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Business process transformation takes a business task or activity from its current state to a more improved function. Tips for optimizing a business process include identifying bottlenecks, finding ways to integrate people and technology, developing standardized tasks, and hiring a change agent to oversee a continual evolutionary process of business improvement. These steps allow business owners and managers to have a monitoring process in place that will likely increase the competitive advantage of their firm.
Bottlenecks in a business process are any constraints or restrictions that hamper the completion of tasks and activities. For example, a lack of information from the production department on needed resources can result in delayed purchases and longer production times. During the business process transformation procedure, owners and managers must look for bottlenecks that can slow down employees attempting to complete their job. Finding the root cause and eliminating the issue will most likely improve the business process.
The integration of people and technology is another piece of the puzzle for business process transformation. With companies implementing more technology into their business, employees must have the necessary knowledge to use these tools in their jobs. The transformation should increase the productivity of each employee, allowing the company to create a more streamlined operational system for primary and ancillary systems. Process transformation can also integrate new procedures gleaned from competitors or another industry to improve the company’s operations.
Standardized tasks are common when going through business process transformation. This allows the company to hire non-skilled workers for basic tasks, effectively lowering their labor costs. These standardized tasks also help produce similar quality goods among the different individuals working in the production process. Owners and managers can assure customers that the company has the ability to produce goods in a consistent manner, reducing the possibility of errors among produced goods.
Change agents focus solely on improving a company’s operations. These individuals work outside of operational managers and typically report to the company’s upper management. A change agent may be external to the company, which can provide an objective, third-party opinion on business process transformation. The change agent may also suggest an ongoing transformation process that allows the company to periodically review its operations for needed changes. For example, new raw materials may help the company improve current products, but different equipment is needed to produce the goods. Change agents will focus on accomplishing this task in order to optimize the company’s procedures for changes in the business environment.