“Business Activity Modelling will be among the top 4 IT initiatives in 30% of Global enterprises.” The Gartner Group.
Being a successful company today and securing that success going forward, depends on a company’s ability to respond quickly to changes in the market. How quickly can you adapt to address the changes in your customers’ demands? In the advent of new technology, if your competitors can respond quickly and modify their business process to embrace the change, they will have the advantage. This is the new “On-demand” world we live in. Modelling your current business processes today is the first step in becoming an “On-Demand” business. Without understanding exactly how your business works end to end, makes it very difficult to keep pace with your competitors.
Its no secret that companies are successful because they do something better than others or they fill a missing need in the market place. Most companies start out small and grow slowly. As they grow new employees are hired and taught the business. The process is usually the secret ingredient to the success of the company. It is no surprise that the way things are done — the business process — is defined, but not documented. It is understandable that if a company has the key to success, they would not want to document it so that someone else could steal it. Therefore, the process is usually is stored in the heads of a few key employees. This may be acceptable at certain sizes but as the company continues to grow and depend more and more on satisfying the demands of the customer, it can be a recipe for failure.
An “On Demand” company is defined as being able to respond immediately to changing customers demands, supplier changes and other market factors. By being able to respond quickly, companies can take advantage of these changes to gain a competitive edge over their competition and avoid being thrust into the “catch up” mode. Becoming an “On Demand” company requires building systems and processes that allow for rapid change. The first step in building these systems is Modelling – Defining the current system and analyzing the process.
Benefits of Modelling:
- Truly understand how the company spends its resources
- Identify inefficiencies and bottlenecks
- Identify potential cost savings
- Develop a plan for improvement
Often times, simply documenting the process highlights the areas of inefficiencies. For example, documenting the purchasing process may highlight that all items are approved by 2 specific people at the corporate headquarters regardless of dollar threshold and changing it to allow certain items to first be approved at the regional level, may speed up the approval process. Modelling is more than documentation. It includes running sets of transactions against the defined process to identify inefficiencies in the process that may not be noticable by a static view of the process.
Our Modelling Approach
- Interview people involved in the process and observe the process in action
- Document the process including times for each process, different types of transactions and all different scenarios
- Run sets of transactions against the process to identify bottlenecks and inefficiencies
- Create different modifications to the process and run additional sets of transactions to identify ways to improve process
- Make recommendations for improvement of existing process including a phased approach for implementation
The software we use to model can be purchased and used by company employees to further document and study effects of additional changes. Take the first step in becoming an On Demand company today contact Kolaco at (877) 739-9897.