What is Business Process Optimisation?

Aida Pandur

Last updated on 20/01/2023

The success of any business endeavour depends on the efficiency of its business processes. The main purpose of these processes is to maintain organisation, enable easier collaboration and simply keep things going in general. Given their importance, it is essential to continuously improve on them.

As a business grows, it is natural to create more business processes. However, this can also result in certain older processes becoming outdated or irrelevant due to their lack of integration with current practices.

For example, consider a company that initially employs a small number of employees. In such a scenario, it is not uncommon for the organisation to rely on a shared Excel spreadsheet to store that are critical to the operations of the business. As the organisation’s workforce grows, the reliance on this manual method of sharing and updating the spreadsheet becomes increasingly more difficult to sustain. It becomes obvious a different, more modern approach is needed to manage such sensitive information.

The way to tackle this is with business process optimisation.

What is Business Process Optimisation?

Business process optimisation is the systematic approach to improving efficiency and reducing costs by optimizing existing processes. This methodology can be implemented across all business processes, whether internal or external, and at both the individual and departmental level. However, for optimal results, it is recommended to implement process optimisation on an organisational level to ensure consistency and achieve optimal performance.

Benefits of Business Process Optimisation

There are many benefits to business process optimisation:

• Increased efficiency. Work smarter – not harder! Simplifying an unnecessarily complex problem can be a huge bottleneck in getting things done as efficiently as possible. That way, valuable time and resources can be freed up for other important tasks.
• Reduced costs. By increasing efficiency, the labour required to complete tasks is reduced. This can lead to significant cost savings.
• Better customer service. Optimised processes can lead to faster turnaround times and improved communication, which can enhance the customer experience.
• Employee engagement.It is a crucial aspect of optimising business processes. Removing pain points not only improves customer satisfaction, but also increases employee retention and morale. To ensure successful optimisation, it is essential to incorporate employee feedback, as it allows for the incorporation of valuable contributions from the workforce.

Steps to Implement Business Process Optimisation

When undertaking the task of optimising business processes, it is crucial to begin with a comprehensive plan in order to achieve the desired results. The following steps should be taken in order to effectively optimise business processes.

1. Identify

Map out all the processes currently in place. What are the steps in each process? Who is the responsible personnel? Are there any tools or resources used?

2. Analyse

Evaluate each process to determine key points of improvement. How long does the process take? Is it consistent? Are there any bottlenecks or inefficiencies? Is there any way you can cut costs (possibly wasted resources)? Set some target KPIs.

3. Strategize

Develop a strategy to improve on the points identified in the previous step. How do you plan on doing it? Does the process need to be automated? Do some steps have to be redesigned? Are the resources that are being used outdated and need replacing with newer technology?

Ask employees for feedback in order to gain different insights into the processes they interact with on a daily basis. Their knowledge and familiarity with the processes can provide valuable information on areas that may require improvement, and they may even have suggestions themselves.

4. Implement

Finally, implement the changes.

5. Monitor

Keep track of all the changes and monitor the results. Use the KPIs you’ve set during the analysing stage to measure the success of your optimisation.

6. Review

Continuously re-evaluate your business processes. Can they be further improved upon based on your monitoring results? Are there new technologies that you might want to implement? It's important to keep in mind that the process of optimizing business processes is an ongoing one, and regular reviews and adjustments will be needed to ensure that the processes remain effective over time.

Practical Examples of Business Process Optimisation

While the business process optimisation definition is detailed, it may not make sense until it’s seen in practice. So when is it best to actually apply business process optimisation?

The reliance on physical paper and manual labour in business processes can lead to inefficiencies and operational challenges. By implementing automation and digitalisation strategies, daily tasks can be streamlined, resulting in improved effectiveness and efficiency. Here are some real life examples of business process optimisation:

Invoice Approval

Manual invoice approval processes can be time-consuming, especially when there is a complex, multi-faceted structure in place with many people involved. By implementing digitalisation, the process can be streamlined and automated, with a single person responsible for approvals. This makes the entire process faster and more cost effective.

Project Management

Business process optimisation through effective project management is crucial in ensuring smooth workflow and successful completion of projects. By implementing a system for tracking tasks, assigning responsibilities to team members, and monitoring progress, the process can be streamlined and simplified, leading to increased efficiency and productivity.

How WEBCON BPS can help

WEBCON BPS is a leading provider of business process solutions. Utilising a low-code platform, our team has extensive experience in the development and implementation of customised systems from the ground up. We also offer ongoing optimisation services to our clients to ensure optimal performance of their processes. If you are interested in improving the efficiency and productivity of your business operations, please do not hesitate to contact us for further information.