Chapter5_Modelling Business Systems

BUSINESS ANALYSIS Chapter 5: Modelling Business Systems HCM – Apr-21 4/7/2021 Objectives Be able to: Understand and apply Soft Systems Methodology to:  Understand the current situation  Identify and model various business perspectives  Model the essential activities  Identify the differences between the activities on the consensus BAM and the current real situation 4/7/2021 Trang Agenda Soft Systems Methodology Analyzing stakeholders’ perspectives – CATWOE Business Activity Model Producing a consensus model Business Events AND Business Rules CSF AND KPI Use of BAM in GAP analysis 4/7/2021 Trang Soft Systems Methodology  Understand the current situation – using Rich Pictures  Identify and model various business perspectives – using Root Definitions and CATWOE  Model the essential activities necessary to support each individual CATWOE – using Business Activity Modelling  Fuse the various resulting BAMs into a consensus BAM – using synthesis of BAMs  Identify the differences between the activities on the consensus BAM and the current real situation – using gap analysis Checkland’s soft systems methodology Analyzing stakeholders’ perspectives CATWOE technique is a helpful approach to analyze and define the different elements of a business perspective  Customer: the beneficiary or victim of the system  Actor: the person or organization that undertakes one or more of the organization’s activities  Transformation: The core business activities that are carried out to transform an input into an output of some values to the customer  World View: an encapsulation of the beliefs and values of a given stakeholder in relation to the business system and why it exists  Owners:  Environment: The constraints or givens against which the business system operates CATWOE technique 4/7/2021 Trang How to use CATWOE technique C = Customers • Who is on the receiving end? • What problem they have now? • How will they react to what you are proposing? • Who are the winners and losers? 4/7/2021 A = Actors • Who are the actors who will 'do the doing', carrying out your solution? • What is the impact on them? • How might they react? T= Transformation process • What is the process for transforming inputs into outputs? • What are the inputs? Where they come from? • What are the outputs? Where they go to? • What are all the steps in between? Trang How to use CATWOE technique W = World View • What is the bigger picture into which the situation fits? • What is the real problem you are working on? • What is the wider impact of any solution? 4/7/2021 O = Owner • Who is the real owner or owners of the process or situation you are changing? • Can they help you or stop you? • What would cause them to get in your way? • What would lead them to help you? E = Environmental constraints • What are the broader constraints that act on the situation and your ideas? • What are the ethical limits, the laws, financial constraints, limited resources? regulations, and so on? • How might these constrain your solution? How can you get around them? Trang CATWOE technique - Example The branch is a system controlled by the bank chief executive (O), where bank tellers, back office staff and branch management (A) provide branch customers (C) who require personal service with bank counter services such as cash deposit and withdrawal, answering account enquiries and setting up standing orders, in order to satisfy their banking needs (T) within constraints imposed by government policies on banking regulation, the global banking crisis, increasing use of online services, increasing electronic funds transfer and increased regulation by financial regulators (E) BAM example BAM example enrol students educate students award degrees + diplomas to students reaching acceptable levels design education programmes allot resources appreciate national standards design and carry out assessment A university owned and operated system to award degrees and diplomas to suitably qualified candidates (X), by means of suitable assessment (Y), (in conformance with national standards), in order to demonstrate the capabilities of candidates to potential employers (Z) Process for building a BAM Identifying the main doing activities Consider the constraints Add dependency Look for enabling activities Add control activities Add ‘lightning strike’ control arrows Identify planning activities Add monitoring activities Producing a consensus model  Create a tentative consensus model, by combining all individual BAM activities, events and dependencies;  Derive a new, consensus business perspective for the area of study;  Test the tentative model against the new business perspective, adding, removing or modifying activities as necessary, in order to satisfy the consensus view;  Finally, check the consensus model to ensure that it fully satisfies the new business perspective and the objectives of the area of study and the change project Business Events AND Business Rules  Business Events happen in the real world  For example, customers place orders, suppliers send in invoices and employees resign All of these events trigger the business system to something – typically an activity or a series of activities – in order to respond to the event  For the activities identified in the BAM, there will be Business Rules governing their performance Types of events External: these events originate from outside the boundary of the business system Internal decision points: these events are usually internal decisions made by business managers Scheduled points in time: these are the events that occur regularly Types of 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 An example for a travel organisation would be the guidance on how to calculate discounts on holidays where there is a group booking ... 4/7/2021 Trang Agenda Soft Systems Methodology Analyzing stakeholders’ perspectives – CATWOE ? ?Business Activity Model Producing a consensus model ? ?Business Events AND Business Rules CSF AND KPI... example use 4/7/2021 Trang 15 BAM approach - symbols Business Events Trigger the Activities of one Business Thread Business event Activity A Business Thread Activity D Activity B Activity C 4/7/2021... ensure that it fully satisfies the new business perspective and the objectives of the area of study and the change project Business Events AND Business Rules  Business Events happen in the real