Business Process Modeling
Simulation

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Summary

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


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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 (...)
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Standard Operating Procedures
I am looking for information on identifying and mapping activities, process, procedures, and governing policies in Stand (...)
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6 comments
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? T (...)
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1 comments
Uniform Processes are also 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 (...)
3
 
1 comments
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. Tha (...)
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2 comments
Combine Process Modeling with Systems Theory
Process modeling must be used together with general and complex systems theory to get very interesting results. Vision f (...)
3
 
2 comments
🔥 NEW Learning from Preparing a Simulation
When developing custom simulations, I always notice that the greatest learning moment for the organization is often in t (...)
2
 
How to Start the First Business Process
Dear All, I decided to establish my new company - a private business. I have prepared the company structure: it consists (...)
1
 
1 comments
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 Th (...)
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3 comments
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 (...)
0
 
2 comments

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Best Practices

The top-rated topics about Business Process Modeling and Simulation. Here you will find the most valuable ideas and practical suggestions.


Types of Business Processes - Classifications
Henk Kleijn and Fred Rorink in their book 'Change Management' distinguish between 5 different kinds of business processe (...)
46
 
45 comments

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 (...)
25
 
2 comments

Introduction to Business Process Analysis
Is there anyone who can suggest me some good tutorials, tips & tricks for making experience on Business Process Analysis (...)
7
 
9 comments

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 pr (...)
7
 
6 comments

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 th (...)
7
 
7 comments

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 be (...)
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5 comments

Expert Tips

Advanced insights about Business Process Modeling and Simulation. Here you will find professional advices by experts.


Business Processes by Goal

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

Business Processes by Focus Area

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

Business Processes by the Way they Develop

BPM Categories, BPM Types, BPM Classification
Considering the way that processes may develop, we can differentiate them into the following 2 types of processes: A. D (...)

Process Analysis and Diagnosis Techniques and Tools

Business Process Modeling
Process Analysis and Process Diagnosis can be considered as one single concept, although some differences have been unde (...)

Using Appreciative Inquiry to Improve Business Processes

Alternate Approach
Organizations focusing on developing their processes may use the appreciative process to improve them. They can apply (...)

The Process Vision

Process Approaches, Organizational Development, Organizational Change
A business process is a set of interrelated activities targeted at a defined and measurable result that adds value to th (...)

Diagrams and Models to Represent Business Processes

Business Process Representation
Models representing business processes allow the management to dig in a process and recognize its critical aspects, such (...)
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Business Process Management and Improvement: Six Sigma, BPR and (R)Evolutionary Change

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

Introduction to Simulation: Definition, Terminology and Process Steps

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

Interview Hammer: Why Business Process Redesign?

Introduction. The Case / Main Reasons for BPR
The Business Process Reengineering method (BPR) is described by Hammer and Champy as the fundamental reconsideration and (...)

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