Strategic Analysis and BPM Recommendations for Dynatrix Pty. Ltd

This report presents a comprehensive analysis of Mike's Dynatrix Pty. Ltd, focusing on its business process management (BPM) and strategic recommendations. It identifies key issues such as inefficiencies in order processing, customer complaints, and the need for a more robust customer database. The report employs gap analysis, AS-IS diagrams, and scooping diagrams to illustrate current operational challenges. A proposed solution involves implementing a Business Process Architecture (BPA) and an Enterprise Resource Planning (ERP) system to streamline processes, improve customer service, and enhance operational efficiency. The report also considers implementation costs, risk management, and HR management. Recommendations include ERP and SOA integration, staff training, and a strategic marketing plan to optimize resource utilization. The report concludes with a discussion of implementation timeframes and offers references for further study.

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