Process Model in Business Analysis

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  • 0:03 Business Process Modeling
  • 1:24 Analyzing with BPM
  • 2:55 Example
  • 3:57 Analysis
  • 5:04 Lesson Summary
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Lesson Transcript
Instructor: Allison Tanner
The process of completing tasks is an extremely important part of doing business. In this lesson, we will discuss the business process model and how it can be used in business analysis.

Business Process Modeling

Imagine that you are getting ready to go out with a group of friends to celebrate New Year's Eve. As a part of the process you first invite everyone you know, then you ask where everyone would like to go. Finally, you determine if everyone is okay with the time and place of the event. If one or two of your friends are not able to make it, you may attempt to make a modification and check in with everyone again. If everyone agrees on the time and place, the decision is made. This process is understood as a general courtesy of back and forth planning to ensure everyone is satisfied with the decision made.

Similar to your decision making process, companies use a tool called business process modeling to create a roadmap which explains the general process of how to complete specific tasks, such as decision making. It provides you with a broad picture of how to get something done given a particular set of circumstances. Much like your party, if you do not get consensus on a decision, you try and modify it and then repeat the consensus process.

In business analysis, this model allows companies to look for areas where they can improve their processes. Because the business process model provides companies with a standardized way of achieving their goals, they can evaluate the effectiveness of their current processes for completing a task.

Analyzing with BPM

Your business can create a business process model in order to identify ways to improve processes in all departments. The diagram created for your business process model will assist your company in answering questions on the quality of the process.

  • Is the decision making process effective?
  • How efficient are the management processes?
  • Are the operational processes successful?
  • How effective is the marketing process?
  • Are the customer service processes satisfactory?

You can follow the flow of the process and look for potential obstacles that decrease its effectiveness.

Consider that your New Year's Eve gathering started with the discussion of having a party and was followed by contacting all of your friends to determine if they would be interested. This may be extremely time consuming. On the other hand, if you have already set a location for the party, you can contact your friends to determine if they would be interested.

After contacting everyone you want to invite, you would set a time for the party, and check for consensus. If the vast majority of your friends are able to come to that location, then the decision is made. If there are several concerns, then you may reconsider the location and once again go through the process of calling your friends.

Similar to this way of making decisions with your friends, your business can create a process model for decision making. This will allow the business to evaluate its current processes and determine the best way to begin discussions, and make decisions.

Example

The diagram below shows a visual of what a business process model for decision making might look like.

Process model

Thinking about the New Year's Eve party, look at the process in the diagram. As you can see, the discussion may come about due to two reasons: a general discussion to reach a particular goal or because a concern is raised.

For example, you may just want to throw a New Year's Eve party so you have a discussion with your friends, make a proposal, and test for consensus. If there is consensus, the decision is made. If there is not a consensus, and concerns are raised, the discussion begins again.

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