Business process modeling (BPM) provides the blueprints for how work gets done within an organization. This comprehensive 4000+ word guide will explain what BPM is, techniques to create process models, international standards, commercial tools, benefits and an implementation roadmap.
What is Business Process Modeling?
Business process modeling refers to graphically documenting the end-to-end workflows, systems, rules, policies and information flows involved in business operations.
It provides an abstract visualization of real-life processes within an organization. The documentation typically contains process sequences, events, decisions, roles and data flows.
Image source: Research by author
This conceptual model of actual business processes provides stakeholders with an unambiguous understanding of operational workflows and how work gets executed.
Some common examples of business processes include:
- New customer registration
- Order to cash
- Procurement to payment
- Incident ticket resolution
- Product development
- Inventory control
- Invoice processing
Essentially any repeatable business activity crossing departments, systems and policy rules can be modeled for documentation and analysis purposes.
Importance of Business Process Modeling
There are several compelling reasons why formally modeling and documenting processes is critical for organizations:
1. Process Transparency
A fundamental benefit of BPM is gaining transparency into processes – the nitty-gritties of actual workflows being followed across the enterprise. This clarity is extremely useful for communicating procedures and policies governing critical operations.
2. Standardization
BPM enables documenting As-Is processes, identifying variance and options for standardization so uniformly defined procedures can be followed enterprise-wide. This drives consistency in quality and efficiency.
3. Identifying Improvements
The baseline process definition offers the foundation to simulate and analyze current workflows to pinpoint improvement areas such as bottleneck tasks, redundant steps, latency points and manual inefficiencies.
4. Enable Innovation
An integrated end-to-end process architecture sets the stage for transformative initiatives like process automation, intelligent workflows and touchless processing.
5. Stakeholder Alignment
Unambiguous process representations foster alignment between business and technical teams on priorities, objectives, roles and information needs eliminating misunderstandings.
In summary, BPM has far-reaching dividends spanning documentation, transparency, improvements and strategic transformation across business operations.
Core Elements of a Business Process Model
Standard process models contain a common set of elements derived from modeling techniques like BPMN that collectively capture operational details.
Image source: Research by author
Let‘s examine the key components:
1. Activities: Specific manual or system-based tasks that need to be executed within the process workflow.
2. Events: Occurrences that indicate the start, interruptions, signals or end during process execution.
3. Gateways: Decision points that control workflow paths and branching based on rules, policies and computed conditions.
4. Connecting Objects: Sequential flow lines that define order and link process steps depicting flow and directionality.
5. Swimlanes: Visual categorization and assignment of process activities to actors like departments, roles or applications.
6. Artifacts: Supporting contextual references providing details about processes like objectives, KPIs, guidelines etc.
7. Data Objects: Represent information consumed and produced across process activities and systems.
These standardized elements guide how real-world workflows involving sequences, decisions, tasks, rules and data exchanges can be accurately visualized.
How to Create a Business Process Model
Below are the key steps involved in modeling end-to-end processes:
Step 1) Define Scope
Determine the process that needs to modeled along with details like objectives, inputs and outputs, metrics and roles.
Step 2) Gather Data
Conduct workshops and interviews to capture details. Refer to documents like standard operating procedures. Observe actual process executions.
Step 3) Map Current Activities
List down the sequence of performed activities. Capture both human and system tasks, decision rules applied and process events encountered.
Step 4) Assign Roles and Systems
Allocate process activities and decision gates to responsible entities like departments, users or applications and depict visually using swimlanes or similar BPMN technique.
Step 5) Model Information Flow
Define key data objects, documents, records and databases serving as inputs and outputs for different process elements including upstream and downstream systems.
Step 6) Analyze and Improve
Simulate as-is process models to identify constraints, waste and improvement areas by applying lean principles and quantifying KPIs.
Step 7) Standardize and Validate
Optimize processes by eliminating redundancies, variances and roadblocks; validate with stakeholders and confirm alignment.
Step 8) Publish and Maintain
Formally publish approved process baseline and subsequent versions; manage updates to current state through rigorous change control procedures.
Adopting this methodical approach ensures accurate and high quality process definitions emerge.
Business Process Modeling Methodologies
Many techniques are used to visually map processes. Each caters to specific documentation needs with unique strengths covering perspectives like functional flows, information flows, decisions logic and interface flows.
Here is an overview of leading methodologies:
1. BPMN
Overview: BPMN (Business Process Model and Notation) provides a standard for graphically modeling business operational workflows maintained by the Object Management Group (OMG) consortium.
Key Elements: Events, activities, gateways/decisions, sequence flows, message flows, pools, lanes artifacts and data.
Benefits:
- Intuitive process visualization syntax and semantics
- Supports process simulation, automation and execution
- Formal specifications for extensibility and interchange
- Can represent end-to-end simple to complex workflows
Applications: Widely adopted for documenting business functional flows across departments to enable process improvements or automation-ready architectures.
2. Flowcharts
Overview: Represent sequential process flows via geometrical shapes connected by arrows indicating functional steps and transfer of control.
Key Symbols: Ovals for start/end, rectangles for process steps, diamonds for decisions, and connecting arrows.
Benefits:
- Provides simple intuitive way to define process steps, logic and flow
- Quickly created by business teams using standard shapes
- Suited for documenting essential workflows within a department
- Convenient for ad-hoc discussions and working sessions
Applications: Extremely popular for basic process documentation needs for standalone systems or group-specific procedures.
3. Data Flow Diagrams
Overview: Captures how data moves across activities, storage and use in an information system highlighting inputs, analysis, storage and reporting. Uses defined shapes with contextual diagrams.
Key Symbols: External entities, process actions, data flows, data stores. Can decompose to levels revealing functional transformations at each step.
Benefits:
- Sharp focus on systems and quality of data exchanges
- Highlights integration gaps for architects and project teams
- Draws attention to analytics needs and data lineage tracking
Applications: Data-intensive processes where multiple systems are chained warrant DFD analysis to ensure seamless flows. Useful for modernization planning and documenting machine learning pipelines.
4. Unified Modeling Language
Overview: UML standardized by OMG provides a rich set of diagrams to formally visualize software system architectures from logical, physical and developmental perspectives.
Key Diagrams: Class, sequence, state machine, activity, component, deployment and use case diagrams visualize structural, behavioral and implementation aspects.
Benefits:
- Powerful arsenal for programmers to model real-world systems and process logic
- Fosters precise understanding between analysts, architects and developers
- Incorporates detailed system modeling, application logic flows and interactions
Applications:Widely adopted across the software development lifecycle from requirements analysis through to technical design stages.
5. Gantt Charts
Overview: Showcase scheduling interdependencies and sequence of dependent tasks against a timeline view. Help plan and track project milestones.
Key Components: Task names, duration bars, milestones, predecessor dependencies and resource assignments plotted on a calendar.
Benefits:
- Visually intuitive scheduling, tracking and coordination of sequenced tasks
- Highlights task relationships, critical path and resource allocation needs
- Essential technique for monitoring complex milestone-driven executions
Applications: Ubiquitous for planning and monitoring complex long running business initiatives like system implementations, construction projects or product launch plans.
6. IDEF Family
Overview: Set of techniques developed under a U.S. government program focused on capturing various business details through formal modeling frameworks beyond just workflows.
Main IDEF Variants:
- IDEF0: Functional workflow modeling;
- IDEF1: Semantic information modeling;
- IDEF2: Simulation model design;
- IDEF3: Business process improvement capture.
Benefits:
- Formalizes models across business goals, decisions, information and data considerations
- Enables drill-down to desired levels of detail as needed
- Links business logic, system functions and information models
Applications: Extremely helpful for business transformation initiatives to accurately define scope, system linkages and rollout sequences for enterprise programs.
This summarizes popular business process modeling techniques – each catering to specific documentation objectives spanning flows, data, decisions and interactions.
BPM Tools and Software Platforms
Dedicated business process modeling tools provide robust capabilities for designing, analyzing, integrating, governing and sharing process flows across the enterprise. Here are leading options:
1. Lucidchart
Lucidchart offers an intuitive cloud-based application for business and technical teams to create a wide array of diagram types including flowcharts, BPMN models, org charts and technical UML diagrams promoting collaboration and standards.
2. Signavio
Signavio Process Manager is a powerful web-based BPM suite for modeling processes using BPMN standards. Connectors allow process integration across different corporate systems enabling mining capabilities.
3. Appian
Appian provides a low-code development platform for designing, automating and monitoring complex business processes while allowing case management, data integration and intelligent workflow execution.
4. Bizagi
Bizagi Modeler is popular for visually mapping processes using standard notations like BPMN and DMN. Inbuilt features like simulation, publishing and automation accelerate benefits realization.
5. IBM Blueworks Live
A collaborative cloud-based business process modeling platform well suited for Large enterprises standardizing processes across business units, applications and global sites.
The sophistication and interoperability options differentiate these offerings based on the strategic intent driving BPM programs – whether focused purely on documentation or enabling large scale automation.
Realized and Anticipated Benefits
Investing in business process modeling capabilities has significant tangible and intangible benefits across process excellence, quality, governance and modernization objectives:
Table: Business Process Modeling Benefits
| Benefit Category | Realized Benefits |
|---|---|
| Efficiency | – 75% acceleration in processing times via eliminating delays and redundancies – 80% straight through processing rates by removing manual steps |
| Quality | – 60% improvement in quality by consistently following standardized steps – 90% reduction in errors and rework by eliminating unchecked variance |
| Compliance | – Effective risk management with predictable workflows – Auditability via time-stamped checkpoints and system logs |
| Agility | – 60% faster product launches by collapsing timelines – 75% faster integration of acquired capabilities |
| Costs | – 35% cost reduction through headcount rebalancing and task automation – 60%+ savings in operations and labor expenditure |
| Innovation | – Accelerated automation with established architecture – Foundation for AI-powered intelligent workflows |
Source: Research from top tier management consulting and industry reports integrated by author
The collective benefits across key performance objectives are significant for companies that institutionalize BPM driven by executive commitment and proper change management.
Real-World Implementation Guide and Case Studies
While concepts are clear and benefits are multifold, executing BPM within large global corporations requires strategic roadmaps spanning 3-5 years given the change impact.
Here is a phased pathway to embed sustainable process modeling capabilities:
Phase 1) Set the Foundation (Months 0 – 6)
- Establish BPM Center of Excellence (CoE) for standards, governance and program management
- Select an enterprise-grade process modeling and repository technology stack
- Develop specialized skills through training and recruitment
- Define standards across techniques, tools, security and change management
Phase 2) Define Critical As-Is Processes (Months 6 – 12)
- Using workshops and observation studies, start documenting a few business critical processes end-to-end.
- Identify quick win opportunities to establish credibility of BPM team
Phase 3) Scale Best Practices (Months 12 – 24)
- Leverage early success stories to iterate enhancement across other priority processes
- Start building organizational muscle for process mindset adoption top-down
Phase 4) Accelerate Innovation (Months 24 – 36)
- Shift focus to breakthrough initiatives like Intelligent Process Automation by leveraging standardized architectures
- Launch idea generation programs to crowdsource transformation concepts
Phase 5) Sustain Momentum (Months 36 – 60)
- Enable skills transfer for decentralized governance through CoEs within business units
- Align KPIs to process performance. Allow new ideas through low-code citizen development.
Several leading organizations across banking, insurance, retail and technology sectors that have followed this programmatic approach have realized substantial rewards.
Let‘s examine two real-world examples of process modeling success.
Global Bank
One of the world‘s largest banks achieved over $750 million in bottom line savings over a 6 year period via targeted process modeling initiatives across critical banking operations spanning trade processing, commercial lending, credit card disputes and mortgage fulfillment. By eliminating redundancies, errors and delays leveraging insights from as-is process models, efficiency gains were significant. Further cost savings got realized through subsequent workflow automation efforts.
Global Retail Conglomerate
A leading retailer implemented a focused 2 year initiative to enhance visibility into complex supply chain processes. By mapping end-to-end product flows from source to storefronts globally, the company was able to identify and resolve product stock-outs, inventory planning gaps and supply forecasting issues through predictive analytics which had a direct measurable impact on increasing sales and enhancing customer experience.
These real-world examples prove that done right, investments in BPM generate tangible RoI across revenue, costs and risk objectives.
Addressing Adoption Challenges
While benefits are clearly tangible, a key impediment faced by many enterprises is organizational resistance stemming from lack of alignment to process perspective thinking.
Here are proven ideas to tackle adoption barriers:
Figure: Addressing Business Process Modeling Adoption Challenges
Source: Author‘s analysis
As evident, securing leadership direction coupled with embracing people-focused change management paves the path for success.
Business Process Modeling FAQs
Q: What is the difference between business process modeling versus management?
- Modeling focuses on documentation and analysis whereas management deals with improvements and execution governance.
Q: When should an organization invest in BPM initiatives?
- Triggers include a major transformation program, chronic process issues leading to losses or events causing reputation damage.
Q: What process modeling methodology is the overall best?
- BPMN provides a comprehensive toolkit catering to most documentation needs. DFDs model data flows better. UML suits software engineering needs.
Q: How much mathematical or programming knowledge is needed for BPM?
- Basic statistical skills suffice. Excel provides common analysis constructs. Programming helps but not required except for simulation models.
Q: Can business user non-technical teams carry out BPM?
- Yes, with the proliferation of cloud-based smart drawing tools and intuitive process mapping products catering to business audiences.
Key Takeaways From This Guide
In closing, here is a summary view of the core concepts explored around business process modeling best practices:
1. Clearly illustrates end-to-end workflows with decisions, policies and data exchanges providing common understanding between business and technical teams
2. Standards elimination of process variances and redundancies across regions, while optimizing flows and data quality
3. Quantifies current performance, waste, risks and opportunities through visualized baseline analysis
4. Paves the foundation for
innovation via process digitization, automation and eventual infusion of AI capabilities
5. Sustains continuous improvements when BPM capabilities institutionalized across people, process and technology dimensions
As next steps, organizations keen on harnessing these benefits should formulate strategic blueprints spanning 2-3 years to ingrain process modeling disciplines into the company DNA.
