Business process modelling with process maps

Study material for October 10th and 17th

Dr. Mojca Indihar Štemberger, Associate Professor

Business Process

A business process is a collection of activities that take one or more kinds of inputs and create an output

Process Input Output

Porter’s Value Chain

Why do we model business processes

• Better understanding of business processes in the organization

• Making a big picture of the way business is done

• Finding inefficiencies in business processes

• Changing and improving processes, testing changes

• IS development

Process Maps

Start/End

Activity

Decision

Process flow

Delay

Subprocesss

Organ. unit (department)

Kinds of business processes

• Managerial – e. g. strategic planning• Primary – e. g. order fulfilment • Support – e. g. human resource management

Business Process Change (BPC)

• Preceded by business process reengineering (BPR)– a methodology in which an organization

fundamentally and radically redesigned its business processes to achieve dramatic improvement

• Today, BPC can focus on anything – redesign of an individual process – redesign of a group of processes– redesign of the entire enterprise

Drivers of Process Change

• Reducing cost and improving productivity• Improving efficiency and effectiveness• Automating processes• Fitting commercial software (ERP systems)• Introducing e-business • Streamlining the supply chain (Supply Chain

Management – SCM)• Improving customer service (Customer

Relationships Management – CRM)

BPC main goals

(Shorter) Times

(Higher) quality(Lower) costs

BPR success

Business process management

Business processes analyzing and modelling

Business processes implementation using IT

Business processes execution

Monitoring and controlling

Cha

nge

man

agem

ent

B2B SCM ERP …

BPM Tools

• Visual representation made up of interconnected objects: – activities– sequencing– resources– times– rules

• “What-if” capabilities

– it enables process simulation and

– performance comparison of alternative process designs

Process Tools

BPTrends.com

Some BPM Tools

• iGrafx• ADONIS • ARIS• SIMPROCESS• Savvion• System Architect• Visio • Corporation’s ProVision • Casewise• WebSphere• Ultimus• Oracle BPEL Process Manager• …

Some techniques for business process modelling

• Process maps• eEPC diagrams• IDEF diagrams• Data flow diagrams • Petri nets• Business Process Modelling Notation (BPMN)

eEPC diagrams

event function event

function

function event

eventdata

data

data

org .un it

empl .

org .un it

empl .

org .un it

empl .

• extedned Event-driven Process Chain

• ARIS

IDEF diagrams

Integrated Definition for Function Modeling

Simulation

• To evaluate existing processes• To estimate the effect of changes

• Discrete Event Simulation (DES)

Additional resources

• Books and papers of Davenport, Hammer, Champy, McCormack, Burlton, Senur, Kovačič…

• Business Process Trends, www.bptrends.com• Business Process Management Initiative,

www.bpmi.org • Business Process Management Group,

www.bpmg.org• …