Business Process Modeling

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Definition: Business Process Modeling

Business Process Modeling is the abstraction of the interaction between people and the system to fulfill a business. This can be done by using UML (Unified Modeling Language) diagrams.


In other words, Business process Modeling represents steps, participants, and decision logic in business processes. It is carried on by the managers and analysts who are seeking to improve the efficiency and quality of the business processes.


Business Process is a method to fulfill a business request. It can be operational, management or supporting process.


Model of a business Process:



ADVANTAGES:

• Can be a basis for improvement in current business processes

• Improves understanding of the business processes

• Align the business operations and execution with strategy

• Enable a change to better utilize business opportunities

• Improves Process communication

• Minimizes loss of potential information by documenting business processes

• Increases control and helps in making better decisions

• Helps in gaining competitive advantage

 

DISADVANTAGES:

• Some of the things are not well-defined and cannot be symbolized or notified. So, it becomes complex to represent those things/ activities

• Real world process is not understood clearly by all

• Different people have different perspectives about processes

• There is no common vocabulary to use

 

EXAMPLE/APPLICATION:

Loan request in Bank:

Business Procedure:

• Banker receives the request in the form

• Banker collects the information about the customer

• If loan amount>1000000, forward the request to manager

• Else, do risk analysis

o If everything is Ok, approve

o Else, forward it to manager

• Loan sanctioned


This business process can be modeled.

 

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