Business Case for the Transnational Bank

i Table of contents Executive Summary i 1.0 Introduction 1 1.1 Background 1 2.0 Business Process modeling for the Transnational Bank 1 2.1 The Porter Process categorization model 2 Figure 1: The Porter categorization model 2 2.1.1 Primary activities 2 2.1.2 Supporting activities 3 2.2 Capability maturity model 3 2.3 Case function matrix 5 Figure 2: Case/function matrix of Transnational bank 5 2.4 Process model for: Customer support 7 2.5 Process model for: Credit management 7 2.6 7PGM discussion for: Customer support 7 2.7 7PGM

Business Process Modeling
Title page

Business Process Modeling
Executive Summary
This document presents the business case for the implementation of the business process model
of the Transnational bank. It begins by providing a description and application of the Porter
Process categorization model. It then goes on to provide a description and application of the
capability maturity model. Next, it applies the tools and techniques necessary to model the
business process to satisfactory standards. Among them are the Dijkman et al’s (2011) technique
of the case/function matrix to depict products and business functions and Mendling et al’s (2010)
7PGM guidelines for process modeling. The redesign techniques by Reijers and Mansar (2005),
which uses heuristics, are used to identify design flaws in the as-is model in order to reengineer
the current process models. Finally, the benefits of the new system to the Transnational bank are
outlined in the conclusion part which include faster customer service, reduced costs and more
focus on customer product and service improvisation by management.
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Business Process Modeling
Table of contents
Executive Summary
1.0 Introduction
1.1 Background
2.0 Business Process modeling for the Transnational Bank
2.1 The Porter Process categorization model
Figure 1: The Porter categorization model
2.1.1 Primary activities
2.1.2 Supporting activities
2.2 Capability maturity model
2.3 Case function matrix
Figure 2: Case/function matrix of Transnational bank
2.4 Process model for: Customer support
2.5 Process model for: Credit management
2.6 7PGM discussion for: Customer support
2.7 7PGM discussion for: Credit management
2.8 Cycle time for: Customer support
2.9 Cycle time for: Credit management
2.10 Redesign for: Customer support
2.11 Redesign for: Credit management
2.12 BPMS architecture
3.0 Conclusion
4.0 References

Business Process Modeling
1.0 Introduction
Business organizations and enterprises continually face the challenge of providing better
products and services to their clients and customers and therefore outdoing their competitors
(Phiphopsuthipaiboon and Boonsiri, 2016). This also means that they get to keep their
current customers, gain new ones and generally expand their business to make better profits.
At the core of these business practices are business processes. A business process is a set of
logically related activities which accept input and produce output at the end of their
execution. Business process modeling is the discipline by which enterprises and
organizations manage these processes in a cycle of analysis, design, and implementation. It
has gained prominence among SMEs in the recent decades as it continues to be adopted
(Dallas and wynn, 2014). The typical aims of the business process model is to speed up
execution, attain flexibility and reduce costs. Business process redesign on the other hand,
focuses on analyzing an existing process model, identifying its flaws and proposing a new
one.In this document both BPM and BPR are used to come up with the prescriptive process
model to be adopted.
As business process models keep increasing in size, they need to be managed through a
business process architecture, which is a means to structure a collection of business process
models (Dijkman et al., 2012). This structuredness tends to have a lot of benefits for
largescale software engineering, among them being reusability and understandability (Dumas
et al, 2012).
1.1 Background
The Bellatra dental clinic offers a wide range of dental services and products. These include
removing tooth decay, filling cavities, repairing fractured teeth and dental examinations such
as x-rays and checkups. The top management has lately decided that they want to improve
their business process model in order to improve performance and hence their services. As a
result, they have hired business process reengineering professionals to look into the current
business process model and develop a new one. The following sections of this report
elaborate the process.

Business Process Modeling
The main reasons for BPR initiative include:-
 To achieve faster and reliable customer service
 To decrease costs associated with the lack of customer focus in managing
product/service lifecycle
2.0 Business Process modeling for the Bellatra dental clinic
2.1 The Porter Process categorization model
The Porter process categorization model is a value chain model which describes a set
of processes and components which add value to an end service or product. The
organization is viewed as a system with sub systems. Each consists of input,
transformative processes, and output, which utilize resources such as raw materials
and labour. The model divides the activities into two generic categories that a
business should follow in their pursuit of profits; primary activities and supporting
activities. The figure below depicts the model.
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Business Process Modeling
Figure 1: The Porter categorization model
Support Activities
2.1.1 Primary activities
These are the basic activities that guide the whole value chain procedure
and include:-
 Inbound logistics- This involves all activities geared towards the
receiving, storing and dissemination of input to be transformed into
end products
 Operations- These are the processes required to actually transform
inputs into finished goods and/or services (output)
 Outbound logistics- This involves the collecting, storing and
distributing the end product/service to the consumer
 Marketing and sales- These are activities that reach out to potential
buyers and inform them about the available end products/services.
They also facilitate the buying of the final product.
 Services- These are activities which are necessary to keep the
product/service effective to the buyer after selling or delivering it
to them.
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Business Process Modeling
2.1.2 Supporting activities
These are activities which support the primary activities and include:-
 Procurement- This is the acquisition of materials, and/or services
from external sources to be used in the value chain
 Human resource management- Involves activities related to the
recruitment, hiring, training and laying off of staff involved in the
value chain of the organization.
 Technological development- This involves the employment of
equipment, hardware, software and technical know-how to
transform input into final products/services.
 Infrastructure- This consists of activities which support the whole
value chain process and include strategic management, finance,
accounting, legal and public affairs and quality control.
2.2 Capability maturity model
The capability maturity model outlines how much an organization’s processes and
practices are capable of achieving the desired outcome (Bayreuth et al., 2012). It
involves a sequential set of stages which show the maturity level of the processes and
practices, with the top most level provisioning for process optimization and
improvisation.
The capability maturity model was originally developed by the US department of
defence to assess a contractor’s ability to deliver high quality software in time and
within budget limits. This was due to many failures, delays or overstretching of the
budget due to project complexity.
Even though the model was originally meant for software projects, it has been widely
adopted in business process management to assess how effective the business
processes are in ensuring that the desired end product/service (output) is achieved
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Business Process Modeling
through the value chain. The processes are continually reviewed and improved as is
deemed necessary.
The capability maturity model has five aspects in which it focuses. These include:-
 Key process areas- A key process area is a set of logically related activities
which are intended to achieve a specific goal or a set of goals
 Goals- These are the preplanned results that are expected from a key process
area
 Common features- These are practices that implement a key process area.
Examples include measurement and analysis and verification of
implementation.
 Key practices- These are the most effective practices employed in the
implementation of key process areas
 Maturity levels- These are the five levels, which according to the Software
Engineering Institute include initial (chaotic), repeatable, defined, capable and
efficient, which is the topmost level.
The practical applications of a capability maturity model are description, prescription
and comparison. For descriptive purposes, the current business processes are
described just the way they are whereby no attempts for improvisations are made. For
prescriptive purposes the model identifies desirable maturity levels and how to
implement potential improvements. Lastly, the comparative purpose allows for
internal or external assessment of the business processes.
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Business Process Modeling
2.3 Case function matrix
Figure 2: Case/function matrix of Bellatra dental clinic
CASES
New patients Ongoing
general dental
patients
Ongoing
orthodontic and
cosmetic patients
Business functions Processes
Arrival of patient Complete sign in register
(reception)
Complete confidential
patient information
form, medical history
and patient photo
Enter information into
online database
(administration staff)
Acquire updates to
confidential information
and medical history
Enter details and care
updates into patient’s
electronic care record
Conduct
comprehensive
exam
Take x-rays on site
Take offsite specialist
panoramic dental x-rays
Give full report
Give schedule of care,
copy of x-rays and
dental care package
Give initial
treatment
Confirm medical history
Give medication
Follow up treatment
appointment
Give maintenance
care
Discuss medical history
Examine and clean teeth
Take onsite x-rays
Perform bi-monthly
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Business Process Modeling
check up
Perform twice yearly
check up
Release patient Process payment
(accounts staff)
Check private health
insurance
Book all ongoing
patients for next
appointment
2.4 Process model for: Arrival of patients
Complete sign
in register
Complete
confidential
information
Enter information
into online
database
Acquire updates to
confidential
information and
medical history
Enter details and
updates into
electronic record
New
patients
Ongoing
patients
Pass data to
administration
Pass data to
administration

Take x-rays on site
Send patient to offsite labTake specialist x-ray Send x-ray to clinic
Submit full report Complete sign in registerGive schedule of care, copy of x-rays and dental care p
Business Process Modeling
2.5 Process model for: Conduction of comprehensive exam
2.6 7PGM discussion for: Arrival of patients
From the customer support process model it can be seen that the 7PGM’s first
guideline has been applied, in that it has utilized as few elements as possible. The
second and third guidelines have also been observed by keeping the elements’ paths
to a minimum and by using a single start and end event. Finally, the model has been
kept as structured as possible by connecting split connectors to join connectors.
2.7 7PGM discussion for: Conduct comprehensive exam
The 7PGM’s first guideline has been observed by keeping elements in the process
model to a minimum. The second and third guidelines have also been observed by
keeping the elements’ path to a minimum and by using a single start and end event.
The fourth guideline has also been applied by keeping the model as structured as
possible, that is the split connector has connected to a join connector. Finally, the
sixth guideline has been observed by using the verb-object activity label.
Orthodontic and cosmetic
dentistry patients
General dental patients
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Business Process Modeling
2.8 Cycle time for: Arrival of patients
It takes approximately thirty minutes for a new or ongoing patient to complete sign in
register, to give details and information and pass it on to administration to enter into
the relevant databases.
2.9 Cycle time for: Conduct comprehensive exam
For the general dental patients it takes 90 minutes to take x-rays and get a full report.
However, orthodontic and cosmetic dental patients have to be sent offsite for x-rays
to be taken whereby results come back to the clinic after 7 days. This is the longest
time in the model. Therefore, the cycle time is 7 days.
2.10 Redesign for: Arrival of patients
Unlike in the previous process model, all data entry is done by reception, thus
eliminating the need for passing the details to administration.. The new process model
will be as follows:
2.11 Redesign for: Conduct comprehensive exam
Complete sign
in register
Complete
confidential
information
Enter information
into online
database
Acquire updates to
confidential
information and
medical history
Enter details and
updates into
electronic record
New
patients
Ongoing
patients
8

Take x-rays on site
Send patient to offsite labTake specialist x-ray Send x-ray to clinic
Submit full report Complete sign in registerGive schedule of care, copy of x-rays and dental ca
Business Process Modeling
With the redesign for the new process model, there is no need to send the patient to
the offsite laboratory for x-rays. The specialist x-rays will be done on site, reducing
the cycle time for getting x-ray results and submitting a report to the orthodontic and
cosmetic dental patients. The new model will be as follows:
2.12 BPMS architecture
Patients access and channels
Reception
Administration Accounts x-ray
Laboratories
Treatme
nt unit
IT
ma
na
ge
me
nt
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Business Process Modeling
3.0 Conclusion
Business process modeling and reengineering is a very beneficial tool to the organization for
continually improving their services and products. From the above reengineered business
process model the Transnational bank stands to benefit in a number of ways which include:-
 Faster customer service
 Reduced costs of operation
 More time for management to be customer oriented
 Increased profits
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Business Process Modeling
References
Dallas, I., & Wynn, M. T. (2014). Business process management in small business: a case study.
In Information Systems for Small and Medium-sized Enterprises (pp. 25-46). Springer
Berlin Heidelberg.
Dijkman, R. M. Designing a Process Architecture-A Concrete Approach. Technical report, TU
Eindhoven.
Dumas, M., La Rosa, M., Mendling, J., Mäesalu, R., Reijers, H. A., & Semenenko, N. (2012,
June). Understanding business process models: the costs and benefits of structuredness.
In International Conference on Advanced Information Systems Engineering. Springer,
Berlin, Heidelberg.
Dumas, M., La Rosa, M., Mendling, J., & Reijers, H. A. (2013). Fundamentals of business
process management. Heidelberg: Springer.
Eid-Sabbagh, R. H., Dijkman, R., & Weske, M. (2012, September). Business process
architecture: use and correctness. In International Conference on Business Process
Management (pp. 65-81). Springer, Berlin, Heidelberg.
Phiphopsuthipaiboon, S. (2016). BUSINESS PROCESS REENGINEERING-CASE STUDY ON
COMPUTER CENTER SERVICE (Doctoral dissertation, Chulalongkorn University).
Röglinger, M., Pöppelbuß, J., & Becker, J. (2012). Maturity models in business process
management. Business Process Management Journal, 18(2).
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Business Process Modeling
Rosemann, M., & vom Brocke, J. (2015). The six core elements of business process
management. In Handbook on business process management 1 (pp. 105-122). Springer
Berlin Heidelberg.