Which factors influence the design, execution and optimization of business processes?

by Veronika Altenbach

BPM

18. July 2024 4 minutes

In addition to employees, efficient business processes are also an important part of any organization. These processes regulate the flow of activities and decisions and make a significant contribution to success. However, business processes are influenced by various factors, both internal and external.

In this article, we will introduce you to these factors.

Internal factors that influence process management

Strategic corporate goals

Strategic corporate goals have a direct influence on the design, execution, and optimization of business processes. They form the basis and ensure that all processes in the company are geared towards achieving the overarching objectives. These objectives serve as long-term guidelines that determine the company's course.

Organisational structure and culture

The organizational structure determines how decisions are made in the company, how information flows, and how employees interact together to be able to react quickly and flexibly to changes. The organizational culture, on the other hand, determines the values and behaviors that influence the design, implementation, and improvement of business processes. Both factors are crucial and must be considered to achieve organizational goals effectively and efficiently.

Availability of resources

The availability of resources such as financial means, personnel, technology, materials, and time contribute significantly to the success of an organization and have a direct influence on the efficiency and effectiveness of the implemented processes. If bottlenecks or deficiencies arise in any of these areas, productivity, quality, and competitiveness suffer. With automated business processes, these resources can be utilized efficiently to achieve the line faster and with higher quality.

External factors that influence process management

Market dynamics

Market dynamics describe the changes and fluctuations in the market environment. This includes the activities of competitors, customer requirements and economic conditions. This makes it all the more important for long-term business success to organize business processes flexibly and adaptable to be able to react quickly and efficiently to these fluctuations and achieve a significant competitive advantage.

Technological progress

Technological progress is advancing rapidly and therefore demands more efficient, more accurate and more adaptable business processes. This involves topics such as automation, improved communication, advanced data analysis, optimized supply chain management, innovation in products and services, enhanced customer experience, increased cybersecurity and flexible IT resources. By successfully integrating these topics, companies gain a clear competitive advantage and increase their performance enormously.

Legal and regulatory requirements

Legal and regulatory requirements form the framework for the execution of business processes. The continuous monitoring, adaptation, and training of employees ensure that regulations are complied with, and legal consequences are avoided. This minimizes risks and ensures the quality of products and services. During audits, digitally documented business processes help auditors to gain all the necessary insights into the company without great effort so that nothing stands in the way of prequalification.

Social and ecological aspects

Companies are under increasing pressure to act in an ecologically sustainable manner and to assume social responsibility. As a result, social and ecological aspects are becoming increasingly important along the entire value chain – from procurement and production to sales and customer relations. Well-implemented business processes in this area can not only help to fulfil legal requirements, but also strengthen the brand image, reduce costs and promote innovation.

Conclusion

It is obvious that various factors can influence process management. In addition to internal factors such as strategic corporate goals, organizational structure and culture, and the availability of resources, external influences also play a significant role. These include market dynamics, technological progress, legal and regulatory requirements as well as social and environmental aspects. It is therefore crucial to take sufficient time for the analysis to consider all relevant aspects and include them in the optimization. In this way, you can ensure long-term business success.

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