Business Process Management Pete Dynatrix Pty. Ltd

Question: Discuss about the Business Process Management for Pete Dynatrix Pty. Ltd. Answer: Introduction The core objective of this particular study is to provide an in-depth knowledge of Business Process Management (BPM). The concept is established well by considering a specific case study. Petes Dynatrix Pty. Ltd is considered as the case study here. Through this study, a clear written advice and recommendations for change would be provided to the business owner of the organization. After analyzing the present scenario of the organization in business market, the suggestions will be provided. It has been found that the Business Process Management significantly helps to redesign the business operations (Jeston and Nelis 2014). Pete Playwright invented Dynatrix in his late forties. It is essential to mention that the Dynatrix is a hand held device, like mobile phone, which is exclusively used in exercise purpose. During exercise, it is placed on palm in order to identify the resting and pulse rates. However, it has been found that the organization has been identifying some business issues currently. This is the reason that the suggestion regarding Business Process Management is proposed through this study. In this study, a brief explanation of the reason of redesigning the business of the organization will be manifested. Business Process Management (BPM) and Strategy In this part of the study, the concept of Business Process Management is introduced to Pete. It would help him to understand how it can help his business. As per the statement of Weske (2012), Business Process Management is an effective approach of producing better process that includes lower cost, higher revenues, motivated employees and satisfied customers. Brocke and Rosemann (2014) represented a different viewpoint that it is an collaborative effort which is established between business units and IT (Information Technology) world. Moreover, Rosemann and vom Brocke (2015) mentioned that Business Process Management model fosters a new paradigm of efficient and logical business process. Today's dynamic business environment delivers several challenges to the organizations. Thus, it is essential for the individual organizations to be agile so that they can deal with the challenges that come their way. Supporting the discussion, Fleischmann et al. (2014) stated that the business approa ch helps the organizations to become more agile through incorporating a number of ways. These are: Accelerating innovation: Fleischmann et al. (2014) explained that the innovation is the process of leading the business towards growth with continuous improvements. Along with that, it is mentioned that the leaders should consider it as a vital part of their daily operation. However, the leaders confront several issues in incorporating innovation in their daily activities. Thus, the Business Process Management should be incorporated as it helps to make it possible. Reaching to the global market: Chang (2016) added in this context that the approach helps to stream line the supply chain operations and enter in the global market. Further, it helps to enhance the opportunities and deal with the weaknesses. Increased productivity: Chang (2016) further explained that the Business process Management helps the enterprises to increase their productivity. It is important to increase the productivity along with minimizing the cost. More specifically, it can be possible by producing more products with limited resources. Speed to market: As opined by Dumas et al. (2013), the approach helps the managers to be one of the leaders instead of followers, when new idea or product comes in the market. The leaders are the ones who lead the new product or the idea, whereas the followers are the ones who are too late to take advantage of the new market. Achieving compliance: It is essential to mention that keeping up with complex compliance and regulatory is time consuming in nature and require high cost as well. Dumas et al. (2013) stated that the business process Management helps to keep these costs and operations under control. However, in order to describe the benefits of Business process management, van der Aalst (2013) opined that it is strongly connected to business strategy, positioning, structure and value proposition. The discussion helps Pete to understand the Business Process Management in more brief manner. In supporting the discussion, Lohrmann and Reichert (2013) explained that the approach is a business strategy itself that is built to acquire the business purpose and satisfy the clients as well. In order to obtain the goal, the organizations require skillful management where they evolve into practice focusing resource integration. According to Roglinger, Poppelbu and Becker (2012), Business Process Management helps in formulating both the internal as well as external strategies. More specifically, the internal business strategy is formulated by considering present strength and weakness of the enterprises. The approach helps to enhance their strength by reducing their weaknesses. On contrast, t he external strategies mainly concentrate on the opportunities and threats of the present business market. Along with identifying the opportunities, it is important to address threats that the market and the competitors deliver. Gollenia (2016) added in this context that as technology moves forward rapidly, it becomes more difficult to trigger the changing behavior of the customers. Business Process Management helps in positioning the business by delivering consistent customer experience. It encompassescross-functional disciplines like Customer Relationship Management (CRM), supply chain management, Enterprise Resource Planning (ERP), and Business Intelligence (BI). Trkman (2013) stated that that in order to obtain sustainable competitive advantages, the organizations needs to take the customer satisfaction to a new high. In order to explain how the Business Process Management is connected with value proposition, it is important to establish the concept of value chains in business. vom Brocke et al. (2014) defined value chain as the set of business operations monitored by the organizations to offer valuable products or services. Continuous improvement is the core concept of the value proposition in context o f Business Process Management (Vom Brocke, Seidel and Recker 2012). The approach helps the businesses to add value and to summarize why the consumers should purchase their products instead of the other similar offerings offered by the competitors. Problem Analysis Before analyzing the issues that Petes Dynatrix Pty. Ltd. has been confronting at present, it is essential to demonstrate what exactly the organization offer. It has been mentioned before that a device called Dynatrix is offered by the organization. Multiple features in one single product grabs the consumers' attention. The exclusive features of Dynatrix include: Advanced digital interface Two terabytes of storage capacity Internet connectivity Inbuilt heart-rate monitor Oxygen readout Pedometer Blood pressure reader Inbuilt scales recording weight to within 500 grams These features helps to track the physical movements of the individuals. Along with that, it gives personal training and nutrition program to the individuals. The product mainly attracts the people of the age of 25-50 who are interested in leading healthy lifestyle. During the first few years of invention, the business experienced strong growth and it enabled to grow quickly. In the year of 2015, a declining growth curve has been noticed. The following table helps to illustrate in a better way: Revenue (in millions) Expenses (in millions) Profit (in millions) 2010 8 $ 3 $ 5 $ 2011 9 $ 3 $ 6 $ 2012 10 $ 3 $ 7 $ 2013 12 $ 3.2 $ 8.8 $ 2014 14 $ 4 $ 10 $ 2015 12 $ 3.6 $ 8.4 $ 2016 8 $ 3 $ 5 $ Table 1: Financial chart of Petes Dynatrix Pty. Ltd. (Source: Created by Author) The above table shows that from the year 2015, along with expenses, both the revenues and profit started declining. In addition, it becomes worse in the present year. Through analyzing the present business of the firm, it has been found that they are experiencing decreasing demand curve for the products they offer. This is because, consumers become more price conscious than before. Their willingness is found towards purchasing the necessity products rather than the luxury ones. Most of the consumers do not consider the product Dynatrix as a necessary product. Besides, it has been found that the entire business process majorly relies on word of mouth communication. The major weakness is they do not have proper marketing strategy. Moreover, they have not put much effort in establishing streamlined and computer based business processes. The manual methods are pursued to keep records of the purchasing materials, controlling production satisfying customer orders and managing all the accounts. The major competitors of the organization are the portable blood pressure monitor manufacturers and the heart rate monitor manufacturers. Though, they had a strong competitive advantage as Dynatrix include multiple features which is not found in the products offered by the competitors. Recent problems arises due to the delays in receiving orders. Huge number of complaints are received from the customers because of their poor customer responsiveness. In order to deal with the present business situation, they need to maintain their strategic stances. Their 'As Is' process or the current business process shows that they have day-to-day management problem and input output problem. The problems which are identified are demonstrated in the below project scoping diagram through an opportunity perspective: Figure 1: Project scoping diagram (Source: Created by Author) Proposed Solution In this section of this study, the 'To be' process of the organization is demonstrated. It is advised to Pete that their company should incorporate Business Process Management system and develop business process architecture in order to deal with the current issues (Refer to Appendix 1). The business process architecture helps to bridge the identified gap of the business. Meyer et al. (2013) represented the viewpoint that the process helps to bridge between business model and enterprise strategy of an organization. Pete is advised to improve their primary business function first through formulating business strategy, positioning and value proposition goals. They should engage a team that will look over their day to day management process. Further, it is suggested that they should improve their Core, Support and Management processes by incorporating business process management system. Trkman et al. (2015) opined that it helps to acquire competitive advantages. Based on the identified issues, it is advised they should improve their input output process. Along with that, proper communication process is essential to improve the management system of the business. Solution Considerations The major weakness of the organization is their poor input output process and ineffective day to day management process. The prime reason behind the poor management process is the absence of rules and regulations to govern the operations in the organization. Besides, the undefined time frame is the prime reason of their delaying in receiving orders. Besides, they experienced lots of data redundancy due to the manual data handling system. They should establish computer based system in order to deal with such issues. Along with that, the sales department of the organization should determine the historical sales volume and analyze the consumers' perspective. The gap analysis of past demand perspective with that of the present is required to address the consumers' present expectation. Apart from this, they should invest in enterprise information system which includes order system, telecom systems and a credit card system (Trkman et al. 2015). Some policies should be implemented strictly to govern operations in the organization. Conclusion and Recommendations The study concludes that the organization had been experiencing increasing growth till the year 2014 and after that decreasing growth curve has been found. This is because the customers are unsatisfied as excessive time taken to fulfill orders. The study has found that they have poor day to day management process and input output system. After analyzing the problems, some recommendations are framed that are listed below: To incorporate Business Process Management system To build project scoping diagram To develop business process architecture To improve their primary business function To formulate new business strategy, positioning and value proposition goals To improve day to day management process To enhance Core, Support and Management processes To improve their input output process To establish effective communication process It is expected that these recommendations help them to overcome from their major weaknesses and deal with the current challenges. In a more specific way, it would help them to acquire sustainable competitive advantages. Reference List Brocke, J.V. and Rosemann, M., 2014. Business process management.Wiley Encyclopedia of Management. Chang, J.F., 2016.Business process management systems: strategy and implementation. CRC Press. 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