Launch of New Postgraduate Subject - Business Process Modelling course

“Business process and IT are connected at the hip. Business process defines the decisions and actions required to create results and value. IT automates, connects and inform those decisions and actions” (Gartner Research, May 2005)

ISYS2399 Business Process Modelling

In semester 1 2008, a new course, Business Process Modelling (ISYS2399) will be offered to students enrolled in the Master of Business Information Technology (MBIT) program. The introduction of the course was largely influenced by the increasing popularity of business process management and demand for business process analysts (BPA). The necessity for such a course is also supported by the results of a survey carried in 2006 placing such a course at the second position for desirable new courses within the MBIT program.

The focus of this course is on the design, modelling and simulation of business processes for the purpose of improving them. Students will learn how to establish performance measures for business processes and document existing processes using the Business Process Modelling Notation (BPMN). BPMN will be used by students to create Business Process Diagrams (BPD) which are process flow charts that can be easily understood by all business users, from the business analysts that create the initial drafts of the processes, to the technical developers responsible for implementing the technology that will perform those processes, and finally, to the business people who will manage and monitor those processes.

When (re)designing business processes for improved efficiency, students will learn how to use sound workflow principles. Some approaches used in redesigning business processes include: trying to eliminate waste, waiting times and non-value adding activities to speed up the process. Also, efficiency can be improved by trying to do as many activities as possible in parallel since doing activities sequentially, one at a time, tends to increase the time to complete the entire process.

Students will also learn how to create business process models that can be simulated for validation and optimization purposes using leading commercial business process modelling (BPM) software packages such as Extend, IBM Websphere Business Modeler and Arena.

A basic knowledge of mathematics is required for this course. The course contains a small mathematical component which is not difficult to grasp by students without a mathematical background as all mathematical and statistical concepts are explained from basic principles. However, students are required to possess basic numerical skills.

The course can be of potential interest to students from a wide range of programs: MBA (as it contains elements of Operations Management), Services Science (services are business processes), Computer Science (discrete event simulation), and of course Information Systems (as it provides the means to align technology and business strategy). If the course is successful, a complement course (Business Process Management) dealing with the management aspect of business processes might be offered in the future.

Additional Information on Business Modeling

Business process modelling

Organizations are interested in improving their business processes to produce and deliver products that better meet customer expectations. They are interested in finding out how to structure their processes to deliver superior financial performance.

Business process modelling is concerned with the analysis and design of business processes for generating improved models. In many organizations, inefficient processes exist because they emerge as a consequence of uncoordinated incremental changes or because of the inability of the organization to take advantage of new design enablers such as Information Technology. There is plenty of evidence to support that simple business design leads to success as the fastest growing organizations are simple in design.

Business processes generate competitive advantage

The power of adopting a process-orientation was made all too obvious by Japanese organizations in the 1970s and 1980s. They propelled the notions of quality and productivity to completely new levels when they started to manufacture very-high-quality products. Although the functional structure has many virtues (such as economies of scale), its inherent weakness is its focus on skills and utilization of resources rather than work output. A process focus clearly emphasizes the fact that the work output must meet the requirements of the customer. It helps improve employees’ understanding of how their efforts fit into the big picture and why their contribution matters. Adopting a process-orientation generates sustainable competitive advantage as it cannot be easily imitated by other organizations unlike that generated on the basis of Information Technology (IT).

Business processes simply describe how things are done in a business organization. They encompass all activities in an organization: manufacturing, service and administration. Business processes are transformation processes consisting of groups of inter-related work activities which add customer value during the process. They utilize organizational resources and transform inputs to outputs with the purpose of satisfying customer requirements . Inputs can be customers and/or materials while outputs can be goods and services. Process customers can be both internal and external to the organization.

Adding customer value can take many forms and translate into different things to different customers. For example, Amazon.com sells books at lower prices because they have lower costs (reduced cost to customer), they make their products more readily available as they sell over the Internet (customers receive faster service) and they tell you what other books have been purchased by buyers who bought the same book you bought (provide information to customers).