Business modeling tools are literally software tools for modeling the business.
A large part of a business modeling tool's nature is determined by its
notation rules. So this page describes the requirements for the notations
of business modeling.
When you try to model the business, 5W2H + α of the business should be represented as wide as possible, including WHO, WHEN, WHAT, WHY, HOW, HOW MUCH and others.
In this case, each factor of 5W2H + α in business is like in the following
table.
If some business factors in the following table cannot be represented using the notation, you should consider that there is some lack or bias in the notation.
Point of view | Examples of keywords in business representation |
---|---|
WHAT | Products, service, parts, raw materials, various types of objects, goods, data, concepts |
WHY | The purpose of process, business strategy, operation strategy, management philosophy |
WHEN | Plans, schedules, start timing, deadlines |
WHO | Organization, job title, customers, suppliers, external stakeholders, information systems, robots, automation equipment |
WHERE |
Regions, sales channels, stores, offices, factories, organizations |
HOW |
Processing procedures, processes, execution means, sales channels |
HOW MUCH |
Sales amount, profit, costs, time required, number of employees |
Others (+α) | Business risk, etc. |
The model shoud be grasped, evaluated and discussed by all the business persons, including executives, managers and field workers. This is same as "an electric circuit diagram must be understood by all the electrical engineers”.
On the other hand, business persons who are not experts in modeling will
not attempt to understand the esoteric modeling notation. Therefore, the
notation of business modeling should have comprehensibility which allows
all the business persons to understand intuitively at a first glance.
Many of the objects to be modeled have static aspects and a dynamic aspects.
Therefore there can be the static model which focuses on the static aspect of the object, and dynamic model for the dynamic aspect.
Architectural models and clay models of automobiles are classified as static
models, and the mathematical model for the movement of celestial bodies
and various simulators are the examples of dynamic models.
The business models also can be divided into static models and dynamic
models. Organization chart and year-end financial statements belong to
the static model, and the business flowchart is an example of dynamic model.
If you will model the business from the total viewpoints, the methodology
is required to be capable of representing the both sides of the static and the dynamic, rather than focusing one particular aspect.
Many of the business modeling notations remain just as notations for representing
the process and flow such as flowchart and BPMN (see next page). However,
these models focusing only on the dynamic aspects of businesses represent
just one aspect of the business. Such approaches, paying attention only
to the motion without taking the structure into account, is endangered
like "sailing without a chart”.
In particular, if you will model the large-scale object, static model
is more important. For example, if you will model a process flow like an
approval flow in a specified section, flowchart or BPMN may be enough to
represent in many cases. However, if you intend to model the whole enterprise,
or the entire group of companies, static model will be essential. This
is because it is vital to grasp and recognize the structures, players and
mutual relationship in the domain in order to model the large-scale domain. Also this understanding of the structure of target field will enable
the wide-area and drastic BPR.
Generally, if you are trying to model the business, the purpose may be
BPR (Business Process Re-engineering) in many cases. Accordingly, it is
desirable for business modeling notations and platforms to include support
functions for BPR projects.
In this case, the support functions for the BPR project mean the features
related to representation of business processes as a matter of course,
furthermore, following functions are required.
- 1) Capable of representing the KGI (Key Goal Indicator) and KPI (Key Performance indicator) such as cost of business processes.
- 2) Enables to simulate the cost and the time required of the process, and also compare the value of As-Is and To-Be.
- 3) Has the ability to monitor KGI / KPI continuously even after the reform of the process.