Operational Processes – Definitions, Concepts, and Corporate Integration

Here we will explain what operational processes are. Additionally, we will also delve into other related topics. Some of these relate to design, strategy, execution, and continuous improvement in operations. Furthermore, we will explore some examples and address how to integrate processes within organizations and manage them correctly. This will help us identify activities that do not add value so that we can eliminate them.

🟢 What are Operational Processes?

Doubtedly, Operational processes are the essential steps and activities that an organization undertakes to carry out its business and operational activities efficiently and meet its objectives. These processes vary by industry and company but typically include planning, resource acquisition, production, distribution, quality management, and customer service. Optimizing operational processes is crucial for improving productivity, reducing costs, and ensuring customer satisfaction. Companies often employ tools such as supply chain management and automation to refine their operational processes and remain competitive in the market. When defining operational processes, procedures, clients, processes, and other elements associated with operational strategy are considered. These activities take inputs (inputs and resources) to deliver an expected outcome (product or service).

Within organizations and their production systems, we can identify a wide variety of processes, which interact with each other within day-to-day operations. The relationship between them ends up occurring in various ways. In a certain way, the final result of some processes becomes the input for other processes and so on. Operational processes are linked together, connecting the value stream from customer order to product or service delivery. Within this process linkage composed of activities, some add value, while others do not.

🟢 What Tools Exist for Designing and Representing Operational Processes?

We can enumerate two major tools used for designing and representing processes: the process flow diagram and the Gantt chart. These can help us in many ways, whether to clarify our ideas and understand how a process unfolds or to communicate to work teams how operations are being conducted.

Process Flow Diagrams for Operational Processes

This tool is useful for graphically representing the flow of operational processes. It consists of a series of symbols used to represent different types of events. These events can be associated with waits, processes, controls, storage, among others. They are all connected by arrows representing the direction of material and information flow. In flow diagrams , the level of detail we want to achieve will depend on the purpose or objective for which the chart is being generated. We can create generic diagrams, providing a high-level overview with little detailed information. On the other hand, we can also create highly detailed versions with images and indicators.

Gantt Charts for Operational Processes

While this tool is used for project management, it also serves to visually represent the planned dedication time for different tasks or operational activities. These can be detailed over a specified period such as days, weeks, or hours. The aim here is to improve visibility of production schedules. Within the components of the Gantt chart, we have the vertical axis representing the activities to be performed and the horizontal axis representing the duration of the tasks. Among its main advantages, it allows us to quickly analyze deadlines and workload across different resources. On the flip side, they typically do not explicitly show dependency relationships between activities (predecessors/successors). Therefore, it is a complementary tool (but not a substitute) for flow diagrams, helping us to better understand the processes under analysis.

🟢 Examples of Operational Processes

Operational Process of Service

In this example, we see the process of opening an account for a bank customer. It describes the successive steps and the different paths when carrying out the process. Each component of the process formulates a type of activity detailed in the symbology.

Manufacturing Operational Process

Using the same symbology seen above, we can see an example of wafer biscuit manufacturing. In this case, the flow times for each process and the batch sizes are added to the diagram.

🟢 How to Design a Company’s Operational Process Map

Process maps are a generic graphical representation of how processes interact with each other from the moment a customer requirement is known until satisfaction is achieved. Between these two points, there is a series of mutually related processes that make things possible.

Classification of Processes within an Organization

Although processes within a company are varied, we can classify them into 3 major categories:

• Strategic and management Processes: Defined as such by the management committee. A process may be strategic for some companies but not for others. For example, customer service or research and development. Additionally, there are other processes that may be strategically important irrespective of the industry type, such as those associated with technology.
• Core Operational Processes (Key): These are the processes we have been discussing and are the heart of the company. They are the processes that bring the product or service to life.
• Support Processes: These provide internal support, usually with internal clients and hardly interact with the end customer.

Example of a Business Process Map

Below is an example of a process map from a manufacturing company. We can see that in this case, some strategic processes could be support processes in other types of industries and vice versa.

🟢 Operational Process Management Systems. Key Tools

In today’s dynamic and competitive industry, Operational Process Management Systems (or Operational Management Systems, SGO in its initials) play a crucial role in optimizing and coordinating the day-to-day operations of organizations. These systems have become indispensable for improving efficiency, reducing costs, and ensuring quality across various sectors. Below, we’ll explore some of the most relevant types of OMS used today:

• Enterprise Resource Planning Systems (ERP): By integrating key functions such as finance, human resources, and logistics, ERPs offer a comprehensive view of operational processes, enhancing decision-making and efficiency.
• Customer Relationship Management Systems (CRM): Focused on customer interaction, CRMs optimize sales, marketing, and customer service processes to strengthen relationships.
• Manufacturing Execution Systems (MES): Aims to track, plan, and execute manufacturing plans from sourcing to dispatch.
• Quality Management Systems (QMS): Essential for ensuring quality in production and services, QMS establish standards and processes to ensure consistency and compliance with regulations.
• Project Management Information Systems (PMIS): Facilitating project planning, execution, and tracking, PMIS improve collaboration, reduce timelines, and optimize resource allocation.
• Enterprise Asset Management/Computerized Maintenance Management Systems (EAM/CMMS): Aimed at maximizing the efficiency and durability of physical assets, these systems manage maintenance, tracking, and optimization of resources.
• Supply Chain Management Systems (SCM): From planning to delivery, SCMs coordinate the supply chain, optimizing inventories, reducing costs, and improving visibility.

🟢 Software for Enterprise Operational Process Management

The importance of management software in the industry is irreplaceable in today’s business context. These tools not only simplify daily operations but also radically transform how organizations coordinate resources, make decisions, and face market challenges. Management software, such as ERP, SCM, and CRM, provides a comprehensive view of operations, enabling informed and strategic decision-making.

The automation of key processes, facilitated by these systems, not only increases operational efficiency but also reduces errors and associated costs. Additionally, the implementation of specialized software, such as project or asset management, optimizes resource allocation and improves long-term planning. These software tools are not only for internal efficiency but also enhance organizations’ adaptability to market changes. They facilitate agile decision-making by providing real-time data, allowing companies to identify opportunities and risks proactively. Moreover, in an environment where collaboration and communication are key, management software fosters effective coordination between teams and departments. In summary, the proper implementation of management software is an essential catalyst for long-term competitiveness and sustainability in the modern industry.

ERP Software in Operational Processes

Enterprise Resource Planning (ERP) systems play a central role in business management by integrating crucial functions into a single platform. These software solutions encompass finance, human resources, and logistics, providing a comprehensive view of operations. By consolidating data and processes, ERPs eliminate information silos, improve collaboration, and facilitate informed decision-making. The automation of repetitive tasks optimizes operational efficiency, enabling companies to respond with agility to market changes. ERPs are essential for modernization and competitiveness in today’s dynamic business landscape. Some recognized brands (which we analyze in other articles on this website) include SAP, Odoo, Dynamics (Microsoft Dynamics 365), among others.

CRM Software in Operational Processes

Customer Relationship Management (CRM) software plays a crucial role in optimizing operational processes by focusing on effective customer relationship management. These tools consolidate data on interactions and transactions, providing a unified view of the customer. By streamlining customer acquisition, retention, and service, CRM software strengthens business relationships. They facilitate the customization of marketing and sales strategies, improving customer satisfaction and fostering loyalty. In a customer-centric business environment, CRM software implementation is essential for driving efficiency and competitiveness.

What is the Difference Between ERP and CRM?

Confusion between Enterprise Resource Planning (ERP) and Customer Relationship Management (CRM) systems is common, but their distinction is vital for operational efficiency. While both are comprehensive software tools, their functions differ significantly. ERP: Integrating Business Resources ERP focuses on the comprehensive management of company resources.

From finance to human resources and logistics, an ERP system centralizes data, allowing a holistic view of operations. It optimizes processes, improves decision-making, and maximizes efficiency. CRM: Empowering Customer Relationships On the other hand, CRM focuses exclusively on managing customer relationships. Its primary goal is to enhance customer interaction and satisfaction. It stores detailed data on customers and prospects, facilitating the customization of interactions and marketing strategies. A good CRM strengthens customer loyalty and optimizes sales.

Harmonious Integration: Why Both are Crucial While ERP handles internal aspects, CRM focuses on external relationships. Integrating both solutions creates a robust business ecosystem. Data flows seamlessly between departments, enhancing collaboration and providing a comprehensive view of the customer lifecycle. In summary, ERP manages internal resources, while CRM optimizes customer interactions. Both are essential, and when working together, they enhance overall business efficiency. The key is to understand their specific roles and leverage their synergies to achieve maximum operational performance.

🟢 How to Improve Business Operational Processes with ERP Software Implementation

Currently, implementing Enterprise Resource Planning (ERP) software has proven to be a vital strategy for significantly improving the operational processes of organizations. These comprehensive systems play a fundamental role in consolidating various business functions into a unified platform, providing a panoramic and coherent view of all operations.

One of the main contributions of ERP systems lies in their ability to automate routine tasks. By eliminating the need for manual processes, the likelihood of errors is reduced, and operational efficiency is optimized. Automation not only streamlines internal operations but also frees up time for employees to focus on more strategic and creative tasks.

Moreover, data integration is key to improving decision-making. With ERP software, data flows seamlessly between departments, eliminating information silos. This allows for more informed and timely decision-making, as business leaders have access to real-time updated information.

How to Improve Business Operational Processes with ERP Software Implementation

Currently, implementing an Enterprise Resource Planning (ERP) software has proven to be a vital strategy for significantly enhancing the operational processes of organizations. These comprehensive systems play a fundamental role in consolidating various business functions into a unified platform, offering a panoramic and coherent view of all operations.

One of the main contributions of ERP systems lies in their ability to automate routine tasks. By eliminating the need for manual processes, the likelihood of errors is reduced, and operational efficiency is optimized. Automation not only streamlines internal operations but also frees up time for employees to focus on more strategic and creative tasks.

Additionally, data integration is key to improving decision-making. With ERP software, data flows seamlessly between departments, eliminating information silos. This allows for more informed and timely decision-making, as business leaders have access to real-time updated information.

Another significant benefit is the improvement in resource planning and allocation. ERP systems offer advanced tools for inventory management, personnel allocation, and project planning. This ensures efficient resource distribution, reducing costs and enhancing productivity.

The implementation of ERP software also facilitates compliance with regulations and standards, as these systems are usually designed with regulatory requirements in mind. Furthermore, the ability to adapt to changes in the business environment, such as expansion or diversification, is crucial for long-term sustainability.

In summary, investing in ERP software not only improves operational processes but also positions organizations strongly to address future challenges and thrive in a dynamic business environment.

How to Improve Business Operational Processes with CRM Software Implementation

The implementation of Customer Relationship Management (CRM) software has become a fundamental catalyst for enhancing the operational processes of businesses, focusing on effective customer relationship management. This type of system not only optimizes how an organization interacts with its customers but also has a significant impact on internal efficiency.

A key benefit of CRM software is its ability to consolidate customer data into a single repository accessible to all departments. This eliminates duplicated efforts and ensures that all team members are working with the same updated information, enhancing coherence in decision-making.

Additionally, CRM software simplifies and streamlines sales and marketing activities by providing integrated tools for lead management, customer segmentation, and campaign tracking. This enables companies to personalize strategies, increase campaign effectiveness, and improve customer acquisition and retention.

Process automation is another significant advantage. With CRM, repetitive and administrative tasks such as email tracking or record updating can be automated, freeing up valuable time for teams to focus on higher-value activities.

Furthermore CRM software facilitates collaboration among sales, marketing, and customer service teams. By centralizing customer information, it promotes efficient communication and enhances coordination between departments, resulting in a smoother and more personalized experience for the customer.

Conclusions

In conclusion, this article highlights the importance of operational processes and the role of analytical tools in optimizing them within businesses. Through an exploration of operational processes and the utilization of analytical software such as ERP and CRM systems, organizations can streamline operations, enhance decision-making, and improve overall efficiency. These tools not only automate routine tasks but also facilitate data integration and informed decision-making across departments. By investing in these technologies, businesses can adapt to market changes, meet regulatory requirements, and achieve long-term sustainability. Thus, the integration of operational processes with advanced analytical tools represents a strategic approach to enhance competitiveness and drive success in today’s dynamic business environment.