creation of value. Any step in the process that does not add value must be eliminated.
  
  
• It is flexible: The nature of a business process is its flexibility to change. This is because when any improvement is identified, the process must allow such change to be made without affecting the different stakeholders.

Categories of Business Processes

Depending on the specific context—such as industry sector, organizational structure, and the nature of business activities—business processes are typically grouped into three main categories. This classification not only supports clearer process management but also enables organizations to optimize performance, allocate resources more effectively, and align operational efforts with strategic objectives.

• Operational or primary processes: Those that are related to the core business and the company's value chain. Operational processes are responsible for generating and delivering value to the customer in the form of products or services. In addition, the main processes represent the key activities of the business to achieve its strategic objectives. Some examples are the order purchase and bank account management.
  
  
  
• Support or secondary processes: They support operational processes. A differentiator between secondary and primary processes is that support processes do not generate value to customers directly. Some examples are human resources and occupational health and safety.
  
  
  
• Management processes: They measure, monitor, and control activities related to procedures and systems. Like support processes, management processes do not directly create value for customers. Some examples are internal communication, strategic planning, business infrastructure (hardware), governance, and budgeting.

Business process management (BPM)

It is a systematic approach that allows an organization to perform its processes more efficiently and dynamically, meeting the changing needs of the business. The BPM facilitates management review and process control; the continuous improvement being the central focus of the BPM. Organizations use BPM software to monitor, control and improve business processes. Business process management includes certain steps such as process modeling, execution, monitoring, and optimization.

>> What is Business process management (BPM) <<

Business Process Monitoring

BPM uses analytical studies to measure the performance of a process. It is used to identify elements such as cycle time, errors, and costs. Functional monitoring facilitates the functional performance of a process. Technical monitoring measures technical efficiency by monitoring and recording aspects such as response time and downtime.

Visibility of Business Processes

The visibility of business processes provides companies with a complete view of each of their processes, increasing operational response capacity and expediting decision making. It also helps determine if the processes are aligned with the business’s key objectives and goals and if a company's procedures are operating accurately.

Modeling or Mapping Processes

It is a schematic representation of the flow of business activities, either of an organization or a particular function within a company. The main use of a process model is to document the current flow of activities (As Is) to identify improvements that reduce execution times (To Be). To make the process model, diagrams, charts, and other tools are used. A standard used and globally accepted is the Business Process Modeling Notation (BPMN).

Process Automation

Technological advances have significantly enhanced the potential for automating business processes, enabling organizations to achieve faster execution times and substantial reductions in operational costs. Today, process automation can be applied to a spectrum of workflows, from routine, repetitive tasks to more complex, multi-step operations. At ICX, we recommend prioritizing automation initiatives for those processes that demand high operational precision, large volumes of repetitive actions, rapid scalability, consistent compliance with regulatory standards, or seamless integration across digital systems. By strategically targeting these areas, organizations can realize greater efficiency, lower the risk of human error, clarify roles and responsibilities, and ensure alignment with both business objectives and security requirements.

• • Increase in efficiency.
  • Reduction of human error.
  • Defined roles and responsibilities.
    
    

Process Reengineering

Process reengineering involves a fundamental overhaul of how a process is structured and operates, with the objective of delivering transformative results. This approach requires a rigorous and comprehensive analysis to uncover the root causes of current inefficiencies and performance gaps. Through this examination, organizations identify which tasks or activities fail to contribute value, systematically eliminate these nonessential elements, and design entirely new workflows as needed. The process may include adopting advanced technologies, redefining roles and responsibilities, integrating automation, or realigning the process with overarching business strategy. Ultimately, effective process reengineering aims not merely at incremental improvement, but at achieving breakthrough gains in efficiency, quality, compliance, and customer satisfaction—laying the foundation for sustained operational excellence and competitiveness.

The 7 Steps to Defining a Business Process

1. Set goals
What is the purpose of the process? Why is it necessary? How do you verify that the process runs successfully?

2. Plan and map the process
What strategies do you need to achieve the goals? This is the roadmap for the process.

3. Set actions and assign responsibilities
Identify the tasks that your work teams and systems must perform.

4. Verify the process
Test your process on a small scale and verify its performance. Be aware of any problems that may occur and make the necessary adjustments.

5. Implement the process.
Start running the process in its normal state. Communicate and train all involved in advance.

6. Review the results
Review the process and analyze the patterns. Document the history of the process.

7. Repeat
If the process is capable of achieving the established objectives, replicate the model in other processes in the future.

In conclusion, a thorough understanding and effective management of business processes are essential for organizations aiming to achieve sustainable growth and long-term competitiveness. Clearly defined processes not only streamline daily operations but also provide the structure necessary to adapt to evolving market demands and regulatory requirements. By standardizing procedures, fostering collaboration across departments, and eliminating inefficiencies, companies lay the groundwork for smoother execution and the delivery of a consistent value proposition to both internal and external stakeholders.

The integration of process management methodologies such as Business Process Management (BPM) and the adoption of automation tools further elevate organizational performance. These approaches empower leaders to monitor, analyze, and optimize operational workflows continuously, enabling faster decision-making, reducing operational risks, and ensuring greater compliance with industry standards. In sectors where precision, speed, and data security are paramount—such as financial services and telecommunications—these advantages translate directly into higher service levels, improved customer experiences, and significant cost savings.

Ultimately, process optimization and reengineering should be viewed as ongoing strategic investments, rather than one-time projects. Leaders who embrace a culture of continuous improvement position their organizations to respond swiftly to change, foster innovation, and unlock new opportunities for revenue growth. As digital transformation accelerates industry evolution, those businesses that place process excellence at the center of their strategy will not only achieve greater operational efficiency, but also establish themselves as leaders prepared to navigate complexity and drive impactful business outcomes in a dynamic marketplace.