Business Process Modeling

Business Process Modeling Natural Conference Boston Dieter W. Storr Storr Consulting May 2004 info@storrconsulting.com

Business Process Modeling eEPC extended Event-driven Process Chain BPR Business Process Re-engineering PCD Process Chain Diagram KSD Knowledge Structure Diagram VACD Value-added Chain Diagram eERM extended Entity Relationship Model Dieter W. Storr -- info@storrconsulting.com

Business Process ModelingContents • What is a Process - Example • What is a Business Process - Example • Examples of Daily Processes • PPT or Visio to Draw a Process • ARIS Toolset • Descriptive Levels in ARIS Dieter W. Storr -- info@storrconsulting.com

Business Process ModelingContents • The ARIS House • Divide The Process in Views • Each View Has Models • Example "Improve Process" • Document and Workflow Management • Tool-supported Project Management • Process-oriented Thinking and Modeling Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling What is a process? A series of actions or steps towards achieving a particular end. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • Chemical Process • Peace Process • Troubleshooting Process • Legislative Process • Thinking Process • etc. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling Printmaking Process Dieter W. Storr -- info@storrconsulting.com

Energy Recycling System - Japan Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling What is a business process? Dieter W. Storr -- info@storrconsulting.com

What is a Business Process? • Workflow is a term used to describe • the tasks, • procedural steps, • organizations or people involved, • required input and output information, • and tools needed for each step in a business process. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • One of the biggest executive frustrations is the gap between the strategic vision and operational execution. • For others, it is the gap between the business and the IT department. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • In order to compensate for these knowledge gaps, managers are increasingly turning to computer models to draft blue prints of their business processes. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • Software tools that can meet these needs are generally referred to as Business Process Modeling tools. • With these tools, managers, analysts and engineers are able to develop diagrams of a company's business processes. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • Business Process Modeling tools are part of a larger category of Business Process Management (BPM) tools. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • BPM (as a concept) is the alignment of an organization's processes with the • organization's strategic goals, • designing and implementing process architectures, • establishing process measurement systems that align with organizational goals, and educating and organizing managers so that they will manage processes effectively". Source: BP Trends website Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • BPM tools use business process models as a starting point for other automated efforts that include workflow systems, XML Business Process languages and packaged ERP systems. Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • The goal of these tools is to allow management to control processes real time, changing steps or product flow automatically from a computer screen. Dieter W. Storr -- info@storrconsulting.com

PPT or Visio -- a Solution? Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling • ARIS Toolset • Architecture Integrated Information System • Leading Tool (>40,000 licenses worldwide) • Used by, for example • 50 German universities • 40 US and Japanese Universities Dieter W. Storr -- info@storrconsulting.com

ARIS • Concept and Software Tool • As a concept, ARIS is a framework for the description of commercial enterprises as well as business management application systems. • This concept is realized in the form of a software tool Dieter W. Storr -- info@storrconsulting.com

Requirements Concept IT Concept Implementation Descriptive Levels in ARIS Problem Definition Information Technology Dieter W. Storr -- info@storrconsulting.com

ARIS • To reduce the complexity of the process, all of its representative components are broken down into single views • Organization View • Data View • Function View (executing functions) • Resource View (resources of IT) • Control or Process View (restores the temporarily lost connections) -- includes the performance view Dieter W. Storr -- info@storrconsulting.com

ARIS and the ViewDivision Dieter W. Storr -- info@storrconsulting.com

The ARIS House Problem Definition Problemstellung Fachkonzept Requirements Concept Organization View DV IT Concept - - Konzept Implementierung Implementation Requirements Concept Fachkonzept Requirements Concept Requirements Concept IT Concept IT Concept IT Concept Implementation Implementation Implementation Implementierung Data View Control (Process) View Function View Dieter W. Storr -- info@storrconsulting.com

ARIS -- Organization View • Enterprises are multilayered socio-technical constructs, subdivided into easily comprehensible units. • Once these segments are laid out, rules are determined and order models defined. The result of this order process is called organization, which are divided into • organizational and procedural structures Dieter W. Storr -- info@storrconsulting.com

Organizational View Organizational Chart with Organizational Units ( = task performers) Dieter W. Storr -- info@storrconsulting.com

Organizational View Extended Organizational Chart with Positions, which normally are filled by one person Dieter W. Storr -- info@storrconsulting.com

The ARIS House Problem Definition Problemstellung Fachkonzept Organizational View Requirements Concept DV IT Concept - - Konzept Implementierung Implementation Requirements Concept Fachkonzept Requirements Concept Requirements Concept IT Concept IT Concept IT Concept Implementation Implementation Implementation Implementierung Data View Control (Process) View Function View Dieter W. Storr -- info@storrconsulting.com

ARIS -- Data View • Logical data structure of the application case • Entities (offers, orders, suppliers) • Attributes are concrete characteristics of the entities (consists of) • Relations are logical correlations between entities, and are represented in ARIS by connections. Dieter W. Storr -- info@storrconsulting.com

ARIS -- Data View • The data view uses for complex cases with highly formalized demands the enhanced Entity Relationship Model (eERM). Dieter W. Storr -- info@storrconsulting.com

Data View Enhanced Entity Relationship Model (eERM) A complex structure must be created primarily from entity, attribute, and relationship types Dieter W. Storr -- info@storrconsulting.com

ARIS -- Data View • To reduce the complexity of Entity Relationship Models, it is possible to externalize the attributes of entity and relationship types into independent diagrams – the eERM attribute allocation diagrams Dieter W. Storr -- info@storrconsulting.com

Data View Enhanced Entity Relationship Model (eERM) Attribute Allocation Diagram Dieter W. Storr -- info@storrconsulting.com

ARIS -- Function View • Function is a technical task or activity within an object that is intended to support one or several business goals. • To represent objects of the function view and its relationships, ARIS use models known as function tree and objective diagram. Dieter W. Storr -- info@storrconsulting.com

Function View Function Tree To reduce the complexity, functions are separated. The function tree shows this hierarchical separation. Dieter W. Storr -- info@storrconsulting.com

Function View Objective Diagram (top and sub-objectives) Defines enterprise goals and constructs objective hierarchies. Dieter W. Storr -- info@storrconsulting.com

ARIS -- Control or Process View • The complexity reduction is now accomplished but the connections between these views as elements of the process are lost. • For this reason, another view will be created: the control or process view, which will describe the connections between the views. Dieter W. Storr -- info@storrconsulting.com

Control (Process) View “Lean” Event-driven Process Chain (EPC) A coherent chain of events and functions that represent the logical sequence of a process, while indicating how to control an operational process. Dieter W. Storr -- info@storrconsulting.com

Control (Process) View Extended Event-driven Process Chain (eEPC) eEPC results from a lean EPC, expanded with statements such as • input or output data; • performing organizational units or positions; • utilized application systems; etc.. • Just a model! Dieter W. Storr -- info@storrconsulting.com

Control (Process) View Function Allocation Diagram (FAD) Mainly used to represent the input/output data of a function graphically. Dieter W. Storr -- info@storrconsulting.com

Control (Process) View Value-added Chain Diagram (VACD)Represents the processes of the upper, or strategic, enterprise levels. It serves mainly as an introductory-overview model. Dieter W. Storr -- info@storrconsulting.com

The ARIS House w/ Models Problem Definition Process Chain Diagram (PCD) Organizational View Requirements Concept Organizational Chart Implementierung Event-driven ProcessChain (eEPC)Function AllocationDiagram (FAD)Value-added Chain Diagram Function TreeObjective Diagram EntityRelationshipModel (eERM) Data View Control (Process) View Function View Dieter W. Storr -- info@storrconsulting.com

Example “Improve Process” • The ordering of books for the university takes far too long -- in the opinion of most of the professors • A process chain diagram shall depict the library’s status quo • Create a model of the process • Determine weak points Dieter W. Storr -- info@storrconsulting.com

Example “Improve Process” The process: • Book requirement occurred • Professor must fill out an ordering form • He must get: author, title, publisher, price • Send application to the budget representative for approval and signature Dieter W. Storr -- info@storrconsulting.com

Example “Improve Process” The process: • Budgetary funds available? • Professor’s book request is rejected • Professor receives form with OK • Sends application to the library • Library examines list of book wholesalers • Book will be ordered at a dealer Dieter W. Storr -- info@storrconsulting.com

ProcessChainDiagram (PCD)Colored Columns- Event- Function- Data- Media- To- Organizational Objects Dieter W. Storr -- info@storrconsulting.com

Example “Improve Process” Weak Points: • Process without IT support (DB, Internet) • Budget representative (autonomous purchasing budgets) • Library should not be used to check wholesalers (Internet) • Information policy (book ordered or explanation for denial) Dieter W. Storr -- info@storrconsulting.com

Example “Improve Process” Examine more closely: • Critical bottleneck is the library • Data flow “Examine Wholesaler List” should be analyzed more precisely • Wholesaler list doesn’t exist at all • Dealer card index, Excel file, handwritten list • “Guarded” by Ms. Maier, at the library Dieter W. Storr -- info@storrconsulting.com

Business Process Modeling