Importance of BPM approach for SmartShirt Pty Ltd
The main purpose of BPM approach is to support an organization towards achieving their desired goals along with facilitating needs of the customers. The BPM approach for SmartShirt Pty Ltd, will help to design the organization in such a manner that there is suitable coordination and interaction among the various departments. Proper communication and coordination among the departments of SmartShirt Pty Ltd will ensure that information is passed on efficiently for executing the required business activities. The adoption of a BPM approach in the organization will help them to increase competitiveness and fulfilling the demand of customers (Jeston 2014). This approach will be helpful for the organization as it will allow to complete the business processes at faster rate with efficiency.
Concept of Business Process Management
BPM (Business Process Management) is related to process that should be followed for improving the business processes. This term also relates to creating a more effective and efficient organization. The term BPM is not associated with task management or even project management rather it is focused on processes that are repetitive and ongoing in the organization following a predictable pattern (Kumar 2018). In every organization, there is existence of a set of business processes which may consist of various tasks which have to be managed properly in order to achieve organizational excellence. Hence, BPM has an important role to play in every organization irrespective of the business industry.
Connection of BPM with business strategy
From the case provided on SmartShirt Pty Ltd, it has been identified that there is decrease in revenue of the organization due to lack of coordination within departments of the organization. The existing issues will lead to downfall of the company and losing their competitive advantage as the competitors are growing rapidly. Hence, the present business strategy have to merged and improved with the adoption of BPM. The implementation of BPM will ensure the organization to retain their competition in the market and maintain the quality standards.
Meaning of Value chains and use of BPM to improve business
The primary aim for implementing BPM in the organization is to enhance the existing business processes such that those are able to support value chains. The implementation of BPM would also help to improve position of the business from both internal along with external perspectives (Rosemann and vom Brocke 2015). The processes that are not able to add value in the value chain could be eradicated with the help of BPM approach. This process could be completed using internal procedures that are related to the sub processes for external measures for ensuring proper functioning of value chain in the organization. The overall consequences of maintaining the value chain could be handled with adoption of BPM approach. For instance, the adoption of BPM approach by Toyota for their business processes helped to achieve significant benefits by focusing on the manufacturing process of vehicles.
Hence, if BPM approach is adopted by the company then it will help the organization to connect properly with the internal as well as external environment. The implementation of BPM approach will help to balance and match the resources of the organization that is processes, systems along with people associated with the business.
Strategy to be followed by CEO and justification
The adoption of BPM should be followed by the CEO to automate the processes within the organization as it will be helpful for SmartShirt Pty Ltd in the following manner:
The major issue that has been identified in context to the case of SmartShirt Pty Ltd is procurement of inventory and delay in delivery which occurs mainly due to the manual handling of activities. The processing of orders and other activities are carried out through emails or telephonic conversations which makes it difficult for the staffs to keep track of the inventory as well orders. Another issue is that paper work have to be minimized which can be done with the help of low cost database management systems whereas, implementation of ERP system and a high speed internet connection will be suitable for the organization to achieve long term goals.
The implementation of ERP system will increase the costs related to operations as training have to be provided to staffs about the new system. The training can be provided gradually starting from the management level to the employees and the directors of respective departments. The other important factor that has been identified is related to the suppliers as more time is consumed while placing order for stocks. Sometimes quality issues are also found in the delivered shirts which resulted into dissatisfaction of the customers. There is no record of customers stored in the database or paper work which results into loss of customer base.
From the project scoping diagram, it has been identified that there are various problems within the organization and implementation of re-engineering process would help to increase profit. The reduction in operating costs will eventually help the organization to retain their competitive advantage in the market. The implementation of ERP system has been considered as the suitable process for improving present condition of the organization. The system will help in keeping track of information related to sales so that suitable marketing strategies could be implemented in the organization.
BPA (Business Process Architecture) is considered as the collection of processes within an organization along with the relationship that exists among the various processes. The implementation of business process architecture will help in smooth and efficient running of an organization (Hammer 2015). This architecture helps to connect the different processes into one and the develop relationship among the different departments of the organization. The BPA will also help to maintain value chains along with other vital functions within the organization. The development of a suitable BPA from the existing processes help to conduct the business activities properly as well as development of the business from future perspective. The collaboration of various processes with one another facilitates smooth flow among the end to end processes. It also helps to mitigate the issues that may occur while carrying out the daily processes which in turn will save time along with improving the efficiency resulting into more productivity.
BPA would bring about significant change in the company as there is no proper flow of information within different departments of SmartShirt Pty Ltd. The manual handling of processes could be mitigated with the implementation of a suitable BPA. The implementation of BPA will help to interconnect the different departments of the company and thus increasing the coordination between them for better execution of the business processes.
In context to the case of SmartShirt Pty Ltd., implementation of BPM will help them to determine as well as mitigate the identified issues for better business performance. The sales and profit of the organization could be enhanced with adoption of BPM. The work and business processes could be carried out smoothly with efficiency at a faster rate which would eventually increase the satisfaction of customers. The proposed solution for the organization is presented with the help of ‘To Be’ process flow diagram which depicts the flow of information that will be followed with the adoption of BPM. In the next section, an illustration of the ‘To Be’ process flow diagram has been presented so that the company could operate more effectively and efficiently.
The proposed solution for mitigating the identified issues in the organization is to implement an ERP system. The system will help to reduce the effort required for manual handling of processes and get rid of the paper based work. The resources required for carrying out the business activities could be aligned with the organizational goals and strategies by implementing the new system. The advantages that will gained by adopting ERP system in SmartShirt Pty Ltd are discussed as below:
The major factor that have to be considered while implementing the solution is cost as ERP system price varies according to type and features selected for usage. Hence, only the required functionalities should be added to the system. The other factors that have to be taken into consideration are presented as below:
From the analysis of case study on SmartShirt Pty Ltd, some suggestions are presented to improve the present conditions within the business as below:
References
Bolsinger, M., 2015. Bringing value-based business process management to the operational process level. Information Systems and e-Business Management, 13(2), pp.355-398.
Brocke, J.V. and Rosemann, M., 2014. Handbook on business process management 2: strategic alignment, governance, people and culture. Springer Publishing Company, Incorporated.
Buh, B., Kovacic, A. and Indihar Štemberger, M., 2015. Critical success factors for different stages of business process management adoption–a case study. Economic research-Ekonomska istraživanja, 28(1), pp.243-258.
Chang, J.F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.
Chong, S., 2014. Business process management for SMEs: an exploratory study of implementation factors for the Australian wine industry. Journal of Information Systems and Small Business, 1(1-2), pp.41-58.
Dijkman, R., Lammers, S.V. and de Jong, A., 2016. Properties that influence business process management maturity and its effect on organizational performance. Information Systems Frontiers, 18(4), pp.717-734.
Glykas, M., 2014. Business Process Management. Springer.
Hammer, M., 2015. What is business process management?. In Handbook on business process management 1 (pp. 3-16). Springer, Berlin, Heidelberg.
Jeston, J., 2014. Business process management. Routledge.
Kumar, A., 2018. Business process management. Routledge.
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Rosemann, M. and vom Brocke, J., 2015. The six core elements of business process management. In Handbook on business process management 1 (pp. 105-122). Springer, Berlin, Heidelberg.
Tregear, R., 2015. Business process standardization. In Handbook on Business Process Management 2 (pp. 421-441). Springer, Berlin, Heidelberg.
Trkman, P., Mertens, W., Viaene, S. and Gemmel, P., 2015. From business process management to customer process management. Business process management journal, 21(2), pp.250-266.
Vom Brocke, J., Schmiedel, T., Recker, J., Trkman, P., Mertens, W. and Viaene, S., 2014. Ten principles of good business process management. Business process management journal, 20(4), pp.530-548.
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