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 discussions about Business Process Modeling and Simulation. Below you can ask a question about this topic, share your experiences, report a new development, or explain something.
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Standard Operating Procedures
I am looking for information on identifying and mapping activities, process, procedures, and governing policies in Standard Operating Procedures (SOPs)
The intention is to identify and map these ...
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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 creativity. The Walt Disney company has built its success on the edge of chaos (...
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Learning from Preparing a Simulation
When developing custom simulations, I always notice that the greatest learning moment for the organization is often in the preliminary phase. Small businesses in particular have difficulty describing ...
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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 of 5 departments and each department has its own manager and all of them report...
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The best, top-rated topics about Business Process Modeling and Simulation. Here you will find the most valuable ideas and practical suggestions.
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Advanced insights about Business Process Modeling and Simulation. Here you will find professional advices by experts.
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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...
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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...
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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...
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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...
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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 ...
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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...
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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 ...
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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...
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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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