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ISH2B3 - Business Process Modeling

1. Process Everywhere
Introduction to 2. Ingredients of a Business Process
Bussiness Process Management 3. BPM lifecycle
(BPM)

Information System Department,

School of Industrial Engineering, Telkom University,
2023
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Definition of Business Process

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Business process management has received considerable attention recently by both

business administration and computer science communities.
• People in business administration are interested in improving the operations of companies. Increasing
customer satisfaction, reducing cost of doing business, and establishing new products and services at low cost
are important aspects of business process management from a business administration point of view.
• The software community is interested in providing robust and scalable software systems. Since business
processes are realized in complex information technology landscapes, the integration of existing information
systems is an important basis for the technical realization of business processes.

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THE GOAL OF BUSINESS PROCESS

MANAGEMENT

is to narrow the gap between these different points of view and to

provide a step towards a common understanding of the concepts
and technologies in business process management.

BUSINESS PROCESSES are the key instrument to organizing these

activities and to improving the understanding of their
interrelationships

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pexels.com
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Information technology in general and

information systems in particular
deserve an important role in business
process management, because more
and more activities that a company
performs are supported by information
systems.

• Business process activities can be performed by the company’s

employees manually or by the help of information systems.
• A company can reach its business goals in an efficient and
effective manner only if people and other enterprise resources,
such as information systems, play together well. Business
processes are an important concept to facilitating this effective
collaboration

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 Business Process Management
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EXAMPLES OF PROCESSES
IMPROVEMENT EVERYWHERE
Each organization (be it a governmental agency, a non-
OBJECTIVES
• reducing costs, profit organization, or an Enterprise ) has to manage a
• reducing execution times, number of processes.
• reducing error rates,
• but also gaining competitive

advantage through innovation.

Business Process Management (BPM) is the art and science of overseeing how work is performed in an organization to ensure
consistent outcomes and to take advantage of improvement opportunities.
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Examples of processes that can be found
in most organizations

• Order-to-cash.

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Order Fulfillment Payment Collection

This is a type of process performed by a vendor, which starts when a customer submits an order to purchase a
product or a service and ends when the product or service in question has been delivered to the customer and
the customer has made the corresponding payment.

• Quote-to-order.

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Quote Order Fulfillment Payment

This type of process typically precedes an order-to-cash process. It starts from the point when a
supplier receives a Request for Quote (RFQ) from a customer and ends when the customer in
question places a purchase order based on the received quote.
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• Procure-to-pay

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Requsition Approvals Purchase Order Receipt Invoicing Payment

This type of process starts when someone in an organization determines that a given product or service needs to be purchased.
It ends when the product or service has been delivered and paid for.

• Issue-to-resolution.

Customer Complain Solving Problem Solved

This type of process starts when a customer raises a problem or issue, such as a complaint related to
a defect in a product or an issue encountered when consuming a service.
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• Application-to-approval.

Fill Form Apply Checking Approved

This type of process is common in government agencies, for example when citizens apply for building
permits or when entrepreneurs apply for business licenses (e.g., to open a restaurant). Another process
that falls into this category is the admissions process in a university, which starts when a student applies
for admission into a degree program. Yet another example is the process for approval of vacation or
special leave requests in a company

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BUSINESS PROCESS
A business process consists of a set of activities that are performed in

coordination in an organizational and technical environment. These

activities jointly realize a business goal. Each business process is enacted

by a single organization, but it may interact with business processes

performed by other organizations.

BUSINESS BUSINESS PROCESS

PROCESS MANAGEMENT
MANAGEMENT SYSTEM
includes concepts, methods, and is a generic software system that

techniques to support the design, is driven by explicit process

administration, configuration, representations to coordinate the

enactment, and analysis of enactment of business processes.

business processes

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 A Glimpse of Process Choreography 11

01 THE BUYER SENDS AN

ORDER
MESSAGE TO THE RESELLER

THE RESELLER RECEIVES THAT MESSAGE IN A START

02 The order information is then extracted from the message, and

order processing starts.
EVENT.

03 THE RESELLER SENDS AN INVOICE AND

SHIPS
THE ORDERED PRODUCTS.

04 THE BUYER RECEIVES THE

INVOICE.

05 THE BUYER SETTLES THE

•The interactions of a set of business processes are specified in a
INVOICE.
process choreography.

•The interaction is only achieved by sending and receiving messages.

06 FINALLY, THE BUYER RECEIVES THE ORDERED

PRODUCTS.
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Ingredients of Business Process

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 A process also involves:
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ACTORS PHYSICAL OBJECTS

Frequently, your initial font choice is taken equipment, materials, products, paper
out of your hands documents.)

CUSTOMER INFORMATIONAL OBJECTS

The one who consumes the output (internal electronic documents and electronic records
customer and external customer)

OUTCOMES POSITIVE OUTCOME NEGATIVE OUTCOME

The execution of a process. + business process can deliver a value to the - business process can not deliver a value to
actors involved. the actors involved.

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 A process also involves:
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business process encompasses a number of events and activities

EVENT TAS
S K

which means that An activity is

they have rather simple
no duration. This event may and can be seen as one single
trigger the execution of a series unit of work.
of activities

ACTIVIT DECISION
Y POINTS

is used to refer “to that is, points in

both fine- time when a
grained or coarsegrained units of decision is made that affects the
work.” way the process is executed.
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History of Business Process

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 History of Business Process
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PREHISTORI ANCIENT INDUSTRIA

C TIMES L
TIMES TIMES
humans mostly supported themselves or the this work structure based on generalists started The upshot of this development was that

small groups, they had knowledge of how to to evolve towards what can be characterized as workers became pure specialists concerned with

produce many different things. In other words, an intermediate level of specialism. People only a single part of one business process. .

they were generalists. started to specialize in the art of delivering one

specific type of goods.

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Classification of Business Process

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 Organizational versus Operational 20

Different levels of abstraction can be identified in

business process management,
ranging from high-level business goals and business
strategies to implemented business processes.

Business goals refer to the long-term objectives of the

company, while business strategies refer to its plans for
achieving these goals.

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 Organizational versus Operational 21

Different levels of abstraction can be identified in

business process management,
ranging from high-level business goals and business
strategies to implemented business processes.

Business goals refer to the long-term objectives of the

company, while business strategies refer to its plans for
achieving these goals.

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 Organizational versus Operational 22

Organizational business processes

01 High-level
that are typically specified in textual form by their inputs,
their outputs, their expected results, and their
dependencies on other organizational business processes.

02 specified in textual form by

•
•
Inputs
Outputs
• expected results
• dependencies on processes.

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coarse-grained business functionality

organizational business processes characterize coarse-

grained business functionality.

Example : An organizational business process to manage incoming raw materials

provided by a set of suppliers

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Operational business processes

activities and relationships are specified

In operational business
01 02 Specified by business process models.

Operational business processes

processes, the activities and their are specified by business process
relationships are specified. models.

multiple operational

03 business processes

there are multiple operational

business processes required that

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business process
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versus Process Choreographies

• Intraorganizational processes, no interaction • Most business processes, interact with

with business processes performed by other business processes in other organizations,
parties, then the business process is called forming process choreographies.
• primary focus of intraorganizational
business processes is the streamlining
of the internal processes by eliminating
activities that do not provide value.

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Business Process Management Lifecycle

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1

6 3

5 4

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OUTPU
T
• The outcome of process identification is a

1. Process identification new or updated process architecture,

which provides an overall picture of the
processes in an organization and their
In this phase, a business problem is posed. Processes
relationships.
relevant to the problem being addressed are identified,
delimited, and interrelated.
• This architecture is then used to select
which process or set thereof to manage
through the remaining phases of the
lifecycle. Typically, process identification
is done in parallel with performance
measure identification

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OUTPU
T

2. Process discovery
(also called as-is process modeling)

Here, the current state of each of the relevant

processes is documented, typically in the form of one
or several as-is process models.

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OUTPU
T
• The output of this phase is a structured

3. Process analysis collection of issues. These issues are

prioritized based on their potential impact
and the estimated effort required to
In this phase, issues associated with the as-is process
resolve them.
are identified, documented, and whenever possible
quantified using performance measures.

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OUTPU
T

4. Process redesign • The output of this phase is typically a to-

be process model.
(also called process improvement)

identify changes to the process that would help to

address the issues identified in the previous phase and
allow the organization to meet its performance
objectives.

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OUTPU
T

5. Process implementation
the changes required to move from the as-is process to
the to-be process are prepared and performed.

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OUTPU
T

6. Process monitoring
Once the redesigned process is running, relevant data
are collected and analyzed to determine how well the
process is performing with respect to its performance
measures and performance objectives.

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Two aspects
Process implementation

ORGANIZATIONAL CHANGE
MANAGEMENT
AUTOMATI
ON
refers to the set of activities required to

change the way of working of all

participants involved in the process.

AUTOMATIO
N ORGANIZATIONAL
refers to the development and CHANGE
MANAGEMENT
deployment of IT systems (or enhanced

versions of existing IT systems) that

support the to-be process

our focus with respect to process implementation is on automation. We will only briefly touch upon change management, which is a field
on its own.
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Design and Analysis
The business process lifecycle is entered in the Design and Analysis phase, in which surveys on the
business processes and their organizational and technical environment are conducted. Based on these
surveys, business processes are identified, reviewed, validated, and represented by business process
models

Configuration
Once the business process model is designed and verified, the business process needs to be
implemented. There are different ways to do so. It can be implemented by a set of policies and
procedures that the employees of the enterprise need to comply with. In this case, a business process
can be realized without any support by a dedicated business process management system.

Enactment
Once the system configuration phase is completed, business process instances can be enacted. The
process enactment phase encompasses the actual run time of the business process. Business process
instances are initiated to fulfill thebusiness goals of a company. Initiation of a process instance
typically follows a defined event, for instance, the receipt of an order sent by a customer.

Evaluation
The evaluation phase uses information available to evaluate and improve
business process models and their implementations. Execution logs are
evaluated using business activity monitoring and process mining techniques.
These techniques aim at identifying the quality of business process models and
the adequacy of the execution environment.

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