What is Business Process Analysis?

In the world of business, one thing is always certain and that is change.  Businesses are always looking to evolve and the key to evolving is making strategic, yet beneficial changes.  Change allows companies to improve processes, to expand in new directions and to remain up-to-date with the times and technology.  In order for companies to identify and recognize areas for possible change, upper management and business analysts will frequently conduct a type of review known as business process analysis.

Business process analysis is the activity of reviewing existing business practices and changing these practices so that they fit a new and improved process.  By conducting process analysis of a business, companies can remain efficient, streamline work flow and become more effective in their verticals.

How Business Process Analysis Works
Every operation is comprised of process systems, then individual processes and every process is comprised of a series of tasks or activities.  In order for businesses to deliver a quality product or provide a wanted service, they must utilize a set of effective processes.  When a company’s processes are improved and efficient, numerous things will happen.  First, the company will have reduced or lowered costs.  Second, the company will perform at a higher level.  Finally, the company will be able improve its bottom line.

In cases where business processes are problematic or need improving, the company will usually suffer from high overhead costs and will lack incoming revenue.  In order to avoid further financial setbacks and losses, the company will then have to analyze its processes and make improvements where necessary.

The first step in business process analysis is understanding every activity within a process.  This can best be accomplished through process mapping.   After processes are mapped, business professionals will have a visual that they can review and analyze.  They can then start to suggest effective solutions that will improve the day-to-day operations of the business.  If a more aggressive approach is needed, the business may consider future state mapping.  When done correctly, business process analysis can help companies implement appropriate changes that will decrease operational costs while increasing long-term profitability. 

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