C7 Modelling Business Processes Flashcards
Why do we create business process models?
- To understand how the existing process works.
- To explain to those working on the process what they do and how their task relates to others working on the process.
- To ensure consistency of approach, so that everyone follows the same process and customers’ experiences are not wholly dependent on who is dealing with them, in other words ‘the luck of the draw’.
- To identify the problems and weaknesses of an existing business process with a view to developing and implementing an improved one.
Why is the process view more effective than the functional view of the organisation?
A functional business orientation organizes a company along functional lines, such as sales and production. A process orientation means that the company focuses on business processes, such as order processing or strategic planning. In each case, the companies optimize their activities, either within the functional units or for each process. The main difference is that optimizing one functional unit may harm another function, but optimizing the business processes across organizational lines helps the whole company.
What is the Organisation Model? Harmon, 2007
0) Processes.
There are four external environment aspects that need to be considered:
1) The suppliers of the resources required by the business processes.
2) The beneficiaries from the organisation. While we include the customers who purchase the products and services, it is also important to take a broader view and include other types of customer.
3) The competitors operating within the same industry or business domain.
4) Generic factors that may affect the organisation such as changing regulation, economics or green issues.
Analysing the external context of the organisation model encourages the business analyst to think about the context of the business. What could this include?
- What resources it requires to operate?
- Who are the major competitors for the purchasing customers?
- Who exactly are the customers?
- Who are owners of the organisation that we need to satisfy?
- What macro environmental factors condition or constrain the way we operate?
What is the difference between a process map and a business process model?
Process maps show a set of related processes, and their interactions, in a single diagram. Each process is shown as a box and the arrows between them show their interdependence’s. Business process models show a more detailed view of each of the processes within a higher level set.
What is Porters Value Chain?
Value chain analysis focuses on analyzing the internal activities of a business in an effort to understand costs, locate the activities that add the most value, and differentiate from the competition. To develop an analysis, Porter’s model outlines primary business functions as the basic areas and activities of inbound logistics, operations, outbound logistics, marketing and sales, and service.
The model also identifies the discrete tasks found in the important support activities of firm infrastructure, human resources management, technology, and procurement.
The overall goal of value chain analysis it to identify areas and activities that will benefit from change in order to improve profitability and efficiency.
What are the product / service attributes elements of a value proposition?
Functionality - or what the product does.
Price - what we charge for the product.
Quality - or how well the product performs.
Choice - do we simply provide a standard product or can it be tailored to the specific needs of a customer?
Availability and timing - for example how quickly can we respond to customer requests and do we introduce new products at the most appropriate time?
How can an organisation differentiate itself? (3 ways)
- being the most efficient,
- by having the best products,
- by providing the best customer service.
In a business process model… what are ‘process’ / ‘tasks’ and ‘steps’?
Process - refers to an entire set of activities that start with a triggering event and end with an output being delivered.
Task - refers to an individual activity within the overall process.
Step - refers to the activities carried out within an individual task.
There are three types of business event. What are they?
External: these business events originate from outside the organisation or the business system under consideration.
Internal: These business events originate within the business system and typically involve the business managers making decisions.
Time-based: These business events occur at a regular point in time.
What might you consider when analysing a task?
- The trigger or business event that initiates the task,
- Inputs to the task. This may include a trigger but there is also likely to be additional information required to carry out a task.
- Outputs from the task,
- Costs relevant to the particular task,
Measures and standards applicable to the task, - Detailed breakdown of steps within the task,
- Business rules to be followed in performing the task.
How can we analyse the ‘AS IS’ process?
Identifying problems - but first we need to understand how well it supports the business. And onily once we have determined the required performance leveks, we can compare these with the actual. We can look at the gap between the actual and the required performance level for the need for improvements.
Analysing handoffs - One of the frequent problems found with business processes involve hand-offs. Think - delays, communication errors and bottlenecks.
Analysing the processing - Think: Duplication of work, Redundancy, Lack of standardisation, Incompleteness, Inconsistent measurement and control.
Even if a process is perfectly designed, there are no guarantees it will achieve performance objectives. Why is this?
Staff might not have the right skills, training and motivation.
Resources made available to the project might be insufficient to handle the volume of transactions received.
The process may not be properly managed.
In business process improvement, what are common approaches to improving processes?
1) By simplifying the process (making sure that all processing adds value).
2) Extending the processing (extra tasks, further steps to tasks).
3) Removing bottlenecks.
4) Changing the sequence of tasks.
5) Redefine process boundary (extending or reducing activities carried out by an organisation).
6) Automate the processing (using computer software to perform tasks rather than carrying them out manually).
7) Redesign the process ( develop and analyse the as-is, identify potential improvements and document the to-be process).
When defining performance measures, one of the fundamental points to recognise is that there are two perspectives on performance measures. What are these?
Internal measures - derived from organisational objectives, critical success factors and key performance indicators.
External measures - what the customer expects to be delivered.
- the time it takes to complete a process or task,
- the financial measures such as costs and prices,
- the quality measures that are concerned with accuracy and effectiveness.
