Process vs. Algorithm – What’s the Difference?

Understanding the difference between a process and an algorithm is essential in both business and technology. I often come across situations where these terms interchange, but they describe fundamentally different concepts. In this article, I’ll explain the difference between process vs. algorithm and show how they can complement each other.

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What Is a Process?

A process is a sequence of tasks carried out in a defined business or organizational context. It describes who does what, when, and often why. In short, it defines workflows and responsibilities across people, systems, and decisions.

Processes are Typically tools like BPMN (Business Process Model and Notation) model processes to visualize the flow clearly. They are often operations, finance, HR, or procurement to ensure structured and repeatable actions.

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What Is an Algorithm?

An algorithm, on the other hand, is a precise, finite series of logical steps designed to solve a specific problem or accomplish a task. Algorithms are formal, technical, and designed to be implemented by machines.

Think of an algorithm as the “code” that performs decisions and calculations within the steps of a process.

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Let’s Look at an Example: Invoice Approval

Now I’ll walk you through a typical business process: Invoice Receipt and Approval. This is something many companies do daily. Thus, it’s a great way to illustrate both a process and an algorithm.

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Process Example: Invoice Approval Workflow

This is how the process flows in a company:

1. Receive Invoice: The accounting team receives the invoice by email or post.
2. Register Invoice: The invoice is scanned or uploaded to a system.
3. Formal Check: A finance staff member checks for correct formatting (e.g. invoice number, tax ID, amount).
4. Decision Point: If formal details are missing, the invoice is returned to the supplier.
5. Factual Check: The responsible department checks whether the goods or services were delivered correctly.
6. Decision Point: If there are inconsistencies, internal clarification is triggered.
7. Manager Approval: If everything checks out, a manager approves the invoice.
8. Release for Payment: The finance department prepares the payment.
9. Payment: The payment is processed, and the invoice is archived.

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BPMN Diagram

Here’s how the BPMN 2.0 diagram for this process would look, fully compatible with Camunda (opens in a new tab):

You can build this directly in Camunda Modeler using these BPMN elements:

• Start Event
• End Event
• User Task
• Exclusive Gateway (X)
• Sequence Flow (arrows)

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Algorithm for the Same Process

While the process focuses on roles and responsibilities, the algorithm focuses on decision logic. Therefore, let me show you what this would look like in pseudocode:

function checkInvoice(invoice):
    if invoice.is_formally_correct == false:
        send_back_to_supplier(invoice)
        return "on_hold"

    if invoice.is_factually_correct == false:
        escalate_internal_clarification(invoice)
        return "on_hold"

    if invoice.approver_is_authorized:
        approve_invoice(invoice)
        return "approved"
    else:
        return "rejected"

This logic could easily be automated in a script or microservice within a larger process engine like Camunda.

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How Process and Algorithm Work Together

Processes and algorithms are not competitors. Instead, they work best when combined:

• The process defines the structure: the actors, tasks, and flow.
• The algorithm defines the logic within specific tasks: decisions and automation rules.

For instance, while a BPMN model shows the approval step, the algorithm embedded in that task decides how the system approves or rejects a request.

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Final Thoughts

Understanding the difference process vs. algorithm is key in business process management and digital transformation. While the process gives you the big picture, the algorithm delivers precision and speed. By combining both, you create scalable, efficient, and automated workflows.

If you’re using tools like Camunda, you can model the process visually and plug in the algorithm behind the scenes for powerful automation. That’s where process management meets smart execution.

Credits: The diagrams were created with Camunda (opens in a new tab).

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