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Business Process Analysis: Methods, Tools, Steps and Benefits

12th Oct, 2023
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    Business Process Analysis: Methods, Tools, Steps and Benefits

    Business Process Analysis (BPA) is a way to assess the state of various business activities and boost their effectiveness. Business process management is a specialized technique to assess whether current processes successfully achieve their objectives.

    More cost reductions, revenue, and better business involvement are frequently desired BPA outcomes. For instance, business process analysis software can be used to examine consumer involvement and areas with downturns, blocks, or very low conversion rates. Examining your business's processes and policies can also show what factors contribute to poor employee engagement. Learn more about the business analysis process with top Business Analyst certifications from the best professional analysts. from the best professional analysts. 

    What is Business Process Analysis?

    An approach to examining business operating processes is called business process analysis and design (BPA). It is a rigorous and multi-phase analysis of every step in a process to understand the current scenarios and identify the scope for improvement. Without thorough analysis, your team will waste a lot of time and effort solving incorrect problems or switching from one software program to another.

    Business process analysis can be approached in several ways, but they all share the fundamental belief that better procedures lead to better overall business results. 

    By using business process analysis, you may spot problematic aspects of an operation and figure out the solutions.  

    Difference Between Business Process Analysis vs. Business Analysis

    Business Analysis (BA) and Business Process Analysis (BPA) are two different concepts despite having similar names. BPA is particularly interested in studying business processes and providing enhancement recommendations based on information gathered during the analysis

    On the other hand, BA is more concerned with identifying specific organizational needs or issues that aren't as tightly related to procedures but could nonetheless include research, recruiting, or budget cuts.

    ParametersBusiness Process AnalysisBusiness Analysis
    MeaningBPA only bases its data collection and advice-giving on an organization's essential operations.Business analysis is used to pinpoint any issues or requirements inside a firm, including cost-cutting measures, market research, hiring procedures, and financial controls.
    ApplicationThe work is mostly in logistics, dealers, transportation, supply of raw materials, distributors etc.It mainly involves working in the office to give solutions that will maximize a business's value to its stakeholders.
    FocusThe operational aspect of business processes is where business process analysts focus more on their efforts.Business analysts primarily focus on the process analysis portion of business operations.

    When to do Business Process Analysis?

    The business process analysis template provides a clear insight to the process owners so they may make an informed decision when applied to the appropriate "as-is" process. 

    The following circumstances require the usage of business process assessment methodology -

    • Unknown problems like persistent delays or a rise in consumer complaints 
    • Participants in a process are unsure about how to carry it out. 
    • Be sure the process is optimized before introducing automation. 
    • A team wishes to switch out an existing method with a new one. 

    Benefits of Business Process Analysis

    Business process analysis uses

    The main advantage of (BPA) business process analysis is that it helps you run your business processes more efficiently and strategically aligns them with your goals and decision-making.

    Having business process analyst certification helps small and medium enterprises to achieve the following business process analysis benefits -

    Benefit 1- Establish Better Governance Procedures

    Businesses are giving risk management more attention. Maintaining compliance is an expensive task for firms, and fixing problems with timely completion of objectives and transparency when they occur is even more expensive. Analyzing business processes can show where compliance controls have failed. 

    For instance, your company might not comply with how frequently you audit application security measures. To ensure that a process can be carried out and maintained, business process analysis benefits can implement an improvement strategy that considers resources and regulatory requirements to ensure a process can be carried out and maintained.

    Benefit 2- Expose Capacity Problems

    BPA pinpoints the location of the capacity restriction, how it impacts the process, and suggestions for improvement. For instance, your present digital tools and platforms may limit your ability to meet organizational goals and streamline operations.

    Benefit 3- Enhancing Corporate Culture

    A sort of housecleaning is always a superior method. Every day, the upgrades give the employee experience new life. Better involvement and morale for internal procedures are the outcomes. Customers are more engaged and have a more favorable opinion of your company when you have improved procedures, such as a better website or customer service experience.

    Benefit 4- Determine Cost-savings

    BPA shows task and labor redundancy. Organizations that have switched to digital document workflows illustrate how fewer human errors and time-consuming document searches lead to cost savings. 

    Benefit 5- Process Improvements for Integration and Adoption

    Implementing new technology throughout an organization or department is a laborious procedure. BPA implements procedures, including practical training courses and workflow visualizations, that promote increased adoption rates. 

    Steps of Doing Business Process Analysis

    A project can be made to run smoothly and result in positive outcomes by following the five business process analysis steps listed below - 

    Step 1- Set Your Objectives and Procedures

    Determine the business process you want to research and what you intend to accomplish with BPA. Setting KPIs, benchmarks, targets, and other measuring tools will help you determine whether your adjustments have been successful. 

    Step 2- Collect Information

    Your team must gather as much data as possible once you've decided which procedure to examine. Interview stakeholders familiar with the process and work with it frequently, and collect any data, paperwork, or related resources. It is crucial to take data from various reliable sources to help create a picture of how the process works within the business. 

    Step 3- Create a Process Map

    After obtaining information about it, you should create a flowchart for the process. You can use more advanced workflow management software to help you see the process from start to finish or keep it simple with a piece of paper or a whiteboard. 

    Step 4- Find Issues that Require Improvement

    Once everything is planned out, you should evaluate the procedure and look for potential improvement areas. This could entail eliminating duplicates, automating specific processes, or modifying workflow components. This point should be used to resolve issues that will improve the process efficiency or help make it more useful for other employees. 

    Step 5- Observe and Take Action

    Implementing the modifications and monitoring the process are the final steps to ensure the updates are effective and that the modified process still fulfills the objectives and KPIs you set in the first phase. A business process analysis case study calls for ongoing monitoring and check-ins with your procedures, so you shouldn't stop here.

    A "set it and forget it" attitude should be avoided because you can discover more chances to enhance a process in the future.

    Business Process Analysis Methods

    The business process analysis methodology (BPA) is mostly based on two aspects -

    1. Six Sigma
    Six Sigma

    Six Sigma was created with the very explicit intention of using statistical analysis to lower variance and failure rates in production processes. Six Sigma accomplishes this using one of two 5-step methodologies: the DMAIC or the DMADV


    Define, Measure, Analyze, Improve, and Control is DMAIC. This entails determining the issue you're attempting to resolve, evaluating your present procedures, choosing and implementing a solution, and preserving that solution moving forward.

    This is ideal for supply chain performance issues or when minor tweaks to the process rather than a completely new function are required. Six Sigma is all about keeping an eye out for flaws in the supply chain, spotting problems, and finding the best solutions. 


    DMADV is a Six Sigma framework that places more emphasis on creating new goods, services, or procedures than on improving ones that already exist. Due to its data-based foundation, early success detection, and extensive analysis, this approach—Define, Measure, Analyze, Design, Verify—is particularly helpful for adopting new strategies and projects.

    2. Lean Six Sigma

    Lean Six Sigma

    Lean Six Sigma is the ideal fit for businesses aiming to optimize their operations and provide the greatest value to the customer. With the DMAIC method, any business case can benefit from phased thinking and a defined roadmap, as opposed to only defect prevention, as with the traditional Six Sigma methodology.

    Most firms employ the five to seven-step Six Sigma technique to examine inefficiencies and constraints. The way that Lean Six Sigma differs from traditional Six Sigma is that it combines both approaches. It is a cooperative strategy that concentrates on removing tasks and resources that don't have a clear worth.

    Tools to Use for Business Process Analysis

    Utilizing an excellent business process modeling tool to digitize and visualize your business processes is the first step in automating them. However, after a while of operation, you must be able to assess your process and decide whether the optimization is required.

    Analysts also use software to design and mapping procedures to analyze business process gaps.

    Some of the business process analysis examples are modeling and mapping. Supplier, input, process, output, and customer (SIPOC) model diagramming and business process model notation (BPMN) diagramming are two workflow solutions organizations employ to improve operations.

    This comprises tools that help businesses automate business process analysis (BPA) techniques and use end-to-end process modeling to map a process' beginning and conclusion points. These visual aids are an excellent way to show how a process has changed. They can be used to relate each process improvement to your most significant corporate goals or as a "before and after" visual teaching tool for staff members, as in a business process analysis report example.

    The following are some common business process analysis tools -

    1. Heflo

    HEFLO is Business Process Management (BPM) software that runs in the cloud and aids users in the modeling, administration, and automation of all business processes. Business rules management, process analysis, communication, lifecycle management, and process modeling and design are just a few of the software's important capabilities.

    2. Kissflow

    The most user-friendly BPM product available is Kissflow. An automated business process can be created in minutes by anyone familiar with how it should function.

    3. Appian

    For a very long time, Appian has served as a pillar for high-end low-code BPM processing. It offers customers a variety of tools to build and automate processes and other sorts of programs.

    4. Signavio

    SAP Signavio Process Intelligence assists enterprises in improving process analysis by finding bottlenecks and enhancing operational efficiency. Monitoring and analyzing processes on a historical or real-time basis via SAP Signavio Process Intelligence can also benefit a company.

    5. HOPEX Platform

    In-demand techniques in enterprise architecture, privacy and data management, business process analysis, and risk management (GRC) are all combined into HOPEX, a comprehensive range of integrated software solutions.

    6. ProcessMaker

    ProcessMaker is a little more data geek-friendly than some of the other solutions. It features many customizable dashlets that you can design to display specific reporting metrics for your operations. It even has an Employee Efficiency report that identifies which employees are moving stuff swiftly and which are causing backups.

    7. Pega

    Pega is an alternative premium low-code option. To display your data in many graphical methods, such as line, bar, pie graphs, and many others, Pega, a tool for business process analysis, mainly relies on its 55 report types.

    Unlock your potential with business intelligence certificate online. Gain valuable insights and skills for success in today's data-driven world.

    Bottom Line

    BPA is a crucial instrument for numerous trade facilitation initiatives that call for modifying the underlying mechanisms and procedures. The business process analysis framework can be used in various ways in the context of trade facilitation. It is also crucial in creating projects and solutions since it gives a broad overview and analysis of the current situation (as-is). It can also assist in determining whether to improve parties' communication procedures (To-Be). 

    With the KnowledgeHut of Top Business Analyst certifications, develop a thorough comprehension of business analysis ideas and learn how to use them. Our business analyst courses emphasize providing participants with knowledge and skills while demonstrating how to use what they have learned in a practical work setting.

    Frequently Asked Questions (FAQs)

    1What is business process analysis?

    A method for analyzing a firm to understand its processes and enhance the efficacy and efficiency of its operations is called the business process analysis method (BPA). It outlines the procedures, the parties involved, the information exchanged, and the documents generated.

    2What are the three types of business process analysis?

    The three types of business process analysis are as follows- 

    3What are the five core business processes?

    The Five Core Business Processes are- 

    • Product Development 
    • Marketing and sales 
    • Quality & Service/product Delivery 
    • HR & Finance, Management 
    • Technology & Accounting 
    4What are the seven steps of the business process?
    • Define your goals 
    • Plan and map your process 
    • Set goals and allocate stakeholders 
    • Evaluate the method 
    • Carry out the procedure 
    • Evaluate the results 
    • Continue
    5What are the basic components of business processes?

    A basic component of a business process analysis model consists of activities, facilities, and information.


    Mansoor Mohammed

    Business Agility Expert

    Mansoor Mohammed is a dynamic and energetic Enterprise Agile Coach, P3M & PMO Consultant, Trainer, Mentor, and Practitioner with over 20 years of experience in Strategy Execution and Business Agility. With a background in Avionics, Financial Services, Banking, Telecommunications, Retail, and Digital, Mansoor has led global infrastructure and software development teams, launched innovative products, and enabled Organizational Change Management. As a results-driven leader, he excels in collaborating, adapting, and driving partnerships with stakeholders at all levels. With expertise in Change Management, Transformation, Lean, Agile, and Organizational Design, Mansoor is passionate about aligning strategic goals and delivering creative solutions for successful business outcomes. Connect with him to explore change, Agile Governance, implementation delivery, and the future of work.

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