BPM Strategy:
Every company has daily processes, but the better ones really utilize them. Business process management is to keep processes doing what they are promising and be proficient. It is not easy for companies to find out beneficial and critical practices in each particular case. Often critical practices like strategic alliance, employee training and information systems are neglected by companies due to lack of visibility from external and internal perspective. An organization that does not leverage automation and standardization as a key part of business ultimately ceases to exist. So business process management (BPM) is vital to keep companies in business. It gives companies an extra edge in today’s competitive market.
Business process management as a multidimensional tool utilizes various efficient techniques to investigate process from holistic approach transcends narrow ranges of specific functions. It redesigns and rechecks principle activities to achieve extreme advancement in cost, service and speed current performance (Davenport, 1993).
With several techniques and minimum resource utilization, BPM maximises the company profitability and productivity. BPM ensures success by focusing on balance between system process and information flows in short term as well as long term.
From the external view, Platinum Concept Pty Ltd is a medium sized company with differentiation strategy. BPM delivers the capability to understand, systematize and enhance the business processes. Hence, controlling and managing the business process for Platinum Concept Pty Ltd which is very important.
BPM can profit Platinum Concept Pty Ltd in the following ways:
- Being in the luxury market, the current business process must be modernized and ...
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... is willing to pay for” (Harmon, P 2007).
Platinum Concept Pty needs to familiarise and focus on the new systems that can incorporate all the divisions. BPM has to play a significant role in shaping how the process has to be changed.
In an opinion poll, according to Kar (2012) led on behalf of SAP AG among 150 business executives proposed that minor and major companies are implementing Enterprise Systems rapidly than their competitors. More than half of the respondents acknowledged improved sales, lesser IT expenses, upgraded business dexterity and advanced customer retaining as the main outcomes of implementing an Enterprise System into an organisation. As a result, to achieve competitive gains, the company must integrate an incorporated Enterprise System (ES) and restructure its processes which can deliver value-added service and deal flexibly with its customer.
A system integrated approach would improve the business process and hence enable the different functions to share information. It was clearly identified that the ERP deployment would benefit the company through all these elements. In the case, benefits of ERP adoption were not quantified but improved cost and better pricing strategy were discussed to justify the ERP project financially. It can be interpreted that ERP, leading to improved cost analysis, cost control, less redundancy, optimized production and better pricing, would result in low costs and hence higher profit for the company. Financial justification for the ERP adoption can also be inferred through the fact that it would lead to resolution of several problems which the company faces
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Bjerke, Juel M. "Week 2 Lecture Notes - Achieving Business Process Excellence and Process Re-engineering." MFGO 601 - The Globally Integrated Manufacturing Company. 2 Nov. 2011.
According to Yost (2009), improvement of business process leads to innovation and transformation. Besides, a company’s capability directly reflects by how well it run leading to the levels of productivity of each organization. Therefore, as mentioned in Beer & Shelton (2012), in order to accomplish the improvement, Boldflash should emphasize on three artifacts including Boldflash Internal Business Process, Boldflash Product documentation and Boldflash technical Service
Every organization has some specific needs depending on their project goals and also they have their own way of doing things. So, the organization should create their own methodologies considering the organization and project goals. The PMBOK® Guide has some standard practices which are followed by project managers. It provides five process groups. They are Initiating, Planning, Executing, Monitoring and controlling, Closing (Schwalbe, 2014). Let us look at these five process groups briefly.
This essay will discuss Enterprise Resources Planning (ERP) implementation, specifically in the factors which can leads that ERP implementation to successful and unsuccessful ERP implementation.
Project managers may decide that major changes to business processes may be required. Change management is important for project managers and business leaders, starting at the project phase and continuing throughout the entire life cycle. Employees need training to understand how the system will change business processes.
described the ERP system as packaged (but customisable) software applications, which manage data from various organizational activities and provide a fully integrated solution to major organizational data management problems. They provide for both the core administrative functions, such as human resource management and accounting, as well as integrated modules which can be selected to support key business processes, such as warehousing, production and client management.
“An Enterprise resource planning (ERP) systems are software systems for business management, supporting areas such as planning, manufacturing, sales, marketing, distribution, accounting, finance, human resource management, project management, inventory management, service and maintenance, transportation, and e-business”.( Haag, Cummings, Phillips, S, M, A (2007). Mangement Information Systems. New Yory, NY: The McGraw-Hill Company Inc..)
Effectively integrating information technology (IT) into an organization’s business processes is critical if the organization wants to increase productivity and remain profitable. IT includes items such as the systems software, application software, computer hardware, and the networks and databases that help manage the organization’s information. When implementing quality standards and processes that are forever changing in the IT world, organizations must balance these changes while continuing to rapidly implement new systems technologies in order to stay competitive.
“From early on the ambition of ERP-systems has been used to integrate all transaction systems within the one system which combines all information and practices across full organisation, and gives proper information for decision-making in real-time” (Bjorn-Andersen & Johansson 2007)
In past few years, companies and industries of various sizes have become aware that they need to improve business processes such as product development, order fulfilment, planning, distribution, and customer service. So everybody is now focusing on doing process improvement or redesigning.
As we all know over the past few years there has been a rapid change in technology due to technological advancements and so a variety of different processes have since been introduced in organizations to help quality improvement, speed, efficiency and better service to customers. Much emphasis today is placed heavily on quality but still, a lot of businesses are not quite able to properly achieve and keep up with these quality systems. The systems which include process management tend to die or be neglected due to the fact that most of these managers do not have the necessary resources, knowledge and time to help work on improving these systems. In the situation where managers may go on to misapply process management, it will obviously start hindering the company and dull their innovation to some extent but not entirely discourage it. So I would say that it is always necessary to have proper applications for these processes. Companies need to create an environment that both enables and encourages the process of innovation. I believe that process management has to be considered as the primary source of innovation. In many businesses, innovation has become an important aspect for high performing organizations and in order for these companies to ensure that innovation sticks around, in the long run; they have to make innovation a part of their day to day business. Process management is a key driving source of innovation. Companies need to go beyond and continue to create new ways of working and thinking. Overall, the whole idea of process management is to improve effectiveness and efficiency. It helps do the right thing, at a faster and cheaper
The most important value of BPM is transparency over the business. Transparency means obtaining a deep understanding of how the organization works which enables us to manage the complexity of organization effectively [11]. Business process models enables the process practitioners to achieve this by documenting: control flow (i.e., what we need to do and when), artefacts (i.e., what we need to work on either physical or electronic), and resources (i.e., who does the work either humans
Enterprise architecture can be used in a diverse number of ways. It can be used to describe a certain business practice in an organization and the aspects or elements of that specific business practice under description. The environment under which companies or business organizations operate in is always in constant change. This means that the managers should always introduce new enterprise solutions, which can directly contribute to the linkage to the measures of improvement of business practices.