Business Process Modeling

(BPM)

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What is a BPM?
• An analytical representation of a business process that gives a
complete picture of how a particular business is done.
• Why do we need BPM:
• To have a better understanding of the business processes.
• For better analysis
• For better planning
• To understand current and future status clearly

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What is a Model?
• A model is not the real world but merely a human construct to help
us better understand real world systems.
• Graphical, mathematical (symbolic), physical, or verbal representation
or simplified version of a concept, phenomenon, relationship,
structure, system, process, or an aspect of the real world.

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What are the objectives of a model?
• To aid in decision making by simulating 'what if' scenarios
• To simplify things for better understanding, explaining, predicting,
and controlling events on the basis of past observations since most
objects and phenomenon are very complicated and complex to be
comprehended in their entirety
• To look at only the features that are of primary importance to the
purpose.

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Sample Business Process Model

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Sample Business Process Model (with swim lanes)

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Conventional BPM notation/symbols:
Process/Task Process/Task

Decision Gateway

State
Start Intermediate End

Doumnet
Database

Pool/Lane

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BPMN

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BPMN- Sample 2

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 Business Process Model (created in the class using MS Visio)
Mortgage Lending Process (As-Is)
From ABC Inc.
(Appraisal)

Appraisal DONE

Credit

DONE Underwritting Approval OK Closing END

START App Submision App. Review Complete OK

Documents Check Clean OK

NO

OK
NO
REJECT
RED- Customer (Inform the customer)
BLUE- MO Cash Availability Minimum
GREEN-UW

NOT ENOGH

(Please note this model was created just to practice in the class and the business process does not represent the complete/actual lending process)

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 (Please note this diagram was created only to practice in the class and
the business activities/tasks may not represent the complete/actual
Simple Activity Diagram (For Underwriting Process) underwriting process)
(Simplified version of Underwriting tasks/activities) START

Calculate the
monthly Payment

Obtain the total Obtain the House Obtain the total

monthly income appraisal value debts

Calculate the Front Calculate the Back

Calculate the LTV
End Ratio End Ratio

Make the deccision

REJECTED
Acceptable NO
(END)

YES

APPROVED
(END)

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Homework Assignment:

1. Create a simple BPM explaining how a company, department, office, etc. do their business.
(Please use all the modeling symbols you learnt today)
2. Create an Activity Diagram.

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