Business Process Improvement: Importance and Benefits


Business processes and methods are the foundation of every organization. Under business processes, there are a bunch of activities which are to be completed on time to achieve a specific goal. Also, such tasks are required to be tested in regular interval of time concerning cost, quality, and outcome.


There is a growing need to continuously analyze your business processes and identify the areas that can be optimized further to increase the productivity and effectiveness of the final outcome. It is important to know that any dysfunction process can lead to inaccurate information flow, missed deadlines, unhappy customers, and increased cost. Therefore, businesses must invest in process improvement techniques to identify the loophole and eliminate the same at the very early stage.


What is Business Process Improvement?

Business process improvement follows the persistent approach of evaluating your business processes, identifying the non-value adding components, and improving the processes for more productivity. It is more about making effective and efficient use of time, cost, and resources.


The efforts required for process improvement vary with the outcome and complexity of the process. And, at times, these efforts may also follow approaches or methodologies like Lean process improvement, Theory of Constraints, etc., for enhancement of business processes.


Moreover, when it comes to business process design, it is important to define your Supplier, Input, Process, Output, and Customer (SIPOC). This helps in creating actionable steps for process improvement.

  • In some cases of business, the improvement efforts are less. It is just a matter of tweaking the current processes and doing minor changes.
  • In some instances, improvements may require adding sub-processes for improving the quality of the end result.
  • While in other cases, improvements may require a drastic revision and redesigning the entire process.


Why is Business Process Improvement important?

Business processes that do not work correctly can have various problems like:

  • Poor product delivery and customer service
  • Weak team coordination and product development
  • Increased overhead and wastage of resources
  • Missing deadlines and unhappy customers


And, on the contrary, process improvement can lead to various benefits that directly impact your business performance and bottom-line. Here are a few advantages of process improvement.


High Productivity

Process improvement in the regular interims can help you identify and eliminate the inefficiencies at the very early stage. And, this ultimately improves the productivity of the employees and the final outcome. Defining the performance metrics, real-time reporting, and installing predictive analytics can help to streamline your processes and bring them in order.


High product quality

In addition to speeding up the product development cycle, process improvement can lead to high product quality. For example, you can employ proper scientific methods to test your machines at every production stage. All the performance, integration, and security issues must be resolved first if any, and then, the actual production must take place.


High customer satisfaction

Customers are happy to receive their products ‘on time and in full’ quality. And, this is achieved only with effective utilization of available resources which also includes time and cost. Therefore, when processes work efficiently, everything in value chain works with zero wastage. As a result, the end product is delivered on time, and the customers become happy at the end. You earn customer loyalty which leads to increased revenue for the business.


High edge over competitors

If you choose to invest in business process improvement, your company is most likely to stay ahead in the competition. It is because you have high productive machines, people, processes, and materials. With your ability to deliver high-quality products, you can capture a wider market and improve your bottom line more effectively.


Every business wants to be more reliable with their daily processes, resource allocation, and product delivery. And, regular evaluation of business processes and improving the same can promise all of that and more.


However, businesses are striving hard to improve their processes. Most of them are unaware of the process improvement techniques that can help them increase their productivity. So, even if they are trying to improve their processes, they are just passing the inefficiencies from one level to another level of the value chain. In this case, partnering with business process improvement consultant is beneficial.


While designing a system, it is important to consider project objectivity. There may certain high-level process steps that help you zoom in on the actual work which is supposed to happen minute by minute.