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What is Core Processes
Core processes are those processes of an organization whose object is the production of goods or provisioning of services to the customers.

Core processes sometimes also key processes or main processes are those processes and activities of an organization that are concerned with producing goods or providing customer service (see production process). These are all activities and processes related to the customer (the sell side). In other words, the revenue of the company is based on core processes only.

What are the core processes in practice and what do they mean?

The main processes make, create the value or benefit to customers. As the result of core processes the company receives money from customers (sales, operating revenues). The main processes are the purpose of the existence of each organization.

Core processes are fundamentally different in different sectors and industries: For the bank is the subject of core processes the provision of financial services, for the car manufacturer it is the production of cars, for the doctor it is the provision of health care. All other processes in the company are called support processes - their sole purpose is to ensure the functioning of the main processes.

If a company wants to improve its operation and efficiency, it must always start from the core processes and begin with identifying the value and benefits to the customer. Companies often forget this simple principle and are focused on those processes that do not bring the core value to the customers.

The heart of the main processes are day-to-day activities and processes. But don’t forget on the innovation - development activities and processes (strategy, development and innovation of new products and services) that must be linked to day-to-day operations as much as possible - in other words, it should not break away from reality. The main processes usually include all processes related to the processing of customer requirements, ie product delivery, services delivery, sales, customer care and communication (see Customer Relationship Management - CRM processes).

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Last update: 30.04.2019


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