2012-2013 - 4MGT - 01 - Business Process Modeling With ARIS

Business Process Modeling
Course objectives
 Understand the concept of Business process modeling

 Know the concept of ARIS Architecture
 Be familiar with the most important modeling methods used
as part of business process optimization projects
 Be able to create and manage models using ARIS Express

About Software AG and ARIS
• Revenues of €1.1 billion in 2010

• 5,500 employees serving
• 10,000 enterprise and public institution customers across 70 countries.
Headquartered in Germany and listed on the Frankfurt Stock Exchange

(TecDAX, ISIN DE 0003304002 / SOW).
To download ARIS Express, use the

link provided in the comments.
Software AG is specialized in …
Business process management (BPM) solutions delivering low Total-Cost-

of-Ownership and high ease of use.
•Industry-leading brands,
•ARIS,
•WebMethods,
•Adabas,
•Natural,
•CentraSite and
•IDS Scheer Consulting,
A unique portfolio encompassing:

•Process strategy,design, integration and control;
•SOA-based integration and data management;
•Process-driven SAP implementation;
•Strategic process consulting and services.
Agenda
1 Business Process Management Introduction
2 Business Process Design with ARIS
Quick Start Guide: Modeling with ARIS Business

3 Designer
Modeling with ARIS Business Designer:

4 Creating "Library" Models
5 Creating Process Models
6 Modeling approaches
7 Process Analysis
© IDS Scheer AG www.ids-scheer.com
Business Process Management: Questions about
Questions
Why do I need to
analyze (business)
processes?
How to I go about
?
How to I go
Business about
Process
Business Process
Management?
Management?
What is a
What process?
(business) is a
(business) process?
www.ids-scheer.com
What is Business
What Management?
Process is Business
Process Management?
Why use Business
Why use
Process Business
Management?
Process Management?
© IDS Scheer AG
Why Have Business Processes?
Improve product
Improve efficiency
quality
Utilize customer
Improve delivery potential
performance
Realize cost
Speed up product reduction
innovation potential
Reduce Improve
costs customer
service
Increase sales/profits Open up

new markets
www.ids-scheer.com
Cut delivery / Increase employee

provision times satisfaction
© IDS Scheer AG
Increase quality of
Increase market
customer order processing
shares
Shortcomings in Effectiveness and Efficiency
Effectiveness Efficiency
= Doing the right things = Doing things correctly
Shortcomings in Effectiveness: Shortcomings in Efficiency:

 No convincing direction  Numerous complaints
 Unclear strategic objectives  Numerous errors
 Lack of knowledge of success factors and  High product costs

potential  Long cycle times
 Unclear market objectives  Inadequate delivery performance
 Lack of knowledge of customer problems,  Lack of delivery ability
needs, requirements and expectations  High stocks
www.ids-scheer.com
 Unclear process and product objectives  Lack of flexibility

© IDS Scheer AG
Unsatisfied Customers / Employees

Typical Organizational Weaknesses
Strategy
Frictional loss = Loss of value

Organization
Department11 Department22 Department11 Department44
Sub-
Sub- Sub-
Sub- Sub-
Sub- Sub-
Sub-
process
process11 process
process22 process
process33 Customer
Customer process
process44
www.ids-scheer.com
Service order
process
Technology Perform
© IDS Scheer AG
Service Vehicle
service Invoicing handover
booking Reception
Mercedes service order process
Smart service order process

Function Orientation vs.
Business Process Orientation
Vertical
Focus on
orientation process
sequence
Controlling
Sales
Production
Purchasing
Marketing Processes
Customer
Customers
Focus on
Horizontal
hierarchy orientation
www.ids-scheer.com
© IDS Scheer AG
Customer Marketing Production Sales Customer

Purchasing Controlling
What is a Business Process?
"We
"Wedefine
defineaabusiness
businessprocess
processas
asaacollection
collectionof
ofactivities
activitiesthat
that has
has
one
oneor
ormore
more"inputs"
"inputs"and
andgenerates
generatesone
oneorormore
moreresults
resultsthat
that
represent
representadded
addedvalue
valuefor
forthe
thecustomer."
customer."
Source: Hammer and Champy, Reengineering the Corporation, 1993, p.35
"In
"Ingeneral,
general,aabusiness
businessprocess
processisisaacoherent
coherentsequence
sequenceofof
commercial
commercialactivities
activitieswith
withthe
thepurpose
purposeofofperforming
performingaaservice.
service.The
The
output
outputand
andresult
resultof
ofthe
thebusiness
businessprocess
processisisaaservice
servicethat
thatisis
www.ids-scheer.com
requested
requestedand
andconsumed
consumedby byan
aninternal
internalor
orexternal
external'customer'."
'customer'."
© IDS Scheer AG
Source: Scheer, August-Wilhelm: ARIS – From Business Process to Application System. 3. edition, Berlin et al. 1998.
Operational Business Processes
Economic objectives Quality objectives
Sales Purchasing Human Finance Engineering

Processes Processes Resources Processes Processes
Processes
www.ids-scheer.com
© IDS Scheer AG
Innovation objectives Legal requirements

What is Business Process Management?
What with? Who?
(Business) Process Management
Process Process Process Process

Strategy Design Implementation Controlling
www.ids-scheer.com
© IDS Scheer AG
How? Why?
The Process of Business Process Management
(Business) Process Management
Process Process Process Process

Strategy Design Implementation Controlling

www.ids-scheer.com
Human
Sales Purchasing Finance Engineering
Resources
Processes Processes Processes Processes
Processes
© IDS Scheer AG
Business Process Excellence Lifecycle
www.ids-scheer.com
© IDS Scheer AG
Agenda

3 Designer

7 Process Analysis
What is ARIS?
The ARIS House ARIS

 ARchitecture for Integrated
information Systems
 General concept used to describe
business and application software
 Developed by Prof. Dr. Dr. h.c. mult.
A.-W. Scheer
 Modeling tool and framework

www.ids-scheer.com
© IDS Scheer AG
Model Creation: Presenting Business Issues
 Presentation as text
 Flights are booked by Mrs. Smith in the Fly Away system.

She needs the customer data as an input.
 Presentation in tables
 Presentation in charts
www.ids-scheer.com
ARIS
ARIS
Customer Data Book Flight Mrs. Smith
© IDS Scheer AG
Fly Away
Derivation of ARIS Architecture (1)
Events trigger Functions.
Functions
Functions create
create Events.
Events.
Flight
Book flight
booked
Function Event
Booking Check Booking

inquiry booking inquiry
received inquiry complete
Event Function Event

www.ids-scheer.com
Hotel
Book hotel
booked
Function Event
© IDS Scheer AG
Functions process Data.

Data
Customer
data
Data
Flight
Book flight
Flight data booked
Data
Customer
data
www.ids-scheer.com
Book hotel Hotel

booked
© IDS Scheer AG
Employees
Employees execute
execute Functions.
Functions.
Customer
Employee Mrs. Smith
data
Flight
Book flight
Flight data booked

Customer
data
www.ids-scheer.com
Hotel
Book hotel
Ms. Maier booked
Employee
© IDS Scheer AG
Employee Mr. Müller

Employees
Employees belong
belong to
to Organizational
Organizational Units.
Units.
Organizational Flight Customer
Mrs. Smith
Unit arrangement data
Flight
Book flight
Flight data booked

Customer
data
www.ids-scheer.com
Hotel
Book hotel
Call center Ms. Maier booked
Organizational
© IDS Scheer AG
Unit
Hotel
Organizational
reservation Mr. Müller
Unit
Product/
Functions create and process Product/Service. Service
Flight Customer
Mrs. Smith Flight ticket
arrangement data
Product/ Product/
Service Service
Flight
Booking Booking Book flight
Flight data booked
form inquiry
Product/
Service
Booking Check Booking Booking
Customer
inquiry booking inquiry confirmation
data
www.ids-scheer.com
Hotel
Book hotel
Call center Ms. Maier booked
© IDS Scheer AG
Hotel
reservation Mr. Müller
Reducing Complexity by Creating Views
Environmental Data View

Data
Event Function Event Function
Function View
www.ids-scheer.com
Product/
Org. unit Employee
Service
© IDS Scheer AG
Organizational View Products/Service View

Process Modeling Considerations
Company
management
Who?
Sales Production
Sales
employee
Production
planner
Organization
Which?
Sales
What?
Order data
process
Order
n°
Order
Order Item
confirmation
Address Order
tracking
Data Function
www.ids-scheer.com
Why? Sales services

© IDS Scheer AG
Customer Customer order Customer

order confirmation order
ARIS Concept: Process Centric
Company
management
Sales Production
Sales
employee
Production
planner Organization
Order data
Customer How? Sales
order
process
Order received
n°
Order data
Order Sales
Order
confirmation employee
Order Item confirmation
Customer order
confirmation Order
Address confirmation Order
generated
tracking
Data
www.ids-scheer.com
Data Function
Process
Sales services
© IDS Scheer AG
Customer Customer order Customer

order confirmation order
Product & Service
ARIS House: Model Types (examples)
Organizational Chart
Organization
Value Added Chain Diagram

Technical (VACD) Function Tree
Terms Model
Event-Driven Application System
eERM Process Chain (EPC) Type Diagram
Function Allocation
Table Diagram Diagram (FAD)
Data Process Function
www.ids-scheer.com
Product/Services Tree
© IDS Scheer AG
Products
Agenda

3 Designer

7 Process Analysis
ARIS House: Value-Added Chain Diagram
Value-Added Chain
Diagram
(VACD)
www.ids-scheer.com
© IDS Scheer AG
28
Value-Added Chain Diagram: Purpose
 The Value-Added Chain Diagram (VACD) model type is

primarily used to represent a company's process map.
 The process map

 Provides an overview of the processes in a company
 Represents an ideal starting point for looking at business
processes.
www.ids-scheer.com
© IDS Scheer AG
VACD: Example Process Map
Management
processes
Management processes
Inbound Outbound Marketing Customer

Processes Operative Processes
logistics logistics & sales service
suppliers processes customers
processes processes processes processes
Primary processes
Supporting
processes
www.ids-scheer.com
Support processes
© IDS Scheer AG
VACD: Example Process Map
Management Processes
Operation
Analytics
Management
Core Processes
Sales & Distribution

Engineering Production
Management
Supply Customer
Management Management
www.ids-scheer.com
Supporting Processes
Financial Human Capital Corporate Services

© IDS Scheer AG
Management Management Management

Value-Added Chain Diagram
 Several relationship types are available to represent organizational

responsibility in the Value-Added Chain Diagrams.
www.ids-scheer.com
© IDS Scheer AG
 The relationship type to be used in the project is specified

during the project preparation phase.
Agenda

3 Designer

7 Process Analysis
Library Models: Purpose
 Library Models provide objects that can be used across different

processes but are centrally managed.
 The most important library model types include:

 The Organizational Chart
 The Technical Term Model
 The Application System Type Diagram
www.ids-scheer.com
© IDS Scheer AG
ARIS House: Organizational Chart
Organizational Chart
www.ids-scheer.com
© IDS Scheer AG
Organizational Chart: Purpose
 The Organizational Chart is primarily used to represent the

following information:
 The organizational structure of a company

 e.g. departments, positions, employees
 The structure of a project (project organization)

 e.g. project team, project manager, project employees
www.ids-scheer.com
 Roles
© IDS Scheer AG
Organizational Chart:
Example Organizational Structure
Extract from an Organizational Chart
Department
Employee
Position
www.ids-scheer.com
Represents:
- Departments (object type: Organizational Unit)
- Positions (object type: Position)
© IDS Scheer AG
- Employees (object type: Person)

Organizational Chart:
Example Project Organization
Group
Employee (Internal person)
External employee (External person)

www.ids-scheer.com
© IDS Scheer AG
Role (Person type)

Connections between
Persons and Roles (Person Type)
 The most important Connection between the Person and Person

type object types is performs.
 This expresses the (technical) role (in the sense of
qualification, authorization etc.) the Person performs in the
project.
www.ids-scheer.com
© IDS Scheer AG
ARIS House: Technical Term Model
Technical Term
Model
www.ids-scheer.com
© IDS Scheer AG
Technical Terms Model: Purpose
Technical Terms models are used for:
 Listing and structuring the business terminology

within the company as a whole
 Highlighting the relationships between technical terms
 Examples: Generic terms, synonyms, part / whole
relationships etc.
 Creation of a glossary
 Mapping the terms from a specialist department to the other
objects in system development (classes, attributes)
www.ids-scheer.com
 A Technical Terms model can be used to describe the

definition of commonly used abbreviations. These may be
maintained by the Project or by the Line of Business.
© IDS Scheer AG
Technical Terms Model: Example List / Structure
Sales data
is generic term of
Customer inquiry
Object type: Technical Term
Customer offer
Customer order
Customer
is feature of
Customer number
www.ids-scheer.com
Customer name
Credit worthiness
class
© IDS Scheer AG
Customer segment
Connections Between Technical Terms
 The following relationships can be set up between technical terms:

www.ids-scheer.com
© IDS Scheer AG
44
Technical Terms Model: Object in Object
"Traditional" modeling "Object in object" modeling

(nested objects)
Sales data
"Drawing out" the "inner" objects makes
implicit connections visible (see left).
Customer inquiry
Customer offer
Sales data
Customer order Customer inquiry
Customer offer
Customer
www.ids-scheer.com
Customer order
Customer
© IDS Scheer AG
ARIS House: Application System Type Diagram
Application System
Type Diagram
www.ids-scheer.com
© IDS Scheer AG
Application System Type Diagram: Purpose
 The most important usage scenarios for an Application

System Type Diagram are as follows:
 Representation of system map (IT development plan)
 Representation of the structure of an IT system

 Example: IT system  Module Transaction
(IT function)
 Representation of the technological platform for an

www.ids-scheer.com
IT system
 Example: Operating system, DBMS, user interface
© IDS Scheer AG
47
Application System Type Diagram: Example
 In most process modeling projects, a pool of IT systems is created. These should be categorized using meaningful
criteria.
 Nested diagrams can be used to show groupings of Application Systems.

www.ids-scheer.com
© IDS Scheer AG
Application System Type Diagram: Example
HR Systems
GLM FAS HRMS
GFMS
Financial Systems
PSMS GSS GMS

www.ids-scheer.com
IMS
© IDS Scheer AG
Logistic Systems
Object type: Application System Type

Connections Between Application System Types
 The following relationships can be set up between application

system types:
www.ids-scheer.com
System 1 System 2
© IDS Scheer AG
Agenda

3 Designer

7 Process Analysis
ARIS House: Event-Drive Process Chain
Event-Driven
Process Chain
(EPC)
www.ids-scheer.com
© IDS Scheer AG
EPC: Purpose
 Representation of the control flow, i.e. the

chronological and logical sequence of individual
functions in a process
 Constructs for modeling the control flow:
Event
Object type: Event
Function
Object type: Function
www.ids-scheer.com
AND
Object type: Rule

XOR = either / or
(connector)
© IDS Scheer AG
OR = and / or
EPC: Example Control Flow
Booking inquiry
Start
received
Check
F1
booking inquiry
Booking inqiry
E1
complete
F2 F3 Book flight Book hotel
E2 E3 Flight booked Hotel booked

www.ids-scheer.com
F4 Create invoice
© IDS Scheer AG
End Invoice created

Function: Definition and Naming Convention
 Function: Technical task performed on an (information) object in support of

one or more business objectives
 Synonyms: activity, process step, procedure…
 Naming convention for functions in an EPC:

Action + Information object
www.ids-scheer.com
Action
Approve
customer order Information object
© IDS Scheer AG
Event: Definition and Naming Convention
 Event: Describes a commercially relevant status of an information object

that occurs, which controls or influences the subsequent sequence of a
process.
 Naming convention for "standard" events:

Information object + Change of status
Customer order Information object

www.ids-scheer.com
approved
Change of status
© IDS Scheer AG
Event: Naming Convention, XOR
 After decision-making / test functions:
 Incorrect: "Test performed"
 Correct: Specify test results
 A “test” function normally has at least 2 exclusive Events.
Perform XOR:
Perform
test
test Only one option
www.ids-scheer.com
Test Test Test

performed ok not ok
© IDS Scheer AG
WRONG!
RIGHT!
EPC: Example for AND Connector
 Independent parallel paths
Cancel customer
order
AND:
All options must occur for the
process to continue.
Customer order Customer informed

canceled about cancellation
www.ids-scheer.com
© IDS Scheer AG
EPC: Example for OR Connector
 At least one or all of the paths must be chosen.
OR = and / or:
Identify customer At least one of the options
requirements
Customer requirement= Customer requirement= Customer requirement=

hotel booking flight booking rental car booking
www.ids-scheer.com
© IDS Scheer AG
EPC: Connectors
E1 E1
F1 F2 F1 F2
www.ids-scheer.com
Who decides which path to take?

© IDS Scheer AG
No XOR or OR after a SINGLE event!

EPC: Merging Paths
Start Start
Paths must be merged again using

the same Connector used to create
F1 the branch. F1
E1
E1 E2
F2 F3
F2 F3
E2 E3
E2 E3
www.ids-scheer.com
F4
F4
© IDS Scheer AG
End
End
EPC: Connectors
Multiple incoming/outgoing connections for a connector ?
NO!!
www.ids-scheer.com
© IDS Scheer AG
Meaning of operator is ambiguous

EPC: Trivial Events
Start Start
F1 F1
E1 F2
F3
F2
E2 E3
www.ids-scheer.com
There is no need to include trivial events.

However, if there are branches events should be
F3
modeled (especially for XOR and OR).

© IDS Scheer AG
E3
EPC: "Default" Modeling Rules
 Every EPC begins with at least one start Event (or a Process
Interface).
 Every EPC ends with at least one end Event (or a Process Interface).
 An Event is followed by either a Function or a Connector (exception:
end event).
 A Function is followed by either an Event or a Connector.
 Every Function has a single incoming Connection and a single
outgoing Connection.
 Every Event has a single incoming Connection and a single outgoing
Connection (exception: start and end Events)
 A Connector has either:
 Multiple incoming connections and a single outgoing
www.ids-scheer.com
connections, or
 A single incoming connection and multiple outgoing connections
© IDS Scheer AG
EPC: Additional Information
 As well as the control flow, an EPC can also be used to represent

additional information relevant to the process.
Customer
authorized
Customer data
File cabinet KO criteria check Credit worthiness

credit worthiness class Customer data
Scoring
system construction financing
loan adviser
www.ids-scheer.com
customer customer not

credit worthy credit worthy
© IDS Scheer AG
Agenda

3 Designer

7 Process Analysis
Modeling Approaches
 Top-down approach:
 The overview models establish the framework for the
detailed process models
 Helps to define the interfaces between the main
processes and the detailed processes
 Will provide visibility of how the detailed models fit
into the higher level structure of the company
 Generally forces upper level management
involvement
www.ids-scheer.com
© IDS Scheer AG
Level Concept: Top-Down Method
Process Architecture
Supply
Process Management
area
Level 1
Main process Inventory

Management
Level 2
Goods
Process Receipt
Level 3
www.ids-scheer.com
Receive
Shipping
Activity Notification
© IDS Scheer AG
Level 4
The number of levels and their names are customer specific.

Model Architecture and Business Process Types
MMaan
ess
naag
ssse
geem
cees
meen
rrooc
ntt P
rttPP
Prro
poor
occe
uppp
esss
SSu
sees
s
www.ids-scheer.com
© IDS Scheer AG
CoreProcesses
Core Processes
Agenda

3 Designer

7 Process Analysis
Process Analysis
 Objective: Identify improvement potential
Modeling
Evaluation and Queries, evaluations Presentation and

Creation of the initial and
modeling of and process modeling of the
library models
the as-is processes analysis to-be processes
Quality assurance & database administration

www.ids-scheer.com
© IDS Scheer AG
Process Analysis: Organizational Breaks
Loan Organizational Break

processor 1 Need not be a weak point
-> 2 heads principle
Receive
credit
application
Credit
application
Check Loan
credit rating processor 2
Credit
system Template
collateral
processing Evaluate Collateral
collateral clerk
www.ids-scheer.com
Collateral system
Template
Close
credit
credit
decision
agreement
Loan
processor 1
Reports: Functions with organization, data items or application systems
© IDS Scheer AG
Functions with organizational items

Analyze organizational change
Process Analysis: Media Breaks
Loan
processor 1
Receive
credit
application
Credit
application
Check Loan
Credit
system Template
collateral
collateral clerk
www.ids-scheer.com
Media Break
Collateral system
Template
Close
credit
credit
decision
agreement
© IDS Scheer AG
Loan
processor 1
Reports: Analyze media breaks
Process Analysis: System Breaks
Loan
processor 1
Receive
credit
application
Credit
application
Check
Loan
credit rating
processor 2
Credit
system Template
collateral
collateral clerk
www.ids-scheer.com
System break Collateral system Template

Close
credit
credit
decision
agreement Loan
processor 1
Reports: Functions with organization, data items or application systems
© IDS Scheer AG
Analyze media breaks

Process Analysis: Superfluous Process Steps
Loan
processor 1
Receive
credit
application
Credit
Superfluous process step?
application
Loan
-> technical decision!
Check
Credit
system Template
collateral
collateral clerk
www.ids-scheer.com
Collateral system
Template
Close
credit
credit
decision
agreement Loan
© IDS Scheer AG
processor 1
Process Analysis: Poor Customer Orientation
Loan
processor 1
Receive Wait times

credit
application
Credit
application
Loan
Check
processor 2
credit rating
Credit
system Template
collateral
collateral clerk
www.ids-scheer.com
Collateral system
Template
Close
credit
credit
decision
agreement
Loan
© IDS Scheer AG
processor 1
Reports: Functions with times and costs
Models and objects in the groups (with evaluation filter: Functions with times)
Process Analysis: Time Delays
WT = 80 min Measure actual metrics

OT = 30 min
Loan
PT = 40 min
processor 1
Receive
credit
application
WT = 10 min
OT = 5 min
Credit PT = 10 min
TT = 2 min application
Check Loan
WT = 70 min
Credit OT = 20 min
system Template PT = 80 min
collateral
TT = 1 min processing Evaluate Collateral WT = 60 min
collateral clerk OT = 30 min
PT = 5 min
www.ids-scheer.com
Metrics Collateral system

Template
Close
WT: Wait time TT = 15 min credit
credit
decision
OT: Orientation time agreement
Loan
© IDS Scheer AG
PT: Processing time processor 1

TT: Transport time
Process Analysis: Example
Example Credit processing target process
Customer Bank Customer
Org. System Wait Process

Credit admin- Credit admin-
Credit admin- Collateral
istrator 1
breaks breaks time costs
istrator 1 istrator 2 clerk
Actual Receive Check Close

credit credit
Evaluate
Credit 5 3 5 days 1200.-
collateral
application rating agreement

Credit Collateral
system system


Credit admin-
istrator 1
www.ids-scheer.com
Target
Submit Check Close
credit credit Credit
application rating agreement
1 1 1 hour 600.-
Internet File transfer Workflow

© IDS Scheer AG
Analyzing the Organizational Structure
 Clear organizational structures

 Responsibility & transparency
 Competence & accountability
 Integrated acceptance of tasks
 Optimized use of resources
 Decentralization versus centralization
www.ids-scheer.com
© IDS Scheer AG
Analyzing Data
Redundancy-free data
Integrated data pool
High data quality
Completeness and correctness
Topicality and uniformity
Fast availability of data
Reduction of documents kept manually
www.ids-scheer.com
© IDS Scheer AG
Analyzing Systems and Functions
Activity analysis
Critical tasks
Standardization of tasks
Increase in DP support
Reduction of non-value adding functions
Reduction of reporting time
IT analysis
www.ids-scheer.com
Modernization, standardization of applications and tools

Integration of operative applications
 Uniform user interface
 Integrated data pool
© IDS Scheer AG
Plausibility checks
Analyzing Performances
www.ids-scheer.com
Critical product analysis

Harmonizing product portfolio – core competencies
Analysis of performance range
© IDS Scheer AG
Outsourcing
Analyzing Processes
Elimination of
 Organizational breaks
 Media breaks
 System breaks
Reduction of throughput times
 Short control loops
www.ids-scheer.com
 Shorter decision paths

 Delegation of responsibilities
Increase in process quality
© IDS Scheer AG
 Automatic control functions

 Automatic forwarding
and processing of information
Businss Process Modeling
The end

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Business Process Modeling

 Understand the concept of Business process modeling

 Be able to create and manage models using ARIS Express

• Revenues of €1.1 billion in 2010

Headquartered in Germany and listed on the Frankfurt Stock Exchange

To download ARIS Express, use the

Business process management (BPM) solutions delivering low Total-Cost-

A unique portfolio encompassing:

1 Business Process Management Introduction

2 Business Process Design with ARIS

Quick Start Guide: Modeling with ARIS Business

Modeling with ARIS Business Designer:

Increase sales/profits Open up

Cut delivery / Increase employee

Shortcomings in Effectiveness: Shortcomings in Efficiency:

 Unclear strategic objectives  Numerous errors

 Lack of knowledge of success factors and  High product costs

 Unclear process and product objectives  Lack of flexibility

Unsatisfied Customers / Employees

Frictional loss = Loss of value

Frictional loss = Loss of value

Mercedes service order process

Smart service order process

Customer Marketing Production Sales Customer

Source: Hammer and Champy, Reengineering the Corporation, 1993, p.35

Operational Business Processes

Sales Purchasing Human Finance Engineering

Innovation objectives Legal requirements

What with? Who?

(Business) Process Management

Process Process Process Process

(Business) Process Management

Process Process Process Process

Operational Business Processes

1 Business Process Management Introduction

2 Business Process Design with ARIS

Quick Start Guide: Modeling with ARIS Business

Modeling with ARIS Business Designer:

The ARIS House ARIS

 Modeling tool and framework

 Flights are booked by Mrs. Smith in the Fly Away system.

Events trigger Functions.

Booking Check Booking

Event Function Event

Functions process Data.

Book hotel Hotel

Booking Check Booking

Employee Mr. Müller

Booking Check Booking

Environmental Data View

Event Function Event Function

Organizational View Products/Service View

Why? Sales services

Customer Customer order Customer

Customer Customer order Customer

Value Added Chain Diagram

2 Business Process Design with ARIS

Quick Start Guide: Modeling with ARIS Business

Modeling with ARIS Business Designer:

 The Value-Added Chain Diagram (VACD) model type is

 The process map

Inbound Outbound Marketing Customer

Sales & Distribution