BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION

ENTERPRISE RESOURCE PLANING

Software system that integrates core business areas such as manufacturing, distribution, financial and human resources. ERP is a software architecture that facilitates the flow of information among the different functions within an enterprise and also sharing across organizational units and geographical locations.

ERP SYSTEMS - EVOLUTION

ADVANTAGES OF ERP
Personnel reduction Productivity improvements Order management improvements Improved planning Procurement cost reduction

Cash management improvements

Revenue profit increase

ERP IMPLEMENTATION
Strategic planning
Assign a project team. Examine current business processes and information flow. Set objectives. Develop a project plan.

ERP IMPLEMENTATION
Procedure review
Review software capabilities. Identify manual processes. Develop standard operating procedures

ERP IMPLEMENTATION
. Data collection & clean-up
Convert data. Collect new data. Review all data input. Clean-up data.

ERP IMPLEMENTATION
Training and testing
Pre-test the database. Verify testing. Train the Trainer. Perform final testing.

ERP IMPLEMENTATION
Go live and evaluation
Develop a final Go-Live Checklist. Evaluate the solution.

CHALLENGES OF ERP IMPLEMENTATION

The lack of alignment strategy, between structure, the and organization processes

Improper project design

Lack of support from top level management

Unrealistic goals and targets

Poor communication

CHALLENGES OF ERP IMPLEMENTATION

Incompatibility of various application Inadequate training and support Lack of in house skills and the chosen ERP application

BUSINESS PROCESS
Collection of related, structured activities or tasks that produce a specific service or for a particular customer or customers.

Three main types of business processes:

Management processes

Operational processes.
Supporting processes

PROCESS MODELING
Process model: any abstract representation of a process Process: modeling tools provide a way to describe a business process so that all participants can understand the process

PROCESS MODELING
Advantages of process models
Graphical representations are usually easier to understand than written descriptions Provide a good starting point for analyzing a process
Participants can design and implement improvements

Document the business process

Easier to train employees to support the business process

BUSINESS PROCESS MODEL

Diagram representing a sequence of activities Shows events, actions and links or connection points, in the sequence from end to end

Final output is improvement in the way that

the business process works

BUSINESS PROCESS MODEL

Two different types of Business Process

Models:
the 'as is' or baseline model (the current situation)

the 'to be' model (the intended new situation) ,

BUSINESS PROCESS MODEL

Developing the models follows the sequence:
Identify the process and produce an 'as is' or baseline model. Review, analyze and update the 'as is' process model. Design the 'to be' model. Test and implement the 'to be'.

Continuously update and improve the new model.

BUSINESS PROCESS MODELING

The aim of modeling is to illustrate a complete process, enabling managers,

consultants and staff to improve the flow and

streamline the process.

BUSINESS PROCESS MODELING

The outcomes of a business process modeling project are:
value for the customer

reduced costs for the company, leading to increased

profits. increased competitive advantage, market growth better staff morale and retention.

BUSINESS PROCESS MODELING TOOLS

Provide business users with the ability to model their business processes, implement and

execute those models, and refine the models

based on as-executed data.

Provide transparency into business processes, as well as the centralization of corporate business process models and execution metrics

USE CASE DIAGRAMS

1. Use case diagrams created by Ivar Jacobson, 1992. In software and systems engineering, a use case is a list of steps, typically defining interactions between a role and a system, to

achieve a goal

USE CASE DIAGRAMS

USE CASE DIAGRAMS

Elements in an use case diagram
Association Actor

Use Case
Include Relationships

ACTIVITY DIAGRAM
2. Activity diagrams Describe dynamic aspects of the system. Activity diagram is basically a flow chart to represent the flow form one activity to another activity.

The activity can be described as an

operation of the system.

ACTIVITY DIAGRAM

ACTIVITY DIAGRAM
The purposes can be described as:
Draw the activity flow of a system. Describe the sequence from one activity to

another.
Describe the parallel, branched and concurrent flow of the system

ACTIVITY DIAGRAM
Elements in an activity diagram:
Activities Association

Conditions
Constraints

ACTIVITY DIAGRAM
Uses of activity diagram:
Modeling work flow by using activities. Modeling business requirements.

High

level

understanding

of

the

system's

functionalities. Investigate business requirements at a later stage.

PROGRAMMING LANGUAGE TOOLS FOR BPM

1. Business Process Model and Notation Provides business a graphical in notation a for specifying Process

processes

Business

Diagram (BPD), based on a flowcharting technique

Provides a mapping between the graphics of the notation and the underlying constructs of execution languages

BUSINESS PROCESS MODEL AND NOTATION

PROGRAMMING LANGUAGE TOOLS FOR BPM

2. Business process execution language Standard executable language for specifying actions within business processes with web services Define business processes that interact with

external

entities

through

web

service operations

PROGRAMMING LANGUAGE TOOLS FOR BPM

3. XML Process Definition Language Format standardized Coalition by the to Workflow

Management business

interchange between

process

definitions

different workflow products

XML PROCESS DEFINITION LANGUAGE

Defines an XML schema for specifying the declarative part of workflow / business process.

XPDL is designed to exchange the process

definition, both the graphics and the

semantics of a workflow business process

BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION

Business process modeling (BPM) in systems engineering and software engineering is the activity of representing processes of an

enterprise, so that the current process may be

analyzed and improved in future Vehicle for analyzing and designing business processes.

BUSINESS PROCESS MODELING AND ITS IMPORTANCE IN ERP IMPLEMENTATION Improve process efficiency and quality Reduces the risk of your technology, time and resources investment decisions

REFERENCES
Gilbreth, Frank and Lillian (1924), The Quest of the One Best Way, Purdue University Frank and Lillian Gilbreth Papers. Hammer, Michael and Champy, James (1993), Reengineering the Corporation: A Manifesto for Business Revolution, Harper Business. Juran, J.M. (1988), Juran on Planning for Quality, Free Press, New York, NY. Smith, Howard and Fingar, Peter (2003) Business Process Management, The Third Wave, MK Press. Taylor, F.W. (1911) The Principles of Scientific Management. Harper & Brothers. New York and London. Deming, W.E. (1982), Out of the Crisis, Cambridge University Press, Cambridge.M. Al-Mashari, A Process Change-Oriented Model for ERP Application, International Journal of Humancomputer Interaction, 16, 1, pp. 3955, 2003. M. Arif, D. Kulonda D., J. Jones, and M. Proctor, Enterprise information systems: technology first or process first?, Business Process Management Journal, 11, 1, pp. 5-21, 2005. R.F. Boykin, Enterprise resource-planning software: a solution to the return material authorization problem, Computers in Industry, 45, pp. 99-109, 2001. I.J. Chen, Planning for ERP systems: analysis and future trend, Business Process Management Journal, 7, 5, pp. 374-86, 2001. V.B. Gargeya B., and C. Brady, Success and failure factors of adopting SAP in ERP system implementation, Business Process Management Journal, 11, 5, pp. 501-516, 2005. 2005, Moscone Center West, San Francisco, California, 15-19 May 2005. T. Gulledge, and G. Simon, The evolution of SAP implementation environments: A case study from a complex public sector project, Industrial Management & Data Systems, 105, 6, pp. 714-736, 2005. J. Jakli, V. Bosilj-Vuki, and M. Indihar temberger, Business process oriented tool selection model - a case study. In: V. Hlupic (Ed.). Future challenges and current issues in business information, organisation and process management. Westminster: Business School, 2006, pp. 94-102. Anonymous 2009 http://en.wikipedia.org/wiki/Business_process_modeling downloaded on 29.08.2010 Mojca Indihar temberger, Andrej Kovai, University of Ljubljana, Faculty of Economics \mojca.stemberger@ef.uni-lj.si, andrej.kovacic@ef.uni-lj.si downloaded on 28.03.2012 "ERP". http://www.erp.com/component/content/article/324-erp-archive/4407-erp.html. Downloaded on 29.03.2012 Anderegg, Travis. "MRP/MRPII/ERP/ERM Confusting Terms and Definitions for a Murkey Alphabet Soup". http://www.wlug.org.nz/EnterpriseSpeak. downloaded on 28.03.2012 Ramaswamy V K (2007-09-27). "Data Migration Strategy in ERP". http://research.ittoolbox.com/white-papers/backoffice/erp/data-migrationstrategies-in-erp-4620/. Downloaded on30.03.2012 Walsh, Katherine (January 2008). "The ERP Security Challenge". CSOonline. CXO Media Inc. http://www.csoonline.com/article/216940/The_ERP_Security_Challenge. downloaded on 30.03.2010 www.uhu.es/ijdar/10.4192/1577-8517-v1_3.pdf. Downloaded on31.03.2012

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