1. E-Learning Material Applied Business Modelling

2. Business Patterns What are business patterns? Process interaction Practical process modelling Summary

3. What are business patterns? Most modelling problems have arisen before ‘New’ problems are often variations of ‘old’ problems Experience teaches us what works and what doesn’t

4. Why re-invent the wheel? If we have a recurring problem, and a generic solution, we could re-use the solution and save ourselves some work If we record our solution, we won’t have to remember it we could publish it for others to benefit from

5. Business Pattern Description of a common solution to a recurring problem that can be applied to a specific context Three categories: resource and rule patterns process patterns goal patterns Each category addresses problems in a specific context

6. Basic Process Pattern > set of related activities that can be performed provides motivation for the process and expresses the desired output result of the process, or the product some object that should be refined through a process resources supplied to the process - knowledge, information, machines, information systems, people, etc.

7. But businesses aren’t that simple many thousand processes very few of them stand-alone most interact with at least one other process often have complex interactions otherwise we wouldn’t need to model...

8. Process Interaction Pattern > P1 P2 filled circle designates what is delivered by the process empty circle signifies what the process receives P1 and P2 communicate with each other (interact) through the > package

9. Example - Market Development > Market Analysis > Market Development > Many market shares > Marketing Plan > Business Development > Many transactions and high profit > Business Plan > Market Development process takes Market Analysis as an input and delivers a marketing plan as an output The Marketing Plan is used to control the process of Business Development The Business Development Process is responsible for developing the business and its strategies, meeting the demands of the market, and producing a Business Plan as its output

10. Process interaction > Business Plan > Info. System > Management > Delivery > Production

11. But these models are too high a level! Sometimes we need to model the nitty- gritty A high level business model may be too abstract It might not tell us what we want What’s the alternative?

12. Low level process modelling OP10 - RECEIVE SALES ORDER AND ENTER ONTO SYSTEM OP20 - RUN OFF ALLOCATION REPORT AND CHECK AGAINST STOCK OP30 - PRINT MANUFACTURING INSTRUCTIONS AND ISSUE OP40 - MANUFACTURE OP50 - PACKAGE & DISPATCH Typical process routing

13. Practical modelling What do we want to do? save money/material/labour/time Where is the starting point? current practice, existing process What do we need to know? potential benefits of alternative processes, without actually implementing them

14. Actually doing it SalesPurch.Plan.Prod.Disp. 10 20 30 40 50

15. Making it meaningful SalesPurch.Plan.Prod.Disp. 10 20 30 40 50 1 day 2 days 1 day 12 days 4 days capacity? human resources? customer leadtime? new product introduction leadtime? development lifecycles? info. system modelling?

16. Who should we involve? customers suppliers people who actually perform the process ‘best ideas come from the shopfloor’ Don’t forget to record your own process patterns!

17. Summary Business patterns can be used to solve recurring problems Apply to generic problems in a specific context Can be ‘stitched’ together to solve more complex problems

18. Summary 2 Business models can be at too high a level of abstraction Process modelling needs to be detailed sometimes Key performance improvements can only be exposed by sifting through the rubbish

19. Summary 3 Keep the modelling notation simple primary communication document Use the model to record the original process Communicate the new process use for discrete event simulation Demonstrate the results, before spending a lot of money