IT5182: Fundamentals of Data Models and Databases

Lecture 3

Introduction to Business Process Modelling

Lecture 3: Business Process ModellingObjectives

Introduce business process modelling.

Demonstrate techniques for analysing and modelling business processes.

Outlining how you can build business process models using MS Visio.

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What is a business process ? ORACLE (a major provider of DBMS) describes a business process as:

an activity, or collection of activities, in which a business engages in order to create or add some kind of value for its customers.

Everything a business does can be seen in terms of business processes, from ordering stationery to releasing a major new product line.

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Why model business processes ?What are the benefits ?Thinking in terms of business processes enables you to create abstract models that help you understand what currently happens.

With this understanding, it is easier to propose improvements to existing processes, or even to design completely new ones.

As analysts observe a business in action they systematically:discover how the business interacts with the outside world, e.g.: withcustomers, suppliers, financial and regulatory agencies.

identify business processes

record process inputs (data) and outputs (data/information).

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Why model business processes ? (cont.)

define what happens within each process (e.g. how data is processed).

identify what data is recorded.

Business process models are useful techniques for recording this information because:they permit us to see the ‘big picture’.

they encourage us to solve business problems before proposing

solutions to IT problems.

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What does a business process consist of ?

A business process is an activity which a business undertakes in order to add value for its customers and shareholders.

A business process generally involves:A business division, unit, department or person.

A set of tasks that represent stages in the process.

Movement of data between stages in the process.

Collections of data used in stages in the process.

An event that triggers the process.

One or more outcomes that occurs when the process is complete.

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Basic Process Components

ParticipantsPeople or systems that provide input

to, or perform work steps within

a process

A set of Activities and Tasks, which are performed by Participants in Roles, organized in a particular Sequence, directed and measured by Time and Events / Triggers

Activities / TasksA single unit of work, can be performed by a person or system

RolesA layer of

abstraction that creates the link

between participants and activities / tasks

Events / TriggersOccurrences that cause a process to start, direct a process sequence, or cause a process

to end

TimeAverage or desired durations for work

items

SequenceThe logical order in which work

steps are performed

Parts of a business process

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One or more process steps

One or more sources of data

Trigger

Outcome(s)

process boundary

outputs

inputs

One or more process steps

One or more process steps

One or more process steps

One or more process steps

Objectives of business process modellingBusiness process modelling is done early in the analysis process to identify:

the major business units, e.g.: sales, purchasing, accounts, etc.

.How these units function.How these units communicate with suppliers and customers.How these units communicate with other business units.Processes that require improvement.

Possible new processes that need modelling.

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Advantages of business process modellingAnalysts develop an understanding of how the business operatesbefore examining the system’s requirements

Managers and staff develop a common understanding of a business process - a key success factor.

The models help communicate that understanding to other staff, and possibly customers and suppliers.

The models are a focus for business process improvement.

Everything your business does can be documented using process modelling.

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How to identify business processes

Start with the business goals and strategic plan.

Identify the major business units: sales/marketing purchasing manufacturing accounting human resources

Identify the major processes in each of these units

For the processes of interest: find the event that triggers the process define the outputs/outcomes produced identify the key process steps determine whether any process steps require data to complete determine the order of process steps and what materials, documents or information move from one step to another

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Symbols used in Visio modeller Triggers

An event which starts a chain ofone or more process steps.

Process StepA clearly identifiable task within a process.

Data StoreStorage of data required/generated by a process step

FlowIndicates the sequence of steps or a flow of

materials, documents or data between process steps and/or data stores

OutcomesAn event that results from a process.

Decision Indicates the point in a process where one of two alternative pathways can be taken depending on the outcome of the decision.

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Student wishes to enrol

Complete enrolment form

Student Enrolled on

Paper

Enrolment details

Student satisfies

pre-requisites

?

Swimlanes• Swimlanes provide a means to show who is responsible for specific work (indicate who or what carries out process steps)

• Events and controls may appear in any swimlane

Cycle - Process

Function /

Role

Function /

Role

Function /

Role

Function /

Role

Function /

Role

Condition

Start

Join

End

Basic rules for business process models Processes

have both inputs and outputs. inputs must be sufficient to generate the outputs.

Data Stores have both inputs and outputs.

Flows need to indicate the correct sequence of process steps. They can also document details of what data flows between data stores and process steps.

Triggers & Outcomes can apply only to process steps. invoked by external event, time (e.g. end of each week) or another system.

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How to do business process modelling?Remember business process modelling is all about representing the steps, participants and decision logic in business processes. Use Diagrammatical models: a diagram that shows the processes and the relationships between them (eg. process maps and flowcharts.)The diagram represents a series of processes and how they are related.

Process mapping provides a representation of who does what and in what order.

This guide will focus on process maps.

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Why and when is process mapping used?

It is used for:• understanding the current processes

• clarifying responsibilities• identifying process inefficiencies

• designing new procedures• training

Process mapping helps to clarify the steps involved in a particular process.

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How to produce a process map Consult with the experts. These are the people managing and working with the process.

Identify the boundaries. Where does the process begin? where does it end?

Identify the participants. What roles are involved in the processes?

Hand draw the process in front of the expert, getting then to confirm the steps.

Identify the steps. What is done first? What is done next? By who?

Identify the decision points. What are the alternatives? What determines which alternative is chosen?

Draw an initial process flow. Draw and label the swim lanes (see next slide for details) using standard symbols.

Check for completeness. Are all participants represented? Are all processes shown? Are there any alternatives that

have not been considered? Refine and finalise. Review with the experts to ensure completeness.

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Draw and label the swim lanes

Employee

Supervisor

AdministrationThe swim lanes represent the area of involvement of each participant who has a role in the processes being mapped. The participant may be an individual, a team, a department or an organisation.

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Add in the process flows

Employee

Supervisor

AdministrationStarting at top left with the start symbol. Draw processes along the swim lane, and use arrows to represent the sequence. Each process is given a number, and starts with a verb.

1.1 Fill out expense form

1.2 Submit expense form

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Swap lanes and enter decision points

Employee

Supervisor

AdministrationWhen a process is performed by a different participant switch lanes. If the next step depends on a decision show this as in the example above, labelling the alternatives and showing the steps that follow.

1.1 Fill out expense form

1.2 Submit expense form

1.3 Receive expense form

1.5 Submit authorised expense form

1.4 Expense

sValid?

1.4.1 notification to employee

Yes

No

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Complete the process mapRemove any unused swim lanes.Make sure there is one start point and all flows have an end point.Check that all decision points have all options labelled and have flow arrows to the next step.Review with participants for verification.An example of a completed process map is shown on the next slide.

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Employee

Supervisor

Administration

Employee wants to make a claims

1.1 Fill out expense form

1.2 Submit expense form

1.3 Receive expense form

1.4 ExpensesValid?

No

Yes

1.5 Submit authorised expense form

1.6 Receive expense form1.7 Log expense form

1.8 Make payment

1.4.1 notification to employee

1.8.1 notification to employee

m

m m

m m

m

sol

M = manual

sol

Sol = facilitated by solution

Business process 1 – Process expense claim

Visio Template Overview

Example business process model

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Student Enrolm ent Process

Administrator

Student Student W ishes to

EnrolCom plete

Enrolment Form

Check Pre-requisites for PaperPaper Details Pre-requisites Student satisfies

pre-requisites? No Forward Rejection Letter to Student

Yes

Record Student EnrolmentStudent Enrolm ent DetailsEnrolment

DetailsForward Acceptance Letter to Student

Student Enrolled on Paper

Student Inform ed of Decision

The horizontal strips (swim lanes) associated with an organization unit/role (e.g. Student in the above example).

SummaryModelling is … the act of drawing one or more graphical representations of a system. The resulting picture represents the user’s processes, data, or user-interface requirements from a businessviewpoint. A model is an abstract representation (i.e. not the real thing) of a system.

Business process…business activities that have inputs and outputs, as well as starting and stopping times. Business processes transform inputs (i.e. data) into outputs (i.e. information). Businessprocesses may be implemented by any combination of people, machines, or computers. Whitireia’s enrolment procedure is an example of a business process.

Business functions …ongoing activities that support the business, and can bedecomposed into other functions and eventually intoprocesses that perform specific tasks.

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