Inputs, Activities and Outputs

But processes exist in every company--not just those that make physical goods. 

Technically, a business process is the set of steps a business performs to create value for customers.  A process consists of three basic components.

• Inputs - They start the process.  For example, if you're building a bicycle, the inputs are the tires, wheels, nuts, bolds, chains, gears and so forth.
• Activities - These transform inputs into outputs.  In the bicycle example, activities would include building a frame, attaching the wheels and tuning the gears.
• Outputs - Sometimes also called outcome, outputs are the result of the activities.  In this example, the finished bicycle.

Processes are easier to understand when you consider physical goods like bicycles.  But processes exist in every company--not just those that make physical goods.  For instance, in a company that provides management consulting services, there are still inputs (such as a consultant's knowledge) activities, (for example, conducing an employee-morale survey at a client organization), and outputs (such as a plan for cultural-change initiative at the client organization).

ACTION POINT: Identify process areas in your organization and determine the inputs, activities and outputs.