Business Process: a defined sequence of business activities that use resources to transform specific inputs into specific outputs to achieve a business goal.
Business Analysis: the process of defining business process requirements and evaluating potential improvements.
Business Model: a simple abstract representation of one or more business processes.
Documentation: explains how business processes and business systems work; a tool for information transmission and communication.
Documentation includes:
Business process models.
Business rules.
User manuals training manuals.
Product specifications.
Software manuals.
Schedules.
Organization charts.
Strategic plans.
Made documentation essential for businesses.
Requires managers to assess and attest to the business’s internal control structure and procedures.
Requires external auditors to audit management’s assessment of the effectiveness of internal controls and express an opinion on the company’s internal control over financial reporting.
Employee training.
Internal and external audit requirements.
Accountability.
Standardized communication within the enterprise.
Standardized communication between the enterprise and its customers, suppliers, and other stakeholders.
Effectiveness—are the outputs obtained as expected?
Efficiency—can outputs be produced with fewer inputs?
Internal control—are controls working?
Compliance—does the process comply with constantly changing local, state, federal, and international laws and regulations?