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Transcript of ©Copyright, Information Engineering Associates Process Modeling SF DAMA, August 2, 2006 Bob Conway...
©Copyright, Information Engineering Associates
Process Modeling
SF DAMA, August 2, 2006Bob Conway
303-885-4811
nformationngineeringAssociates
PO Box 6328 Denver, CO 80206-6328
303-777-8654 Fax-777-8652
©Copyright, Information Engineering Associates
Presentation Outline
• Evolution of Process Modeling
• Process Modeling Technique
• Application of Process Modeling– OLTP Application Design– Business Process Re-engineering– DW Project Scope/ROI
• Q&A
• Exercise
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What is a Data Model?
• Data Model – a structured inventory of information maintained to sustain the business
• Data Model Purpose/Usage– Blueprint for data integration– Specification for database design– Standardize definitions and business rules– Communication tool between IT and business– Preserve corporate intelligence
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What is a Process Model?
• Process Model - A structured inventory of the ongoing business activities performed to sustain the business
• Process Model Purpose/Usage– Blueprint for integrated application portfolio– Specification for application design– Communication tool between IT and business– Source of all data
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Evolution of Process Modeling
Structure Analysis & Design
1970sMainframe/COBOL
1980sPC, RDBMS, 4GL
1990sClient Server
2000sWeb, Wireless
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Data Flow Diagram
RECORDPAYMENT
INVOICEFILE
CUSTOMERMASTER
ACCEPTFUNDS
PAYCOMMISSION
CREDITPAYMENT
DUNDEADBEATS DELINQUENT
INVOICE
BULKCLAIM
DEPOSIT
CC-STATEMENT
PAYMENT
COMMISSIONNOTE COMMISSION
Courtesy, Tom De Marco, Structured Analysis and System Specification, Yourden Press, 1979, Page 101.
©Copyright, Information Engineering Associates
Evolution of Process Modeling
Structure Analysis & Design
1970sMainframe/COBOL
1980s
Data Modeling, Info Eng/CASE
PC, RDBMS, 4GL
1990sClient Server
2000sWeb, Wireless
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Process Modeling Techniques
• Functional Decomposition
• Process Flow Diagramming
• Process/Data Matrix
• Process Simulation
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Functional Decomposition
LOANSRUS
ORIGINATELOAN
PURCHASELOAN
SERVICELOAN
SECURITIZELOAN
OPENAPPICATION
UNDERWRITEAPPLICATION
APPRAISEPROPERTY
NEGOTIATETERMS
EVALUATELENDER
ANALYZEPORTFOLIO
NEGOTIATE LENDER
RECOURSE
REGISTERLOAN
SETUPLOAN
PROCESSPAYMENT
MANAGEPROPERTY
MITIGATELOSS
TERMINATELOAN
EVALUATEPROPERTY
REFURBISHPROPERTY
RENT PROPERTY
SELL PROPERTY
EVALUATEINVESTOR
CONFIGUREPORTFOLIO
NEGOTIATEINVESTORRECOURSE
CLOSE LOAN
TRANSFERASSET
MANAGEHUMAN
RESOURCES
MANAGEFINANCIAL
RESOURCES
Process Hierarchy Diagram
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Functional Decomposition
• Describe WHAT the company is doing– Now HOW, WHO, WHY, or WHEN
• Name process as a VERB-OBJECT– OBJECT are often data entities
• Define major functions– Line-of-Business (Product Lifecycle)– Support Functions (HR, Fin, Info. Mgt., etc.)
• Fan out ratio 1:5-7• 3-4 layers of decomposition
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Resource Management Lifecycle
PLAN
ACQUIRE
UTILIZE
DISPOSEMONITOR
CONTROL
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Process Flow Diagram
OPENAPPLICATION
UNDERWRITEAPPLICATION
APPRAISEPROPERTY
NEGOTIATETERMS
CLOSE LOAN
SETUPLOAN
APPLICATION
PROPERTY
APPRAISEL
PROPOSEDTERMS FINAL
TERMS
CLOSEDLOAN
ORIGINATE LOAN
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Process Flow Diagram
• One PFD per Process Hierarchy node• Include all ‘sibling’ process• Include flows to ‘cousin’ processes• Define inputs/outputs as data entities
– Watch for ‘black hole’ process– Watch for ‘super nova’ process– Watch for ‘do nothing’ process– Watch for ‘orphan siblings’ or too many
‘cousins’
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LoansRUS Data Model
OPENS COLLATERAL FOR RESPONSBILE FOR
COLLATERAL FOR
APPLIED TO
SOURCE OFTRANSFERED TOLOAN
APPLICANT
APPLICATION
BORROWER LENDERPROPERTY
PAYMENT
INVESTOR
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Process/Data MatrixF1
P1.3
P2P1
P1.1 P1.2 P2.1 P2.2
E1
E2
E3
E5
E4
ENTITIES
PR
OC
ES
SE
S
E1 E2 E3 E4 E5
P1.1
P1.2
P1.3
All Entities
C
D
R
U
R
C
C
CU
Leaf-Level
Processes
CRUDMatrix
ProcessModel
DataModel
P2.1
P2.2
C
DR
D D
D
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Application Design
Accept Order Procedure• Read ORDER• Read CUSTOMER
– IF new CUSTOMER• Create CUSTOMER
– ELSE CUSTOMER is valid– Check CUSTOMER credit
• Read CUSTOMER_CREDIT• IF CREDIT_RATING <3• Process Poor-Credit Order
– Create ORDER_REJECT– Print REJECT_NOTICE
• ELSE Process OrderCourtesy, James Martin, Information Engineering, Book III, Prentice Hall, 1990, Page 73.
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PM for Application Design
• Only done for elementary processes
• Procedural logic for a single process cycle
• Pseudo-code for program modules, screen design and program flow control
• Syntax closely coupled to CASE tool code generator
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Evolution of Process Modeling
Structure Analysis & Design
1970sMainframe/COBOL
1980s
Data Modeling, Info Eng/CASE
PC, RDBMS, 4GL
1990sDW, ERP
Client Server
2000sWeb, Wireless
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Process Re-Engineering
• Less concerned with processes as system specifications
• Fundamental changes to underlying business processes to drive out costs, inefficiencies and improve business effectiveness
• Organizationally positioned out of IT
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Process Re-Engineering
• For each business process– Frequency (cycles/unit of time)– Residual time per cycle– Operating cost per cycle
• Number of resources performing process• Capital investment required
– Business contribution per cycle– Process metrics
• How do we measure the effectiveness of this process?
• Process simulation
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Process Modeling and DW
• DW methodology is data-driven
• DW Assessment (Critical Success Factors)– Business/IT Partnership– Program Management– Architecture/Methodology– Resources/Organization– Tools and Technologies
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DW Program Management
• Incremental - Sequence of small projects (7-10 people) (3-4 months)
• Opportunistic - solve a business problem or exploit a business capability– Define problem/opportunity in terms of
processes, not data– ID data necessary to solve that problem
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DW Project Charter
• DW Project Scope Statement– Business questions/capability– Business processes in/out scope– Source systems in/out scope– Departments/locations in/out scope
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DW Project ROI
• Problem/Opportunity – defined in terms of processes that will be improved
• What are process metrics?
• Baseline of metrics (estimates)
• Target of metrics (realistic)
• Contribution ($) of metric improvements
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Functional Decomposition
LOANSRUS
ORIGINATELOAN
PURCHASEPORTFOLIO
SERVICELOAN
SECURITIZELOAN
OPENAPPICATION
UNDERWRITEAPPLICATION
APPRAISEPROPERTY
NEGOTIATETERMS
EVALUATELENDER
ANALYZEPORTFOLIO
NEGOTIATE LENDER
RECOURSE
REGISTERLOAN
SETUPLOAN
PROCESSPAYMENT
MANAGEPROPERTY
MITIGATELOSS
TERMINATELOAN
EVALUATEPROPERTY
REFURBISHPROPERTY
RENT PROPERTY
SELL PROPERTY
EVALUATEINVESTOR
CONFIGUREPORTFOLIO
NEGOTIATEINVESTORRECOURSE
CLOSE LOAN
TRANSFERASSET
MANAGEHUMAN
RESOURCES
MANAGEFINANCIAL
RESOURCES
Process Hierarchy Diagram
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Resource Management Lifecycle
PLAN
ACQUIRE
UTILIZE
DISPOSEMONITOR
CONTROL
DW Opportunities
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DW Program Management
• Prioritize projects based on – business impact– project interdependency– alternatives/regrets
• Consistent project management
• Architecture/methodology compliance
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Evolution of Process Modeling
Structure Analysis & Design
1970sMainframe/COBOL
1980s
Data Modeling, Info Eng/CASE
PC, RDBMS, 4GL
1990sDW, ERP
Client Server
2000sWeb, Wireless
eCommerce
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Process Modeling Summary
• Process/data modeling complementary
• IE/CASE - limited success in IT
• ERP shifted attention on process model
• BPR – not just As-Is processes but To-Be
• Data Warehousing– Not about acquiring/delivering data– Improving business processes– Demonstrable ROI
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Questions?