©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

[email protected]

303-885-4811

nformationngineeringAssociates

PO Box 6328 Denver, CO 80206-6328

303-777-8654 Fax-777-8652

mailto:[email protected]


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


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


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


Evolution of Process Modeling

Structure Analysis & Design

1970sMainframe/COBOL

1980sPC, RDBMS, 4GL

1990sClient Server

2000sWeb, Wireless


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.





1980s

Data Modeling, Info Eng/CASE

PC, RDBMS, 4GL

1990sClient Server

2000sWeb, Wireless


Process Modeling Techniques

• Functional Decomposition

• Process Flow Diagramming

• Process/Data Matrix

• Process Simulation


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



• 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


Resource Management Lifecycle

PLAN

ACQUIRE

UTILIZE

DISPOSEMONITOR

CONTROL


Process Flow Diagram

OPENAPPLICATION


APPRAISEPROPERTY

NEGOTIATETERMS

CLOSE LOAN

SETUPLOAN

APPLICATION

PROPERTY

APPRAISEL

PROPOSEDTERMS FINAL

TERMS

CLOSEDLOAN

ORIGINATE LOAN


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’


LoansRUS Data Model

OPENS COLLATERAL FOR RESPONSBILE FOR

COLLATERAL FOR

APPLIED TO

SOURCE OFTRANSFERED TOLOAN

APPLICANT

APPLICATION

BORROWER LENDERPROPERTY

PAYMENT

INVESTOR


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


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.


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





1980s


PC, RDBMS, 4GL

1990sDW, ERP

Client Server

2000sWeb, Wireless


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


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


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


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


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


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



LOANSRUS

ORIGINATELOAN

PURCHASEPORTFOLIO

SERVICELOAN

SECURITIZELOAN

OPENAPPICATION


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


Resource Management Lifecycle

PLAN

ACQUIRE

UTILIZE

DISPOSEMONITOR

CONTROL

DW Opportunities


DW Program Management

• Prioritize projects based on – business impact– project interdependency– alternatives/regrets

• Consistent project management

• Architecture/methodology compliance





1980s


PC, RDBMS, 4GL

1990sDW, ERP

Client Server

2000sWeb, Wireless

eCommerce


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


Questions?

©copyright, information engineering associates process modeling sf dama, august 2, 2006 bob conway...

Documents

data slide

s data modeling

wireless slide

layers of decomposition

s mainframecobol

corporate intelligence

business source

data entities