Business Process Modeling
TD_321!
BusinessProcessesandDataFlow.pptxBusiness Process Modeling
Graphic representation of activities in a business process
BPMN Standards are established for graphic elements
Activity documentation part of a broader design process – UML
Common Software/Tools:
Microsoft Visio – Free from UTD Microsoft Download
LucidChart – Free Trial
Microsoft PowerPoint
Rational Software Modeler – Free Trial from IBM
Basic Shapes and Symbols
Start
End
Activity
Or
Process
Gateway or Decision
System or
Data Store
Swim Lanes
(Connector)
Simple Example: Fill an Order
Place Order
Build It
Receive Order
OK?
Check It
Ship It
Swim Lanes: Who performs the activity?
Even Better: Who and When
Time series is an even better representation of what activities are performed by whom, what activities are dependent on other activities, and generally, how long does each activity (and the process as a whole) take to complete.
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Modeling/Mapping a Process
Preliminary
Finalize Business Scenario and Perspective
Confirm purpose of the process: desired outcome, participants and/or automation
Brainstorm the activities (one idea per sheet of notepad – or line on sheet of paper)
Map the process by creating a Swimlane with Time Series
One line per participant
Sequence the activities. Don’t forget about the decisions
Look for improvement opportunities
Focus on efficiency and effectiveness
Specifics include automation, parallel activities, feedback
Class Exercise - Model a Business Process
Ordering and buying coffee from a local coffee shop.
Identify activities
Identify actors/roles
Identify data flows
Identify repository (data storage)
Metrics
Improvements
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Business Process Redesign (Re-Engineering)
Fundamentally, organizations should always be looking to improve their processes: Making sure they are maximizing efficiency in the wake of ever-increasing technology.
There is a risk, however. Many organizations embark on a grand journey of improvement, typically headed by consultants or a special group within the organization. There is a fine line of radical improvement, and operational realities. Consultants (either internal or external) have little or no detail knowledge of the organization’s operations, and risk making recommendations which are either un-implementable or unreasonable. Therefore, the effort MUST include (and I would argue, be led by) the business process owners.
It is important to note that, even with effective process redesign, a majority of reengineering projects do not achieve breakthrough gains because of inadequate change management.
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Business process management (BPM)
Variety of tools, methodologies to analyze, design, optimize processes
Used by firms to manage business process redesign
Steps in BPM
Identify processes for change
Analyze existing processes
Design the new process
Implement the new process
Continuous measurement
Who fixes problems with business processes?
Computer programmer? No.
Network engineer? No.
Database administrator? No.
Software Vendor or Consultant? Sometimes
Someone with knowledge of business. Yes!
If workflow involves information system, someone knowledgeable and comfortable working with technical people.
You with help of a business analyst.
Example: Purchase Book at Bookstore
Purchasing a book from a physical bookstore requires many steps to be performed by both the seller and the customer.
This slide’s graphic illustrates the process of purchasing a book prior to reengineering, including the steps if a book is not available. It emphasizes the sequential nature of the task. Besides the time taken for this process, what are other disadvantages of this traditional business process?
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Redesigned (Re-Engineered) Process
Using Internet technology makes it possible to redesign the process for purchasing a book so that it requires fewer steps and consumes fewer resources.
This graphic illustrates the book purchasing process after reengineering as an online process. The new process and technology has reduced numerous stages to four or five. What are the elements that have allowed these steps to occur?
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Improving Process Quality
Process efficiency
Ratio of outputs to inputs.
Process effectiveness
How well a process achieves organizational strategy.
How can processes be improved (efficiency and/or effectiveness)?
Change process structure.
Change process resources.
Change both.
Performing an activity.
Partially automated, completely automated.
Augmenting human performing activity.
Ex: Common reservation system.
Controlling data quality.
Ensure data complete and correct before continuing process activities.
Data Flow Diagrams (DFD)
Show creation and communication of data created in process steps.
DFD Elements:
Process – Activity or function performed for a specific business reason
Data Flow – Collection of data, and communication with data store or other process activities
Data Store – Collection of data that is stored in some way
External Entity – Person, organization, or system that is external, but has interactions with the process.
Data Needed: (and How it is used)
Examining the data flow will help identify data storage/repository requirements, and additional process steps. In this case a data store is required for customer orders (customer, item, quantity ordered), and a process improvement step that results from the Quality Control process
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Eliminating Information Silos
What are the problems of information silos?
Data duplicated.
Data inconsistency.
Data isolated.
Disjointed processes.
Lack of integrated enterprise information.
Inefficiency: decisions made in isolation.
Increased cost for organization.
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An information silo exists when data are isolated in separated information systems.
Information system silos arise when:
IS supports departmental processes rather than enterprise-level processes.
Personal and workgroup support applications are created over time.
Organizations grow, especially by merger and acquisitions.
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Example: Problems Created By Information Silos
Here is an example of problems created information silos – Processing a simple order (In this case, IndyMac owns Ajax Construction, and utilizes a payables solution from OneWest Bank)
Duplicated and inconsistent data
Separated supporting applications; difficult for two activities to reconcile their data, getting approvals will be slow and possibly erroneous
Lack of integrated enterprise data as a consequence of disjointed systems
Inefficiency results from making decisions in isolation
Information silos increase costs — duplicated data, disjointed systems, limited information, and inefficiencies all mean higher costs
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Solving the Problems of Information Silos
Integrate into single database.
Revise applications.
Manage to avoid problems.
7-‹#›
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Tools – Lucidchart & Visio
Lucidchart is a free online tool for modeling business processes.
Lucidchart.com
https://www.lucidchart.com/pages/usecase/education
Microsoft Visio may also be available for students from the UTD software download site, depending on the current UTD Microsoft Azure License.
Visio can also be used to import images, create 3D diagrams, brochures, simple or complex maps.
https://ets.utdallas.edu/elearning/students/resources
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Microsoft Visio
Summary of Business Processes
Why is Process Mapping Important?
Describe Who does What and When
Show flow/sequence of activities, required inputs, resulting outputs
Data Flow Diagrams show flow of data and information through the process activities
Identify communications and hand-offs
Process Analysis shows opportunities for efficiency and/or redesigning the process
BPM From a Business Perspective:
Doing the right things
Doing things right
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