Business Process Modeling. Introduction to ARIS Methodolgy

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1 Business Process Modeling Introduction to ARIS Methodolgy

2 Agenda What s in modeling? Situation today Objectives of Process Management ARIS Framework and methods ARIS suite of products Live demo Page 2

3 Example of models Page 3

4 Why do we need models? Visualization Visualize final situation Show relationships between objects Complexity management Focus on one aspect at a time Reuse patterns/objects Communication Standard symbols Go in details Page 4

5 What s in business process modeling? Business models are excellent communication devices Business professionals can model alternatives before committing Business models are key element for designing physical IT architectures Closing the communication gap between IT and business Page 5

professionals can model alternatives before committing Business models

6 Business Process model address important issues How Does It All Fit Together? Will It Work? What Do We Need? How Do We Do It? Who Can Do It? How Important Is It? Where Does It Go? Who s Overloaded? How Did We Do? Models Process Interrelationships Simulates Alternative Realities Provides Resource Requirements Externalizes Rules and Flow from IT Defines Roles Defines Priorities Intelligently Routes Work Balances Queues Provides Workflow Statistics Page 6

Models Process Interrelationships Simulates Alternative Realities Provides Resource Requirements Externalizes

7 Situation today Economical situation: back to the basics Globalisation Cost reduction Merge/Acquisition Performance IT situation Decentralized/centralized Web services/bpml Integration Multiple platform Page 7

8 Business Process complexity is increasing Page 8

9 How well do we know our processes? Questions : What? Content How? Technology Organisation Services Partner Products Money Transactions Information / Knowledge Services Products Money Transactions Services Products Money Transactions Information / Knowledge Information / Knowledge Suppliers Enterprise Customers Page 9

Information / Knowledge Services Products Money Transactions Services Products

10 Objectives of Business Process Management Quality Aligning added-value with the client's interests Lowering the incidence of mistakes Costs Avoidance of nonproductive activities Optimize resources usage Time Reduction of waiting times Reduce delivery time Time to market Page 10

mistakes Costs Avoidance of nonproductive activities Optimize

11 Objectives of Business Process Management Description of the business processes, business data... Modeling of business processes beyond functional boundaries and company boundaries Revealing weak points in existing organisational and process structure Clear definition of responsibilities Transparency of business processes Page 11

.. Modeling of business processes beyond functional boundaries and company

12 The Process Repository foundation Strategic Management Measures & Standards Process Best Practices Process Management Activity Based Costing Other: Training Procedures Etc. Process Repository Process Dictionary Process Storage Operational Data Store(s) Page 12

Based Costing Other: Training Procedures Etc.

13 Companies In Transition Implementation of ERP, SCM and CRM Software Implementation of E-Business E Solutions Process Performance Monitoring Activity Based Cost Calculation Knowledge Management E-Business Engineering Workflow BPR Effect Change Processes with reference to Business Processes Business Reality Page 13

Activity Based Cost Calculation Knowledge Management E-Business Engineering

14 The vision for continuous improvements Optimization ARIS ARIS for mysap.com (e)business Process Engineering Implementation (e)business Process Execution (e)business Process Controlling Process ARIS Performance 6 Manager Collaborative Suite Measurement ARIS PPM ARIS PPM Page 14

15 Methodology & tools A modeling tool is more than a drawing tool Aris is a framework for describing company structures, processes and business application systems Aris is process oriented and allows business process design, analysis implementation and optimization. Page 15

and business application systems Aris is process oriented and

16 What is a business Processes A few definitions: A business process is a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer [Hammer and Champy 1993]. Processes represent the flow of work and information throughout the business [BOMSIG 1995] Page 16

output that is of value to the customer [Hammer and Champy 1993].

17 Disadvantages of non-standardized language Page 17

18 Business Process Components Events trigger functions Functions generate events Trace Feedback Received Function Event Customer Received Confirmation of Customer Confirmation Created Event Function Event Production Plan Production Plan Created Function Event Page 18

Received Confirmation of Customer Confirmation Created Event

19 Business Process Components Data is processed in the functions Data Production Data Data Customer Data Trace Feedback Received Data Customer Received Confirmation of Customer Confirmation Created Resources Production Plan Production Plan Created Page 19

Data Customer Received Confirmation of Customer Confirmation

20 Business Process Components Employee Mrs. Müller Production Data Employees are responsible for functions Customer Data Trace Feedback Received Customer Received Confirmation of Customer Confirmation Created Resources Mr. Schmidt Employee Production Plan Production Plan Created Employee Mr. Meyer Page 20

Data Trace Feedback Received Customer Received Confirmation of Customer

21 Business Process Components Organisational Unit Production Mrs. Müller Production Data Employees belong to organisational units Customer Data Trace Feedback Received Customer Received Confirmation of Customer Confirmation Created Resources Sales Mr. Schmidt Production Plan Production Plan Created Organisational Unit Organisational Unit Production Planing Mr. Meyer Page 21

22 Business Process Components Functions create and process services Production Mrs. Müller Production Data Product/ Service Customer Product/ Service Product/ Service Customer Customer Data Customer Confirmation Trace Feedback Received Product/ Service Customer Received Confirmation of Customer Confirmation Created Resources Production Plan Sales Mr. Schmidt Production Plan Production Plan Created Production Planing Mr. Meyer Page 22

23 Reduction in Complexity via View Formation Data Data View Event Function Event Function Function View Org. Unit Employee Product/service Organisation View Page 23 Product / Service View

24 ARIS Views Data View What information is important? (ie.: Customer, Supplier, Product, Material Calculation) Function View Which functions will be performed? (ie.: Production Plan Creation, Processing) Organisational View Organization View Which organizational units exist? (ie.: Purchasing, Sales, Accounts) Data View Process View Function View Process View The relationship between data, functions and organizational units Product / Service View Product/Service View Which products/services are important? (ie.: checked order, customer invoice) Page 24

25 Integration Method Management Scheduling Purchasing Materials administration Sales Inquiry is received Sales processing Quotation Inquiry Inquiry Inquiry processing Sales Inquiry processing Quotation processing Inquiry is processed Check Credit rating Customer Customer quotation Quotation processing Determine delivery date Customer inquiry Customer quotation Customer order

26 ARIS leading the way towards Business Process Management ARIS = Architecture of Integrated Information Systems Framework concept to describe companies and application software Developed by Prof. Dr. A.-W. Scheer Uses standard modeling methods Concentrates on the business process Effective in all areas: independent of the number of departments, the size of the company or the available software Page 26

27 ARIS Drill down possibilities Organizational Chart Risk Diagram Overview Core processes Value Chain- Diagram Level 1 Main processes Value Chain Diagram - Level 2 Processes eepc Function Allocation Diagram KPI Allocation Diagram Level 3 Page 27

28 Why ARIS? Gartner Research April 2002 Aris ARIS extends its position as the far and away leader in the BPR tool market (Gartner Group) Page 28

29 Architecture of ARIS MS Windows Platform JAVA Platform ARIS Toolset ARIS Easy Design ARIS for mysap.com Web Designer ARIS Simulation ARIS ABC ARIS Web Publisher ARIS Application Server Internet/ Intranet/ Extranet RDBMS (e.g. Oracle) 3 tier Architecture Web enabling Database system Page 29

30 LAN LAN ARIS Application Server Page 30 ARIS Toolset tier Architecture ARIS Easy Design Common Repository Database system Web enabled Web enabled Internet RDBMS RDBMS (e.g. Oracle) (e.g. Oracle) ARIS Web Designer - Scenario 3 tier Architecture

31 ARIS 6 - Collaborative Suite ARIS Web Designer ARIS Toolset ARIS Easy Design ARIS PPM ARIS Web Publisher ARIS BSC ARIS for mysap.com ARIS ABC ARIS Simulation QM Scout SAP RBE Scout Page 31

32 ARIS Web Publisher: Online process documents Page 32

33 ARIS Web Publisher Role based access for a working knowledge management Fast, worldwide communication of your business processes via the Internet or Intranet Web based user interface for quick comprehension and employee acceptance Overcomes constraints in terms of time and space regarding information distribution Paperless rollout of business process documentation Fast, clear implementation of new processes Page 33

34 ARIS Web Publisher Page 34

35 Direct access on important documents Sales 2000 Even for Lotus Notes, SAP R/3 as well as any application. Page 35

36 Fast feedback to the right adress Page 36

37 ARIS Web ARIS Web Client Client ARIS Web Designer - Benefits Hundreds of users on one Repository Thin client World wide distributed business modeling Specific tools for different user groups Page 37 Very easy handling Platform independent Easy installation/ distribution Graphical modeling Graphical modeling Table modeling Table modeling Feedback Feedback / / Attribute Attribute editing editing

38 Web Designer : Web Based modeling tool Page 38

39 ARIS Toolset : Unique process analysis tool Page 39

40 Graphical Analysis Functions Graphical analysis of goal accomplishment and of all defined KPI (Managment View) Page 40

41 Page 41

Introduction to the ARIS Platform

Chapter 2 Introduction to the ARIS Platform In this chapter we give an overview over the ARIS Platform and the ARIS products. The structure of the book is described with advice for different reader groups.