Business Model

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Business process modeling gives organizations a simple way

to understand and optimize workflows by creating data-driven


visual representations of key business processes.
Most enterprises have a pretty good idea of the various business processes powering their
daily operations. However, when they need to ensure that those processes consistently drive
optimal outcomes, “a pretty good idea” isn’t enough.

If an organization wants research and development (R&D) investments to produce sufficient


returns, IT issues resolved with minimal downtime or a highly accurate lead qualification
workflow, it needs to understand these processes on an objective and comprehensive level.
Even the business users directly involved in these processes may lack total transparency into
exactly what happens at every step of the way.

Business analysts can gain end-to-end views of the business process lifecycle
through business process modeling, a business process management (BPM) technique that
creates data-driven visualizations of workflows. These process models help organizations
document workflows, surface key metrics, pinpoint potential problems and intelligently
automate processes.

What is business process modeling?


A business process model is a graphical representation of a business process or workflow and
its related sub-processes. Process modeling generates comprehensive, quantitative activity
diagrams and flowcharts containing critical insights into the functioning of a given process,
including the following:

 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

Key aspects of business process modeling


1. Process models are not made manually. Rather, they are produced by data-
mining algorithms that use the data contained within event logs to construct models of
the workflows as they exist.
2. Because process models are based on quantitative data, they offer genuinely objective
views of workflows as they exist in practice, including key data, metrics or events that
may have otherwise gone unnoticed. For example, by creating a model of its new
account creation process, a software company might discover that a significant
number of customers are abandoning the sign-up process because it takes too long. A
model could even help the company pinpoint the exact stage at which these drop-offs
occur.
3. Process models are typically rendered using one of two standardized styles of
graphical business process notation: Business Process Modeling Notation (BPMN) —
also called Business Process Model and Notation — or Unified Modeling Language
(UML). Within these notation systems, certain visual elements have universally
recognized meanings when used in a process model. Whether an organization uses
UML diagrams or BPMN diagrams, these standardized notation methodologies allow
process models to be easily shared and read by anyone:
o Arrows represent sequence flows
o Diamonds represent decision points or gateways
o Ovals represent beginnings and endpoints of processes
o Rectangles represent specific activities within a workflow
o Swimlanes are used to identify who owns which components of a process
4. Business process models shouldn’t be confused with process maps, another common
type of business process diagram. Process maps are based on employee reports, are
created manually and provide higher-level views of workflows. Process models are
data-driven deep dives that present more objective views of workflows.

Learn more by reading “Process Mining vs. Process Modeling vs. Process Mapping: What’s
the Difference?”

How business process models are made


To fully understand business process modeling techniques, one must first understand the
relevant business process modeling tools — event logs and process mining.

Most enterprise IT systems maintain event logs. These event logs are digital records that
automatically track state changes and activities (i.e., “events”) within the system. Anything
that happens within a system can be an event. The following are some common event
examples:

 A user logs in
 A user updates a record
 A user submits a form
 Information is transferred between systems

Event logs track both the occurrence of events and information surrounding these events, like
the device performing an activity and how long the activity takes. Event logs act as the inputs
during the production of 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. Depending on the process targeted for modeling, process-mining algorithms can be
applied to a single system, multiple systems or entire technological ecosystems and
departments.

Business process modeling use cases


Process models offer unprecedented levels of transparency into company workflows, making
them a key business process management tool. While process models can be leveraged in any
scenario that requires analyzing business processes, these are some of the most common use
cases:

Gaining 360-degree insight into processes

A single process model can contain a wealth of workflow data, allowing team members to
analyze a workflow from multiple perspectives. Business analysts often use business process
modeling to zero in on the following workflow components in particular:

 Control flow: “Control flow” refers to the order in which steps and commands are
executed within a process. A process model depicts a flowchart of a given process so
that a team can clearly see what steps are taken and when. This perspective also helps
the team identify any dependencies between steps.
 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 perspective illuminates the connections between people and systems that
form the organizational social network. In this way, a process model offers insight
into how various 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 given workflow typically
plays out, or it can reflect a particular case – or instance – of a workflow. Teams often
use this case perspective to analyze anomalous process outcomes. For example, if a
specific instance of a workflow results in lower-than-average outcome quality, teams
can isolate exactly what went wrong.

Optimizing and standardizing processes

Process models accurately reflect existing workflow inefficiencies, making it easier to


identify opportunities for process optimization. Once workflows have been optimized,
businesses can use process modeling to standardize workflows across the entire enterprise.
The model acts as a template for how processes should play out, ensuring that every team and
employee approaches the same process in the same way. This leads to more predictable
workflows and outcomes overall.

Assessing new processes

Process models can take the guesswork out of implementing and evaluating new business
processes. By creating a model of a new process, business users can get a real-time look at
how that workflow is performing, allowing them to make adjustments as necessary to achieve
process optimization.

Analyzing resource usage

Process models can help companies track whether money and resource investments produce
suitable returns. For example, by creating a model of the standard sales process, an
organization can see how sales representatives are utilizing the tools and systems at their
disposal. It may turn out that a certain tool is used much less frequently than anticipated, in
which case, the organization can choose to disinvest from the tool and spend that money on a
solution the sales team actually uses.

Communicating processes

Process models transform complex processes into concrete images, making it easier to
disseminate and discuss processes throughout the organization. For example, if one
department has a particularly efficient process for troubleshooting technical problems, the
business can create a model of this process to guide implementation on an organization-wide
scale.

The benefits of business process modeling


Business process modeling arms an enterprise with objective business intelligence that
supports more informed decisions for resource allocation, process improvement and overall
business strategy. With a clear view of processes, enterprise teams can ensure that workflows
always drive the desired results. As a result, operating costs are lower, revenue is higher and
business outcomes are stronger.

Specifically, business process modeling allows companies to do the following:

 Access and utilize quantitative process data: Without a process model, teams are
limited to discussing and analyzing workflows in qualitative and subjective terms. As
a result, teams may not accurately understand their workflows; they may make
business decisions based on misunderstandings, assumptions and/or incomplete
knowledge. With process modeling, teams have access to quantitative workflow data,
including success rates and error rates, allowing for a more rigorous analysis of
business processes.
 Streamline and accelerate process automation: Before a process can be automated,
an organization needs a clear understanding of how that process plays out in reality,
including the business logic underpinning each decision point. A process model
illuminates both the way a workflow unfolds and the relationships between events,
actors, tools and systems within and between processes. This viewpoint helps a team
document the process itself and the business rules that guide its execution. This
information makes it easier to effectively automate workflows the first time.
 Keep operation costs down: Process models provide organizations with an easy way
to identify opportunities to optimize existing processes. This makes it easier for the
company to ensure that processes consistently produce the desired outcomes. As a
result, business processes require less investment to maintain and generate positive
outcomes at a lower cost.

Business process modeling and IBM


Process modeling forms a cornerstone of any automation effort or business process
management initiative. Without comprehensive views of existing processes and their
undergirding business logic, enterprises cannot effectively optimize and automate workflows
at scale.
Take the next step:

IBM Blueworks Live is a cloud-based business process modeling software designed to help
organizations discover business processes and document them in a collaborative fashion
across multiple stakeholder groups. Teams can work together through an intuitive and
accessible web interface to document and analyze processes. No download required.

Business Process Modeling: Definition, Benefits, and Examples

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.

Process modeling software gives an analytical representation of 'as-is'

processes in an organization and contrasts it with 'to-be' processes for

making them more efficient.

Many business process modeling tools end up producing something like

this:
Why Use Business Process Modeling?
Your first step in modeling is actually pen and paper. However, to actually run

a business process, you will need to digitize that process in a way that a

workflow engine can understand.

Business process modeling software allow you to represent your process in a

digital way that can then be transferred to a live automated process.

There are many benefits to business process modeling:

 Gives everyone a clear understanding of how the process works

 Provides consistency and controls the process

 Identifies and eliminates redundancies and inefficiencies

 Sets a clear starting and ending to the process

Business process modeling can also help you group similar processes

together and anticipate how they should operate. The primary objective of
business process modeling tools is to analyze how things are right now and

simulate how should they be carried out to achieve better results.

Kissflow, our BPM Software, Streamline your business with superpowered

processes.

Business Process Modeling Techniques


Business process modeling can be expressed through flowcharts, programs,

hypertext, or scripts. There isn’t just one way to implement business process

modeling; in fact, you can choose from as many as 12 techniques.

Here are some of the most common business process modeling techniques:

1. Business Process Modeling Notation (BPMN)

BPMN 2.0 has become something of a standard syntax used by process

analysts and those who create business modeling tools. It is a relatively


simple usage of lines, arrows, and geometric shapes that all communicate

the flow and nuances of the process. A process consultant can look at a

BPMN 2.0 model and know exactly how it should function.

“Eventually, when [those] companies get their products shipping and crank

up their marketing machines, BPMN will be the unquestioned standard for

process modeling and execution. But right now, we are still between the

news and the reality.” - Bruce Silver, Process Consultant and Author of the

book BPMN Method and Style


However, BPMN 2.0 is still a learned language, and although relatively

simple, isn’t immediately intuitive for the regular business user. It is a great

tool for process consultants, but not helpful for those looking to create their

own applications.

2. Universal Process Notation

Instead of having a new language to learn, a more intuitive system

is Universal Process Notation or UPN.

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. It

is extremely useful for IT to design and analyze processes, for management

to comply to business norms, and - more importantly - for end business users

to understand processes as intended. Kissflow uses UPN in its modeler.

3. Flowchart Technique

Flowcharts explain complex process flows in a simple yet effective way. They

illustrates process steps in their sequential order, going from inputs to actual

process to outputs. In fact, flowcharts provide the basic framework for BPMN

to display advanced process flows.

Kissflow, our process tracking software, can help your business stay

constantly aware of every last business process.

4. 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. It does a better

job of showing the overall time taken to complete a project than other options.

5. Petri-Nets

Traditionally a modeling technique in mathematics, petri-nets are also useful

for modeling business processes. Petri-nets classify or color-code complex

workflow steps, users, and routes in different colors.

What Do I Need in a Process Modeling


Software?
Most BPM Suites include business process modeling tools in them. However,

some have the modeler as a separate application.

The modeler is one of the most important elements in a BPMS, and you

should spend a lot of time learning it before committing to buy a suite.

Great business modeling tools should:

 Be easy to learn for the business departments

 Be simple for IT teams to communicate with other departments

 Be inexpensive and industry compliant

 Have an integrated workflow editor tool with graphic interface

 Be able to simulate workflow before implementing

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