Business readiness

Business Processes

What are Business Processes?

Documentation of Business Processes includes all procedures and guidelines followed by your company to operate efficiently.

Documentation of Business Processes summarizes the processes and the steps to be undertaken to achieve your business goals and needs. These processes are firmly designed, structured, documented and communicated to your internal and external stakeholders.

It includes information on all the third-party products and services employed, and the licenses and approvals obtained by your company to operate its business.

It typically includes:

  • Business Continuity Plans: Define potential business risks and their impact on your operations, and strategies formulated and implemented to mitigate them
  • Cash Management and Banking Practices: Outline the policies governing the use of financial resources; opening bank accounts and managing deposits and withdrawals
  • Production and Provision Practices: Outline the process and methods of producing, distributing and selling products and services to your customers
  • Sub-contracted Operations: Outline outsourcing processes to third parties followed by your company, such as front or back office and their roles and responsibilities

Why are Business Processes important for business today?

Documentation of Business Processes enables your company to:

  • Define and record the processes and procedures necessary to operate your business and communicate to internal stakeholders
  • Maintain consistency in business processes followed by your employees
  • Test and periodically review the processes implemented to mitigate risks faced by your company
  • Determine the requirement of new licenses or approvals to operate your business
  • Develop a baseline estimate for financial and labor resources required to develop and distribute products and services
  • Communicate and train employees on various existing and new processes

Why are Business Processes important for an event tomorrow?

Documentation of Business Processes is important for an event tomorrow, as it helps:

  • Assess the business processes followed by your company and scope for improvement
  • Determine any risks to your business operations and their impact, and assess the processes implemented to mitigate them
  • Assess the nature of business operations that are or can be outsourced by your company, and analyze the associated costs and benefits
  • Evaluate various approvals and company licenses to perform business activities
  • Determine your company’s manufacturing, marketing and distribution capabilities
  • Gain visibility into the utilization of third-party platforms, technologies or services

Pros of addressing Business Processes

  • Enables streamlining decision-making processes and standardize business operations
  • Mitigates the risk of substandard performance by third-party contracts where procedures govern third parties
  • Supports better formulation of marketing strategies for your products and services
  • Optimises resource use and increased efficiencies across your company

Cons of not addressing this topic

  • Increase in operational inefficiencies, as business risks and their impact on your operations are not tracked and mitigation strategies are not formulated
  • Increase in risks related to the development and marketing of products and services
  • Potential for reduced investor confidence due to a lack of process documentation

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