Organizations are realizing that the first step in almost any major project – is to analyze and define their business processes, and then communicate those processes to those who need them.
This activity is absolutely critical to all types of projects, especially those that affect one or more business processes.
A business process is a collection of related structured activities that produce a specific output For Ex – product or Service.
A business process is made up of a hierarchy of activities.
A broad view of a business process is called a high level use case.
Business process Model:
The process of analyzing existing processes and defining new or improved ones takes place in facilitated group sessions, often called modeling workshops because one of their tangible outputs is a business process model.
The term BPM is the noun form of business process modeling and refers to a structural representation, description of diagram, which defines a structural representation, description or diagram, which defines a specified flow in a business.
The underline objective of BPM is the optimum utilization of resources at minimal cost to create value in business and its processes.
The basic objective or purpose of business process modeling is to create some kind of value it may be to earn profit, improve on quality and improve on support services.
Every business process requires a goal and to achieve a goal business objective is required to achieve in structured manner. Like there should be specific Input, Specific output, Resources.
Business process modeling techniques are concerned with Mapping and Workflow to enable understanding, analysis and positive change.
Three main types of business process are,
- Management process – Management process consist of corporate governance and Strategic management. Strategic management means a long term planning to achieve goals may be 3-5 years. Corporate governance is basically the mechanism to control and direct business process.
- Operational process – Operations process consist of Purchasing, Manufacturing, Marketing and Sales. Operational process is a short term planning may a year or less to achieve objectives to achieve a business goal.
- Supporting process – Supporting processes support the core processes Like Human Resource, Accounts Management, Sales & Support Management, Technical Support
For business process modeling various tools is being used. It provides business owner with the ability to model there business process, Implement those models and the same time execute the models and refine the model as required to get transparency into business process.
Business process Modeling (BPM) – Example: Sugarcane Juice Vendor, where customer orders a sugarcane juice.
- Customer order juice to the vendor
- Juice maker grind the sugarcane to get juice and add sugar to it
- Pour juice into the glass
- Serve it to the customer
- Finally Collects the amount from the customer
An organization’s business processes are best described by means of a business process model.
A business process is entirely independent of who carries out the activities and the organizational structure of the company.
A defined set of business processes can be used as a framework for assessing the changes across the business.
The activities in a business process provide a checklist of what could or should be happening within the organization.
The very exercise of defining processes forces a company to formulate and pin down common terminology, as well as common aims and expectations, and to eliminate misunderstandings.
An organization’s set of processes, taken as a whole, communicates best practice and helps everyone in the organization to understand the common goal towards which each individual or department is working.