Business Process Models And Strategy Analysis Essay.

On successful completion of this assessment, you will be able to:

Knowledge and Understanding

• Critically analyse the theory, concepts and models of operations and information management and demonstrate an understanding of the strategic importance of information management in global organisations.
• Evaluate critically the fundamental principles of information systems and the significance of a socio-technical approach to their use in organisations.
• Select and apply appropriate problem-solving and improvement approaches for information systems in organisations.

Transferable/Key Skills and other Attributes

• Identify and utilise appropriate methods for collecting and analysing data related to operations and information management
• Locate, summarise and synthesise a range of information from published literature and electronic sources on operations and information management
• Use communication skills; listening; questioning; oral and written; using a range of media, including the preparation of audit report and delivering presentations;
• Show effective use of Communication and Information Technology (CIT) by creating a report;

Part A: Analysis – Business Process Models and strategy analysis

Part A:Analysis – Business Process Models and strategy analysis

Chris and Clive are in the music business under CC music group. They need new strategic business model to be able to operate more efficiently and effectively. Complicated business modelling techniques that cannot be reduced to simple and understandable actions usually do not work in organizations. After all, ultimately, the implementation of these techniques and the results of their use fall on the staff and line managers of the organization, who do not always have specialized competencies in the field of management techniques and business engineering, and sometimes meet them "in hostility (Allweyer, 2016).

In order for the methodology (technology) implemented in an organization and the project as a whole to be successful and bring planned results, it is desirable that they be:

• Inexpensive. This is especially true for medium and small organizations that cannot afford to implement expensive solutions;
• Simple and understandable to ordinary employees of the organization;
• Practically aimed, to have fairly “fast”, and at the same time, long-term results;
• Took into account the specifics of the management of companies;
• Contained examples and typical solutions (Allweyer, 2016).

SWOT Analysis

Strengths ·         Responding quickly to the red tape, and no need for higher management approval. ·         We are able to give really good customer care, as the current small amount of work means we have plenty of time to devote to customers. ·          Strong reputation in the market. ·         Easy change of direction quickly if we find that our marketing is not working. ·         Low overheads, so we can offer good value to customers.

Weaknesses ·         Little market presence or reputation. ·         a small staff, with a shallow skills base ·         vulnerable cash flows in early stages ·         inability to expand the market base

Opportunities ·         business is expanding especially in the music  industry ·         competitors are slowly adopting to new technologies ·         integration of technology in business

Threats ·         development in technology may cause rapid change beyond the business ability to adopt. ·         A small change in the focus of a large competitor might wipe out any market position

Here it is also appropriate to list the 8 main principles of quality management , which relate to all tasks of business modelling and allow to ensure their implementation (Bohari, Hin, & Fuad, 2017)..

Customer orientation;

    Leadership;

    Employee engagement;

    Process approach;

    System approach to management;

    Continuous improvement;

    Decision making based on facts;

    Mutually beneficial relationships with suppliers.

1. b) Strategic analysis for CC Music

Indeed, the failure to even 1-2 principles can have a negative impact on the development of the organization.

Value of business modeling

Starting the development of business models, organizations devote certain human and material resources to the project. At the same time, the improvements resulting from the work done should exceed these costs. How does the business model ultimately help the functioning of the organization? There are several of the most noticeable and widely known positive effects, manifested in the competent and systematic description of business processes (Born, Dörr, & Weber, 2007).

    Increase transparency, manageability and controllability of the organization at all levels;

    Reduced execution time and costs, improving the quality and efficiency of business processes;

    The ability to replicate business organizations (create additional client offices, offices, representative offices);

    Comprehensive and sustainable development of the organization, a systematic approach to decision making;

    Decrease in dependence on personnel, correct selection of employees, increase of overall performance of personnel and managers;

    Increase loyalty and customer satisfaction, and, as a result, the reputation of the organization;

    Financial results.

However, there are other aspects that are not so well known to a wide range of managers and business owners.

SWOT Analysis

Business modeling and related technologies / solutions have a significant impact on the ratings of organizations that are assigned by rating agencies, including international ones (Fitch, Moody’s, S & P, etc.).

As a result of analyzing the methods of assigning ratings of various international and The countryn agencies (including [3]), as well as the results of interviews with agency representatives, the author found out that many agencies take into account a group of factors under the conditional name “Corporate Governance / Management” (non-financial estimates). This parameter includes the following factors (Cimino, Palumbo, Vaglini, Ferro, Celandroni & La Rosa, (2017).:

    Adequate and detailed strategy of the organization;

    Developed risk management system (including operational risk management system);

    The level of regulation (formalization) of business processes;

    Quality of business processes (history of KPI indicators);

    The level of automation of business processes, the state of information systems and technologies (IT);

 Organizational structure (formalization, efficiency, transparency, distribution ofesponsibility and authority); The evolution and functioning of various management systems in an organization (quality management system, work system and customer relations, personnel management system, etc.). Detailed conditions and assessments depend on a particular agency. The rating assignment algorithm is quite simple and understandable. The auditors of the rating agency study and evaluate the organization’s activities in accordance with the rules and criteria laid down in the rating methodology (De Giacomo, Dumas, Maggi & Montali, 2015). The input information includes: Regulatory and reporting documents of the organization; Monitoring the organization's activities and interviews. Therefore, it is important not only to develop a large number of correct and relevant documents, but also to bring them to the staff, to ensure effective execution of business processes and the functioning of management systems in practice. Evaluations for all criteria are summed up according to certain rules and, based on from the total score, are determined by the rating of the organization. Each group of criteria may have a different weight, so a large amount of points for a group of criteria with a small weight will not make a very large contribution to the final grade. The conditional designations of assigned ratings (rating scale) may vary depending on the rating agency and the type of rating (music rating , reliability rating, management quality rating, financial stability rating, etc.). For example: the highest level of reliability, a satisfactory level of reliability, a low level of reliability, etc. The high rating indicates not only the reliability and stability of the organization and its management, but also allows us to solve the following important tasks.

Value of business modeling

Part B: Open Source Software Comparison Table

Improving the image (authority) of the organization in the market, among partners and contractors; Improving the image (credibility) of an organization with state authorities; The expansion of the customer base; Attracting investors; As a consequence of all the listed items, the financial indicators are improved. Thus, for public companies interested in increasing international or national ratings, it is reasonable to take into account additional opportunities for improving rating positions when evaluating the effectiveness of a project to build an integrated business model. It should be noted that adequate study of all the factors listed above that affect the organization’s rating certainly requires the use of professional business modelling software (ASB).

Additional opportunities in this direction are provided by using typical successful industry solutions. As an actual example, one can cite the “Comprehensive typical business model of a commercial music business” [1] developed in the software product Business Studio.

Summarizing the best practices of process management in music institutions, this model acts as a model on the basis of which financial sector companies can improve corporate governance in all of the above parameters. Practice of business modelling in financial and music organizations A decision on creating an organization’s business model can be made -differently, depending on the particular management of certain companies. Sometimes this is the sole decision of a top manager, it is also possible that the business owners are aware of the need for business modeling. In the practice of working with music businessing organizations, the author had to deal with such examples.

All music business activities at the press of a button on a computer" the Chairman of the Board of Music business A at one of the meetings ordered: "It is necessary that all music business activities be formalized, so that by pressing the button on the computer, I could see the work of any employee and any business process of the music business: its goals, indicators, processes, technologies, results, etc. ”. To solve this problem, an electronic business model of the music business was developed Links located in it allow you to track all activities: A manager can open any document, a business process diagram, find out those responsible for business processes and procedures, statistics on business process indicators and current values, a list of projects currently being implemented at the music business and their status , the organizational structure of any unit and much more. The chairman of the board was very pleased with the work done. It should be noted that the work was completed in a short time: 1.5 years have passed since the task was set before the final results were obtained. The high speed of the project was achieved thanks to the use of the standard solution “Comprehensive typical business model of a commercial music business” [1], which is a system of interrelated models, documents and directories describing most areas of activity and management systems of a universal commercial music business.

Part B: Open Source Software Comparison Table

Part C: Report

Expert in organizational development and process management in the music business sector

Partner GC "Modern management technologies"

Head of Corporate and Corporate Development Projects

Author and developer of electronic information and practical solutions that for many years have been actively introduced and used in music business in the country and the CIS (Conforti, Dumas, García-Bañuelos, & La Rosa, 2016)

The article is devoted to tasks and projects from the field of business modelling, business engineering and organizational and corporate development. It systematizes information that should help a deeper understanding of the meaning and features of business modelling in organizations, and also shows the role of business modelling to gain additional competitive advantages. Various examples, interviews, links to methods and practical solutions are given (Günther, Leopold, & Mendling, 2016)..

The main types of business models that are developed in organizations: All these models allow you to develop professional software business modeling (PPBM). For more than 10 years, the author has used in projects and in-house developments most of the solutions known on the market for SMAP: Business Studio, ARIS, Allusion Process Modeler (BPWIN), Business Engineer, Microsoft Visio. Each of them has its own functional features, limitations and advantages Ivanchikj, Ferme, & Pautasso, 2017).

In the software product Business Studio, the author is developing a "Comprehensive typical business model of a commercial music business" [1], which is of interest to financial organizations.The report  discusses the practical aspects of determining the boundaries of processes when modeling in the Business Studio environment using eEPC notation. The article is addressed to company employees who master process modeling using Business Studio 4Introduction

In this article, we will look at some practical important aspects of describing the processes in eEPC notation in the modeling environment of Business Studio .The ARIS methodology (Architecture of Integrated Information Systems) is one of the modern process description methodologies.. The basis of the methodology is that any organization is considered as a complex system, the description of which is built from four main groups of models: models of organizational structure, models of functions, data models and combining these three groups - models of business processes. Among the most practical ones, the basic ARIS architecture notation is the eEPC notation, which means “extended chain of the event-driven process (Jung Kim, Lee & Kim2015)..

The EPC notation is supported by many modern software products designed to describe business processes, including Business Studio 4.0.

Let's see how you can visually show the boundaries of the process in the EPC notation of the Business Studio modelling environments an example of the process that we analyzed in the first article of the series (there its scheme was presented in the “Procedure” notation). The process boundary in the eEPC notation can be shown using( Kalenkova, et al 2014):

Informational and / or material flows shown by the corresponding graphic objects (for example, a paper document “Request from customer” and electronic document “Price list for goods” - process inputs, “Failure information” and “Invoice for payment” - process outputs) (Model, 2017).

Resource icons (paper and electronic documents, information, etc.) are associated with specific objects from the “Objects of Activity” directory.

Therefore, for modeling several resources on a process diagram, it is necessary to use an appropriate number of graphic objects. If, for example, there are too many document icons (5-6 documents “go out” from a single operation), then the problem can be solved by creating sets of objects in the “Objects of Activity” directory and calling them appropriately (“documents package”, etc. .). The disadvantage of this solution is the subjectivity of aggregating real resources (documents) into groups.

As mentioned in the first article of the series, the inputs / outputs of the process should not “hang in the air”. This means that we must always understand where the relevant documents come from and where they go. This is an element of the Business Studio system. The possibility and feasibility of using external links on the diagrams in the eEPC notation should be discussed at the company's methodological council in the development of an internal Standard for describing processes using Business Studio (Seiger, Keller, Niebling, & Schlegel, 2015). Option “B” - to show that the “Request from the client” comes from the object of the “Subjects” reference book under the name “Client” (in the reference book we created an object with the type “external entity”). This modelling option is also supported by Business Studio, but is not intended in the eEPC notation (it is possible on other types of diagrams in the ARIS methodology). Although for an inexperienced user, this option looks quite natural, but it is not recommended to use it in modelling due to subsequent problems with reporting.

The resulting integrated business model of the music business ensured a systematic approach to managing the music business, which allows you to quickly make decisions and make any changes in the music business’s work, increasing the efficiency and quality of both individual business processes and departments, and the music business as a whole (Sen, Anand, & Mishra, 2016).. Development of the Music business ”The shareholders of Music business B set the task of developing a comprehensive and long-term development strategy for the music business based on modern management technologies. After conducting research and taking part in several business trainings, the organizational and corporate development specialists of the music business offered the following solution to the shareholders. Since the music business’s corporate strategy has already been defined, you can start by developing a music business’s business process management system, since it’s business processes music business operations, and customer satisfaction and music business profits depend on the results of business processes. We will describe all key business processes, create process teams and train them, ensure effective interaction of all participants in business processes so that business processes can be executed faster; We will improve (optimize) the processes where it is needed, then organize the management of business processes on an ongoing basis (Skouradaki, Roller, Leymann, Ferme, & Pautasso, 2015). Within each business process, we organize strategic planning so that each business process has a strategy based on current market trends, customer requirements and the music business’s strategy, as well as goals and indicators; When business processes and their management become transparent and streamlined, we will move on to the next task - building a music business’s quality management system (according to ISO 9000 standards) based on a process management system. That is, the QMS will be an add-on for the process control system. This will allow the music business to receive a certificate of compliance with ISO 9001 and enhance its image, both among customers and partners. Also, thanks to the QMS and the ISO 9000 standards, we will significantly reduce the number of Clients' claims to the music business and the costs of poor-quality products and services, minimize operational risks, complement the music business’s activities with new requirements and management methods; In parallel, we will begin to automate business processes. We will update and transfer to a qualitatively new level of the electronic document management and operational management system (DocFlow / WorkFlow), customer interaction (CRM), etc. so that this activity is a system (Specification, & Model, 2016). As a result, we will receive an integrated music business management system - a modern efficient organization management tool for shareholders and top managers. In the current conditions in a number of markets, an increasingly frequent situation occurs when the value of price competition decreases, and the low price of goods or services is no longer the key way to attract and retain Customers. products / services of a music institution, convenience of interacting with the music business to resolve all issues and problems, the ability to quickly meet the organization's new needs and customer requests. Such important parameters as reliability and stability of the music business, one of the indicators of which is its rather high rating in domestic and / or international agencies, are also of considerable importance. Therefore, there is every reason to assume that the need for business modeling, implementation of business engineering technologies and organizational development will only grow.

Reflection on your contribution to the online discussion

Users of the eEPC notation in Business Studio recommend remembering a simple principle: “document exchange is possible only between processes”, i.e. it is impossible to simulate the exchange of documents between subjects on the process diagrams (unless you use a special notation, where, on the contrary, it is required) .Pay attention to such an important schema object as the process interface. From such an object called "Pricing Management" comes the document "Price list for the goods", which is the entrance to the operation "Perform analysis of the request." Such a presentation means that the Pricing Management process is the provider of the information input (document) for the process we are considering. If you select the process interface in the diagram with a mouse and click the down arrow on the toolbar, then in Business Studio you will switch to the corresponding process diagram. t is important to note that one of the reasons for creating BPMN was the need to build a simple mechanism for designing both simple and complex models of business processes (van der Aalst, 2018). To meet these two conflicting requirements, an approach was taken to systematize the graphic elements of the notation into categories. The result was a small list of categories of notations, which allowed people working with BPMN diagrams to easily recognize the main types of elements and correctly read the diagrams. The main categories of elements allow internal variations, as well as adding information to meet the requirements of complexity without making significant changes to the overall structure of the diagram for ease of understanding.

In the software product Business Studio, the author is developing a "Comprehensive typical business model of a commercial music business" , which is of interest to financial organizations. The report  discusses the practical aspects of determining the boundaries of processes when modelling in the Business Studio environment using EPC notation. The article is addressed to company employees who master process modelling using Business Studio

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