Briefly describe with a real-life example what do you mean by business process?

Describe elaborately with example on each of the two major ways Information
Technology enhances business processes.
Answer:
Business process is basically a series of logically related activities and tasks such as planning,
organizing, producing, and sales carried on together to fabricate a defined set of results.
Different types of business mop on different type of business processes.
Example: If we consider the manufacturing company Walton, it produces more than 10500
products per day. It has a very unique business process with numerous sub business processes.
Firstly, it’s a manufacturing organization where a series of repeated steps are taken every day
to achieve that target amount of production.
Secondly, the logically related and repeated activities are fabricated sequentially or parallelly.
Thirdly, the whole business process of Walton is casted by many sub processes and every sub
process have unit processes.
Fourthly, if we consider the hypothetical business process above, there are dozens of processes
to achieve the final goal. When a particular project starts suppose of producing 10500 units of
goods, the front-line operational workers work in a repeated process, they are supervised by
the operation manager, the operation manager need to report to the mid-level managers and
then the report passes to top managers. In this repeated process there are many sub processes
of problem fixing, testing, company review, marketing improvement strategy, production
strategy, effect analysis, market analysis, economic analysis, procurement etc.
Fifthly, business process can be an asset if performed efficiently, delivers products and services
in the shortest possible time ensuring its quality. In contrast, business process might be a
liability if not performed efficiently and perfectly. There are two major ways information
technology enhances business processes.
1. Increasing efficiency of existing process: The business process that is existing
a) we should review it to find out the complications to come up with the adequate
improvements needed.
b) we can bring down the time of production cycle by enabling the activities parallel than
sequential if needed.
c) we should execute automation in every possible step to subdue the business process and
authorize it as more efficient one.
Example: It was very annoying and time consuming to have a smooth banking system just a few
years back. Because of IT, banks are storing information in the computers rather than
maintaining handbook. It enhanced their efficiency.
2. Enabling entirely new processes that are capable of transforming the business:
Enabling the completely new process makes a business capable of transformation.
a) change flow of information: IT enables a changed flow of information in a business enhancing
its efficiency. IT altered the information flow of an organization in a way that communication
has become very undemanding. Example: 10 years back, the banking system wasn’t this up to
date. When they are introduced with entirely new process of technology, internet banking and
access system, their whole business process got enhanced.
b) Eliminates duplication and redundant steps: successful companies always avoid multiple
systems or processes that perform similar functions because it only increases cost. Superfluous
steps are eradicated when proper IT in installed
Example: when government used to run the Jute mill industry it was a loss project, but with
proper strategies and business processes which includes contemporary IT installation, Akij
group is flourishing with jute mill industry.
c) Replace sequential steps with parallel steps:
Proper IT installation replaces sequential steps with parallel steps to bring more efficiency in
the business. Thus, the activities that are sequential should be performed parallelly to reduce
time enabling decrease in production time.
Example: In a Group of Companies, an IT officer providing user-support and maintaining data
connectivity for smooth internet parallelly rather than doing this sequentially.
d) Eliminate delays in decision making: With proper automation in business, we can have a
proper feedback regarding the needs and can fulfil accordingly to increase productivity in
business.
Example: In Bank branches, automation in transaction report process can give proper
suggestion for having a smooth cash flow for user needs in any occasion.
In the figure above, it shows the business process model of a bank. With IT installation, the
steps in the business process will be less complicated and easy to maintain. The whole account
opening process can be done very shortly with the help of IT, because it reduces time and
redundant steps. E- banking is the new process introduced to people to transform the whole
banking system into the easiest one.