Business Process Analysis

INFS1602/2602 Week 3
Individual Assignment #2 Briefing
Due Sunday, October 6 - 23:59– Submit via Turnitin on Moodle
1200 (+-10%) words (Excluding references & appendices)
Deliverables:
• Business Process Description and Narrative
• Business Process Model (in BPMN)
• Analysis of Business Process: Advantages and Benefits
Let’s take a stroll down
memory lane…
Recap: Competitive Strategy determines BPs/IS
1. By analysing market structures, nature of competition, company‘s strategic position

2. By formulating the right competitive strategy for the company

How can we
understand the How do we we
respond? How do we 3. By creating suitable internal structures
industry?
implement?

How do we How can this be

execute? facilitated through
IS?
4. By designing efficient business processes

5. By designing and implementing IS

Kroenke, Bunker, Wilson: Experiencing MIS © 2010 Pearson Australia

 Two different
strategies

Different BPs
Recap: Bicycle Rental Competitive Strategies
Same
activities

Kroenke, Bunker, Wilson: Experiencing MIS © 2010 Pearson Australia

Recap: How IS provide Competitive Advantage?
Principles of Competitive Advantage

Product Implementations Process Implementations

1. Create a new product or services 4. Lock in customers & buyers

2. Enhance products or services 5. Lock in Suppliers

3. Differentiate products or services 6. Raise barriers to market entry

7. Establish Alliances

8. Reduce costs
Recap: MCQ Activity
INFS1602/2602 Course layout
Week Topic Deliverables
1 Introduction to Information Systems and Business Processes N/A
2 Strategic Analysis and Competitive Advantage Individual Assignment (SL)
3 Business Process Analysis N/A
4 Business Process Improvement Individual Assignment (BA)
5 Systems Design and Development N/A
6 Flexibility Week: No Class Individual Assignment (SA)
7 Project Scheduling and Budgeting N/A
8 IS Security and Ethics Individual Assignment (PM)
9 Emerging Trends in Information Systems N/A
10 Course Review Group Project

Textbook Reading Guide: Chapter Extension 19

Agenda
Introduction to Business Process Management

Business Process Modelling Notation

Modelling Process Logics with Gateways

Layouts of Business Process Diagrams

 What are Business Processes?
A Business Process (BP) is a structured network
of activities supported by resources, facilities,
and information that interact to achieve a
business objective.

BPs turn input into higher-value output.

Some examples of Business Processes:

1.Order fulfilment
2.Hiring and onboarding employees
3.Inventory management
4.Customer service and support
5.Marketing and sales
6.Accounting and financial reporting
 Why Is Business Process Management
Important to Organisations?
Business Process Management (BPM)

• Business Process Management (BPM) is a

discipline and set of methodologies, techniques,
and tools designed to improve and optimize an
organization's business processes.
• Systematic process of creating, assessing, and
improving business processes

• BPM applies to all organisations (including not-

for-profit and government agencies/
departments)
• Involves four stages
Four stages of BPM

Model Acquire Implement Ensure

Model the current Acquire the system Implement new Create policy and
business process components business process procedures to
• “As-is” model • Create or alter • Change the way the ensure process
documents the current Information Systems to organisation operates, effectiveness on an
process support/facilitate new train people, implement ongoing basis
• Business users (that is process IS
YOU!) review and adjust • Acquiring the 5 • Adjust and repeat
the model; it is changed elements of IS cycles (repeat the
to solve process (hardware, software, steps)
problems data, procedures,
• The result is a “to-be” people)
model à new process
Why is Business Process Management
Important?
The Importance of Business Process
Management (BPM)
Efficiency and Productivity: Streamlining processes, reducing inefficiencies, and eliminating bottlenecks leads
to improved efficiency and productivity.
Quality Improvement: Standardized processes and best practices enhance service quality and customer
satisfaction.
Agility and Adaptability: BPM enables quick process modifications to respond to market changes and
customer demands.
Compliance and Risk Management: Ensuring adherence to regulations reduces legal and reputational risks.
Data-Driven Decision-Making: Data collection and analysis support informed choices for process
improvements and strategic planning.
Customer Focus: Mapping customer journeys helps tailor processes for better customer experiences.
Continuous Improvement: BPM fosters a culture of ongoing refinement and competitiveness.
Innovation: BPM encourages process innovation and automation, leveraging new technologies.
Business processes can vary in scope…
1. Functional Processes

• Activities in a single department or function

• BPM easier at this level
• Problem is that may lead to "isolated silos”
• Example: Marketing campaign management

2. Cross-Functional Processes

• Activities across/among many business departments

• Eliminate or reduce isolated systems and data
• Example is ERP

3. Inter-Organisational Processes

• Activities that cross organisational boundaries

• More difficult than functional and cross-functional processes
• Requires negotiation to resolve conflicts between pirorities
Agenda
Introduction to Business Process Management

Business Process Modelling Notation

Modelling Process Logics with Gateways

Layouts of Business Process Diagrams

Process modelling
The activity of representing business processes = creating process
models

Process modelling is central to

'as-is' and 'to-be' models
business.

Models increase in complexity to represent more complex processes

There is high demand for modelling standards to provide a common

platform for documenting processes
Process Modelling Notations

A number of standards have been Petri Nets

developed to support process Event-driven Process Chains (EPC)
modelling. Business Process Modelling Notation (BPMN)

BPMN = a standard set of terms and Models will be understandable across various
organisations & modellers (common language).
graphical notations for documenting Facilitate exchange of knowledge and experience
business processes -> create models across situations
The Arcane Symbols of BPMN:
What you need to know for INFS1602/2602
Events Artefact
Start event
Data object
End event Transation
details

Timer event

Connections
Activities
Process flow
Activity Activity
Message flow
Activity Sub process
+ Pool & Swim Lanes

Pool
Gateways

+ Parallel Fork/Join

Lane 2 Lane 1
Exclusive Decision/

Pool
X Merge
BPMN: important rules
Start Event
Every process begins with one (and only one) start
Events event.
Start event

End event
End Event
Every process ends with at least one end event.
Timer event
Timer event
This is a so-called intermediate event, which can
happen anywhere in the process
The event waits for something to happen (e.g. a
specified time to pass). It can be used to model a
delay or pause.
Intermediate Events (Double circle) Occurs during the
process flow.
BPMN: important rules
Task
Activities An atomic activity – cannot be broken down
further.
Activity Task
Represents the work performed in this process
step
Activity Sub-Process
+ Usually requires some input and creates an output.

Sub-Process
Represents a complex activity (made up of simpler
tasks)
The plus symbol indicates that it can be opened
for more detail.
Can be detailed in a separate model.
BPMN: important rules
Connections
Process flow Process / sequence flow
Also called: sequence flow.
Message flow
Models the order of activities.
Activities happen strictly in the order they are
Artefact connected by sequence flow elements.
Data object Message / data flow
Represents the flow of data objects.
Transation
details

Data objects can be attached to process flow

Data object arrows; no separate message flow is needed.
Represents data of any form. Message flow is only needed, when…
1. Data flows separate from sequence flow
Can be attached to both process and 2. Sending/receiving data to/from external entities (swim
message flow elements. lanes layout)
3. Sending/receiving data to/from database (database
interaction layout)
BPMN: important rules
Pool & Swim Lanes Pools
Act as containers for processes
Pool

Each pool represents an entity in a business

Lane 2

process (e.g., your organization, customer or

Pool

supplier)
Lane 1

We sometimes leave external pools empty,

depending on the scope of the narrative and model
The use of pools and swim
lanes is optional, but Swim lanes
sometimes useful. Represent internal business roles in a business
process
Used to better visualise the activities carried out by
these roles.
BPMN: important rules
Parallel Fork / Join
Gateways Read symbol as “AND”
+ Parallel Fork/Join
When outgoing:
• All paths will be followed (in parallel)
X Exclusive Decision/
Merge When incoming:
• All activities leading to the Join need to
be fulfilled for the process to proceed
Important Exclusive Decision / Merge
Gateways control the process flow and help Read symbol as “X-clusive”
implement process logic.
When outgoing:
Distinguish between splits and merges • Only one of the paths will be followed
• Split: divides process flow in separate paths
(multiple outgoing flows) When incoming:
• Merge: Brings together process paths • Process will proceed when any of the
incoming activities have been fulfilled.
(multiple incoming flows)
In-Class Activity #1
INFS1602/2602 Week 2
Intepreting BPDs
Spot the mistakes!
Identify the business process depicted in the following diagrams.
Analyse each diagram and write down any mistakes or logical
errors that you are able to spot.
(3)
(1)
Present
Approach

Passenger
ticket and
counter
passport

Qantas
No Redirect to
customer
Details
match? service Allow
Check ticket

Ground Crew
and
passport x +
+ through for
immigration
clearance
Check in
Yes bags

(2)
BPD1
What process?
Mobile phone plan sign-up

What mistakes or logical errors?

Customer details should not be sent ahead, as account creation is
contingent on the credit check. Information on phone model will also be
needed to create the customer account.

BPD2
What process?
Buying a product on eBay

What mistakes or logical errors?

There is no way out of the process without actual buying! There should be
another gateway after “Price too high?”, which allows the customer to
exit the process if they don’t find anything that interests them.

BPD3
Present
Approach

Passenger
ticket and
counter
passport

Qantas
What process? No Redirect to
customer
Details
service Allow

Qantas check-in process

match?
Check ticket

Ground Crew
and
passport x +
+ through for
immigration
clearance
Check in
Yes bags

What mistakes or logical errors?

Passenger should not be an internal swim lane. Combination of gateways
should be XX rather than X+. Data objects missing when ticket and
passport are presented to the ground crew.

Agenda
Introduction to Business Process Management

Business Process Modelling Notation

Modelling Process Logics with Gateways

Layouts of Business Process Diagrams

An in-depth look at Gateways
Offer pre-paid
option
+
No
Customer details Send out
SIM card

Create
Receive
application
Perform credit
check X
approved?
Yes
customer
account
+ +
Application
Order Phone

Phone model

eXclusive Decision Parallel fork Join

Only one outgoing Both outgoing paths Both incoming paths must
path can be followed. must be followed. be fulfilled to proceed
Example: Fire emergency notification
process Do the gateways need to match (e.g., xx, ++)?

Notify
Arrive at
Campus
scene
security

Receive fire
emergency
message
+ Notify UNSW
fire fighters
Arrive at
scene X Fight fire
+
Detector message: Location,
Fire! Incident details Notify
Arrive at
Randwick fire
scene
station

Merge
Process proceeds when any of
the incoming paths are fulfilled.
 Business Process Modelling Notation – full set of elements v. 1.2
Gateways Activities Data
Data-based Exclusive Gateway
Task
Data Object
Paralllel Gateway
Data Object
Multiple Instances
Inclusive Gateway
Undirected Association
Event-based Exclusive Gateway
Directed Association
Complex Gateway Collapsed Subprocess
Bidirected Association

Events Loop
Start Intermediate End
Transaction
Catching Throwing

Plain Ad-hoc Subprocesses

Message Transaction
Timer ∼
Error
Documentation

Pool
Cancel
Compensation
Conditional
Sequence Flow Group
Signal

Multiple Conditional Flow

Link
Default Flow
Terminate Text Annotation
Message Flow
Agenda
Introduction to Business Process Management

Business Process Modelling Notation

Modelling Process Logics with Gateways

Layouts of Business Process Diagrams

Different BPD Layouts
Business Process Diagrams (BPDs) can be drawn differently
depending on the nature of the business process and what your
emphasis is.

Some considerations:
1. What is the purpose of creating the BPD?
2. What is the scope of the business process (e.g., functional,
cross-functional, inter-organisational)?
3. Does the process involve external entities? How many?
4. Do you have any influence over what the external entities do?
Type 1: Private BPD
• Only internal elements are modelled
• Typically used when process is simple and/or self-contained
Type 2: Public Black Box
• Only internal elements are modeled, interaction with a black box
swimming pool
• Typically used when process involves external entities but focal
organization has no influence over the activities of the external
entity
 Type 3: Public White Box
• Models both internal and external elements
• Typically used when process involves external entities and focal
organization has an influence over the activities of the external entity
Type 4: Choreographies
• Models both internal and external elements
• Typically used when process involves more than TWO external entities
• Beyond the scope of this course!
Steps of Business Process Modelling
1. Decide on the layout
2. Identify the actors → create pools and lanes (if swim lanes are
required).
3. Identify the start event (Do NOT label)
4. Identify the activities → make a list.
5. Create the logical process flow → order activities & identify gateways.
6. Who does which activity? → place in swim lanes (if using swim lane).
7. Identify data/documents.
8. Where and how are they flowing?
9. Where does the process stop? → end event
10. Have you accounted for all possible contingencies?

4
0
Agenda
Introduction to Business Process Management

Business Process Modelling Notation

Modelling Process Logics with Gateways

Layouts of Business Process Diagrams

Key Takeaways
1. The purpose and steps of Business Process Management
2. The symbols and syntax of BPMN
3. How gateways work
4. The different BPD layouts and when they are used
5. The steps to creating a BPD
See you next
week!