Business Process Management - Bens Omnitrix Pty Ltd - Case Study Example

Business Process Management Ben’s Omnitrix Pty Ltd Name: Instructor: Course: Institution: Date: Executive summary Ben’s Omnitrix Pty Ltd is a wrist accessory company that supplies its products to retailers and wholesalers on the local and overseas markets. The company has undergone a poor performance in the recent past, which is partly attributable to its current ineffective business process and strategies. Ben, the company C.E.O has become concerned by the business operations-as he acknowledges there are many problems as a result of the current system, and wishes to adopt effective business process architecture. This report highlights the current problems of the company, proposes the solution to the problem and gives recommendations on possible actions that can be undertaken. Outline I. Introduction A. Definition. B. Why Ben’s Omnitrix Pty Ltd should introduce BPM. II. Analysis of a problem III. Proposed Remedy/ solution A. Meaning of developing business process architecture B. The proposed solution IV. Solution considerations V. Recommendations Business Process Management Ben’s Omnitrix Pty Ltd Business Process Management (BPM) and strategy Business process management (BPM) is a systematic way of improving the organization processes with the aim of making the business flow more effectively, efficiently and adapting it to the ever changing business environment (Ould, 2005). BPM specifically enhances communication and reduces human error through implementation of more efficient processes (Brocke & Rosemann, 2010). It ensures that the stakeholders remain focused to meet the needs of their responsibility. By adopting BPM, tremendous efficiency is gained through adoption of technology. For example, no longer does the company needs to put records in a box like the case with Ben’s Omnitrix Pty Ltd -loss of documents and records shall be curtailed (Ryan, 2009). With BPM Omnitrix Pty Ltd can be assured of better follow-up of data about each and every transaction, while retrieval can be made easily and whenever it is required. Indeed, the data can be analyzed accurately and inbuilt searches allows for the data to be identified easily for referencing purposes. BPM provides business process automation, modeling and optimization and management of methods and criteria (Dennis, 2007). BPM ensures the right combination of technology which shortens business process cycles and reduce costs. Implementation of BPM is known to reduce or even eliminate business errors which can cause significant losses (Deming, 1982). Through execution of real –time visibility into the business, Omnitrix Pty Ltd can create better connection to the suppliers and customer. This can significantly reduce the order lead time and reduce order error rate by deploying new and efficient supply management platforms that provides unparalleled transparency into the supply chain process of Omnitrix Pty Ltd.1 Problem analysis Analysis of the past performance shows that the business has experienced a dramatic fall in revenues and profits. Although the global economic crisis which hit the market during the year 2008 might have been the major cause of the problem, lack of coordinated business processes and poor strategies must have triggered the economic woes as well (Hall & Johnson, 2009). The fact that the company depended on word of mouth to make sales communicate must have fueled the decline in sales. It is also reported that Ben resulted to manual paper based methods to get things done, instead of developing streamlined computer based procedures. Business of this size cannot depend on manual methods without generating a lot of errors and inconveniencies. (Deming, 1982) A lot of delays during the supply of goods had triggered frequent complaints by the customers. This must have been caused by lack of effective and efficient supply chain as well as poor internal business processes which causes delays. If this trend continues, Omnitrix Pty Ltd is likely to lose customer to other companies which have adopted better and effective business processes. When a customer files an order from the company, the responsible person checks the availability of the product physically. Such a process takes a whole week for completion. This underscores how lack of adoption of better systems can cause delays and inconvenience. Physical check of the inventory is usually inaccurate and time consuming (Juran, 1988). Worse still is the fact that the company has not acquired cabinet for proper filing and storage of document. Poor storage of documents can lead to loss of important records which can threaten the very existence of the company because records are very critical. Fig 1: Performance analysis. Looking at the company balance sheet, it does not help but wonder why the company has not invested the $ 1.8 million somewhere else. The business must be losing opportunities when cash which could be invested to improve the business in idling in the bank. The company is in dire need of important facilities especially business process tools to manage the business more effectively. The debtors ($420,000) compared with the creditors ($100,000), might also underscore loss of opportunities. Although the company should not maintain very high credit levels, the management can improve its cash flow by extending creditors payment period to at least match with the debtors. Improved cash flow can help invest in more viable opportunities. Fig 2: As-Is diagram for the company Proposed solution Business process architecture is a systematic summary of business processes and value chains used by a given company (Kotter & Dan, 2002). Process architecture shows how business processes and value chains are related to each other and to the strategic goals of the company. It provides illustrates process systems within a company and offers the management and planners a vision of the activities of the company as a whole (NIH, 2007). Fig 3: Proposed solution The benefits of this should be clear. Gaining information on an overview of an enterprise enables planners to identify easily the weaknesses and strengths of the enterprise hence recommending improvements on the weak areas of the enterprise which further foster growth of the enterprise (Pall, 2009). Process architecture shall help the management of Omnitrix Pty Ltd to devise the best practices to ensure that all the activities are aligned with the overall business strategy. For example, through automation (business management software from such vendors as Osellus and Info), the management of Omnitrix Pty Ltd can develop an extensive and systematic system to identify processes in a manner that reduces the burden on the staff and enhance efficiency in the organization (Pall, 2009). The highly redundant and complicated processes like using so much paperwork to keep records will be streamlined and substituted with more effective processes (Paul et al. 2005). As highlighted earlier, the company has recorded some poor performance in the past especially due to reduced profits. Process architecture can be a remedy because it will reduce cost and hence boost the returns. This will be possible because of the simplification and automation which perhaps results in reduced cost of operation (Thomas &James, 2003). Omnitrix Pty Ltd operates in a continually changing business environment which needs quick reaction if success is to be achieved. For example, taking a whole week to process an order can be humiliating and can keep off customers. To remedy this problem, automation will result in faster reaction and will allow the management to adapt the existing process to new and changing environment in haste. As noted, the process architecture requires an enterprise to represent the business and operations in a visual manner (Craig, 2009). This can be used to effectively train new staff in the least time possible. The architecture shall offer invaluable value to the business, as it can be used to identify strengths and core competences and as a result enabling creation and modification of business strategy. In so doing, the company can easily design policies that will ensure effective investments and finance policies among other issues (Kohlbacher, 2009). Process architecture can be used to show areas of waste- where outputs do not justify the investment (David & Roland, 2006). In addition, the architecture can be used to predict the cost of modifications like the cost of additional use of IT. It has been observed that the processes of Omnitrix Pty Ltd do not inter-relate very well. Business architecture can be used to give insight to the C. E.O, how the process interrelates, and provides remedy where it is required. Ben had stayed for a long time without providing solution to the prevailing problems perhaps because he did not understand the impact that the modification could have on the business, but now with business process architecture, he can understand his business well and determine the best course of action. Solution considerations Omnitrix Pty Ltd needs to make special consideration before the design and implementation of process architecture. Most importantly, the cost that is incurred needs evaluation. For any solution to be viable for implementation, the benefits as a result of the implementation and design of the solution must exceed the cost. Any solution that is unreasonably costly should not be considered in this case. Also, the cost of foregoing other opportunities to implement should be considered and should be zero at the bottom line otherwise it should not be opted for (Brocke & Rosemann, 2010). The management should note that every investment involves a risk, and hence should carry out investigation to establish the risk that is associated with adoption of a specific solution. If a certain solution is considered too risky, the enterprise may opt for an alternative solution or action. During the design and implementation, the process might also be mulled with internal politics, for example where some stakeholders may not accept a certain solution (Gomez, Luis, David, and Robert, 2008). The persons involve should be encouraged to learn the benefits of new solutions to avoid negative politicking. Recommendations There should be a complete overhaul of the way business is done at Omnitrix Pty Ltd. The manual way of doing things should be phased out and instead introduces new automated and technology enabled processes. The jobs should be redesigned to match with the new system that is responsive to changes in the surrounding. Most of the cash that is lying idle in the bank should be used to purchase new assets that shall facilitate automation of the company. The business architecture should also be redesigned in a manner that will enable the company to reverse the current poor performance. This can be achieved through reduction of costs and improving the business supply and value chains to enhance the business competitiveness. References Brocke, V., & Rosemann, M. 2010. Handbook on Business Process Management: Strategic Alignment, Governance, People and Culture (International Handbooks on Information Systems) (Vol. 1). Berlin: Springer Deming, W. 1982. Out of the Crisis. Cambridge: Cambridge University Press Hall, M., & Johnson, E. 2009. When Should Process Be Art, Not Science. London: Harvard Business Review, 58 – 65 Juran, J. 1988. Juran on Planning for Quality. New York: Free Press  Kohlbacher, M. 2009. The Effects of Process Orientation on Customer Satisfaction, Product Quality and Time-Based Performance. Paper presented at the 29th International Conference of the Strategic Management Society. Washington DC: Conference Website. Ryan, K. 2009. A computer scientist's introductory guide to business process management” London: ACM Press Pall, M., & Johnson, E. 2009. When Should Process Be Art, Not Science. London: Harvard Business Review, 58 – 65 Kotter, J.P., & Dan, S. C. 2002. The Heart of Change. Boston: Harvard Business School Publishing. Gomez, M., Luis, R., David B., and Robert, L. 2008. Management: People, Performance, Change, 3rd edition. New York: McGraw-Hill. David, I.C., & Roland, G. 2006. Global project management handbook. New Jersey: McGraw- Hill Professional. Dennis, L. 2007. Project management. Aldershot Hampshire: Gower Publishing, Paul, C. D et al. 2005. The right projects done right! New York: John Wiley and Son Craig, S. (2009, January 29). Merrill Bonus Case Widens as Deal Struggles. Wall Street Journal. Ould, M.A .2005. Business Process Management: A Rigorous Approach. London: British Computer Society Thomas, D., & James, M. 2003. Process Modeling for E-Business. INFS 770 Methods for Information Systems Engineering: Knowledge Management and E-Business. New York: Spring Read More