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Unit 2.2

Business Processes

IT 233: Business Information Systems

Learning Objectives

By the end of this chapter, you will be able to:

  • ✅ Define what a business process is and its role in creating value.
  • ✅ Identify the three key components of any business process.
  • ✅ Provide examples of common business processes across an organization.
  • ✅ Explain why understanding processes is crucial for business improvement.

What is a Business Process? ⚙️

A business process is a collection of linked tasks which find their end in the delivery of a service or product to a client.

In simple terms, it's the specific, ordered set of steps a company takes to create value for its customers.

Think of it as the organization's recipe for success.

The 3 Core Components

1. Inputs

The resources required to start the process.

(e.g., data, materials, customer request)

2. Activities

The series of steps that transform the inputs.

(e.g., actions by people or systems)

3. Outputs

The final product or service of value.

(e.g., a delivered product, a report, a solved issue)

Process Flow Diagram

Anatomy of a Process: Order Fulfillment 📦

Example: Fulfilling an online order

INPUT

Customer's online order

ACTIVITIES

  1. Pick items from warehouse
  2. Pack items in a box
  3. Arrange for shipping

OUTPUT

Delivered package to the customer

Order Fulfillment Process

Processes Across the Business 📊

Sales & Marketing

  • Lead Generation
  • Order Fulfillment

Finance & Accounting

  • Invoicing Customers
  • Procure-to-Pay

Human Resources

  • Employee Onboarding
  • Payroll Processing

Operations

  • Product Assembly
  • Quality Control
Cross Functional Process

Practical Application in Nepal 🇳🇵

Example: Mobile Wallet Top-Up (e.g., eSewa/Khalti)

  • Input: User request to load funds from a linked bank account.
  • Activities:
    1. User enters amount.
    2. App sends secure request to bank via ConnectIPS.
    3. Bank verifies credentials (PIN/Biometrics).
    4. Bank debits user's account and confirms transfer.
    5. Wallet provider credits the user's wallet balance.
  • Output: Updated wallet balance, ready for payment.

This process must be fast, secure, and reliable to build user trust in Nepal's growing digital economy.

Mobile Wallet Process

Why Document Processes? 🔍

An organization cannot effectively manage what it does not understand.

  • 🎯 Identify Inefficiencies: Find and eliminate bottlenecks, redundant steps, and waste.
  • 🎯 Ensure Consistency: Standardize tasks for predictable quality and outcomes.
  • 🎯 Simplify Training: Create clear, repeatable instructions for new employees.
  • 🎯 Enable Improvement: Provide a baseline for process re-engineering and automation with IT.

The Foundation for Improvement ⚡

You cannot improve what you do not understand.

Documenting and analyzing a business process is the first and most critical step toward making it better, faster, or cheaper.

Chapter 2.2: Key Takeaways

  • A business process is a structured set of activities that transforms inputs into valuable outputs for a customer.
  • Processes are the fundamental building blocks of how any organization operates and creates value.
  • Every functional area of a business (Sales, HR, Finance) relies on a set of core processes to function.
  • Documenting processes is essential for consistency, training, identifying inefficiencies, and enabling improvement through technology.

Discussion & Application

Group Activity (5 mins)

Choose a simple, everyday activity at a local Nepali business (e.g., ordering momo at a restaurant, withdrawing cash from an ATM).

Describe it as a business process:

  1. Identify the Inputs.
  2. List the key Activities in sequence.
  3. Define the final Output.

Thank You!

Next Up: Chapter 3 - Information Systems & Strategy

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