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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

For a Rapid Guide to Business Transaction Modelling please visit our online store.

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6 Responses to “BTM – Business Transaction Modelling”

  1. Rob Sewell November 19, 2010 12:07 pm #

    John, I have just read your BTM Rapid Guide, for which many thanks. I had been progressing down the FM and BPM route, having purchased your books. It now seems to me that for my current work, BTM is a better bet. So, three questions:

    1) When can I see a full-blown book on BTM (roughly)?
    2) Do I still need to do FM before BTM? In BTM you start to use functions, should these be existing ones that I have catalogued, or do I determine separately what functions are needed to reach a trigger from an outcome and then build them up later?
    3) What do you see as the process for approaching my business stakeholders with a view to informing BTM and reaching a successful state?

    Cheers,

    Rob

    • John Owens November 19, 2010 7:21 pm #

      Rob

      I do not a date for a full blown book on BTM – but it is to be produced.

      With regard to functions, the answer is “yes”, you should always start with modelling the Business Functions as they are the foundation for all other business models.

      With regard to approaching your stakeholder, I would need to talk to you more on the overall context in order to best advise you.

      John

  2. Aaron Taylor September 23, 2010 7:32 am #

    Mr. Owens,

    This comment is rather “late in the game”, I had just come across your comments and enjoyed the insight you provided. I am comparing business transaction approaches to business process exercises, and appreciate the clear sense of difference you provided. And I look forward to reading more of your work.

    Regards,

    Aaron Taylor

    • John Owens September 23, 2010 9:25 pm #

      Hi Aaron,

      It is never too late for a comment. Thank you for this.

      Regards
      John

  3. Joe Newbert September 17, 2009 8:57 pm #

    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

    • John Owens September 17, 2009 11:08 pm #

      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

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