An Effective Practical Approach for Business Process Modeling and Simulation in Service Industries

Abstract

Simulation imitates the behavior of real systems by applying different methods and applications. Business process modeling and simulation is a new quantitative approach to model, analyze, and improve the efficiency and effectiveness of business processes in a structured manner. Because there is a lack of practical framework or process to provide sequential steps of process simulation in a more comprehensive and structured way, this paper develops a new standard and practical process for effective process simulation in service industries, proposing different modeling and analytical approaches and discussing the methods that can be utilized in each step. This model has been implemented in several business areas in a large financial institution with exceptional results of cost saving and process improvement.