1. Business Process Modelling - 1.2/2013 - Marcello La Rosa Queensland University of Technology Brisbane, 25 July 2013

2. © INB/INN320 1.2/2012 – 25 July 2013 How novices model a business process Mark is going on a trip to Sydney. He decides to call a taxi from home to the airport. The taxi arrives after 10 minutes, and takes half an hour for the 20 kilometers to the airport. At the airport, Mark uses the online check-in counter and receives his boarding pass. Of course, he could have also used the ticket counter. He does not have to check-in any luggage, and so he proceeds straight to the security check, which is 100 meters down the hall on the right. The queue here is short and after 5 minutes he walks up to the departure gate. Mark decides not to go to the Frequent Flyer lounge and instead walks up and down the shops for 15 minutes and buys a newspaper before he returns to the gate. After ten minutes waiting, he boards the plane.

3. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

4. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

5. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

6. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

7. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

8. © INB/INN320 1.2/2012 – 25 July 2013 Many ways of modelling a process…

9. © INB/INN320 1.2/2012 – 25 July 2013 Issues? Different representation of concepts Different level of granularity Different level of scope Different terminology What is the right process model?

10. © INB/INN320 1.2/2012 – 25 July 2013 What is a model?

11. © INB/INN320 1.2/2012 – 25 July 2013 Models are abstractions from real world phenomena, developed for the purpose of reducing overall complexity. Models aggregate information and document only relevant aspects of the real world. Models are being developed in a specific modelling subject for a specific target audience with a specific modelling purpose in mind. no right/wrong, but relevant/irrelevant model A little bit on modelling theory

12. © INB/INN320 1.2/2012 – 25 July 2013 What is the relevant model? ?

13. © INB/INN320 1.2/2012 – 25 July 2013 Collection of related events, activities and decisions, that involve a number of actors and objects, and that collectively lead to an outcome that is of value to an organization or its customers. Examples: Order-to-Cash Quote-to-Order Procure-to-Pay Application-to-Approval Fault-to-Resolution (Issue-to-Resolution) Claim-to-Settlement Our Phenomena of Interest: Business Processes Dumas, La Rosa, Mendling, Reijers, 2013

14. © INB/INN320 1.2/2012 – 25 July 2013 fault-to-resolution process VALUE Customer Insurance Company Parts Store Service Dispatch Centre Technician CustomerCall CentreCustomer My washing machine doesnt work…

15. © INB/INN320 1.2/2012 – 25 July 2013 Processes and Outcomes Every process leads to one or several outcomes, positive or negative –Positive outcomes deliver value –Negative outcomes reduce value Fault-to-resolution process outcomes: 1.Fault repaired without technician intervention 2.Fault repaired with minor technician intervention 3.Fault repaired and fully covered by warranty 4.Fault repaired and partly covered by warranty 5.Fault repaired but not covered by warranty 6.Fault not repaired (customer withdrew request)

16. © INB/INN320 1.2/2012 – 25 July 2013 What is a Business Process: Recap

17. © INB/INN320 1.2/2012 – 25 July 2013 The Core Elements of a Process Activities –active elements (e.g. enter sales order) –time-consuming, resource-demanding –state-changing Events –passive elements (e.g. sales order has been entered) –represent conditions / circumstances –atomic, instantaneous 17

18. © INB/INN320 1.2/2012 – 25 July 2013 The Core Elements of a Process Business Objects (or Data) –the organizational artifacts that undergo state changes –physical or electronic information –examples: sales order, digital object, consulting proposal Actors (or Resources) –the entities performing process activities and generating events –human and systems –examples: financial officer, warehouse clerk ERP, CRM, SAP, application X… 18

19. © INB/INN320 1.2/2012 – 25 July 2013 How do we combine these? 1. What needs be done and when? - Control flow 2. What do we need to work on? – Data 3. Whos doing the work? - Resources (human & systems)

20. © INB/INN320 1.2/2012 – 25 July 2013 Process Perspectives Control Flow Perspective –what needs to be done and when –predecessor/successor relationship among activities and events –the central information depicted in a process model Data Perspective –what do we need to work on –input/output data to activities –complements the control flow Resource Perspective –whos doing the work –human participants and systems that perform control flow activities and generate events –complements the control flow 20

21. © INB/INN320 1.2/2012 – 25 July 2013 Example: Student Enrollment 21 Complete pre- enrolment Complete pre- enrolment Set up online access Accept offer and T&C Accept offer and T&C Plan enrolment Plan enrolment Enrol Register for classes Register for classes

22. © INB/INN320 1.2/2012 – 25 July 2013 Further Potential Elements in a Process Objectives, Goals –link to strategy Risks –for risk-profiling the process Policies, Rules –for checking process compliance Knowledge –to depict expertise required … 22

23. © INB/INN320 1.2/2012 – 25 July 2013 23 Adapted from Davis, 2000; Wreden, 1998 Process Modelling… is a common language for naming and framing an issue integrates processes with other artefacts (e.g. systems, organisations, data, services, risks) enables walk-through, validation and testing (e.g. via simulation) can be used as a benchmark for measuring improvements – what-if analysis provides a blueprint for process automation

24. © INB/INN320 1.2/2012 – 25 July 2013 24 Why Process Modelling? Business processes are increasingly valued as essential assets of an organisation This significance demands dedicated management of processes We need ways to extract processes out of the organisational complexity in order to discuss, analyse, improve and automate them

25. © INB/INN320 1.2/2012 – 25 July 2013 Where does process modelling fit in BPM? Body of principles, methods and tools to design, analyze, execute and monitor business processes, with the ultimate goal of improving them. Dumas, La Rosa, Mendling, Reijers, 2013

26. © INB/INN320 1.2/2012 – 25 July 2013 Where does process modelling fit in BPM? …design, analyze, execute and monitor business processes… Focus of this unit

27. © INB/INN320 1.2/2012 – 25 July 2013 Time Investment in BPM Projects BPTrends, 2006

28. © INB/INN320 1.2/2012 – 25 July 2013 Top 10 Technology Skills Business Process Modelling Database Messaging/Communications IT Architecture IT Security Project Management Data Mining Web Development IT Optimization Networking 28 NetworkWorld, 30 March 2009