Business Process Modeling
Simulation

Knowledge Center

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 -

Forum about Business Process Modeling and Simulation   The most recent topics about: Business Process Modeling and Simulation. Standard Operating Procedures I am looking for information on identifying and mapping activities, process, procedures, and governing policies in Stand (...) 5   5 reactions   🔥 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 (...) 3   0 reactions   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 reactions

Best Practices 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 (...) 45   45 reactions   🥈 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 reactions   🥉 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 (...) 9   0 reactions   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 reactions   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 proces (...) 7   6 reactions   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 reactions   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 (...) 5   5 reactions   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 (...) 5   1 reactions   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 reactions   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 (...) 3   2 reactions   Combine Process Modeling with Systems Theory Process modeling must be used together with general and complex to get very interesting results. Vision formulated from (...) 3   2 reactions   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 (...) 0   3 reactions   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 reactions

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

Return to Management Hub: Change & Organization  |  Decision-making & Valuation  |  Finance & Investing  |  Marketing  |  Strategy  |  Supply Chain & Quality

More Management Methods, Models and Theory