Dynatrix ERP Implementation Analysis

This assignment tasks students with analyzing the business processes of Dynatrix, a company facing challenges in order processing and customer service. The analysis focuses on identifying opportunities for improvement through the implementation of an Enterprise Resource Planning (ERP) system, integrating Service-Oriented Architecture (SOA), and streamlining Business Process Automation (BPA). The report recommends specific actions, including staff training, data management strategies, and marketing initiatives to enhance Dynatrix's operational efficiency and profitability. A proposed timeline for implementation is also outlined.

Mike’s Dynatrix Pty.Ltd 1
MIKE’S DYNATRIX PTY. LTD
by (Name):
Course:
Tutor:
College:
City/State:
Date:

Mike’s Dynatrix Pty.Ltd 2
Table of Contents
List of Figures............................................................................................................................2
List of Abbreviations..................................................................................................................2
Executive Summary...................................................................................................................4
BPM and strategy.......................................................................................................................5
Problem Analysis.......................................................................................................................8
GAP DIAGRAM........................................................................................................................9
SCOPING DIAGRAM.............................................................................................................10
Proposed Solution....................................................................................................................12
Solution Consideration.............................................................................................................14
Recommendations....................................................................................................................16
References................................................................................................................................17

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List of Figures
 Figure 1: Dynatrix Pty. Ltd profitability trend
 Figure 2: BPM Framework
 Figure 4: Gap analysis
 Figure 5: Scooping diagram
 Figure 6: To-be diagram
 Figure 7: Cost estimates
List of Abbreviations
 BPM: Business Process Management
 BPA: Business Process Architecture
 SOA (Service Oriented Architecture)
 ERP: Enterprise Resource system

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Executive Summary
This report identifies primary concerns that Mike’s Dynatrix Pty. Ltd should address
if the company aim at becoming a market leader. The report further stipulates possible
solution to the identified areas of concern coupled with various recommended courses of
action. Specifically, the report assesses the strategic and tactical dynamics of Mike’s Dynatrix
Pty. Ltd to ascertain how its business process flow and methods affects its long-term
profitability.
The BPM facilitates the successful allocation of resources and efficiency in
operations. Thus, this report further explain the inherent idea behind BPM and the
significance of its implementation in Mike’s Dynatrix Pty. Ltd. The issues which the
company has been experiencing are explicitly identified using Gap, AS-is and scooping
diagrams among other illustrations.
2011 2012 2013 2014 2015 2016 2017
Revenue
$m
8 9 10 12 14 12 8
Expenses
$m
3 3 3 3.2 4 3.6 3
Profit $m 5 6 7 8.8 10 8.4 5
Figure 1: Dynatrix Pty. Ltd profitability trend
The above graph clearly shows the company’s present financial situation between
2011 and 2017. In its first year of operation, the company experienced tremendous growth.
However, 2016 and 2017 sales have been relatively down resulting into reduced profitability.
This reduction in sales can be attributed to a change in consumer preference with most of the
company’s clients preferring to buy only such commodities that are considered necessary
rather than luxuries.

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BPM and strategy
According to Janssen et al. (2015), BPM (business process management) refers to a
logical methodology used to enhance the workflow in an organisation. Specifically, effective
BPM can introduce efficiency and heightened capability into an organisation’s workflow and
fluctuating settings. BPM applies broad modelling ideas to explain such course of actions that
every organisations must take in order to succeed.
Mike’s Dynatrix Pty. Ltd is presently facing a very challenging phase of its
production life cycle. The identified negative trends in profitability and other business
processes attest to the inherent need of a strong BPM. The company needs a complete
overhaul and change of mind-set coupled with comprehensive implementation of the
stipulated BPM approach. Moreover, through such BPM approaches, Mike’s Dynatrix Pty.
Ltd can increase its competitive advantage and profitability.
Therefore, once Mike’s Dynatrix Pty. Ltd adopts the BPM strategies, it will be able to
reduce its overheard costs and other unnecessary expenditures and ultimately increase its
overall profits. It the organisation is serious about increasing efficiency and ensuring smooth
operations and profitability, then strong BPM strategies will be instrumental. The figure
below shows a BPM framework that will be used in this report.

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Figure 2: BPM Framework
Source: Janssen et al. (2015)
With the increased uncertainty in the current economic systems, efficient BPM
strategies aim at increasing the organization’s overall performances through effective and
constant monitoring of its business processes. Moreover, BPM strategies will facilitate the
successful accomplishment of organisational objectives. This is because BPM introduces the
company to adept measures aimed at structuring and adjusting its business operations and
increased profitability. The current operational strategies that Mike’s Dynatrix Pty. Ltd is
adopting have resulted into reduced profitability that needs to be corrected it the company is
to maintain its market growth. The company lacks efficient data innovation and management
systems that can significantly reduce its operational costs. The firm’s use of manual processes

Mike’s Dynatrix Pty.Ltd 7
and systems in its operations and management is a major loophole that require urgent
restructuring.
As such, BPM will help Mike’s Dynatrix Pty. Ltd to incorporate an effective
information system that will reduce the manual paper work and thereby reduce the
company’s overhead expenses. BPM will utilize the company’s value chain to make the
necessary changes in its operations (Janssen et al., 2015). Some of the benefits that Mike’s
Dynatrix Pty. Ltd will draw from the implementation of BPM strategies include increased
efficiency particularly with the proposed automation of the company’s business operations.
The manual paper work and other processes will ensure minimal customer complaints and a
reduction in operational expenses. BPM strategies will also help the business to increase the
speed of its operations and increased competitive advantage.
Therefore, Dynatrix should accept changes in its present operations it the company
wants to save its dwindling market operations. Key to the Dynatrix’s success is using
effective BPM strategies that will ensure that all its employees are geared towards a common
organizational objective. Furthermore, the company must apply the concept of continuous
improvement in its operations to strategically align the organization’s processes with the
current trends (Janssen et al., 2015).
Thus, BPM strategies will help Dynatrix to foster an environment that appreciates the
inherent need for adjustment by furnishing its personnel with the adequate resources and
information to run various operations. BPM will also help the firm to develop relevant
operational and strategic objectives that will facilitate the company’s functional alignment to
the current business trends based on a comprehensive ERP (Enterprise Resource Planning)
systems.

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Problem Analysis
Various problems that requires urgent rectification can be established from Mike’s
Dynatrix Pty. Ltd. For example, the company has no clearly defined strategies that can
effectively manage its market operations. With its current management and operation
techniques, Mike’s Dynatrix Pty. Ltd will find it hard to compete and succeed in the present
global market. Besides, the firm’s continued use of manual processes and systems in
managing and operating its activities is identified as a major problem. For instance, the
company currently relies upon a word-of-mouth communication to market its products. This
implies that Mike’s Dynatrix Pty. Ltd has not developed a solid marketing strategy and still
uses manual methods to run its numerous operations.
The many paper based manual processes have resulted into increased customer
complaints particularly with the reported delays in receiving and processing orders.
Essentially, Dynatrix’s market success is derived from its customer responsiveness and
unique quality products. As such, lack of a structured business process depicted from
unsatisfied clients and waning profits must worry Dynatrix. From the table below, the
relationship between causes of the identified problems and possible consequences is clearly
stipulated.
Causes Problems Consequences
Panicking consumers (change in
consumer preferences)
Reduced sales Waning profitability
Underdeveloped
communication strategy
Customers not having the
requisite information on the
company’s products
Negative impact on the
company’s sales and reputation
Manual based process Inefficient operations Unsatisfied customers

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No streamlined computer based
business process
Waning consumer
responsiveness
Increased customer complaints
Delayed processing and
delivery of customer orders
Customer opting for other
companies producing related
products
Decrease revenue
Figure 3: Cause/Problem/Consequence
Gap Diagram
Gap analysis will enable Dynatrix to explicitly identify various problems and flaws in
its operational processes. Gap analysis enables the comparison of Dynatrix’s various
capabilities and performances based on the current performances and suggest possible
redesign procedures. Dynatrix’s proposed gap model is illustrated in the figure 4 below.
Strategic Gap Analysis
Delay in order processing
Customer complaints
Prompt processing of supply
orders. Effective ERP and IT
systems
Trained personnel
Performance Gap
AS-IS PROCESS TO-BE PROCESS
 No proper customer database
 Inadequate resources
 Disintegrated
interdepartmental
communication
 Cumbersome paper-based
manual process
 Creating a consumer
database
 Introducing and
implementing a BPM
system such as ERP
 Improving access to
information
Capability gap

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Figure 4: Gap analysis
From the above gap analysis, much time is wasted when processing customers’
purchase requests and orders. This is particularly evident when suitable Dynatrix is not in
stock as the procurement and production of a new product takes up to four and half week.
Performance Gap:
As is shows that every procedure is conducted based on specific time frames. For
example, processing the sales order is usually done within a week, inventory checks within
21 days and purchase requests within a few days. When there is no suitable product in stock,
the processing of new ones (supply order process) takes up to 4.5 weeks while there is no
specified time frame for the processing of purchase order forms. These processes are
unnecessarily long and can be quickened to ensure efficiency and a satisfied customer base.
The primary objective of every business is to create value and make profits. Effective BPM
strategies will help Dynatrix to redesign its business processes by speeding up its operations
and automating its business procedures.
Capabilities Gap:
To attain the specified objective of service automation and operational efficiency,
time studies will be conducted to ascertain the timeframes that can ensure effective
operations. Dynatrix will be advised to reorganize most of its steps and streamline its
business operations with the current technological trends.
As-Is Diagram
This diagram is used to illustrate the higher level flow of the present customer order
process and capabilities at the company.

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Figure 5: As-Is diagram
SCOPING DIAGRAM
A scooping diagram is used to provide special insight of the diverse operational
challenges at Dynatrix. To understand how a scooping diagram operates, it is important to
explore how sales orders are sent to the production and the ultimate delivery to the

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company’s consumer base. Specifically, a scoop of the Dynatrix’s processes begins with sales
order, inventory, logistics, procurement, manufacturing, purchases, and book-keeping among
others.
Figure 6: Scooping diagram
Input issues: From the diagram above, input issues are majorly depicted from the delay in the
supply of Dynatrix products. This is because the company has to manually process
inventories given that it lacks a comprehensive customer database. The suppliers have to
manually acquire sales data to process orders and this takes time.
Output issues: Due to the cumbersome processes involved in the processing of customer
orders, the shipping of Dynatrix is delayed and this results into unsatisfied customer bases.
Control issues: Inadequate and ineffective documentation processes are very evident at
Dynatrix. This is a serious control issue that must be tackled effectively if they are to achieve
Complete customer order
 Production
 Logistics
 Supplier
procurement
Long order
processing Suppliers External
consulting
Dynatrix
supplies
Sales
invoice
Slow flow of
information
Order
delays
Customer
complaints
Lack of
information
ENABLERS
CONTROLS
INPUT
OUTPUT
Lack of proper IT equipment Order processing

Mike’s Dynatrix Pty.Ltd 13
efficiency in their timing processes. The international shipping of Dynatrix products is also
another control issue that requires serious redesign and streamlining.
Problems with enablers: In this context, enablers include HR management, IT specialists and
Accountants. Dynatrix’s HR management must clearly stipulate duties and responsibilities of
every personnel. The HR department should also define the company’s organisational
structure and sensitize the staff on the projected changes that BPM implementation is likely
to introduce. The IT specialists will facilitate the development of relevant ERP system to
automate business process and eradicate the cumbersome paperwork.
In general, from problem analysis, delay was identified as the major problem facing Dynatrix.
Also, gap analysis revealed various core capabilities and performance gaps from Dynatrix’s
current systems and the projected process level.
Proposed Solution
Therefore, Dynatrix should streamline its present business processes to sustain its
market sales and profitability. To effectively attain this, this report propose the
implementation of a Business Process Architecture (BPA). BPA is an important element of
BPM that can be used to connect various business process creating value for Dynatrix
(Vidyaranya and Gargeya, 2005). If the company want to continue with its past successful
operations, the implementation of effective BPA system is mandatory. This system will
streamline Dynatrix’s strategic objectives and an improved value chain through synergized,
efficient and productive processes.
By integrating a BPA into Dynatrix, the company’s stakeholders will be able to
understand the connection between business’s strategic goals to process goals and specific
managerial goals (Janssen et al., 2015). Specifically, the implementation of BPA will ensure
departmental integration at Dynatrix due to the provision of adequate information. The

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system will further enhance customer service delivery, streamline the business processes,
time saving, optimize business processes and efficiently monitor and evaluate the business
procedures.
The report further proses the implementation a strong ERP system to integrate diverse
organizational systems and ensure smooth transaction of various business processes. A viable
ERP system will also help Dynatrix to effectively monitor and coordinate other
organisational departments (Vidyaranya and Gargeya, 2005). Correspondingly, the report
proposes the implementation of SOA (Service Oriented Architecture) to facilitate
synchronized exchange of organizational data and information. SOA will similarly shorten
the supply or order process to less than four weeks, thus ensuring consistency and accuracy in
conducting related business processes. Generally, the implementation elements of BPM will
ensure business continuity, ensure efficient workflow and management, facilitate the
reporting and evaluation of business processes and effectively manage the company’s
records.
To-Be diagram
This diagram shows the future state of an organization. The proposed to-be diagram of
Mike’s Dynatrix Pty. Ltd is as shown in the figure below:

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Figure 7: To-be diagram
Solution Consideration
Dynatrix will take into consideration the following factors in its redesign and
implementation phases.
Cost of Implementation: Dynatrix will have to estimate the costs that will be involved in the
implementation of the systems as depicted in the table below.
Details Amount in AUD
ERP software and services $150,000
Software license $300,000
Setting up intranet $7,000
40 New Computers $500 each $20,000
Staff training $15,000
Total $492,000
Figure 8: Cost estimates
Therefore, Dynatrix will have to invest approximately $492,000 to successfully set up an
effective ERP system. However, this cost may rise if Dynatrix will require more manpower
(Janssen et al., 2015).
Risk Management: Dynatrix must also establish various risk factors and develop a plan to
counter such. The company can use KPI’s return on investment to determine any risk.
Opportunity Cost: Dynatrix should explore the opportunity cost of implementing the ERP
system.
HR Management: An inclusive HR department will help the employees to adapt to the new
systems.

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Implementation time frame: The whole design and implementation procedures will take
approximately 8 months, but this will change depending on other important factors.
Recommendations
Based on the above analysis and propose solution for Dynatrix, this report recommend the
following:
 Dynatrix should continue with the proposed ERP system to increase efficiency of its
business procedures and increase profitability.
 Dynatrix should training its staff of the application of the proposed ERP system.
 SOA should also be integrated into the proposed ERP system
 Dynatrix should streamline and align its departments with the proposed BPA system.
 Dynatrix should also design a strategic marketing plan to effectively utilise its
available resources.

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References
Janssen, K, Nendels, F, Smit, S, and Ravesteyn, P. (2015) ‘Business Processes
Management in the Netherlands and Portugal: The Effect of BPM Maturity on
BPMPerformance', Journal Of International Technology & Information Management, 24,
1,pp. 33-52, Business Source Complete, EBSCOhost, viewed 15 December 2015.
Vidyaranya B. and Gargeya Cydnee Brady. (2005) "Success and failure factors ofadopting
SAP in ERP system implementation", Business Process ManagementJournal, Vol. 11 Iss 5
pp. 501 – 516.