Preliminary Business Report For Compostwiz Pty Ltd
BPM and Strategy
The business process management can be considered as the process of modifying the business processes of an organization from the ground to management level. These is done through the modeling of different scenarios of an organization, executing modifications, keeping track of the modified processes and repetitively optimizing the process. The business process can be considered as the task or a collection of tasks which is designed to obtain particular business goal.
The business process management cannot be considered one time executable task. In the contrary, it must be considered as the ongoing task which includes constant process reengineering. The business process management supports the automating activities in any business process. The business process management is not a technology that can be implemented. It is, rather, a process that occurs without technology and outside of automation.
The BPM will provide the following benefits to Compostwizs.
- Business Strategy from Internal and External Perspective:With time, every organization must change its strategy both internal and external. The changes may be result of modifications in the technology or a big competitor or new government legislations. No matter the source of the change, it can affect the organization’s growth tremendously if business processes are not modified to adapt those changes. With quick response to the new changes in the industry and accepting new internal and external strategy, Compostwizs can remain competitive in the market. Through adopting the business process management, the organizations can easily adopt those changed and apply new strategies to counter the internal and external factors. The internal and external strategies can be easily developed through the BPM.
- Positioning:It is well known and established fact that frequent small changes in the organization can lead to greater success than sudden big improvement. The continuous improvement allows the organization to constantly search for loopholes in the business processes and modify it. As per the positioning, the organization will be continuously improving and proof its place in the industry.
- Structure:The applications used in the business process management are able to track each of the business processes from the start to the end. The structure of the processes will be more effective and supportive to the business objectives.
- Value Proposition:Making the business process function efficiently alongside with effectively is great deal of hard work. Due to inefficient processes, Compostwizs had lost a lot of capital in the past years. Through applying the BPM, the organization can accurately identify the loopholes and prevent the issues that those loopholes created. This way, the organization will have a better and efficient business process that can save a lot of capital in operations and production of products. Compostwizs can then invest those capitals and BPM approaches for improving the product quality and promotion.
The value chain can be considered as the high-level model is utilized for describing the activities through which business accept raw materials, sum value to the obtained materials via numerous activities for creating a completed product. Moreover, the organization will sell the product later to the consumers. This means that Compostwizs will collect raw materials from the suppliers and then covert them into their product and after production is complete they will sell the product to customer.
The business process management can allow Compostwizs to efficiently manage the processes within the organization. This will surely add more value to the product. The value chain of Compostwizs will be improved by the constantly management of activities. This would result into better quality of product which can be easily promoted into the market. Entire production operations of Compostwizs would be executed in the optimum level through the proper usage of BPM. The competitive advantage Compostwizs would get from this can surely make the financial position of the organization a lot better.
The main issues of Compostwizs is the ole fashioned telephonic/mouth communication and the same old marketing strategy. The organization does not have any computer based business operation that can efficiently improve the process time consumption. The organizations till use the paper based model to conduct the business operations. The reason behind using the old fashioned communication technique, old marketing strategy and manual working processes is the great product of Compostwizs.
No other competitor of Compostwizs could develop a product that can compete with the Compostwizs’s product. For this reason, Compostwizs did not need any other advancement in the business for a very long time. However, in the modern era, the competitive organizations are applying far better marketing strategy that allows in better product sales. The computer based automated process has provide the competitors to establish a better cost efficient operation. The competitors started investing the in production and reduced their product cost. This resulted in Compostwizs’s worst situation, instead of having the products, the organization could not promote their products and increasing operational cost forced Compostwizs to raise product price.
Benefits of BPM for Compostwiz Pty Ltd
If the organization still uses the manual paper based approach to conduct business operation, the organization will face various issues regarding the operation. First of all the paper based work is very prone to be inaccurate and misplacing the papers is common matter. The organization will need to put constant focus on the papers which will result into additional staff effort indulged into unnecessary things.
The marketing strategy is so old that it is not able to put Compostwizs over the competitors. A marketing strategy must be able to put an organization in a good competitive position. The old strategy is not capable of identifying the new demands of the customers that results into miscommunication with potential customers and they do not buy Compostwizs’s product. The internal communication is a very big factor in organization like Compostwizs. The organization will continue to face decision making issues and challenges in completing the business operations accurately until the communication method is not developed.
The organization is currently running out of business and need a lot of capital to recapture the market. In this situation, the organization may not be able to invest a lot of capital that can be required to implement a fully functional organization wide system. This is a capability gap of the organization. The main performance gap can be seen the marketing aspect of the organization.
The organization needs to fill that gap as soon as possible to recover its lost reputation in the market. The next performance gap is in the internal operation where a small work can take hours just because of miscommunication and paper management. The management have to see reports in papers which can take hours to detect an issues and identify the area in which the progress is needed.
Business process architecture not just portrays the utilitarian deteriorations of an endeavor value chain yet in addition empowers a comprehension of value streams demonstrating chains of cross practical end-to-end business processes and their value suggestion to the venture’s techniques.
The business process architecture is basic in all business process displaying works whether the work is for process documentation or process computerization. This paper depicts the assortment of business process structures accessible for reception as an association’s business process architecture and utilizing it as an instrument to give a general control on the process displaying works and all the more significantly connecting the free processes to the authoritative methodologies. One of the key achievement factors for receiving a process driven administration is the comprehension of the general task of an association as a fundamental process conveying values to its partners. A decent beginning stage is the Porter’s Value Chain.
Value Chains and BPM
The Value Chain demonstrates the arrangement of business exercises that make values inside an association and conveyance of those values to the client (see Figure 1). It frames the establishment of having a fundamental perspective of an association. It comprises of a gathering of essential exercises that conveys the value to the clients while having another gathering of supporting exercises giving different empowering backings to the essential exercises. The accompanying segments present the different business process structures that can be received/adjusted to building the scaffold between a business value chain and its gathering of business processes.
The To-Be process will include an ERP as the solution. The ERP or Enterprise Resource Planning system is referred to the ICT technology that handles all the business process of an organization through advanced technical aspects and solutions. The ERP will collect the data from the internal and external sources. Then the ERP processes those data along with storing it. The ERP connects all the aspects of the business and put everything on one place. The ERP will collect the data of sales and other current market situation data and analyze them to generate various business patterns and marketing strategy. The ERP can be considered the ultimate solution for creating a marketing strategy and the ERP will also monitor the outcome. Based on the changing data and outcomes, the strategy will be modified.
This way ERP provide solution to old marketing strategy. The next point is communication. The ERP is implemented in every department of the organization. This technology will have a communication channel that will authenticate and authorize users to contact any person in the organization. This happens through developed portals or hired mailing services. The ERP uses intranet connection to connect the staff and management. The management will also receive the reports of the activities automatically in electronic format which is very easy to search and analyze. The third part of the main issues is man power. As mentioned above, all the aspects of the business will be digitalized and back processes will be manual. The staff will no longer put their effort in managing the papers.
The proposed solution will include an ERP that will be installed organization wide. The ERP is an enterprise application. The ERP is designed to be used for big organization like Compostwiz. These kind of technological installments often need dedicated teams who can administrate and maintain the system. The proposed solution is a cloud ERP. This means that the system will be deployed in a cloud environment. Compostwiz will pay the host of the cloud per month or as per resource usage.
Identifying the Urgent Problem
The organizational chart will not be changed after installing the ERP. This is because the ERP will be implemented in cloud and for this no additional IT members needed to maintain the system. However, two administrators will be hired to monitor the activities in the system and report to ICT head.
Solution Consideration
The considerations are as following.
- Employee Resistance: Staff of Compostwiz may not support the project from the beginning. The ERP will bring significant change in the organization operations. The management have to make the staff understand the objective or the project and how it can facilitate the operations.
- Communication with Customer:Compostwiz must realize that every customer will not understand how to communicate with the organization representatives. The system must enable help buttons that can make the understand how to communicate or submit query.
Upstream and downstream is hugely modified by the implementation of ERP. The organization will be communicating with the suppliers automatically. Taken as an example, if the stock of a product is low then the ERP will automatically place an order to the supplier after confirming admin permission. This will make sure that organization is never out of stock of raw materials. The ERP system will collect various data from the production line to suggest changes. The ERP will have a CRM that can collect customer feedbacks and create many solutions for making a product more consumer friendly. This way the ERP will have impact on the upstream and downstream of Compostwiz.
Recommendations:
Documentation: The project team must document everything they do in the project. The team must document the new requirements they find during project development but they should mainly focus on the primary requirements.
Robust Solution Design: The robust solution design must be completed upfront. If the ERP is not effective then then it cannot handle the operations of Compostwiz.
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