Chapter 2 - Accountants as business analysts. After reading this chapter, you should be able to: Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes; understand the importance of business process documentation; recognize the value of business models; articulate the characteristics of activity models.
Chapter Accountants as Business Analysts Copyrightâ2014McGrawưHillEducation.Allrightsreserved.NoreproductionordistributionwithoutthepriorwrittenconsentofMcGrawưHillEducation Learning Objectives • LO#1 Describe the roles of the accounting/finance function in business and why those roles require knowledge of technology and business processes LO#2 Understand the importance of business process documentation • LO#3 Recognize the value of business models • LO#4 Articulate the characteristics of activity models • LO#5 Understand and apply the building blocks for BPMN (activity) diagrams 2-2 LO# Roles of Accountants in Business Stewardship and Reporting Regulatory compliance Tax returns Stakeholder assurance Investor relations Raising capital and loans Board reports Statutory reporting Accounting/Finance Operations Finance and accounting processes Financial close Financial reporting and analysis Providing management information People management Using IT to make finance and accounting processes more efficient and effective Business Management Support Management information Planning budgeting and forecasting Performance measurement Performance management Risk management – from strategic to operational including fraud risk Investment appraisal Cost management Supply chain management 2-3 LO# Changing Roles of Accountants in Business • To prepare for their changing roles accountants must: – Understand the business and how it collects summarizes and communicates business information – Understand how the business delivers value to its customers – Understand the risks that the business faces and the internal controls in place to mitigate those risks 2-4 LO# Definitions • • • Business Process: a defined sequence of business activities that use resources to transform specific inputs into specific outputs to achieve a business goal Business Analysis: the process of defining business process requirements and evaluating potential improvements Business Model: a simple abstract representation of one or more business 2-5 processes LO# Importance of Business Process Documentation • Documentation includes: – Business process models – Business rules – User manuals training manuals – Product specifications – Software manuals – Schedules – Organization charts 2-6 LO# Value of Business Models • • • • Graphical representations present information more concisely and clearly than a written description Manage complexity by incorporating only the essential elements Elicit requirements when used to interview involved parties Reconcile viewpoints by providing an integrated view 2-7 LO# Types of Business Models 2-8 LO# Activity Models • Variety of activity models – changing as technology changes – Flowcharts – Data flow diagrams – Business process maps – IDEF0 functional models 2-9 LO# Activity Models - Must be Able to Describe Events that start, change, or stop flow in the process Activities and tasks within the process The sequence of flow between tasks Decision points that affect the flow Division of activity depending on organizational roles 2-10 LO# BPMN for Activity Diagrams • • • • • BPMN stands for business process modeling notation The Object Management Group maintains the BPMN specification First specification issued in 2004 widely adopted Specifically designed for process modeling Designed to be understood by business 2-11 people LO# BPMN Building Blocks - Events • Events include start, intermediate, and end events Intermediate events affect the flow of a process, but not start or end the process st art int erm ediat e end 2-12 LO# BPMN Building Blocks Activities • • Activities represent specific steps in the business process Basic activities are modeled as rounded rectangles Each activity is described with a short verb phrase Act ivit y 2-13 LO# BPMN Building Blocks – Sequence Flows • Represented by arrows to indicate the progression of activity within the process Sequence Flow 2-14 LO# BPMN Building Blocks – Gateways • • Show process branching and merging as the result of decisions Usually gateways appear as pairs on the diagram The first gateway shows the branching and the second gateway shows merging of the process branches Gat ew ay 2-15 LO# BPMN Example Cash Scan I tem s and Identify Paym ent Method Custom er Presents Item s Accept Cash Bag I tem s Paym ent Method? Credit Process Credit Card 2-16 LO# BPMN Pools and Swimlanes • Identify participants in a business process • Pools identify organizations • • • • Swimlanes identify departments or individuals Activities are assigned to one participant to show responsibility Each pool must include one start and at least one end 2-17 The sequence flow must not break LO# Sw im lane 1 Pool Sw im lane 2 BPMN Pools and Swimlanes Example Start activity 4 End activity 1 activity 2 activity 3 2-18 LO# BPMN Pools and Message Flows • • • Exchanges between two participants (pools) in the same process are represented as message flows Message flows are shown as dashed lines with an arrow on the destination end and a small circle on the source end Message flow content should be described with text 2-19 LO# BPMN Pools and Message Flows - Example 2-20 LO# BPMN Modeling – Best Practices • • • • Focus on one business process at a time Clearly identify the events that start and end the process Include essential elements, but avoid distracting detail Think about a token flowing from the start event through the process to the end event; the flow of the token should be clear for all paths through the process 2-21 ... least one end 2- 17 The sequence flow must not break LO# Sw im lane 1 Pool Sw im lane 2 BPMN Pools and Swimlanes Example Start activity 4 End activity 1 activity 2 activity 3 2- 18 LO# BPMN Pools... circle on the source end Message flow content should be described with text 2- 19 LO# BPMN Pools and Message Flows - Example 2- 20 LO# BPMN Modeling – Best Practices • • • • Focus on one business process... branches Gat ew ay 2- 15 LO# BPMN Example Cash Scan I tem s and Identify Paym ent Method Custom er Presents Item s Accept Cash Bag I tem s Paym ent Method? Credit Process Credit Card 2- 16 LO# BPMN Pools