Comprehend The Significance of Business Processes
With the emergence of new technology, businesses must adapt to their surroundings and begin utilizing technology in order to compete with so many other businesses. For example, when the coronavirus first appears, the entire country implements a quarantine in which people are strictly forbidden from leaving their homes and must remain at home in order to prevent the virus from spreading. People who do not know how to cook or are simply lazy may order food online via applications. Foodpanda and GrabFood are the most popular food ordering apps in Malaysia. This application actually provides a way for restaurants to keep their doors open during the pandemic season. This is where technology is used to increase the business's profit.
A business process is a set of activities that results in the creation of products or services that add value to the organization. The procedure consists of three basic components:
- inputs: such as materials, services, and information
- resources: people and equipment that perform process activities
- outputs: product/service
To be successful, a company must evaluate its business processes in terms of efficiency and effectiveness.
Doing things well is what efficiency entails. For example, the process must be efficient in terms of time and resources.
While efficiency refers to only doing things that produce valuable results. Producing high-quality products, for example.
If they keep an eye on their business process, these metrics can help them identify where they are lacking.
The procurement and fulfillment process is the fundamental business process in every company that manufactures products. The procurement process involves the purchase of raw materials. When customers order products or services, the fulfillment process begins. Both of these processes fall under the scope of multiple functional areas, including warehouse, purchasing, and accounting. As a result, this functional area must communicate effectively with one another in order for the process to run smoothly and correctly.
What I'm trying to say is that every department or functional area in an organization is interconnected in order for the business process to be successful and profitable.
So, here comes the information system's role. They contribute to effective communication between departments/functional areas. When I say communicate, I don't mean literally talking to each other, but rather assisting in the delivery and storage of information in the database so that all functional areas can access the same data.
There are several examples of business process applications in organizations on this website. For example, a business process for customer service is important because the relationship between customers is essential for the company to function and for the business's longevity.
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