A company’s business processes are the foundation of its management system. That is why understanding the classification of business processes, their types, and their role becomes critically important for a business owner. As a business grows, the number of company processes increases, and without a clear structure, core processes begin to mix with managerial and supporting ones. As a result, management becomes more complicated, and decisions are made intuitively rather than systematically.
Business process classification allows you to see how a business actually works, which business processes at the enterprise create value and profit, and which only provide stability or consume resources.
What Is Business Process Classification and Why Business Owners Need It
Business process classification is the division of all company processes into logical groups depending on their purpose, impact on profit, and role in business management.
Business process classification allows the owner to:
- determine which processes are key to business results;
- understand which processes are logical to start optimization with;
- not to waste resources on secondary or inefficient areas;
- prepare the company for scaling without losing control;
- make informed decisions about automation and ERP.
Without such understanding, businesses often automate "everything in a row" without getting the expected effect.
At this stage, one of the key tools for scaling is an ERP system. In particular, an ERP system based on Odoo allows businesses to build a unified management logic where processes do not exist separately but are interconnected within one system.
Hearing about Odoo for the first time? Learn more on our About Odoo page.
As experienced Odoo integrators, we see in practice that proper process classification at the early stage allows ERP systems to be designed without unnecessary costs, functional overload, and painful rework in the future.
Related article: How to Assess Your Business’s ERP Readiness: Owner’s Checklist
Main Types of Business Processes
The most practical classification for a business owner divides processes into three groups: core, managerial, and supporting processes. This approach helps distinguish value-creating processes from those that ensure operational stability.
Core Business Processes
Core processes directly create products or services and generate revenue.
They include:
- sales;
- production or service delivery;
- logistics and supply;
- customer service.
These processes have the strongest impact on financial results. If they work inefficiently, the business loses money regardless of how well other processes are organized.
In management practice, these processes are the first to require clear fixation, control, and automation.
For core process automation, Odoo offers modules such as CRM, Sales, Manufacturing, Procurement, Inventory, Logistics, and Customer Service. A key advantage is Odoo’s modular architecture, which allows gradual implementation as the business grows.
Related article: How Odoo’s Modular Architecture Reduces ERP Costs and Risks
Managerial Business Processes
Management business processes are responsible for managing the company and making decisions.
These include:
- strategic planning;
- financial management;
- performance monitoring and analytics;
- risk management;
- HR management at the level of decisions and policies.
It is because of management business processes. The owner retains control over the business. When these processes are not structured, management becomes manual and the company becomes critically dependent on specific people.
Related article: How ERP Changes Not Only Business but the Owner’s Way of Thinking
Supporting business processes
Supporting business processes ensure the stable operation of the company, but do not directly affect income.
Among them:
- accounting;
- HR administration;
- IT support;
- document management;
- legal support.
It is the supporting business processes that often become the first candidates for ERP system implementation, because their automation gives a quick effect without interfering with the core business activities.
Odoo allows you to automate supporting processes in a single system, reducing manual work and the burden on the management team even in the early stages of ERP implementation.
Internal and External Business Processes
Business processes can also be divided into internal and external.
Internal processes are carried out within the company: management, production, accounting, and internal logistics. External processes involve interaction with customers, suppliers, and partners.
Understanding this difference helps owners better control company operations and build transparent interactions with the external environment.
Why Not All Processes Are Equally Important
A common mistake is trying to optimize all processes at once. Classification helps to:
- identify critical processes;
- focus on those affecting results;
- avoid wasting resources on secondary tasks.
In practice, companies first analyze core processes, then managerial ones, and only afterward supporting processes.
How Classification Supports Automation
When processes are structured and classified, it becomes easier to determine:
- which processes should be automated first;
- where automation will provide a quick economic effect;
- which processes do not yet require complex solutions.
At this point, ERP stops being “just software” and becomes a management tool.
An ERP system does not create processes from scratch — it formalizes, scales, and makes existing processes manageable. Systems like Odoo are used to bring order to operational, financial, and managerial logic.
Related article: Business Process Automation: Where to Start Without Harming Your Business
From Classification to Real Decisions
Classification provides a theoretical understanding of business structure. But to make management decisions, owners need to see the real picture in their own company. That is why the next logical step is a business audit.
Business Audit Before Automation
During a business audit, an integrator identifies all company processes, analyzes their logic, interconnections, and efficiency. Proper analysis reveals real needs, potential solutions, and improvement areas before ERP implementation begins.
As a result, you get:
- a detailed GAP analysis tailored to your budget;
- identification of process bottlenecks before development;
- a justified choice between Odoo Community and Odoo Enterprise;
- a clear understanding of which ERP modules are truly needed.
💬 Want to start a systematic business transformation?
Understanding business process classification is the foundation of structured company management. It helps owners see the business holistically, set priorities, and move toward automation consciously.
If you want not only to know the types of processes but to understand how they work in your company, the Codoo ERP team can help with a business audit and further recommendations.