Business Process Modeling
Simulation

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Explanation of Business modeling of processes through simulation.




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What is Business Modeling?

Identifying the right area to change and improve is paramount to the overall success of an organization. The dangers of implementing business process improvement changes without a clear understanding of how the changes will impact the entire process can be substantial. Therefore tools are needed to help managers truly understand their business processes and how modifications to those processes will impact the overall company.

 

The Business Modeling method is a technique to model business processes. Business models provide ways of expressing business processes or strategies in terms of business activities and collaborative behavior so we can better understand the business process and the participants in the process. Models are helpful for documenting, for comprehending complexity and for communicating complexity. By documenting business processes from various perspectives, business models can help managers to understand their environment.
 

Simulation Software

With the aide of simulation software, managers can understand their business processes like never before. This type of software can show the flow of work through a system using graphs. This allows managers to clearly see where a problems may lie, and give indications of how to improve them. Once the problem areas are identified, the software can be used to change any parameter the user wishes. Run the simulation once again and immediately see the impact of the change. In this way, companies can change their business processes in a computer environment, without risking costly setbacks of real world trial and errors.
 

Business Modeling and Operations Research

Business Simulation has grown from operations research in the 1950s. With the arrival of increasingly cheap and powerful computers, and increasingly user-friendly software, business modeling techniques now allow also non-technical managers to try out various options or scenario's to assist in the decision-making process.

 

Another factor that has contributed to the increasing usage of the business modeling method, is the increasing pace of change in business. There is not enough time to try out new products in reality, and correcting mistakes, once they have occurred, is often extremely costly.


Typical uses of Business Modeling and simulation:

  • Financial Planning, quantifying the impact of business decisions on balance sheet and P&L.
  • Risk Management, determining, measuring and managing the balance between profitability and certain types of risks.
  • Forecasting, analyzing historical data and using that to predict future scenario's and trends.
  • Business Process Modeling, mapping processes, tasks and process steps in a visual representation to the resources required.

Book: Manuel Laguna, Johan Marklund - Business Process Modeling, Simulation, and Design -

Book: Bernard P. Zeigler - Theory of Modeling and Simulation -

 

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Recent User Comments
Victor Pereira - Portugal Enhancing Business Process Improvements "Hello, I'm a Project Management and on my Post-Gratuate on Information Systems Management. I'm sugesting some articles of HBR like the following: Enhancing Business Process Improvements New Applications for Time-Driven ABC Excerpted from Time-Driven Activity-Based Costing: A Simpler and More Powerful Path to Higher Profits By Robert S. Kaplan, Steven R. Anderson on Harvard Business Press "    -1
Beretti Gabriele - Italy Novice "Is there anyone who can suggest me some good tutorials, tips & tricks for making experience on Business Process Analysis and modeling? Moreover, Enterprise Architecture? Thanks in advance."    2



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   Poonam Mehta (India) Business Modeling and Simulation "Hello Beretti, I am an MBA student and pursuing my specialisation in Business Modeling and Simulation. The basic needs to understand and apply this subject are enough knowledge of MS Excel and of Distribution theory.
Especially consider Normal Distribution, Uniform Distribution, Erlang Distribution, Triangular and many more....
An important thing is the application of these distributions. Example: when we say there is waiting line model, we generally generate ramdom number for our service time (customers spend time to get their services). It should be exponetial.. It depends from model to model.. When there is inventory model it is Normal Distribution.
I m also preparing a model for my Business which I'm going to start in the near future.. I hope this information will help you.. "
   Federico Romero (Perú) Business Modeling "Hi Breretti, I'm a Project Manager and I'm in the same situation. Currently, I'm clear that there are a lot of methodologies. Today I'm working based on BPMN with the support of a free software called BizAgi which includes some tutorials. I hope to have helped yourself."
   Leon Booysen (RSA) Improving BPM Skills "Hi Beretti, The best and I believe the only way to improve process analysis and modeling skills is to understand the process in current state and what is deliverable of a particular process.What is the result the "customer" expects? The study different modeling tools like UML is really secondary."
   Marcio Da Costa Coelho (Brasil) BPM for Anything.... "Hello, Beretti. I’m director of a Brazilian company focused on business solutions, and I have been working and searching about BPM for the last seventeen years. My recommendation for you is to define the drive of your BPM application, what you need as a result of BPM application. Today there is a lot of different approaches for BPM, for example: Performance improvement; work-flow implementation; software development, ERP implementation or tuning, quality programs; activity based costing, EAI, SOA…… For each different drive, probably, you will find a different approach for same subject BPM. BPMN, for example, is not a method and was created to support specifically the workflow orchestration modeling and script generation. It´s poor for the others applications! Here, we develop, and, are using an multidimensional approach for BPM. With this approach we can support fully the several drivers whit the same set of models and specifications. rgs"
   Alexander Samarin (CH) New Book About BPM, SOA and EA "Hi Beretti, I would like to introduce you to my new book “Improving Enterprise Business Process Management Systems” which has just been published.
This book looks at the following three concepts of BPM:
1. The Theory: BPM as a management discipline (i.e. managing business by processes);
2. The Tools: BPM as a software (BPM suites);
3. The Practice: BPM as a portfolio of the business processes of an enterprise, and the practices and tools for governing the design, execution and evolution of this portfolio (BPM System).
In particular the book concentrates on the last concept which is often neglected although all enterprises need it. This book will help you to industrialise Enterprise BPM systems. It describes a holistic approach to the application of BPM, Service-Oriented Architecture (SOA) and Enterprise Architecture (EA) for improving enterprise business performance."