Editing Business process modeling (section)

=== Analysis of business activities ===
==== Define framework conditions ====
The analysis of business activities determines and defines the framework conditions for successful business process modeling. This is where the company should start,
* define the relevant ''applications'' of business process modeling on the basis of the [[business model]] and where it is positioned in the [[value chain]],
* derive the ''strategy for the long-term success of business process modeling'' from the [[business strategy]] and develop an approach for structuring the business process models. Both the relevant ''purposes'' and the ''strategy'' directly influence the [[process map]].
This ''strategy for the long-term success of business process modeling'' can be characterized by the market-oriented view and/or the resource-based view. ''Jörg Becker and Volker Meise'' explain: "Whereas in the market view, the industry and the behavior of competitors directly determine a company's strategy, the resource-oriented approach takes an internal view by analyzing the strengths and weaknesses of the company and deriving the direction of development of the strategy from this."<ref name="BECKER-MEISE"/> <sup>(Chapter 4.6 The resource-based view) ← automatic translation from German</sup> And further: "The alternative character initially formulated in the literature between the market-based and resource-based view has now given way to a differentiated perspective. The core competence approach is seen as an important contribution to the explanation of success potential, which is used alongside the existing, market-oriented approaches."<ref name="BECKER-MEISE"/><sup>(Chapter 4.7 Combination of views) ← automatic translation from German</sup> Depending on the company's strategy, the ''process map'' will therefore be the business process models with a view to market development and to resource optimization in a balanced manner.

==== Identify business processes ====
Following the identification phase, a company's business processes are distinguished from one another through an analysis of their respective business activities (refer also to business process analysis). A business process constitutes a set of interconnected, organized actions (activities) geared towards delivering a specific service or product (to fulfill a specific goal) for a particular customer or customer group.

According to the European Association of Business Process Management (EABPM), establishing a common understanding of the current process and its alignment with the objectives serves as an initial step in process design or reengineering."<ref name="EABPM" /> <sup>(Chapter 4 Process analysis) ← automatic translation from German</sup>

The effort involved in analysing the as-is processes is repeatedly criticised in the literature, especially by proponents of business process re-engineering (BPR), and it is suggested that the definition of the target state should begin immediately.

''Hermann J. Schmelzer and Wolfgang Sesselmann'', on the other hand, discuss and evaluate the criticism levelled at the radical approach of business process re-engineering (BPR) in the literature and "recommend carrying out as-is analyses. A reorganisation must know the current weak points in order to be able to eliminate them. The results of the analyses also provide arguments as to why a process re-engineering is necessary. It is also important to know the initial situation for the transition from the current to the target state. However, the analysis effort should be kept within narrow limits. The results of the analyses should also not influence the redesign too strongly."<ref name="SCHMELZER"/> <sup>(Chapter 6.2.2 Critical assessment of the BPR) ← automatic translation from German</sup>

[[File:Core_process_(quality_management).gif|thumb|Typical breakdown of a '''process map''' into management, core and support processes]]

==== Structure business processes – building a process map ====
''Timo Füermann'' explains: "Once the business processes have been identified and named, they are now compiled in an overview. Such overviews are referred to as process maps."<ref name="FUEERMANN">Timo Füermann: ''Prozessmanagement: Kompaktes Wissen, Konkrete Umsetzung, Praktische Arbeitshilfen'', Hanser, München 2014, ISBN 978-3-446-43858-3</ref> <sup>(Chapter 2.4 Creating the process map) ← automatic translation from German</sup>

[[File:Process-map-for-a-market-driven-company.png|thumb|Example of a '''process map''' for a market-driven company]]
''Jörg Becker and Volker Meise'' provide the following list of activities for structuring business processes:
* Enumeration of the main processes,
* Definition of the process boundaries,
* Determining the strategic relevance of each process,
* Analysis of the need for improvement of a process and
* Determining the political and cultural significance of the process<ref name="BECKER-MEISE"/> <sup>(Chapter 4.10 Defining the process structure) ← automatic translation from German</sup>

The structuring of business processes generally begins with a distinction between management, core, and support processes.
* ''Management processes'' govern the operation of a company. Typical management processes include corporate governance and [[strategic management]]. They define corporate objectives and monitor the achievement of objectives.
* ''Core processes'' constitute the [[core business]] and create the primary value stream. Typical operational processes are [[purchasing]], [[manufacturing]], [[marketing]], and [[sales]]. They generate visible, direct customer benefits.
* ''Support processes'' provide and manage operational resources. They support the core and management processes by ensuring the smooth running of business operations.  Examples include [[accounting]], [[recruitment]], and [[technical support]].

[[File:VAC-production-company.png|thumb|Example of a '''process map''' for a resource-driven company]]

==== Structure core processes based on the strategy for the long-term success of business process modeling ====
As the ''core business processes'' clearly make up the majority of a company's identified business processes, it has become common practice to subdivide the core processes once again. There are different approaches to this depending on the type of company and business activity. These approaches are significantly influenced by the defined ''application'' of business process modeling and the ''strategy for the long-term success of business process modeling''.

In the case of a primarily market-based strategy, end-to-end core business processes are often defined from the customer or supplier to the retailer or customer (e.g. "from offer to order", "from order to invoice", "from order to delivery", "from idea to product", etc.). In the case of a strategy based on resources, the core business processes are often defined on the basis of the central corporate functions ("gaining orders", "procuring and providing materials", "developing products", "providing services", etc.).

In a differentiated view without a clear focus on the market view or the resource view, the core business processes are typically divided into CRM, PLM and SCM.
* CRM (customer relationship management) describes the business processes for customer acquisition, quotation and order creation as well as support and maintenance
* PLM ([[product lifecycle management]]) describes the business processes from product portfolio planning, product planning, product development and product maintenance to product discontinuation and individual developments
* SCM ([[supply chain management]]) describes the business processes from supplier management through purchasing and all [[Production (economics)|production stages]] to delivery to the customer, including installation and commissioning where applicable
[[File:Process-map-for-a-value-driven-company.png|thumb|Example of a '''process map''' for a value-driven company]]
However, other approaches to structuring core business processes are also common, for example from the perspective of customers, products or sales channels.
* "Customers" describes the business processes that can be assigned to specific customer groups (e.g. private customer, business customer, investor, institutional customer)
* "Products" describes the business processes that are product-specific (e.g. current account, securities account, loan, issue)
* "Sales channels" describe the business processes that are typical for the type of customer acquisition and support (e.g. direct sales, partner sales, online).
The result of structuring a company's business processes is the ''process map'' (shown, for example, as a [[value chain diagram]]). ''Hermann J. Schmelzer and Wolfgang Sesselmann'' add: "There are connections and dependencies between the business processes. They are based on the transfer of services and information. It is important to know these interrelationships in order to understand, manage, and control the business processes."<ref name="SCHMELZER" /> <sup>(Chapter 2.4.3 Process map) ← automatic translation from German</sup>