Business Process Modeling
Simulation

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Explanation of Business modeling of processes through simulation.

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Example of business process modelingWhat 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.

 

Business Process Reengineering and Business Process Management are closely related to Modeling.


Typical uses of Business Modeling and simulation:

  • Improve efficiency. By looking at the business process, organizations can improve their efficiency by eliminating redundancies. Also, each block can be looked at and improved by automating a set of activities. Any bottlenecks can be identified and removed.
  • 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 -


Business Process Modeling and Simulation Forum
  How to Implement a Business Process Once it has been Designed?
Once a business process has been modeled, what are then the approximate steps to implement (and review the process in the organization?...
     
 
  What is the Value of Categorizing Business Processes?
Just wondering: what value does categorizing business processes brings to the BPI/BPM effort? How does the enterprise benefit? How do stakeholders benefit?...
     
 
  Uniformity of Processes is a Risk
The edge of chaos is the best situation for a company. We can define the edge of chaos as the simultaneity of order and creativity. The Walt Disney company has built its success on the edge of chaos (E.D. Beinhocker, 1997).
Editor: for more on thi...
     
 
  Complex Organizations Have Complex Processes
The problem is the complexity of the organizations in which these processes are carried out. We must remember: a) the Theory on Bounded Rationality in organizations (Simon 1955); b) the  
   
 
  Names of Business Processes Differ per Industry
Business process differ in some industries. Sometimes the terminologies confuses us but at the end of the day, they are all the same....
     
 
  People Should Be in the Center of Business Processes
Business processes are important in the development of an enterprise. But people should be the center of it.
For processes to have validity, it is important that actions are comfortable and productive....
     
 
  Business Modeling not the Same as Business PROCESS Modeling
While you can say that business process modeling is part of (or complements) business modeling, the two are not the same. To avoid confusion, it might be better to keep the process word in the usage of the term....
     
 
  Mission Statement, Modeling and Simulation: a Synergy
STRATEGY literally relates to the mode by which an organization intends to reach its goal or objective. In a way, there is either a correlative or curvilinear relationship between modeling and strategy on the one hand, and simu...
     
 
  Learning Simulation and Business Modelling... Recommended Sources?
Hi want some help. Which are the best places to look for if I have to learn about business modelling and simulation. Thank you for your help. Nandini....
     
 
  Warehousing Simulation Software
Is there anyone who can help me where I can find a simulation software to be use in warehousing and logistic industry? Thanks...
     
 
  Combine Process Modeling with Systems Theory
Process modeling must be used together with general and complex systems theory to get very interesting results. Vision formulated from a system's point of view is more objective and closer to the r...
     
 
  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
     
 
  Introduction to Business Process Analysis
Is there anyone who can suggest me some good tutorials, tips & tricks for making experience on Business Process Analysis and modeling? Thanks in advance......
     
 

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Best Practices - Business Process Modeling and Simulation Premium
  Types of Business Processes - Classifications
Henk Kleijn and Fred Rorink in their book 'Change Management' distinguish between 5 different kinds of business processes in any company (organization):
1. Primary processes: these are the ma...
     
 

Expert Tips - Business Process Modeling and Simulation Premium
 

Business Processes by Goal

The main goals of Business Process Modeling can be classified into three different categories:
1. Descrip...
Usage (application): BPM Categories, BPM Types, BPM Classification
 
 
 

Business Processes by Focus Area

Depending on their focus, we can distinguish 4 types of business processes:
- Integration intensive Usage (application): BPM Categories, BPM Types, BPM Classification
 
 
 

Business Processes by the Way they Develop

Considering the way that processes may develop, we can differentiate them into the following 2 types of processes:
A.  
 
 

Process Analysis and Diagnosis Techniques and Tools

Process Analysis and Process Diagnosis can be considered as one single concept, although some differences have been underlined in recent management li...
Usage (application): Business Process Modeling
 
 
 

Using Appreciative Inquiry to Improve Business Processes

Organizations focusing on developing their processes may use the appreciative process to i...
Usage (application): Alternate Approach
 
 
 

The Process Vision

A business process is a set of interrelated activities targeted at a defined and measurable result that adds value to the end user (customer).
Th...
Usage (application): Process Approaches, Organizational Development, Organizational Change
 
 
 

Diagrams and Models to Represent Business Processes

Models representing business processes allow the management to dig in a process and recognize its critical aspects, such as consumed resources, transf...
Usage (application): Business Process Representation
 
 

Resources - Business Process Modeling and Simulation Premium

Business Process Management and Improvement: Six Sigma, BPR and (R)Evolutionary Change

Presentation about process management, particularly process modeling simulation and design. The presentation focuses on Six Sigma, BPR and Revolutiona...
Usage (application): Process Management, process Improvement, Business Process Reengineering, BPR, Six Sigma
 

Introduction to Simulation: Definition, Terminology and Process Steps

Presentation about Simulation that includes the following sections:
1. Definition of Simulation
2. Applications of Simulation
3. Defini...
Usage (application): Simulation, Complex Systems
 

Interview Hammer: Why Business Process Redesign?

The Business Process Reengineering method (BPR) is described by Hammer and Champy as the fundamental reconsideration and the radical redesign of organ...
Usage (application): Introduction. The Case / Main Reasons for BPR
 
 

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Compare also: Game Theory  |  Strategy Dynamics  |  Operations Research  |  Enterprise Architecture  |  Value Stream Mapping


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