UML and Business Processes

1. UML and Business Processes Catherine Dwyer, PhD.Seidenberg School of Computer Science & Information Systems

2. Markets: Increasing Complexity • Relationship between complexity and information technology • Relationship between complexity and risk • The only way to model risk in a socio-technical system is to use system models

3. Example: Audit Assurance • You are given the following flowchart and source code as evidence for your audit of procurement procedures • Can you offer assurance that: • Segregation of duties is maintained within the process • It is clear exactly what steps in process are handled by an information system, and that adequate controls are in place

6. Managing Risk From IT enabled Procesess • Information technology has slashed the time needed to complete a transaction • For example, high frequency traders will buy and sell stock within a 1-2 second window • The audit process has not increased its efficiency to keep up with speed of transactions • The gap is growing between the time required to complete a transaction (seconds) versus the time required to audit that transaction (hours, days or unknown)

7. What is needed • Auditors must develop more efficient procedures, can only happen by leveraging information technology • Auditors need insight into information systems • Tools that offer auditors real time view of transaction activities and the operation of controls • Need visual diagramming tools that can capture broad scope (“the big picture”) and the ability to decompose the exact logic of a process (“in the weeds”)

8. UML Concepts • Unified Modeling Language (UML) • Use simple, intuitive diagrams to capture stages of a business process • We will look at two specific UML diagrams • Use Case Diagram – “bird’s eye” view of processes supported by an IS • Activity Diagram – describes logic flow through a process

9. Actor – Role (accountant, shipping clerk) that will use IS • Use case – a collection of activities that lead to a goal or an objective • System – represents operations of information system • System boundary – defines specific responsibilities of IS

10. UML Concepts • Actor – a role (“customer,” “manager”) who will use an information system for specific purpose • Use case – description of a “goal” or “objective” for an actor (“withdraw cash,” “deposit check,” “register for class”) • System boundary – also referred to as automation boundary, defines what steps in a process are part of an information system

12. Activity Diagram Symbols • Start –defines beginning of the activity • Action – steps take by an actor or by an IS • Swim lane – defines boundary of activity • Transfer of control – represents interactive process • Decision – branch or choice based on specific condition • End – defines end of activity

13. Procurement example • Magal chapter 3 • Look at narrative of procurement process on handout • Identify actors • Identify use cases

14. Use Case Diagram Does this diagram provide evidenceof segregation of duties?

15. Example of Activity Diagram • Can show cooperation between actors and system • Describes the flow of logic for a process • Library example

18. In class group work • Create a use case diagram for the “fulfillment” process (on handout) • Identify actors and uses cases • Hand in at end of class

19. UML Group Homework • Part 1: The system you will be diagramming is an Automated Teller Machine (ATM) • Create a Use Case Diagram for ATM • Write 1-2 paragraph narrative that describes your diagram • Create an Activity Diagram for cash withdrawal activity • Write 1-2 paragraph narrative that describes your diagram

20. Group Homework cont. • Part 2: Post to Discussion Board – due by 6 pm March 20th • Each group must post 3 examples of processes and/or accounting conditions that can be diagrammed with UML • Hand in Part 1 hard copy in class March 20th