Differences Business Process Islamic and Conventional

What is the difference between Islamic and conventional business processes?. Before we talk more about the differences Islamic and conventional business processes we must know in advance the understanding of the business itself. Business process is a set of tasks or activities to accomplish the goals be solved either sequentially or in parallel, by human or system, either outside or inside the organization.
So the difference between Islamic and conventional business process itself can be seen from useful activities to achieve the goals in its business.

There are a few things that differentiate between Islamic and conventional business processes. Among them, when in the presence of known conventional interest, no interest on the sharia. In business for example in the field of Islamic banking system is applied to the results or financing mudhorobah.

Here is an explanation of the difference between the interest on a conventional business and profit-sharing system in Islamic business:

interest:

1. Terms of payment rates are set at the time of the contract, with the view that any business activity conducted will always benefit.
2. The size of the interest depends on the amount of money lent by the bank. The greater the customer to borrow money (capital), then the rate offered by the smaller banks. So instead, the small amount of money borrowed by the customer, then the interest will be higher.
3. Total interest payments fixed and does not increase, did not see the business carried on by the customer a profit or loss. Without considering the loss of customers in carrying out their business activities. And vice versa, the fixed interest payments, although customers in doing business can benefit many times over.

Profit sharing:

1. Determination of the amount of profit sharing is determined at the time of the contract. In this contract the distribution of profits by the two sides, between the bank and the customer.
2. The amount of revenue is not based on interest, but the amount of profit earned by the bank. It could be the amount of profit earned at the time for the results to be higher than bank interest or could be otherwise.
3. Not always the bank will have an advantage, but sometimes losers. If the bank losses, the losses will be shared. Comparison between the profit to a loss, many thankfully. So do not be afraid to invest money in Islamic banks.
4. Increase the amount of profit sharing can be higher, depending on the increase in income earned by the bank.

Differences in Islamic and conventional can also be seen from the credit agreement. In conventional, for example in banking credit agreement known as the standard contract, an agreement was made unilaterally and prepared ahead of time by the particular bank. before the customer came to that particular bank.

While the Islamic financing agreement mudhorobah knows no standard agreement, but the agreement made ​​by both parties between the bank and the customer.

Sources :

• Pipiew; Proses Bisnis
• Ahira, Anne; Perbedaan Ekonomi Syariah Dan Ekonomi Konvensional