Business Process Modelling (BPM)
What is Business Process Modeling (BPM)?
Business process modeling (or) process modeling, is the analytical representation or put simply
an illustration of an organization’s business processes. Modeling processes is a critical component
for effective business process management.
It is the practice of creating data-driven visual representations of key business processes.
It gives organizations a common language with which they can understand and optimize
workflows
What does a process model include?
A process model is a graphical representation of a business process or workflow and
its related subprocesses. Process modeling generates comprehensive, quantitative
activity diagrams and flowcharts containing critical insights into the functioning of a
particular process, including:
Events and activities that occur within a workflow.
Who owns or initiates those events and activities.
Decision points and the different paths workflows can take based on
their outcomes.
Devices involved in the process.
Timelines of the overall process and each step in the process.
Success and failure rates of the process.
The term business process modeling was coined in the 1960s in the field of systems
engineering by S. Williams in his 1967 article "Business Process Modelling Improves
Administrative Control".He proposed that techniques for obtaining a better understanding of
physical control systems could be used in a similar way for business processes.
Key Aspects of BPM:
Algorithm-driven: Process models are produced by data
mining algorithms that use the data contained within event logs to
construct models of the workflows as they exist.
Based on quantitative data, they offer genuinely objective views of workflows
as they exist in practice and include key data, metrics or events for more
thorough process analysis. (help to pinpoint current trends, problems and
shortcomings)
Standardized: Process models typically use one of two standardized
styles of graphical business process notation: business process
modeling notation (BPMN)—also called business process model and
notation—or Universal Process Notation (UPN).
Control flow: The order in which steps and commands occur within a process is known
as its control flow. A process model depicts a flowchart of a process so that a team can
see what steps are taken and when. This perspective also helps the team identify any
dependencies between steps.
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Organization: A process model can capture who is involved in a process—including
people, teams, systems and devices—and how they interact with each other. (this offers
insights into how different components of a business function together).
Time: A process model can record how long a process takes, overall and how long each
step takes, allowing the team to identify delays, slowdowns and bottlenecks within the
workflow.
Case: A process model can offer a general view of how a workflow
plays out, or it can reflect a particular case of a workflow. Teams often
use this case perspective to analyze anomalous process outcomes.
Tools and Techniques in BPM:
Event logs and process mining are essential business process modeling tools that
underpin modern business process modeling techniques.
Event logs are digital records that automatically track state changes and
activities, known as events, within the system. Anything that happens within
a system can be an event.
For example, events can be:
--A user logs in.
--A user updates a record.
--A user submits a form.
--Information is transferred between systems.
Event logs act as inputs in the production of business process models
Process mining is the application of a data-mining algorithm to all of
this event log data. The algorithm identifies trends in the data and
uses the results of its analysis to generate a visual representation of
the process flow within the system. This visual representation is the
process model.
Techniques used are the following:
BPMN or UPN
Diagrammatic representation in BPMN includes the following:
--Arrows represent sequence flows.
--Diamonds represent decision points or gateways.
--Ovals represent the beginnings and endpoints of processes.
--Rectangles represent specific activities within a workflow.
--Swimlanes identify who owns which components of a process.
UPN provides a simple box for each task to be completed. The box shows what happens,
who is assigned to it, and when it happens in the sequence.
Flowchart technique-- Flowcharts explain complex process flows in a simple yet
effective way. They illustrate process steps in their sequential order, going from inputs to
actual process to outputs.
GANTT Charts-- Rather than showing the steps sequentially, Gantt charts are able to show
the entire process using ‘time taken’ as one of the main axes.
Petri-nets-- Petri-nets classify or colour-code complex workflow steps, users, and routes in
different colours.
Types of BPM:
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As-is modeling--helps in identifying weaknesses and localizing potential for improvement
To-be modeling-- designing the target processes based on the strategic goals of the company.
This involves analyzing all sub-processes and individual activities of a company with regard
to their target contribution.
Benefits:
BPM assists in taking more informed decisions about resource allocation, process
improvement and overall business strategy.
Access and use of quantitative data-- Process modeling grants access to
quantitative workflow data, including success and error rates, allowing for a
more rigorous analysis of business processes.
Streamline and accelerate process automation-- simplifies the process of
effectively automating workflows the first time, and then iterating for
continuous improvement.
Keep operational costs down-- Process models provide organizations with a
simpler way to identify opportunities for process optimization. As a result,
business processes require less investment to maintain and generate positive
outcomes at a lower cost.