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Business Process Modeling Natural Conference Boston Dieter W. Storr Storr Consulting May 2004

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Presentation on theme: "Business Process Modeling Natural Conference Boston Dieter W. Storr Storr Consulting May 2004"— Presentation transcript:

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2 Business Process Modeling Natural Conference Boston Dieter W. Storr Storr Consulting May 2004

3 May 2004Dieter W. Storr -- 2 Business Process Modeling VACD Value-added Chain Diagram eERM extended Entity Relationship Model PCD Process Chain Diagram BPR Business Process Re-engineering eEPC extended Event-driven Process Chain KSD Knowledge Structure Diagram

4 May 2004Dieter W. Storr -- 3 Business Process Modeling Contents çWhat is a Process - Example çWhat is a Business Process - Example çExamples of Daily Processes çPPT or Visio to Draw a Process çARIS Toolset çDescriptive Levels in ARIS

5 May 2004Dieter W. Storr -- 4 Business Process Modeling Contents çThe ARIS House çDivide The Process in Views çEach View Has Models çExample "Improve Process" çDocument and Workflow Management çTool-supported Project Management çProcess-oriented Thinking and Modeling

6 May 2004Dieter W. Storr -- 5 Business Process Modeling What is a process? A series of actions or steps towards achieving a particular end.

7 May 2004Dieter W. Storr -- 6 Business Process Modeling çChemical Process çPeace Process çTroubleshooting Process çLegislative Process çThinking Process çetc.

8 May 2004Dieter W. Storr -- 7 Business Process Modeling Printmaking Process

9 May 2004Dieter W. Storr -- 8 Energy Recycling System - Japan

10 May 2004Dieter W. Storr -- 9 Business Process Modeling What is a business process?

11 May 2004Dieter W. Storr What is a Business Process? çWorkflow 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.

12 May 2004Dieter W. Storr Business Process Modeling çOne of the biggest executive frustrations is the gap between the strategic vision and operational execution. çFor others, it is the gap between the business and the IT department.

13 May 2004Dieter W. Storr Business Process Modeling çIn order to compensate for these knowledge gaps, managers are increasingly turning to computer models to draft blue prints of their business processes.

14 May 2004Dieter W. Storr Business Process Modeling çSoftware tools that can meet these needs are generally referred to as Business Process Modeling tools. çWith these tools, managers, analysts and engineers are able to develop diagrams of a company's business processes.

15 May 2004Dieter W. Storr Business Process Modeling çBusiness Process Modeling tools are part of a larger category of Business Process Management (BPM) tools.

16 May 2004Dieter W. Storr Business Process Modeling çBPM (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

17 May 2004Dieter W. Storr Business Process Modeling çBPM 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.

18 May 2004Dieter W. Storr Business Process Modeling çThe goal of these tools is to allow management to control processes real time, changing steps or product flow automatically from a computer screen.

19 May 2004Dieter W. Storr PPT or Visio -- a Solution?

20 May 2004Dieter W. Storr Business Process Modeling çARIS Toolset  Architecture Integrated Information System  Leading Tool (>40,000 licenses worldwide)  Used by, for example ç50 German universities ç40 US and Japanese Universities

21 May 2004Dieter W. Storr ARIS çConcept and Software Tool çAs a concept, ARIS is a framework for the description of commercial enterprises as well as business management application systems. çThis concept is realized in the form of a software tool

22 May 2004Dieter W. Storr Descriptive Levels in ARIS Problem Definition Information Technology Requirements ConceptIT ConceptImplementation

23 May 2004Dieter W. Storr ARIS çTo 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

24 May 2004Dieter W. Storr ARIS and the View Division

25 May 2004Dieter W. Storr The ARIS House Problemstellung Control (Process) ViewFunction View Fachkonzept DV-Konzept Implementierung Organization View Problem Definition Data View Requirements Concept IT Concept - Implementation Requirements Concept IT Concept Implementation Requirements Concept IT Concept Implementation IT Concept Implementation Requirements Concept

26 May 2004Dieter W. Storr ARIS -- Organization View çEnterprises are multilayered socio- technical constructs, subdivided into easily comprehensible units. çOnce 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

27 May 2004Dieter W. Storr Organizational View Organizational Chart with Organizational Units ( = task performers)

28 May 2004Dieter W. Storr Organizational View Extended Organizational Chart with Positions, which normally are filled by one person

29 May 2004Dieter W. Storr The ARIS House Problemstellung Control (Process) ViewFunction View Fachkonzept DV-Konzept Implementierung Organizational View Problem Definition Data View Requirements Concept IT Concept - Implementation Requirements Concept IT Concept Implementation Requirements Concept IT Concept Implementation IT Concept Implementation Requirements Concept

30 May 2004Dieter W. Storr ARIS -- Data View çLogical 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.

31 May 2004Dieter W. Storr ARIS -- Data View çThe data view uses for complex cases with highly formalized demands the enhanced Entity Relationship Model (eERM).

32 May 2004Dieter W. Storr Data View Enhanced Entity Relationship Model (eERM) A complex structure must be created primarily from entity, attribute, and relationship types

33 May 2004Dieter W. Storr ARIS -- Data View çTo 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

34 May 2004Dieter W. Storr Data View Enhanced Entity Relationship Model (eERM) Attribute Allocation Diagram

35 May 2004Dieter W. Storr The ARIS House Problemstellung Control (Process) ViewFunction View Fachkonzept DV-Konzept Implementierung Organizational View Problem Definition Data View Requirements Concept IT Concept - Implementation Requirements Concept IT Concept Implementation Requirements Concept IT Concept Implementation IT Concept Implementation Requirements Concept

36 May 2004Dieter W. Storr ARIS -- Function View çFunction is a technical task or activity within an object that is intended to support one or several business goals. çTo represent objects of the function view and its relationships, ARIS use models known as function tree and objective diagram.

37 May 2004Dieter W. Storr Function View Function Tree To reduce the complexity, functions are separated. The function tree shows this hierarchical separation.

38 May 2004Dieter W. Storr Function View Objective Diagram (top and sub- objectives) Defines enterprise goals and constructs objective hierarchies.

39 May 2004Dieter W. Storr The ARIS House Problemstellung Control (Process) View Function View Fachkonzept DV-Konzept Implementierung Organizational View Problem Definition Data View Requirements Concept IT Concept - Implementation Requirements Concept IT Concept Implementation Requirements Concept IT Concept Implementation IT Concept Implementation Requirements Concept

40 May 2004Dieter W. Storr ARIS -- Control or Process View çThe complexity reduction is now accomplished but the connections between these views as elements of the process are lost. çFor this reason, another view will be created: the control or process view, which will describe the connections between the views.

41 May 2004Dieter W. Storr 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.

42 May 2004Dieter W. Storr Control (Process) View input or output data; performing organizational units or positions; utilized application systems; etc.. çJust a model! Extended Event-driven Process Chain (eEPC) eEPC results from a lean EPC, expanded with statements such as

43 May 2004Dieter W. Storr Control (Process) View Function Allocation Diagram (FAD) Mainly used to represent the input/output data of a function graphically.

44 May 2004Dieter W. Storr 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.

45 May 2004Dieter W. Storr The ARIS House w/ Models Control (Process) ViewFunction View Implementierung Organizational View Problem Definition Data View Requirements Concept Process Chain Diagram (PCD ) Organizational Chart Entity Relationship Model (eERM) Event-driven Process Chain (eEPC) Function Allocation Diagram (FAD) Value-added Chain Diagram Function Tree Objective Diagram

46 May 2004Dieter W. Storr Example “Improve Process” çThe ordering of books for the university takes far too long -- in the opinion of most of the professors çA process chain diagram shall depict the library’s status quo çCreate a model of the process çDetermine weak points

47 May 2004Dieter W. Storr Example “Improve Process” The process: çBook requirement occurred çProfessor must fill out an ordering form çHe must get: author, title, publisher, price çSend application to the budget representative for approval and signature

48 May 2004Dieter W. Storr Example “Improve Process” The process: çBudgetary funds available? Professor’s book request is rejected Professor receives form with OK çSends application to the library çLibrary examines list of book wholesalers çBook will be ordered at a dealer

49 May 2004Dieter W. Storr Process Chain Diagram (PCD) Colored Columns - Event - Function - Data - Media - To - Organizational Objects

50 May 2004Dieter W. Storr Example “Improve Process” Weak Points: çProcess without IT support (DB, Internet) çBudget representative (autonomous purchasing budgets) çLibrary should not be used to check wholesalers (Internet) çInformation policy (book ordered or explanation for denial)

51 May 2004Dieter W. Storr Example “Improve Process” Examine more closely: çCritical bottleneck is the library çData flow “Examine Wholesaler List” should be analyzed more precisely çWholesaler list doesn’t exist at all çDealer card index, Excel file, handwritten list ç“Guarded” by Ms. Maier, at the library

52 May 2004Dieter W. Storr Example “Improve Process” Check and analyze more: çCreate an eEPC from the PCD çDeposit the function “Examine Wholesaler List” in the eEPC

53 May 2004Dieter W. Storr Extended Event- Driven Process Chain (eEPC)

54 May 2004Dieter W. Storr Example “Improve Process” Function Allocation Diagram (FAD)

55 May 2004Dieter W. Storr Example “Improve Process” çFinally, the professor receives his books.

56 May 2004Dieter W. Storr Document and Workflow Management çDocument Management Systems (DMS) and Workflow Management Systems (WMS) are two typical application systems, which are be able to impel and enable the fundamental optimization of business and supporting processes.

57 May 2004Dieter W. Storr Document and Workflow Management çDocuments Paper-bound documents Digital documents Non-coded information (NCI) Coded information (CI)

58 May 2004Dieter W. Storr Document and Workflow Management çProcesses Capturing documents Classifying documents (indexing) Filing documents (archiving) Investigating documents (search and retrieval) Displaying documents

59 May 2004Dieter W. Storr Document and Workflow Management An information carrier diagram, for example, can represent these documents along with their relevant attributes in ARIS.

60 May 2004Dieter W. Storr Document and Workflow Management çThe practical migration of ARIS models in workflow models is fundamentally simplified if the workflow software can spur the view concept or the modeling objects of ARIS to as high an extent as possible. çUsing Ultimus Workflow software from Ultimus Inc., USA

61 May 2004Dieter W. Storr Tool-supported Project Execution

62 May 2004Dieter W. Storr Tool-supported Project Execution Benefits: çTransparent, accessible project structure and data protection (user administration) çInternational utilization by multilingual users çReduction of the method variety by use of method filters çDefinition of reports and model evaluations

63 May 2004Dieter W. Storr Tool-supported Project Execution Benefits: çEasy integration of project results by "merge" functions çTeamwork-oriented support by multi-user ability and client-server concept çIntegration of models çSemantic consolidation of models

64 May 2004Dieter W. Storr Process-oriented Thinking and Modeling Process flow in a vertical organization

65 May 2004Dieter W. Storr Process-oriented Thinking and Modeling Vertical department thinking Impaired perception of customer wants and needs Insufficient flexibility to meet changes concerning markets, customers, and products Coordination problems with cross-functional tasks Horizontal processes over vertical structures result in numerous disadvantages, which often include

66 May 2004Dieter W. Storr Process-oriented Thinking and Modeling Coordination problems with cross-functional tasks No "big picture" perspective of the entire process, or of a worker's responsibility to it Incompatibility of information systems (interfaces, media excrescencies, breaks and the like) Missing data integration (inconsistencies, redundancies) Horizontal processes over vertical structures result in numerous disadvantages, which often include

67 May 2004Dieter W. Storr Process-oriented Thinking and Modeling Dysfunction: çLong transmission delays çProcessing faults çWasteful, overlapping work by employees çInterface problems çHigh process costs

68 May 2004Dieter W. Storr Process-oriented Thinking and Modeling NEW: Process Organization is a form in which the structure of organizational units (particularly process teams or function areas) follows the core and support processes.

69 May 2004Dieter W. Storr Process-oriented Thinking and Modeling Priority of processes which are in direct response to a distinctive customer/market demand (market view) Considerations which focus not only on one's own commercial enterprise, but also on the needs of suppliers and customers. Informational networks that make new organization constructs possible, and support proactively as well as retro-actively. New in contrast to the long-recognized structure of sequential operations

70 May 2004Dieter W. Storr Thank You!


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