UML and Business Processes

Catherine Dwyer, PhD.Seidenberg School of Computer Science &

Information Systems

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Markets: Increasing Complexity Relationship between complexity and information

technology

Relationship between complexity and risk

The only way to model risk in a socio-technical system is to use system models

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Example: Audit Assurance You are given the following flowchart and source

code as evidence for your audit of procurement procedures

Can you offer assurance that: Segregation of duties is maintained within the

process It is clear exactly what steps in process are handled

by an information system, and that adequate controls are in place

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Managing Risk From IT enabled Procesess

Information technology has slashed the time needed to complete a transaction

For example, high frequency traders will buy and sell stock within a 1-2 second window

The audit process has not increased its efficiency to keep up with speed of transactions

The gap is growing between the time required to complete a transaction (seconds) versus the time required to audit that transaction (hours, days or unknown)

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What is needed Auditors must develop more efficient procedures, can

only happen by leveraging information technology

Auditors need insight into information systems

Tools that offer auditors real time view of transaction activities and the operation of controls

Need visual diagramming tools that can capture broad scope (“the big picture”) and the ability to decompose the exact logic of a process (“in the weeds”)

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UML Concepts Unified Modeling Language (UML)

Use simple, intuitive diagrams to capture stages of a business process

We will look at two specific UML diagrams

Use Case Diagram – “bird’s eye” view of processes supported by an IS

Activity Diagram – describes logic flow through a process

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• Actor – Role (accountant, shipping clerk) that will use IS• Use case – a collection of activities that lead to a goal or an objective• System – represents operations of information system• System boundary – defines specific responsibilities of IS

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UML Concepts Actor – a role (“customer,” “manager”) who will use

an information system for specific purpose

Use case – description of a “goal” or “objective” for an actor (“withdraw cash,” “deposit check,” “register for class”)

System boundary – also referred to as automation boundary, defines what steps in a process are part of an information system

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Activity Diagram Symbols Start –defines beginning of the activity

Action – steps take by an actor or by an IS

Swim lane – defines boundary of activity

Transfer of control – represents interactive process

Decision – branch or choice based on specific condition

End – defines end of activity

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Procurement example Magal chapter 3

Look at narrative of procurement process on handout

Identify actors

Identify use cases

14Use Case Diagram

Does this diagram provide evidenceof segregation of duties?

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Example of Activity Diagram Can show cooperation between actors and system

Describes the flow of logic for a process

Library example

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In class group work Create a use case diagram for the “fulfillment”

process (on handout)

Identify actors and uses cases

Hand in at end of class

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UML Group Homework Part 1: The system you will be diagramming is an

Automated Teller Machine (ATM)

Create a Use Case Diagram for ATM

Write 1-2 paragraph narrative that describes your diagram

Create an Activity Diagram for cash withdrawal activity

Write 1-2 paragraph narrative that describes your diagram

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Group Homework cont. Part 2: Post to Discussion Board – due by 6 pm

March 20th

Each group must post 3 examples of processes and/or accounting conditions that can be diagrammed with UML

Hand in Part 1 hard copy in class March 20th