What is Business Process Modeling

Introduction

Before we can say what business process modeling is we need to know what a Business Process is! This may seem like stating the obvious, this is one of the most widely misused and misunderstood terms in business and in business modeling! Analysts and managers alike often use the term when what they are really talking about is a Business Function or a Business Procedure. No wonder there is confusion!!

Definitions

Business Function: "A coherent, discrete activity that a business must perform in order to meet its business objectives and continue in existence."

Business Process: "Describes the order in which Business Functions need to be carried out in order to achieve a specified objective."

So, in short, Functions describe what a business needs to do in order to continue in existence and Processes describe the order in which this needs to be done.

From this we can also see that it is not possible to do effective Business Modeling before we have modeled the Functions!!

The Building Blocks of a Process

The essential elements are:

  • Objective
  • Trigger
  • Functions
  • Precedence
  • Outcome
Objective:

Every Business Process must have a clearly defined objective that answers the question "what is this Process meant to achieve?". If the business does not have a clearly defined (written) view of what is meant to achieve then there is very little chance of it achieving it.

It will not be possible to work out what Functions need to be carried out and in what order in order to arrive at the preferred Outcome.

In fact, without having a defined objective, the business might not be able to define what the preferred outcome actually is. This statement might seem simplistic but it is the primary reason why so many Business Processes are inefficient or fail altogether.

Triggers:

These are events that occur that require the business to respond in some manner - they "trigger" a response in the business. Every Process must begin with at least one Trigger.

Outcomes:

Other events occur as the result of activities carried out by the business itself and these are called "Outcomes". In every Process the business gets from the Trigger to the Outcome by carrying out Functions in the correct sequence.

Precedence:

Precedence is not, as many analysts mistakenly believe, a definition of how the steps within a Process are triggered. A more effective definition is to say that it is a very specific way of defining what Functions must have been completed before others can begin.

The succeeding Functions can then begin at any time convenient to the business, in accordance with existing business rules. This definition is especially useful as it makes the business ask the question, "before we begin step X what other steps must have been completed?"

More on Outcomes

There are two types of outcome that can occur in a Business Process: Preferred and Non-preferred.

A Preferred Outcome is the result that the business would like to achieve as the result of successfully carrying out the Process and should correspond to the stated objective.

Every Process must have at least one Preferred Outcome.

A Non-preferred Outcome is a valid and controlled outcome other than the Preferred Outcome.

Suppose that we are taking orders from customers. The Preferred Outcome would be "order authorized" but a Non-preferred Outcome could be "bad credit rating: order declined". A Business Process can have several Non-Preferred Outcomes.

Elementary Business Process

Each step in a Process is a Function, which comes from the Function Catalogue (see the foot of this article for more on this) and ought to be from the bottom level of the Catalogue as it stands at that the moment in time. Ideally, these should be Elementary Business Functions (EBFs). A Process drawn using EBFs is called an Elementary Business Process.

Decomposing Processes

One of the biggest mistakes analysts make when doing Business Process Modeling is to "decompose" (a lovely term!) Processes. This means that they break the Process down into more and more detail.

This is a practice to be avoided AVOIDED AT ALL COSTS as it has two main faults: 1) it requires drawing far more diagrams than are necessary (up to 300% more) 2) it introduces fundamental logic errors.

To avoid these errors all decomposition (somebody will have to think of a nicer word) should be done using the Function Catalogue and each Process model should be drawn using Functions from the bottom level of the Catalogue (preferably EBFs).

Summary

  • Business Functions and Business Processes are NOT the same thing.
  • A Business Function describes what the business ought to do; a Business Process describes the order in which it ought to do it.
  • Business Process Modeling should ALWAYS be preceded by Business Function Modeling
  • Processes must always contain all of the defined elements of Objective, Trigger, Outcome, Functions and Precedence.
  • The objective of a Process should always be clearly sated in writing before the Process can be properly modeled.
  • Business Processes ought NEVER be decomposed - this should be done using the Function Catalogue.

Business Process Management Advantage

Business process management reshapes your business by strengthening the core functionality. We need to develop a mechanism that will help the business owners to track the day to day activities of the company. By effective implementation of business process management gulf between employer and the employee are bridged results in better understanding and high output.

7 point steps highlighting the advantage of business process management

Transparency: Transparency in business process enables the workers to express their problems in front of management. This leads to better understanding and directly impact the growth graph.

Data Centralized: Centralized system plays a great role in the development work. With data centralization, owner can easily access the growth of the company. This helps the management in the adverse condition so that they can take proactive measure.

Operational Cost: Cost of operating the business is very high; we can reduce this by implementing the technique call business management.

Response Times Reduced: Main aim of business management is to reduce the response time, so that effective decision are taken within the sort span of time

Improve Departmental interaction: Departmental interaction is a necessary process. Proper business management will streamline the entire process, so that every member in the department can communicate with other departments

Quality Improves: Quality of the company improves, when every member in the team work efficiently. Proper management techniques will help the owner in extracting the best from the employee.

Reporting: Since the entire system is centralized reporting becomes easier

Above points clearly explain the advantage of business process management. Every business owner should try to implement these techniques; this is going to help them in large number of ways