Workflow is a defined sequence of actions and tasks within an organization aimed at achieving specific outcomes. It illustrates how the execution of operations progresses from one stage to another in a systematic manner, precisely defining what should be done, when, and by whom. It is a structured method of organizing business processes.
The main goal is to increase organizational efficiency through process standardization, elimination of unnecessary delays, and ensuring transparency of operations. A well-designed workflow reduces errors, saves time, and enhances work control.
What does a workflow consist of?
Workflows are built on the integration of several key elements, including:
Process participants – individuals or systems engaged into carrying out tasks:
• Process initiators who start workflows
• Task performers
• Persons approving and making decisions
• Administrators who supervise the process
Business rules that specify:
• Process start and end conditions
• Decision-making criteria
• Alternative process paths
• Time limits and task priorities
Task and activities:
• Specific actions to be taken
• Decision points
• Control points
• Automatic actions
Notification system:
• Automatic notifications
• Alerts for missed or approaching deadlines
• Information about required actions
• Messages about the completion of stages
Documentation and data:
• Forms and document templates
• Input and output data
• History of changes and activities
• Reports and analytics
Control mechanisms:
• Monitoring work progress
• Tracking deadlines
• Verifying the accuracy of actions
• Identifying bottlenecks
Workflow processes and Business Process Management (BPM)
Although these terms are often used interchangeably, they are not identical, and the main difference lies in their scope. Business Process Management ( BPM) is a broader concept that provides a comprehensive view of all business processes within a company, including monitoring, resource management, efficiency optimization, and the integration of various workflow processes.
A workflow, on the other hand, is a specific, partially or fully automated sequence of tasks that can be compared to a detailed, structured instruction for process execution. It is a tool used within a broader business process management framework, contributing to a holistic approach to work organization within the enterprise. For example, an invoice approval workflow may consist of the following predefined steps: receiving the document, verifying the data, supervisor approval, posting, and processing the payment. In contrast, Business Process Management (BPM) encompasses the entire financial management system within the company, including its purchasing policy and strategy.
What are workflow systems?
Workflow systems are IT solutions designed for modeling, monitoring progress, and managing business processes through automation. They coordinate tasks, information, and decisions among people, systems and organizations based on predefined rules and procedures. A well-chosen system can address common challenges such as task execution errors, difficulties in reporting and tracking project status, limited access to project documentation, and excessive time spent on routine tasks.
Usage in the ERP system
ERP (Enterprise Resource Planning) systems serve as the central hub for enterprise management, encompassing areas such as finance, logistics, production, sales, and human resources. Integrating workflow with ERP systems enables seamless automation of business processes while maintaining a centralized data repository. For example, workflow functionality in Microsoft Dynamics 365 Business Central allows all activities to be executed and monitored directly from the ERP system, ensuring full transparency. Users can implement workflow processes within familiar applications such as Microsoft Outlook, Teams, Sharepoint, Forms or Excel.
It improves cross-departmental communication by automating processes based on real-time, consistent data.
Additionally, organizations can create custom workflows tailored to their specific needs without modifying the core ERP system.
Examples of use
Workflows, when integrated with ERP systems, can automate business processes across various areas of company operation. What areas do they cover?
Document management
It automates the flow, verification and approval of documents such as purchase and sales orders, invoices, and complaints. For example, when the sales team creates an order, the workflow system forwards the document to the designated approver. Approval may require meeting certain conditions – for instance, if the order value exceeds a specified amount, the document undergoes additional verification. This enhances control over spending and helps eliminate errors.
For invoices, the system verifies their accuracy by comparing them with the corresponding sales order before sending them for approval.
Project management
Every stage of a project – from planning and execution to completion – is structured and monitored in real time. These systems define rules, user roles, and procedures applicable to each task. Routine tasks (such as sending notifications or generating reports) are automated. Project team members have real-time insight into task statuses, enhancing schedule control and enabling faster identification of potential errors.
Financial management
Workflows in financial management not only reduce manual tasks but also improve overall company management. The aforementioned invoice processing is just one of their applications. Workflow tools support planning and payment processes through scheduling, notifications, banking system integrations, and payment verification against the planned budget. Overdue payments and budgets are automatically monitored.
Verification of new customers or vendors
In this area, processes related to assessing the credibility and completeness of new contractors’ data are automated and standardized. New customers or vendors added to the system are verified for data accuracy and sent for approval to the appropriate person. The system can independently assess credibility based on available reports or cooperation history.
Query management
Queries received from customers and business partners are automatically registered and assigned to appropriate teams based on predefined rules. These rules can include factors such as request type or priority. If a request is not handled, the workflow system may escalate the case to a higher support level by sending an appropriate notification. For standard queries, predefined templates can be used to set up automatic responses through the integration with the relevant knowledge bases. Additionally, users can generate reports on statistics and request handling.
Inventory management
Workflows in inventory management are highly effective for inventory control and replenishment. Workflow tools can automatically monitor inventory levels and trigger appropriate actions when the availability of a specific product falls below a predefined minimal value. Possible responses include sending a notification to the responsible personnel or automatically generating purchase orders based on vendor information, prices, and due dates. Integration with other solutions, such as Business Intelligence, enables the regular generation of reports on inventory turnover, most popular products, and slow-moving items.
The workflow system can also notify warehouse teams about planned deliveries, generate receipt documents, and, update inventory levels, after acceptance. Additionally, it can coordinate transfers between warehouses in different locations.
Human resources management
Workflows streamline HR processes, increasing their speed and quality. The workflow system automates recruitment stages by automatically registering application forms and candidates along with their statuses, and manages communication, such as sending confirmations to recruiters and candidates. It streamlines the employee onboarding process (e.g. creating accounts, sending welcome packages and contracts) and enables the automatic assignment of tasks to the appropriate teams. Workflows structure the handling of legal applications and assist HR specialists and managers in monitoring employee engagement by collecting data from Business Intelligence reports, training attendance summaries etc.
Integration of workflow processes with AI and Business Intelligence
Paths determined in workflow processes can be enhanced through integration with modern technologies – including artificial intelligence and advanced Business Intelligence analytics. This cooperation further expands users’ ability to leverage the collected data.
With AI algorithms, workflow tools can perform tasks that require interpretation, categorization or decision-making.
Examples of use include:
Anomaly detection:
Artificial intelligence analyzes real-time data and recognizes atypical process elements, such as unusual expenses in financial processes.
Request classification and routing:
With the ability to process natural language, AI can analyze request contents and forward them to the appropriate teams.
Personalization of processes:
AI also allows workflow processes to adapt to user preferences based on previous behavior, such as recommending specific actions or using certain documents.
On the other hand, the BI technology provides users with advanced data analysis and visualization. Integration with workflows enhances the ability to monitor, report, and optimize processes based on real-time data. Examples of use:
KPI tracking:
Workflow solutions send data to BI systems (such as Microsoft Power BI), which generate interactive reports and dashboards, including key performance indicators, for example project lead time.
Identification of problems:
Business Intelligence identifies bottlenecks in workflow processes, enabling their quick elimination.
Forecasting:
It is recommended to use forecasts generated by BI, based on historical data, to support decision-making in workflow systems, for example in purchase planning.
What are the benefits of implementing workflows in an organization?
- Standardization and simplification of procedures: Repeatable activities can be easily automated and standardized through clear, predefined paths of action. Previously, if projects or specific tasks were completed without structured frameworks, participants can now rely on streamlined procedures that focus on the most essential and proven steps, partially supported by intelligent technologies.
- Increased control: Workflow systems increase transparency of business processes. They provide full visibility into all stages of task performance, enabling the tracking of work progress and the identification of potential bottlenecks. This leads to better coordination of works and quicker responses to emerging problems.
- Reduced costs: Implementation of workflows in the financial area can generate significant savings. The reduction of time required to complete tasks, the elimination of errors and redundant activities, and the optimization of resource usage contribute to lower operational costs.
- Error reduction: Workflows reduce the risk of errors that can occur when the tasks are handled manually, bypassing the system.
