What Is a System or a Process?

A system is a set of interrelated or interacting elements.

So, a system is a collection of people, places, things, documents, equipment, information, processes etc. and their interrelationships.

A typical system has both tangible and intangible parts. Some examples of business systems are:

• Inventory System

• Human Resources Information System

• Customer Database System

• Production System

• Accounting System

A process is a set of interrelated steps or interacting activities.

So, a process is a set of activities performed in sequence to perform a task or to produce a thing.

A process is intangible. It can’t be seen. It can be seen only while it is in action and in its results. Some examples of business processes are:

• Sales Process

• Purchase Order Process

• Payment Process

• Recruitment Process

Every business is a system, where people perform different processes with the help of some material, equipment, document, information or other individuals.

The objectives of the right systems and processes are to:

• Standardize operations

• Ensure predictability in operations

• Ensure right quality, cost and production time

• Minimize variations and errors

• Minimize cost with the help of efficient usage of time and human resources

• Proper coordination among all departments within the company

• Make operations independent of people’s individual preferences

• Facilitate planning and its smooth execution

Ideally, a business must be designed in such a way that it can operate without the business leaders’ direct or personal involvement. Systems and processes can make that possible.

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(Expert advice to GROW your business wherever you are, whenever you want.

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