Business System Diagram (BSD)

Sources:

• Business Enterprise Mapping | BEM Insights | The Incredibly Valuable Business System Diagram (businessmapping.com)

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Overview

DEFINITION

The Business System Diagram identifies all of the business processes within a business system, captures the relationships between those processes, and identifies customers and suppliers of both business processes as well as the total business system.

At No Clocks, we use a twelve standard business system definition for all organizations including sales and Marketing, Customer Service, Operations, Procurement, Product Development, Finance, Human Resources, Information Technology, Facilities Management, Equipment Management, Enterprise Management and Improvement Management. This basic organizing structure can apply to any industry type and any business size.

What to Include?

Along with business processes, the Business System Diagram identifies several important additional elements for each process, such as process name, process owner, process purpose, the main process customers and suppliers, the main products and services of each process, the main inputs to the process and the primary measures. It provides a summary model for understanding the flow of work inside the larger business system. The BSD is not an IT architecture map. While information technology certainly has an impact, workflow is not just the IT component. IT encompasses all of the time, activity, and decision-making that contribute to executing the business system mission.

What is the Purpose?

The Business System Diagram provides a succinct view of the workflow and connectivity within a total business system. The BSD allows the senior executive to understand at a very high level how his or her area of responsibility works, what processes contribute most to the business system’s value proposition, and the overall efficiency and effectiveness of the business system.

What is the Value?

The BSD provides an executive summary of how work gets processed within the organization, how the performance of that work gets measured, and who is responsible and accountable for the components of the work. It is also frequently used to monitor the process improvement actions that contribute to the overall business system performance improvement. It is an invaluable tool for defining, monitoring and improving a business system. Because the BSD connects interrelated processes, the model provides a useful visual model for interactive process relationships that helps executives identify cause-and-effect impacts to overall business system performance.

Why a BSD should hang on your wall

A 4 x 6 poster should be visible on the wall of every C-Suite executive’s office demonstrating the process flow of the business system within the executive’s area of responsibility. It should be in a form that can be easily marked-up as new ideas and new sources of thinking come into the office. Developing a BSD with a new group of executives always sparks lively dialogue that leads to new and substantial learnings and insight into the business. Every senior executive should have an active BSD that is understood, maintained, and utilized for continual business system improvement.

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Appendix

Note created on 2024-05-08 and last modified on 2024-05-08.

See Also

• Strategic Process Management
• Business
• No Clocks Business Plan
• Business Systems
• Business Strategy
• No Clocks Google My Business Profile
• Book - Small Business Management in the 21st Century
• Checklist - Business Plan
• No Clocks Business Systems Canvas

Backlinks

LIST FROM [[Business System Diagram (BSD)]] AND -"CHANGELOG" AND -"04-RESOURCES/Definitions/Acronyms/Business System Diagram (BSD)"

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(c) No Clocks, LLC | 2024