1. Week 7: Business Process Analysis
COIT BPM
Week 7: Business Process Analysis

2. Objectives Scope process problems
On completion of this module you should be able to:
Scope process problems
Divide the process hierarchy into three parts
Differentiate and identify simple and complex processes
Develop a gap model
Identify generic types of process problems
Develop a process analysis worksheet
Develop a process scoping diagram
Develop a business case for a process change
© Ritesh Chugh

3. Understanding and Scoping Process Problems
Explore the problem.
Gather information to understand the problem.
Consider the nature of business process problems.
Scope a process redesign or improvement project.
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4. What is a process?
A bounded set of activities that are undertaken, in response to some initiating event, in order to generate a valued result.
Processes can be very simple or extremely complex.
Consider whether a process functions as:
- a core or operational process,
a management process, or
an enabling or support process.
Harmon, 2014, Pg. 186
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5. Process Levels and Levels of Analysis
Usually divide the process hierarchy into three parts and associate problems and analysis techniques with specific levels.
One set of process analysis techniques is used to redesign or improve higher-level processes.
Another set is used on the types of process problems we find in the middle of the process hierarchy.
Still another set of techniques is appropriate for processes at the bottom of the hierarchy.
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6. Process Levels and Levels of Analysis (Contd..)
Harmon, 2014, Pg. 188
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7. Simple and Complex Processes
Simple processes usually follow a consistent, well-defined sequence of steps with clearly defined rules. Each step or task can be precisely defined and the sequence lacks branches or exceptions.
More complex processes involve branches and exceptions, usually draw on many rules and tend to be slightly less well-defined. They require more initiative on the part of human performers.
Harmon, 2014, Pg. 189
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8. Knowledge Work(ers)
Today’s workers are engaged in tasks that require more knowledge.
This implies that the workers use computers to acquire or manipulate the information they need to do their jobs. Perhaps even your doctor is using an IS to aid in diagnosis!
Harmon, 2014, Pg. 190
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9. Business Process Problems
A problem is the difference between what exists now and what we desire.
A model of problem solving—the Gap Model.
Harmon, 2014, Pg. 191
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10. Business Process Problems (Contd..)
Performance gap - difference between measures of the performance of the As-Is process and the To-Be process.
Capabilities gap - difference between how things are done now and how they could or should be performed in the redesigned process.
Harmon, 2014, Pg. 192
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11. Business Process Problems – An Example (Gap Model)
1. Define the as-is processes
2. Determine why it needs to be changed.
3. Define what the to-be process should do or not do when the project is completed.
4.Consider the means you will use to bridge the capability gap.
5. Consider what bridging the gap will cost in terms of time, cost and effort.
Harmon, 2014, Pg. 193
Harmon, 2014, Pg. 141
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12. The Initial Cut: What is the process?
Define a process with a verb-noun phrase.
Acquire more information – define the inputs and the outputs.
Define major sub steps in the overall process.
Talk to management to ascertain problem.
Develop a list of stakeholders.
Seek to refine our understanding of the problem.
Harmon, 2014, Pg. 194
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13. Refining an Initial Process Description
Create a process scoping diagram, which will help to analyse the relationship between a given process and its environment.
Harmon, 2014, Pg. 196
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14. Cause–effect diagram (Ishikawa or fishbone diagrams)
Usually, this diagram works better for smaller problems.
Harmon, 2014, Pg. 197
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15. Six generic types of process problems
Output problems
Input problems
Problems with controls
Problems with enablers
Process flow problems
Day-to-day management problems
(Problems 5 & 6 will be discussed in the next chapter.)
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16. Output Problems
Output problems result when the “customer” of the process is not getting what is needed.
Outputs can take different forms, including physical entities, information or data, or decisions/approvals.
Quality of output
Quantity of output
Timeliness of output
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17. Input Problems
This type of problem results because the “suppliers” of the process in scope are not producing what is needed by the process in scope.
Suppliers can include companies, individuals, or other processes and “inputs” can include things, information, money, or even temporary employees.
Quality of input
Quantity of input
Timeliness of input
© Ritesh Chugh

18. Problems with Controls
Controls define or constrain how a process is performed.
Four general types of control problems:
Process in scope not aligned to organization or value chain strategy
Problems with policies or business rules
Problems with documentation, manuals, etc.
Problems with external management processes
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19. Problems with Enablers
Problems with enabling or support processes arise when those processes fail to provide or maintain the resources needed by the process in scope.
Four types of problems with enablers:
Employee problems
IT problems
Facilities, equipment and location problems
Accounting and bookkeeping problems
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20. Process Analysis Worksheet
Prepared while talking to stakeholders and lists the problems encountered.
Harmon, 2014, Pg. 204
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21. Process Scoping Diagram
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Harmon, 2014, Pg. 205

22. Creating a Business Case for a Process Change Project
Steps in defining a preliminary business case include:
Define the As-Is process.
Determine what the As-Is process is or is not doing now.
Define what the To-Be process should or should not do when it is completed.
Consider the means you will use to bridge the capability gap.
Then consider what bridging the gap will cost in terms of time, cost, and effort.
Finally, consider the risks and the “politics” and revise if needed.
© Ritesh Chugh

23. Business Case Worksheet
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Harmon, 2014, Pg. 208

24. In summary Consider the nature of processes. Scope the problems.
Identify the gaps.
Recommend changes that might make a difference.
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25. Lecture Content Source
Harmon, P 2014, Business process change: a business process management guide for managers and process professionals, 3rd edn, Morgan Kaufmann-Elsevier, Waltham, MA. (Chapter 8)
© Ritesh Chugh

26. Next Week
Business Process Modelling- Chapter 9 (Modelling Business processes)