 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.
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 -
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Business Process Modeling and Simulation Special Interest Group
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Business Process Modeling and Simulation Education & Events
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Business Processes by Goal
The main goals of Business Process Modeling can be...
Usage (application): BPM Categories, BPM Types, BPM Classification
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Business Processes by Focus Area
Depending on their focus, we can distinguish 4 typ...
Usage (application): BPM Categories, BPM Types, BPM Classification
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Business Processes by the Way they Develop
Considering the way that processes may develop, we...
Usage (application): BPM Categories, BPM Types, BPM Classification
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Process Analysis and Diagnosis Techniques and Tools
Process Analysis and Process Diagnosis can be cons...
Usage (application): Business Process Modeling
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Using Appreciative Inquiry to Improve Business Processes
Organizations focusing on developing their process...
Usage (application): Alternate Approach
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The Process Vision
A business process is a set of interrelated activi...
Usage (application): Process Approaches, Organizational Development, Organizational Change
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Diagrams and Models to Represent Business Processes
Models representing business processes allow the m...
Usage (application): Business Process Representation
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Business Process Management and Improvement: Six Sigma, BPR and (R)Evolutionary Change
Presentation about process management, particularl...
Usage (application): Process Management, process Improvement, Business Process Reengineering, BPR, Six Sigma
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Introduction to Simulation: Definition, Terminology and Process Steps
Presentation about Simulation that includes the fo...
Usage (application): Simulation, Complex Systems
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Interview Hammer: Why Business Process Redesign?
The Business Process Reengineering method (BPR) is...
Usage (application): Introduction. The Case / Main Reasons for BPR
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News about Business Modeling
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News about Business Simulation
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Videos about Business Modeling
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Videos about Business Simulation
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Presentations about Business Modeling
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Presentations about Business Simulation
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More about Business Modeling
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More about Business Simulation
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Compare also: Game Theory
| Strategy Dynamics
| Operations Research
| Enterprise
Architecture |
Value Stream Mapping
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Special Interest Group Leader
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Rakesh Gudur