Quite a number of professionals in the IT industry
think that business model and business process model are one and the same. This
is further aggravated by those who use software languages such as Universal
Modelling Language (UML).
Business Process Model (BPM) is a process model,
representing pictorially the work-flow of an organization at its operational
level. It is charted to help improving business quality and performance by
taking the business as a whole. A BPM identifies and draws the activities
carried out in a business as process flow charts with the help of systems
theory, computer logic, communication and information network.
In sum, it is an activity chart representing how an
operation is carried through.The BPM has five activities: Draw existing process;
model a new design with appropriate changes; execute new design; monitor its
performance; finally optimize cost savings for the firm arising from the new
design.
On the other hand, business model describes the
logic of business concept and business strategy in practical economic terms. Mullins & Komisar defines
business model thus: “By business model, we mean the pattern of economic
activity cash flowing into and out of your business for various purposes and
the timing there of that dictates whether or not you run out of cash and
whether or not you deliver attractive returns to your investors. In short, your
business model is the economic underpinning of your business, in all of its
facets”.
Cheers!
Muthu
Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business
Strategist
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