BTM - Business Transaction Modelling
Brand New Business Modelling Technique
Business Transaction Modelling (BTM) is the latest technique to be added to the Integrated Modelling Method. Like all other techniques in IMM, BTM is fully integrated with the core techniques of the overall method.
What is a Business Transaction?
A business transaction is a series of steps (Business Functions) that must be carried out in a business in response to a specific Trigger in order to arrive at a defined Preferred Outcome.
The difference between a Business Transaction and a Process is that a Business Transaction must create an asset or revenue, reduce loss or liability or improve the relationship with a customer, supplier or employee.
The Business Transaction is not complete until the defined added value has been realised and no further action is required from the business.
An eBook will be published shortly describing BTM in detail. This book will describe:
- How to build business transactions.
- How to tune them
- How to convert processes to Business Transactions
Fill in your details below (put “BTM Rapid Guide” in the Subject field) to get a FREE Rapid Guide to Business Transaction Modelling.
Follow me on Twitter @JohnIMM or go to at http://twitter.com/JohnIMM
If you enjoyed this post, make sure you subscribe to my RSS feed!
Hi Joe
To some extent you are right. There ought not be a difference between “transaction” and “process”.
However, in far too many organizations at the present time processes simply meander from some triggering event to some vaguely defined outcome without having any required added value defined or embedded in the outcome.
The main difference in BTM, is not so much the difference between “process” and “transaction”, but in the modelling method which ensures that the required business functions are executed in an effective and efficient manner that guarantees that the added value will be achieved.
I have deliberately separated, for the moment, “transaction” from “process” in order to avoid it being seen as “just process modelling”!
I do intend to bring these back together in the coming months. As a precursor to this I will be including in my eBook a technique for converting processes modelled in the conventional manner to “value adding transactions”.
Do have a look at the technique as introduced in the Rapid Guide and let me know what you think.
Thanks for your comments.
John
Hello John,
Firstly let me state that I have not read the ‘Free Rapid Guide’, so my comments maybe premature, but based upon your synopsis above…
If one looks at an organisation’s value chain as being their top-level start of their Business Process hierarchy, and that a business process model is a series of steps that a business carry out in order to respond to a business event or trigger with a defined outcome (or outcomes) .
I recall that Porter perceived a business as a chain of related activities, each of which added *value* to a product or service, where value is an asset, revenue, reduction in cost, loss or liability or service improvement with a customer, supplier, employee or other stakeholder.
… in summary, at face value, I do not see the distinction between processes vs transactions, aside from terminology.
Joe