BusinessOptix's Process Transformation functionality enables business analysts to:
- more easily document a future state process from your current state process model
- show process owners and other stakeholders the current, future and change state and to quickly switch between them
- capture high-level metrics on the costs and revenue associated with activities in the current state process model and how costs and revenue change in the future state
- rapidly iterate and produce the information needed for your business case
Getting Started with Process Transformation
One of the samples BusinessOptix provides in every library is called Process Transformation The business process is a simplified HR onboarding process that is used to demonstrate many of the features of modelling process change.
Browse to system/samples/process transformation to load it.
When you initially open the process model you are shown the change state view of the process. In this view, BusinessOptix uses colour shading to indicate whether in the future state process model the activity is being kept, modified, dropped or added.
You can easily switch between this view and either the current state or future state by selecting the process from the Table of Contents (on the right-hand side) and then from the Transformation Property Inspector select Current State, Future State or Changes.
Adding Metrics to Your Current State Process Model
For all of the elements in your current state process model, you can enter metrics. The metrics you are asked for will vary depending on which process element you are viewing.
A BusinessOptix Transformation is not a simulation and does not take into account whether resources are available to complete the activity. If you are looking to understand resource usage, optimisation or the impact of changing resource availability then please review BusinessOptix's Scenario capabilities.
For the Process
In order to quantify the benefits/costs of the process transformation, you start by entering the quantity of work.
Select the Process and in the Metrics tab complete:
- Annual Volume - the number of process instances occurring on average per annum
- Maximum Annual Volume - this metric is only required if you are also using BusinessOptix Process Scenarios.
- Percentage Annual Growth - what change in work volume do you expect year on year. Enter a negative percentage if you expect the process volume to decrease.
For each activity, you will be asked to record a variety of time and financial metrics. For each time you can record in seconds, minutes, hours, days, months or years. The metrics you will need to enter include:
- Wait Time - the time that you typically have to wait before this activity can start
- Max Wait Time - the maximum wait time before this activity can start
- Work Time - the typical amount of time to carry out this activity
- Max Work Time - the maximum amount of time to allow to carry out this activity
For the financial metrics BusinessOptix you will need to enter:
- FTE - use this metric if you are using role-based master data and you have entered the hourly rate of the role responsible for the activity. For BusinessOptix will use the Responsible role selected in the Details tab to identify the role. The role cost can be entered in Shared/Master Data/Roles.xbp. In calculations, the number entered here will be multiplied by the work time and hourly rate (from the master data)
- FTE Cost - if you are not using role-based master data then enter the total cost of all resources that carry out this activity. For example, if the FTE cost is £10 per hour and the activity time is 3 minutes then the cost associated with the activity is £0.50. If this metric is entered (even if the value is zero) it will override the FTE calculation above.
- Per Unit Cost - if you have non-FTE costs such as machine usage or other consumables (paper, delivery costs) then record here. If this metric is entered it will override the FTE and FTE metrics above, therefore if you have both FTE and non-FTE costs you will need to include them both in this cost.
- Per Unit Revenue - if you by completing this activity you will collect some revenue then enter it here.
When you have a gateway with alternative paths you will need to enter the probability of the process following each of the paths. You enter this on the links coming from the gateway.
Select a link and on the metrics tab, you enter the probability. Probability is represented here as a percentage with a value between 0 and 100. You do not need to enter a probability on the last path as BusinessOptix will calculate the remainder.
Documenting Your Future State Process Model
In your future state business process, you will be making decisions about which activities are staying the same, being modified or are no longer required.
Changing a Process Activity
For any process activity that is being changed in the future state you need to select the activity and on the transformation tab you select the appropriate transformation:
- Keep - this activity remains unchanged in the future process state;
- Drop - this activity is no longer required in the future process state. You then have the option of entering some free text information on why this activity is no longer required;
- Add - if this a new activity then mark it as an add. For new activities, you do not need to enter any current state metrics, but you will need to enter some future state details;
- Modify - when you are making changes in the activity select this option. You will need to enter any attributes on the activity that change. You do not need to enter everything, only the attributes that are changing
If you are adding or modifying the activity in the future state you will need to enter details on what is being changed.
An activity in the future process state can be modified by:
- Activity Type
- Systems used
- Wait Time
- Maximum Wait Time
- Work Time
- Maximum Work Time
- FTE Count
- FTE Cost
- Per Unit Cost
- Per Unit Revenue
Changing a Gateway
In the same way that activities are changeable in a process transformation, you may also change the paths from a gateway by keeping them unchanged, dropping them if they are no longer relevant, adding them if they are new or modifying them if there is a change.
In the case of Modify or Add you will need to enter the probability of the process following this path.
Cost of Change
The final piece of financial information to enter is the cost of carrying out the change. At the Process level, select the transformation tab and enter both the cost of change and any recurring annual costs associated with the change.
Business Case for Process Transformation
With a future state business process model and metrics entered to record costs and revenue changes from the current state process model you are now ready to generate the Process Transformation Output. The generated output provides you with the following details:
Return on Investment
Easily find out whether the process transformation proposed is going to be financially beneficial to your organisation.
Cumulative Revenue/Costs/Cycle Time
Easily visualise where the revenue, costs and cycle times change through the business process.
Activity Revenue/Costs/Cycle Time/Wait Time/Work Time
For each activity in your business process understand how the revenue, costs, cycle time, wait time or work time has changed between your current state and future state.
In the metrics data, BusinessOptix provides tables of all of the data about your current and future state process transformation. The tables either represent all the processes for a year or an average process.
Note that when reading the timings for an average process that is after a gateway that the activity time will not be the same as entered in the process model. This is because we are reflecting the average across all process instances and if only 60% of process instances follow this path then the activity time will be 60% of the work time entered on the activity metrics.
Process Transformation provides an easy way to document your current and future process state and quantify in both process and financial metrics the benefit of the change being proposed. If you have more complex process modelling and simulation requirements that need to take into account changing work rates and more complex staff working patterns then please review BusinessOptix Scenarios.