Week 9 Modeling Business Systems

  

Analisis Bisnis

Week 8 - Modeling Business Systems

  

INTRODUCTION

• An approach that may be used to examine the stakeholders’ views in more detail.
• Business analysts often have to take a broader view and consider why an organization
• – or part of an organization
• – operates as it does and what it is trying to achieve.

  

INTRODUCTION

MOST

  Stakeholder

Stakeholder

Stakeholder

  Business Perspectives

  

INTRODUCTION

MOST

  Stakeholder

Stakeholder

Stakeholder

  Business Perspectives

  Soft System Methodology

SOFT SYSTEMS METHODOLOGY

• Peter Checkland, 1981
• Checkland followed the tradition of systems thinking developed through the work of writers such as Stafford Beer, and proposed that business situations should be considered as systems.

SOFT SYSTEMS METHODOLOGY

  Hard System Thinking Soft System Thinking

SOFT SYSTEMS METHODOLOGY

SOFT SYSTEMS METHODOLOGY

• The key stakeholders should be asked how they view, from their own perspectives, the purpose and objectives of the part of the organization that is within the scope of the change project.
• The SSM offers a useful framework for defining and analyzing business perspectives, given by the mnemonic CATWOE.

SOFT SYSTEMS METHODOLOGY

  C

• Costumer

  A

• Actor

  T

• Transformation

  W

• Weltanschauung or world view

  O

• Owner

  E

• Environment

BUSINESS ACTIVITY MODELS

• A BAM is essentially a ‘conceptual model’ that shows the business activities we would expect to see in place, given the business perspective from which it has been developed, in order to achieve the transformation successfully.

BUSINESS ACTIVITY MODELS

  

The principles underlying the BAM approach are as

follows:

• There will be one BAM for each business perspective.

• • A separate BAM is needed to describe each

  perspective. These will subsequently be overlaid to form a consensus model, possibly covering all relevant perspectives.

• • The BAM helps in the analysis of the business situation

  and the identification of improvements.

• • The model is not concerned with who carries out the

  activities or where they are carried out.

BUSINESS ACTIVITY MODELS

  All business systems can be described in terms of five types of business activity and the dependencies between them.

• planning activities;
• enabling activities;
• doing activities;
• monitoring activities; • control activities.

BUSINESS ACTIVITY MODELS

  Planning activities

• These define the rules dictating the type of resources required and how the performance of these resources is to be measured.
• Within the planning activities, performance expectations should also be set.

BUSINESS ACTIVITY MODELS

  Enabling activities

• These ensure that the resources and facilities needed by the doing activities are obtained and deployed.
• Resources include raw materials, infrastructure, staff and so on.

BUSINESS ACTIVITY MODELS

• Doing activities
• These relate directly to achieving the transformation described in the business perspective, and are sometimes also referred to as ‘primary task’ activities.
• They contribute directly to the purpose of the business system.

BUSINESS ACTIVITY MODELS

  Monitoring activities

• These collect metrics to check the performance of other activities against the targets, and use the performance expectations set as part of the planning activities.

BUSINESS ACTIVITY MODELS

  Control activities

• • These act on the other activities when monitoring

  has identified that some action is required.

• • This is usually when performance expectations

  are not being met, but it could also be when action is felt to be needed, for example if targets are exceeded by a wide margin.

• • Such action may involve changes to any of the

  activities, including the monitoring activities.

BUSINESS ACTIVITY MODELS

• In the BAM, activities are connected by arrows.
• Such arrows represent logical dependency between the activities.
• This means that for activity B to occur, activity A must have occurred.
• There is no universally-agreed notation for creating BAMs. However, Soft systems specialists like to use

  ‘cloud’ symbols

  BUSINESS ACTIVITY MODELS Identifier Title Control can be done

BUSINESS ACTIVITY MODELS

  2 Look for enabling activities that need

  1 to be in place to Identify the main provide the resources doing activities that will allow the doing activities to function.

BUSINESS ACTIVITY MODELS

  Identify planning activities:

  Add monitoring activities to compare actual with planned performance.

  3

  4

• decide upon the resources to be provided
• define the performance targets that must be met using these resources.

BUSINESS ACTIVITY MODELS

  6 Where environmental constraints are referred to in the business perspective:

  5

• activities should be added to consider

  Add control activities to _{the constraints (planning activities)} respond to deviations

• To measure performance in relation to _{them (monitoring activities)}

  between actual and planned

• to react to any threat of failure to performance.
_{comply with them (control activities).}

BUSINESS ACTIVITY MODELS

  8 Add ‘lightning

  7 strike’ control Add arrows from dependency the controlling arrows activities

BUSINESS ACTIVITY MODELS

• The BAMs produced up to this point have each been derived from an individual business perspective derived from a key stakeholder.
• Our eventual goal is to derive just one definitive BAM of the activities needed by the business, by merging the individual models into one.
• This model is described as a ‘consensus model’.

BUSINESS ACTIVITY MODELS

• To arrive at a consensus model, the business analyst must resolve any conflict between the various views that have caused the creation of the separate, different models.
• In order to achieve this, we must examine the necessity for each activity in each BAM and combine those that are agreed to be necessary by the stakeholders into a consensus model.

BUSINESS ACTIVITY MODELS

  There are three kinds of consensus that we might consider:

• • Global consensus, which assumes there is a neutral model

  applicable to all organizations of a particular type.

• • One hundred per cent consensus, where all the

  participants readily agree that a given activity, often one that is common to all individual models, is needed.

• • Consensus through accommodation, where participants

  with conflicting viewpoints agree to compromise. The creation of additional activities and/or the modification of existing ones may be necessary in order to achieve this kind of consensus or compromise.

  

BUSINESS EVENTS AND BUSINESS

RULES

• One way of analyzing a BAM is to consider the business events to which the organization must respond, and the business rules that underpin and constrain the business operations.
• This information is also very useful when redesigning business processes.

  Business events

  External

• these events originate from outside the boundary of the business system.

  Internal decision points • these are the events that occur regularly.

• • these events are usually internal decisions made by business

  managers.

  Scheduled points in time

  Business events

  Business rules Constraints • these restrict how an activity is performed.

• • They may include laws and regulations and – if

  these cannot be challenged – business policies.

  Operational guidance

• • these describe the procedural rules that dictate

  how activities should be performed.

  

CRITICAL SUCCESS FACTORS AND KEY

PERFORMANCE INDICATORS

• • Another useful way of approaching BAM

  construction is to consider the organization's CSFs and KPIs.

• • The CSFs are the things the organization must be

  good at in order to succeed, and they therefore provide some insights into the planning, enabling and doing activities that are needed.

• • The KPIs are the things an organization measures

  to find out how well it is doing.

  VALIDATING A BUSINESS ACTIVITY MODEL Objectives and purpose (of the system): these must be explicit.

  Connectivity: the activities in the model must all be connected.

  Measures of performance: these must exist, and expected levels of performance must be set.

  

Monitoring and control mechanisms: there must be control activities

that have the power to change other activities when expectations are

not met.

  VALIDATING A BUSINESS ACTIVITY MODEL Decision-making procedures: there must be decision-making procedures that will be influenced by the control actions.

  Boundary: the extent of the system must be clear and communications across the boundary defined explicitly.

  

Resources: staff, materials and other resources used by the system

must be acquired, allocated, replenished and accounted for.

  

Systems hierarchy: it should be possible to decompose the system

hierarchically based on the scope of control activity.

  

USE OF THE BUSINESS ACTIVITY

MODEL IN GAP ANALYSIS

• The BAM represents a theoretical (conceptual) model of the activities we would expect to find in place given the initial business perspective.
• Compare the BAM with the current reality in the organization: – Some activities are in place and are quite satisfactory.
• – Some activities are in place but are not satisfactory.
• – Some activities are not in place at all.

  

USE OF THE BUSINESS ACTIVITY

MODEL IN GAP ANALYSIS

• The BAM represents a theoretical (conceptual) model of the activities we would expect to find in place given the initial business perspective.
• Compare the BAM with the current reality in the organization: – Some activities are in place and are quite satisfactory.

  Opportunities for business improvement

• – Some activities are in place but are not satisfactory.
• – Some activities are not in place at all.