What is Business Modelling?

There are two main areas of activity that arecontribution factor to ineffective databases and
referred to as "business modelling". The first ispoor data quality.
that set of activities carried out by financialAfter you have done the Function and Data
experts, economists, etc. that is concerned withModels, you can produce the following models, as
analysing, modelling and predicting the financialan when they are useful.
performance of a business, business sector or anBusiness Processes
industry.In formal terms, a Business Process defines the
The second is all about modelling what a businessorder in which Business Functions need to be
does, or OUGHT to be doing, in order ensure thatcarried out in response to a specific Trigger, in
it is doing the right things in the most effectiveorder to arrive at a predefined outcome. Less
and efficient ways possible.formally we could say "Whenever the event X
The essential areas to model for a business are:happens we would like to get result Y, what
Business Functionsfunctions do we need to carry out and in what
These are the core activities of any business. Asequence in order to achieve this?"
properly built Function Model is a definition ofProcess Modelling is, perhaps, the most widely
exactly WHAT it is that the business OUGHT tomisused and abused of business modelling
be doing, independent of who does it or how it istechniques.
done.Information Flow
The function model should be built before anyThis is all about showing how information flows
other models as all they are all based on it.around the business and between the business
Data Structureand the outside world.
This defines the elements and structure of theProcedure Modelling
data required to support the Business Functions.This is a means of modelling HOW things OUGHT
This key model is the one most often omitted byto be done in the business for maximum
business analysts because, remarkably, veryeffectiveness. There are several other models
many business analysts cannot do data modelling.that can be built as an when required but the
This disconnection of data from function duringmodels above will cover 100% of your needs
the business analysis stage of projects is a major80% of the time.