Business Process Management Analysis for Jambo Airline

This report provides a comprehensive analysis of Business Process Management (BPM) within the context of Jambo Airline, a regional airline offering freight and passenger services. The report begins with an introduction to BPM, its importance in improving organizational performance, and the current challenges faced by Jambo Airline. The core of the report focuses on problem analysis, identifying key issues such as inefficient customer service due to reliance on travel agents, ineffective inventory management, poor staff performance, and the absence of an IT department. Various models and strategies are discussed, including the Gap Model, Value Chain Analysis, and Positioning Structure, to highlight the airline's weaknesses and suggest improvements. The report proposes solutions such as implementing a Business Process Architecture, and developing a 'To-Be' process to streamline operations and eliminate intermediaries. It also suggests the implementation of an ERP system and direct communication with passengers to improve efficiency, customer satisfaction, and financial performance. The report concludes with recommendations for improvements, including online communication, staff training, and technological advancements to optimize business processes and enhance Jambo Airline's competitive position in the market.

BUSINESS PROCESS
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................1
BPM AND STRATEGY..................................................................................................................1
PROBLEM ANALYSIS..................................................................................................................4
PROPOSED SOLUTION................................................................................................................6
SOLUTION CONSIDERATION....................................................................................................7
RECOMMENDATION...................................................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

Illustration Index
Illustration 1: Gap Model.................................................................................................................2
Illustration 2: Value chain analysis..................................................................................................3
Illustration 3: As-Is diagram............................................................................................................5
Illustration 4: Project scoping diagram............................................................................................6
Illustration 5: To be process.............................................................................................................7

INTRODUCTION
Business Process Management (BPM) can be defined as management discipline that
assists in improving organizational performance. It involves methods, techniques for analysing,
designing, enactment and controlling over business process (Jeston and Nelis, 2014). Current
study is based on Jambo Airline which is the regional airline which offers freight services to
passengers to major towns. Present report will discuss business process management and the
approaches that should be adopted by airline. Furthermore, it will analyse business problem of
cited airline and will propose solutions so that company can perform well in the market.
BPM AND STRATEGY
BPM is the process through which company can design, operational process. There are
many issues which are faced by the organization; thus, it is essential for the company to analyse
these problems and take proper solution in order to resolve them (Chang, 2016). The main aim of
implementing BPM approach is to enhance efficiency level and satisfy consumers.
Scott Jamieson is appointed as CEO of Jambo Airline. As a CEO, it is the responsibility
of the person to analyse loophole in the system and take action to improve it. The major problem
raised by Scott in his report is that booking is done through travel agents due to which consumers
have to pay more prices and sometimes, detail regarding flights are not being communicated to
passengers properly (Krumeich and et.al, 2014). Many times, Jambo Airline fails to provide
timely catering services to consumers because of unavailability of catering services in some
regional centres. Sheely who is handling account department of the cited firm, is unable to
handle and manage cash transactions properly. She regularly takes sick leave which affects
record maintenance system of the entity.
It is essential for Jambo Airline to adopt several approaches in order to resolve work
based problems of the organization (Brocke and Rosemann, 2014).
Gap Model
It is another approach that can be adopted by Jambo Airline in order to resolve business
issues and improve performance of the company. It is the model which is applied for improving
service quality of the business. This is because in the cited airline, many times consumers do not
get timely detail about their flight booking and other accommodation facilities. Many times,
cited firm fail to provide catering services to them properly (Schaper and et.al., 2014). It is the
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major gap because of which entity fails to meet with their expectations. It is the main reason due
to which sales volume of the entity is decreasing. It impacts on profitability of the business unit.
Illustration 1:
Gap Model
Source: (Gaps Model for Improving Service Quality, 2017)
This model can support in highlighting obstacles which affect the company to great
extent. It is essential for the airline to remove negative perception of the passengers and analyse
their needs. This can support in providing them services as per their requirements. As in Jambo
Airline, there is no IT department due to which engagement is unable to make effective
communication in the workplace (Fellmann and et.al., 2015). Due to this problem, company is
unable to provide timely information to passengers about their flight booking. Booking is done
through travel agent so people are unable to communicate with firm directly. This is major
obstacle to the business process. It is essential that Jambo Airline evaluate consumers’
requirements and provide them similar services so that they can be positive and experience the
travel through Jambo Airline (Zugal and et.al., 2015).
Value chain analysis
It is the main strategy that should be applied by Jambo Airline in order to manage
business process well. This is a systematic approach that can help in gaining competitive
advantage. There are two main activities: primary and secondary. Inbound logistics is a part of
primary activities. Cited firm can ensure that it provides timely catering services and wide range
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of on-broad products to passengers (Kroenke and Boyle, 2015). It is required to offer security
services and quick check in services to consumers. Apart from this, there is requirement to
develop IT services in Jambo Airline so that communication with suppliers and customers can be
done effectively. Value chain analysis is the great model as it can help in improving business
performance. With the assistance of this tool, cited firm can create competitive advantage. It
supports in understanding issues and creating more value for the consumer. This can support in
improving primary and secondary activities which may help in raising business performance of
the company.
Illustration 2: Value chain analysis
(Source: Southwest airlines culture, values and operating practices, 2017)
Positioning structure
It is another internal strategy that should be applied by Jambo Airline. It should examine
its market position and has to compare it with competitors. Profit and loss account of the
company shows that its revenues are decreasing and expenditures are continuously increasing.
On comparing its performance with British Airways, it can be said that British Airways is
performing well and it has strong brand position in the airline industry (Koetter and
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Kochanowski, 2015). Thus, Jambo Airline should make effective control over its expenditures
and has to utilize its assets well. This can help in improving its profitability and positioning.
PROBLEM ANALYSIS
Problems in the business are as following:
 Ineffective services to customers: One of the main problem in Jambo Airline is the issues
in booking. As passengers have to coordinate with travel agents and agents circulate
information through email to the concerned department and then it circulates to account
department in order to record booking amount of the ticket. But in this indirect
communication, consumers have to face huge issues. Many times, passengers have to pay
high cost of tickets. Catering services are also poor (Krumeich and et.al, 2014). This
demotivate them and they become negative towards the brand. Ineffective inventory management: It is the main issue because company does not take
support of the latest software and records are maintained manually. Ineffective performance of staff members: Ineffective work of Sheely who works in
account department is another issue of the business. (Zugal and et.al., 2015).
 Absence of IT department: Absence of IT department is the main problem because of
which communication does not hold properly. Many times, IT issues arise which impacts
on sales of the company.
The main cause of ineffective communication is poor IT equipment due to which concern
person fail to coordinate with passenger on time. Another cause of ineffective staff performance
is that they take leave frequently and many times get confused to handle queries and cash flow
information (Jeston and Nelis, 2014).
As-Is and To-Be process diagrams
It is considered as one of the effective technique of improving business process. In this,
company transform vision into desired results. As-Is diagram shows the current capabilities of
the firm, culture and process. To- BE diagram describes the future vision of the organization.
This supports in analysing how entity can meet with its goal by utilizing its capabilities well.
Jambo Airline should make direct contact with passengers because if travel agents remain as
mediator then there is high chances of miscommunication and delay (Zugal and et.al., 2015).
When consumers place their order then concern employee can check their order. If there is quick
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availability of ticket then representative confirm their order and proper detail of flight but if there
is no ticket available then make them aware with the issue.
As in the current process, passengers are unable to directly communicate with Jambo
Airline, they have to coordinate with travel agents. Travel agents communicate with the
company and then circulate information, many times it takes lengthy time. Apart from this, agent
charges their commission as well due to which overall price of air ticket gets increased. It creates
problems due to which consumers feel dissatisfied.
Illustration 3: As-Is diagram
Source: (How to Develop As-Is and To-Be Business Process?, 2017)
Jambo Airline should pay attention on specific requirements of passengers and
accordingly, it should provide them services. Development of IT tools and direct communication
with passengers can support in improving business performance. By this way, consumers will be
able to get information soon and they will not have to pay extra prices for the booking of tickets
to agents (Chang, 2016). Furthermore, training to staff and implementation of strict rules
regarding presence in the organization can help in resolving issue of ineffective performance of
employees.
Project scoping diagram
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Illustration 4: Project scoping diagram
Source: (Using the SIPOC Diagram Technique for Project Scoping, 2016)
PROPOSED SOLUTION
Business process architecture is the methodology through which company can identify
and align business process against the requirements. It helps in determining the formal process
and organising activities effectively. This process can add value to Jambo Airline. With the
assistance of this tool, cited firm will be able to examine needs of consumers and loopholes in
the process (Jeston and Nelis, 2014). By this way, necessary action will be taken to meet with the
requirements. This can support in improving efficiency level and making positive changes in the
business unit.
To be Process
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Illustration 5: To BE process
Source: (How to Develop As-Is and To-Be Business Process?, 2017)
It is the process through which future state of the organization can be reflected. That
mean how small changes can support the firm in improving process and meeting with objectives.
By eliminating the travel agents, Jambo Airline will be able to directly coordinate with
consumers. By this way, clients will directly get to know about their booking and they will not
have to pay extra charges for booking. This will make the future of the firm bright.
Scott should also use ERP technique in order to manage its cash inflow and outflow
transaction. Also, it will help in minimizing confusion and making effective control over the
inventory. By this way, expenditure of the organization will be deceased and cited firm will be
able to enhance its profitability (Zugal and et.al., 2015).
Airline firm follows tall organizational structure. There are many layers in the system and
employees cannot communicate with senior authorities directly. Whenever any issues raise then
higher authorities take all the decisions and workers have to follow their instructions.
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SOLUTION CONSIDERATION
It is essential to consider many things before redesigning of the process. While
implementing the ERP system in the workplace, overall cost of Jambo Airline can be increased.
So, cited firm has to take into consideration and has to monitor the process so that unnecessary
expenditure can be resolved. Apart from this, Scott has to consider time as well. It may be
possible that during redesigning of the process time can be increased. By this way, entity may get
failed to provide timely services to consumers. It might be possible that new system cannot be
operated by human resource effectively (Koetter and Kochanowski, 2015). In such condition,
risk may be increased and it may affect efficiency level of the organization. Thus, Jambo Airline
need to take this into consideration during redesigning development stage.
Implementation of ERP system can increase risk and it can disturb normal services for
certain duration. Company needs to integrate it in the accounting process in order to improve
invoice management, inventory, cash flow management of the organization will be improved.
This will help in minimizing mistakes and increasing profitability (Zugal and et.al., 2015).
RECOMMENDATION
The main issues find in the business process of Jambo Airline are ineffective
performance of staff, poor technology for accounting, poor communication with consumers. In
order to resolve these issues cited firm should adopt several ways:
 It should make online communication with passengers; this direct coordination will help
in increasing loyalty of the customers. By this way, travel agent will not have to pay extra
charges for booking of tickets. They will be able to get timely detail about flight and its
services.
 Company should train its staff members so that they can operate new technologies well
and can improve their working performances to great extent. This will help in improving
business process to a great extent.
CONCLUSION
From the above report, it can be concluded that business process management is an
essential aspect of an organization as this supports in analysing loopholes in the procedure and
aligning the activities in order to improve company's performance. Furthermore, it has been
discussed that use of gap model and value chain analyses can support the organization in
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improving the efficiency level of the business unit. By this way, it will be able to accomplish its
objective soon.
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