Simulation modelling towards e-business models development

In order to survive in competitive economic environments, many organisations need to continuously improve their business processes. The Internet enables companies of all sizes to develop new online business models, which means improving and altering the ways in which companies operate and interact with business partners, customers and suppliers. It is apparent that developing dynamic models of business processes prior to their radical change could increase the success of BPR projects. Simulation has an important role in modelling and analysing the activities in introducing BPR since it enables quantitative estimations of influence of the redesigned process on system performance. This paper presents a methodology that addresses some of the problems enterprises are faced with in their BPR projects. An example of “business to business” electronic commerce process modelling using simulation tool iGrafx Process is presented. The main objective of the paper is to investigate some potential benefits and outcomes of introducing new processes that could be assessed in advance by using simulation modelling. © 2001, UK Simulation Society. All rights reserved.