Editing Business process modeling (section)

== Applications of business process modeling ==
Since business process modeling in itself makes no direct contribution to the financial [[Profit (economics)|success]] of a company, there is no motivation for business process modeling from the most important goal of a company, the [[For-profit corporation|intention to make a profit]]. The motivation of a company to engage in business process modeling therefore always results from the respective purpose. ''Michael Rosemann, Ansgar Schwegmann und Patrick Delfmann'' lists a number of purposes as motivation for business process modeling:
* Organizational ''documentation'', with the "objective of increasing transparency about the processes in order to increase the efficiency of communication about the processes"<ref name="ROSEMANN"/> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German, </sup><ref name="GADATSCH"/> <sup>(Chapter 2.5.4 Areas of application for process modeling in practice) ← automatic translation from German</sup>  including the ability to create process templates to relocate or replicate business functions or the objective to create a complete company model
* Process-oriented ''re-organization'', both in the sense of "(revolutionary) [[business process re-engineering]] and in the sense of [[Continual improvement process|continual (evolutionary) process improvement]]"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup> with the objective of a [[vulnerability assessment]]<ref name="GADATSCH"/> <sup>(Chapter 2.5.4 Areas of application for process modeling in practice) ← automatic translation from German</sup>, ''process optimization'' (e.g. by controlling and reducing total cycle time<ref name="MILTENBURG-SPARLING">John Miltenburg, David Sparling: ''Managing and reducing total cycle time: models and analysis'' in Elsevier ''International Journal of Production Economics'', December 1996, Pages 89-108</ref> (TCT), through [[Kaizen]], [[Six Sigma]] etc.) or ''process standardization''
* Continuous ''process management'', as "planning, implementation and control of processes geared towards sustainability"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup>
* ''Certifications'' according to DIN [[ISO 9001|ISO/IEC 9001]] (or also according to [[ISO 14000|ISO/IEC 14001]], [[ISO/IEC 27001]] etc.)
* [[Benchmarking]], defined as "comparison of company-specific structures and performance with selected internal or external references. In the context of process modeling, this can include the comparison of process models (structural benchmarking) or the comparison of process key figures"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup>
* [[Knowledge management]] with the "aim of increasing transparency about the company's knowledge resource in order to improve the process of identifying, acquiring, utilizing, developing and distributing knowledge"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup>
* ''Selection'' of [[Enterprise resource planning|ERP]] software, which "often documents its functionality in the form of (software-specific) reference models, so that it makes sense to also use a comparison of the company-specific process models with these software-specific models for software selection"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German, </sup><<ref name="GADATSCH"/> <sup>(Chapter 2.5.4 Areas of application for process modeling in practice) ← automatic translation from German</sup>
* Model-based ''customization'', i.e. "the configuration of commercial off-the-shelf software" often by means of "parameterization of the software through configuration of reference models"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German, </sup><ref name="GADATSCH"/> <sup>(Chapter 2.5.4 Areas of application for process modeling in practice) ← automatic translation from German</sup>
* Software development, using the processes for "the description of the requirements for the software to be developed at a conceptual level as part of [[requirements engineering]]"<ref name="ROSEMANN"/><sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German, </sup><ref name="MOLTER">Michael Molter: ''Die Prozessorientierte Applikationslandschaft'' in August-W. Scheer, Wolfram Jost and Karl Wagner (publisher): ''Von Prozessmodellen zu lauffähigen Anwendungen'', Springer Berlin, Heidelberg, New York 2005, ISBN 3-540-23457-8</ref> <sup>(Chapter 3 The path to a process-oriented application landscape) ← automatic translation from German, </sup><ref name="GADATSCH"/> <sup>(Chapter 2.5.4 Areas of application for process modeling in practice) ← automatic translation from German</sup>
* Workflow management, for which the process models are "the basis for the creation of instantiable workflow models"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup>
* Simulation with the aim of "investigating the system behavior over time" and the "identification of weak points that would not be revealed by a pure model view"<ref name="ROSEMANN" /> <sup>(Chapter 3.2.1 Relevant perspectives on process models) ← automatic translation from German</sup>

=== Business process re-engineering (BPR) ===
Within an extensive research program initiated in 1984 titled "Management in the 1990s" at [[Massachusetts Institute of Technology|MIT]], the approach of ''process re-engineering'' emerged in the early 1990s. The research program was designed to explore the impact of information technology on the way organizations would be able to survive and thrive in the competitive environment of the 1990s and beyond. In the final report, N. Venkat Venkatraman<ref>N. Venkat Venkatraman: ''IT-Induced Business Reconfiguration'' in M. S. Scott Morton (publisher): ''The Corporation of the 1990s: Information Technology and Organizational Transformation'', 1st edition, Oxford University Press 1991, ISBN 978-0-19-506358-5</ref> summarizes the result as follows: The greatest increases in productivity can be achieved when new processes are planned in parallel with information technologies.

This approach was taken up by [[Thomas H. Davenport]]<ref name="DAVENPORT">[[Thomas H. Davenport]]: ''Process Innovation: Reengineering Work through Information Technology'', Harvard Business Press, Boston 1993, ISBN 978-0-87584-366-7</ref> <sup>(Part I: A Framework For Process Innovation, Chapter: Introduction)</sup> as well as [[Michael Martin Hammer|Michael M. Hammer]] and [[James A. Champy]]<ref name="HAMMER-CHAMPY">[[Michael Martin Hammer|Michael M. Hammer]], [[James A. Champy]]: ''Reengineering the Corporation: A Manifesto for Business Revolution'', Harper Business, New York 1993, ISBN 978-0-88730-640-2</ref> and developed it into business process re-engineering (BPR) as we understand it today, according to which business processes are fundamentally restructured in order to achieve an improvement in measurable performance indicators such as costs, quality, service and time.

Business process re-engineering has been criticized in part for starting from a "green field" and therefore not being directly implementable for established companies. ''Hermann J. Schmelzer and Wolfgang Sesselmann'' assess this as follows: "The criticism of BPR has an academic character in many respects.&nbsp;... Some of the points of criticism raised are justified from a practical perspective. This includes pointing out that an overly radical approach carries the risk of failure. It is particularly problematic if the organization and employees are not adequately prepared for BPR."<ref name="SCHMELZER" /> <sup>(Chapter 6.2.1 Objectives and concept) ← automatic translation from German</sup>

The high-level approach to BPR according to Thomas H. Davenport consists of:
# Identifying Process for Innovation
# Identifying Change Levers
# Developing Process Visions
# Understanding Existing Processes
# Designing and Prototyping the New Process

=== Certification of the management system according to ISO ===
[[File:ISO_Logo_(Red_square).svg|thumb|International Organization for Standardization (''ISO'' and official logo are registered trademarks)]]
With ISO/IEC 27001:2022, the standard requirements for management systems are now standardized for all major ISO standards and have a process character.

==== General standard requirements for management systems with regard to processes ====
In the ISO/IEC 9001, [[ISO 14001|ISO/IEC 14001]], ISO/IEC 27001 standards, this is anchored in Chapter 4.4 in each case:
{| class="wikitable"
! ISO/IEC 9001:2015
Clause 4.4 Quality management system and its processes
!| ISO/IEC 14001:2015
Clause 4.4. Environmental management systems
!| ISO/IEC 27001:2022
Clause 4.4 Information security management system
|}

Each of these standards requires the organization to establish, implement, maintain and continually improve an appropriate management system  "including the processes needed and their interactions".<ref name="ISO-9001">ISO 9001:2015: ''Quality management systems - Requirements'', Fifth edition 2015-09, [https://www.iso.org/standard/62085.html ISO, the International Organization for Standardization] 2015.</ref><sup>, </sup><ref>ISO 14001:2015: ''Environmental management systems - Requirements with guidance for use'', Third edition 2015-09, [https://www.iso.org/standard/60857.html ISO, the International Organization for Standardization] 2015.</ref><sup>, </sup><ref>ISO 27001:2022: ''Information security, cybersecurity and privacy protection Information security management systems - Requirements'', Third edition 2022-10, [https://www.iso.org/standard/27001 ISO, the International Organization for Standardization] 2022.</ref>

In the definition of the standard requirements for the ''processes needed and their interactions'', ISO/IEC 9001 is more specific in clause 4.4.1 than any other ISO standard for management systems and defines that "the organization shall determine and apply the processes needed for"<ref name="ISO-9001"/>  an appropriate management system throughout the organization and also lists detailed requirements with regard to processes:
* Determine the inputs required and the outputs expected
* Determine the sequence and interaction
* Define and apply the criteria and methods (including monitoring, measurement, and related performance indicators) for effective operation and control
* Determine the resources needed
* Assign the responsibilities and authorities
* Address the risks and opportunities
* Evaluate these processes and implement any changes needed for effective operation and control
* Improve
In addition, clause 4.4.2 of the ISO/IEC 9001 lists some more
detailed requirements with regard to processes:
* Maintain documented information
* Retain documented information for correct implementation

The standard requirements for ''documented information'' are also relevant for business process modelling as part of an ISO management system.

==== Specific standard requirements for management systems with regard to documented information ====

In the standards ISO/IEC 9001, ISO/IEC 14001, ISO/IEC 27001 the requirements with regard to ''documented information'' are anchored in clause 7.5 (detailed in the respective standard in clauses "7.5.1. General", "7.5.2. Creating and updating" and "7.5.3. Control of documented information").

The standard requirements of ISO/IEC 9001 used here as an example ''include'' in clause "7.5.1. General"
* Documented information by the standard requirements; and
* Documented information on the effectiveness of the management system must be included;
''Demand'' in clause "7.5.2. Creating and updating"
* Labelling and description (e.g. with title, date, author or reference number);
* Suitable format (e.g. language, software version, graphics) and medium (e.g. paper, electronic); and
* Review and approval
And ''require'' in clause "7.5.3. Control of documented information"
* To ensure suitable and available at the place and time as required;
* To ensure protection (e.g. against loss of confidentiality, improper use or loss of integrity);
* To consider distribution, access, retrieval,and use;
* To consider filing/storage and preservation (including preservation of readability);
* To perform monitoring of changes (e.g. version control); and
* To consider storage and disposition of further whereabouts.

Based on the standard requirements,
* To determine and continuously improve the ''required processes and their interactions''
* To determine and maintain the content of the ''documented information'' deemed necessary and
* To ensure the secure handling of ''documented information'' (protection, access, monitoring, and maintenance)
Preparing for ISO certification of a management system is a very good opportunity to establish or promote business process modelling in the organisation.

=== Business process optimization ===
Hermann J. Schmelzer and Wolfgang Sesselmann point out that the field of improvement of the three methods mentioned by them as examples for process optimization (control and reduction of total cycle time (TCT), [[Kaizen]] and [[Six Sigma]]) are processes: In the case of total cycle time (TCT), it is the business processes (end-to-end processes) and sub-processes, with Kaizen it is the process steps and activity and with Six Sigma it is the sub-processes, process steps and activity.<ref name="SCHMELZER"/> <sup>(Chapter 6.3.1 Total Cycle Time (TCT), KAIZEN and Six Sigma in comparison) ← automatic translation from German</sup>

For the '''total cycle time''' (TCT), Hermann J. Schmelzer and Wolfgang Sesselmann list the following key features:<ref name="SCHMELZER"/> <sup>(Chapter 6.3.2 Total Cycle Time (TCT)) ← automatic translation from German</sup>
* Identify barriers that hinder the process flow
* Eliminate barriers and substitute processes
* Measure the effects of barrier removal
* Comparison of the measured variables with the targets
Consequently, business process modeling for TCT must support adequate documentation of barriers, barrier handling, and measurement.

When examining Kaizen tools, initially, there is no direct connection to business processes or business process modeling. However, Kaizen and business process management can mutually enhance each other. In the realm of business process management, Kaizen's objectives are directly derived from the objectives for business processes and sub-processes. This linkage ensures that Kaizen measures effectively support the overarching business objectives."<ref name="SCHMELZER" /> <sup>(Chapter 6.3.3 KAIZEN) ← automatic translation from German</sup>

Six Sigma is designed to prevent errors and improve the [[Process capability index|process capability]] so that the proportion of process outcomes that meet the requirements is 6σ – or in other words, for every million process outcomes, only 3.4 errors occur. Hermann J. Schmelzer and Wolfgang Sesselmann explain: "Companies often encounter considerable resistance at a level of 4σ, which makes it necessary to redesign business processes in the sense of business process re-engineering (design for Six Sigma)."<ref name="SCHMELZER" /> <sup>(Chapter 6.3.4 Six Sigma) ← automatic translation from German</sup> For a reproducible measurement of process capability, precise knowledge of the business processes is required and business process modeling is a suitable tool for design for Six Sigma. Six Sigma, therefore, uses business process modeling according to [[SIPOC]] as an essential part of the methodology, and business process modeling using SIPOC has established itself as a standard tool for Six Sigma.

=== Inter-company business process modeling ===
The aim of inter-company business process modeling is to include the influences of external [[Stakeholder (corporate)|stakeholders]] in the analysis or to achieve inter-company comparability of business processes, e.g. to enable benchmarking.

''Martin Kugler'' lists the following requirements for business process modeling in this context:<ref name="KUGLER">Martin Kugler: ''Supply Chain Management und Customer Relationship Management - Prozessmodellierung für Extended Enterprises'' in Jörg Becker, Martin Kugler and Michael Rosemamm (publisher): ''Prozessmanagement: Ein Leitfaden zur prozessorientierten Organisationsgestaltung'', 2. corrected and expanded edition, Springer, Berlin/Heidelberg/New York 2002, ISBN 3-540-00107-7</ref> <sup>(Chapter 14.2.1 Requirements for inter-company business process modeling) ← automatic translation from German</sup>
* Employees from different companies must comprehend business process models, highlighting the critical importance of familiarity with modeling techniques. Acceptance of business process modeling is bolstered by the simplicity of representation. Models should be clear, easy to understand, and as self-explanatory as possible. Standardization of the presentation of inter-company business process models across different companies is essential to ensure consistent comprehensibility and acceptance, particularly given the varied representations used within different organizations. It is imperative to employ an industry-neutral modeling technique to accommodate the diverse backgrounds of companies along the value chain (supplier, manufacturer, retailer, customer), which typically span different industries.