Classification of Business Processes

Business processes can be classified in a variety of ways, depending on the characteristics and goals of the organization. Some common ways to classify business processes include:

1. Operational vs. Strategic: Operational processes are those that are directly related to the day-to-day operations of the organization, such as manufacturing, sales, and customer service. Strategic processes, on the other hand, are those that support the long-term goals and objectives of the organization, such as planning, budgeting, and resource allocation.
2. Core vs. Support: Core processes are those that are central to the organization’s value proposition and competitive advantage, such as product development or research and development. Support processes, on the other hand, are those that enable the organization to function effectively, such as human resources, finance, and IT.
3. Internal vs. External: Internal processes are those that are carried out within the organization, while external processes involve interactions with external stakeholders, such as customers, suppliers, and regulators.
4. Value-Added vs. Non-Value-Added: Value-added processes are those that directly contribute to the creation of a product or service, while non-value-added processes are those that do not directly add value, such as administrative tasks or defects in the process.
5. Linear vs. Non-Linear: Linear processes have a clear start and end point, and involve a series of sequential steps, while non-linear processes are more complex and may involve multiple parallel paths or iterations.

By understanding the various ways in which business processes can be classified, organizations can better understand the functions and goals of their processes and identify opportunities for improvement.