MPM701 Business Process Management Report: Ben's Omnicrons Pty Ltd

This report analyzes the current business processes of Ben's Omnicrons Pty Ltd, identifying key issues such as delayed order fulfillment, poor stock management, and internal communication problems. The report delves into the causes and consequences of these issues, highlighting capabilities and performance gaps. It presents an 'as-is' model and proposes a comprehensive solution, including developing a business process architecture and a 'to-be' process description with a model. The proposed solution involves implementing an intranet framework, a centralized database, and automated stock management. The report also discusses key aspects of the solution, including information integrity and system maintenance, and provides recommendations such as email communication and employee motivation. The analysis aims to improve the overall efficiency of Ben's Omnicrons by transitioning from paper-based processes to automated technologies, ultimately enhancing its business strategy and financial position.

Running head: BUSINESS PROCESS MANAGEMENT
Business Process Management
Name of the Student
Name of the University
Author’s note:

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Table of Contents
BPM and Strategy:...........................................................................................................................2
Business Process Management in Ben’s Omnicrons Pty Ltd:.....................................................2
Benefits of BPM:.........................................................................................................................2
Value Chains:...............................................................................................................................3
Problem Analysis:............................................................................................................................4
Cause and Consequence of Problems:.........................................................................................4
Capabilities Gap and Performance Gap:......................................................................................4
As-Is Model:................................................................................................................................6
Project Scoping Diagram:............................................................................................................7
Proposed Solution:...........................................................................................................................7
Developing Business Process Architecture:................................................................................7
To-Be Process Description:.........................................................................................................8
To-Be Process Model:.................................................................................................................9
Key Aspects of Solution:.............................................................................................................9
Solution Considerations:................................................................................................................10
Recommendation:..........................................................................................................................11
Bibliography:.................................................................................................................................13

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BPM and Strategy:
Business Process Management in Ben’s Omnicrons Pty Ltd:
The Business Process Management or the BPM is the discipline within the section of
operation management (Chang 2016). Regarding the business process management peoples uses
various of methods for determining, creating diagrams, evaluating, computing, enhancing,
optimising and programming the business related tasks. In this aspect any of the combination
methods that is used for management of the business processes of an organization is BPM.
In the current aspect, the BPM can be beneficial for Ben’s Omnicrons Pty Ltd as it can
this business in an effective way. In the following section, utilization of BPM in Ben’s
Omnicrons Pty Ltd is discussed.
 Currently majority of the task in this organization is a paper based work. Thus, in this
case by the inclusion of BPM a large amount of time and cost can be saved by
eliminating the manual paper works and with that, redundant task linked with it will be
also eliminated.
 The BPM will also provide better monitoring and control over the organization as each of
the department of the organization will be able to execute their task in an online
environment and will be able to access data from a shared database.
 The BPM will also increase the productivity of the employees by reducing the manual
effort that is required in storing, processing and delivering the orders of the customers.

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Benefits of BPM:
In the current aspect there are various of benefits which is gained by the implementation
of BPM. The first benefit gained by the BPM is regarding business strategy from internal and
external perspective. Here, by using the BPM, value chain of the business can be improved
which is comprising of external and internal measures. Value chain is important for the
organization as through this process raw materials are turned into some finished goods (Roberts,
Kayande and Stremersch 2019). By the BPM value chain can be achieved which is a vital
analytical tool through which firms core competences can be defined.
In this aspect, the positioning of the organization can be also improved using the BPM.
The positioning of the organization is dependent on the value of the organization, where value of
the organization dependent on product provided to the customer. Also, organization will be able
to maintain their competitive advantage by using the BPM (Van Der Aalst, La Rosa and Santoro
2016). In this way positioning of the organization can be improved.
Also, Ben’s Omnicrons currently seeks for a modernized infrastructure. In this aspect,
BPM can be used for handling the processes of multiple of departments. In this way
organizational structure related benefits can be gained.
The value proposition is a specific term which defines the main value provided to the
customers through the product. By using BPM value chain can be described and how each of the
sub processes and processes adding value to the product can be understood (Harmon 2019). The
value proposition is related with the Ben’s Omnicrons as they also need to improve their value
chains using the BPM so that they will be able to remove the unwanted processes and can make
the whole processes more effective.

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Value Chains:
Value chain is the process in which raw materials are converted in some finished goods.
In this case, BPM can be implemented to improve the financial position of Ben’s Omnicrons by
improving the value chain. Here, BPM can be used for eliminating any of the processes which
does not provides any type of value along with the value chain (Fleacă and Fleacă 2016). By the
improvement of the value chain business processes will become more efficient as the overall cost
for Ben’s Omnicrons will be reduced. In this way Ben’s Omnicrons can improve the financial
position using the BPM.
Problem Analysis:
Cause and Consequence of Problems:
Delay Order Receive: The customers of Ben’s Omnicrons Pty Ltd is experiencing delay
in receiving orders on time. This is has increased in recent years. The cause of this issue can be
error full and inadequate order management strategy. This issue is impacting customer
satisfaction directly.
Poor Stock Management: Production department has to check the stock of items
required physically after the sales is received. This is a major issue in delay delivery of products.
Ben’s Omnicrons Pty Ltd does not share accurate real time data about available stock of raw
materials is the main cause of this issue. This issue directly affect the production work as Ben’s
Omnicrons Pty Ltd cannot know if an item is low in stock until an employee of production
department checks it manually. Delay in production causes delay in all the next issues in Ben’s
Omnicrons Pty Ltd.

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Capabilities Gap and Performance Gap:
Capabilities Gap:
i. Current State: Currently Ben’s Omnicrons Pty Ltd is not able to complete the
orders within time. Organization is having issues in maintaining order delivery
time. Many customers are complaining about receiving orders in delay. Ben’s
Omnicrons Pty Ltd cannot maintain its stock properly. Often the stock is empty
and order is already accepted. Two of the suppliers are from distant location,
therefore collecting items can take a lot of time to acquire those.
ii. Desired State: Organization wants to boost its sales and cover all the losses it has
faced in the next two years. Customer relationship management is expected to be
a positive side of the organization. Ben’s Omnicrons Pty Ltd wants an approach
for stock management that can place orders for raw materials if defined lowest
stock value is reached. 70% more efficiency in internal processes.
iii. Gap: The main capability gap in Ben’s Omnicrons Pty Ltd is internal process
handling. The current processes are not capable of achieving optimum results.
iv. Corrective Actions: Implementing a customer relationship management method
that will include social media strategies. Automated stock management system
with report generation feature. Internal communication through a digital platform.
Performance Gap:
i. Actual Performance Standard: Currently the organization is experiencing 30% is
sales reduction each year. It is expected that from next year Ben’s Omnicrons Pty
Ltd can see 50% less sales. Around 25% of the orders are pending due to lack of
stocks and internal communication issues.

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ii. Desired Performance Standard: 80% more sales each year through creating a
new brand image and increasing production capabilities. Maintain stock all the
time so that production work never delayed. 60% less delay in communication
between departments.
iii. Performance Gaps: 35% of the current expenses are resulting into waste.
As-Is Model:

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Project Scoping Diagram:
Ben’s Omnicrons Pty Ltd is having issues in managing paper based information because
papers are easily lost and if no copy is then information is lost forever. Sales is decreasing each
year. Sales of Ben’s Omnicrons Pty Ltd is lowest in last two years. Delay in production is
causing the production issues in the organization.
Proposed Solution:
Developing Business Process Architecture:
The business process architecture is considered as hierarchical visualization of the
processes of an organization. The business process architecture model can be used as blueprint of
processes. It can assist the management making various decisions as well as perform strategies.
The business process architecture can include the resources required for individual processes.

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Ben’s Omnicrons can decide which process has the best return-on-effort. The
organization can also acquire a good understanding of its own processes. Ben’s Omnicrons can
convert its vision and mission in to reality as well as plan how to achieve the gaols with
minimum efforts. Ben’s Omnicrons can focus on the value delivery. Currently focusing on the
value is should be the primary goal of Ben’s Omnicrons.
To-Be Process Description:
The To-Be process of Ben’s Omnicrons will include many automated approaches.
Currently the organization is operating using paper based communication. In order to make the
communication less error prone and more efficient, an intranet framework will be installed
within Ben’s Omnicrons. All the employees will be communicating through email, chat and
portal. Each employee will have its own system interface that are connected using the intranet. A
centralized database will be installed which can track stock level, order progress, delivery report
and production data. For each order, from the acceptance by sales department to delivery of
logistics, all the progress will be recorded into the database so that accurate information can be
shared with customer. Storing the stock level can make the stock management process more
effective. Based on the data stored in the database, management can generate reports. Reports are
essential part of business that provides accurate data. Reports plays a key part in management
decision making.

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To-Be Process Model:
Key Aspects of Solution:
The proposed solution has an information system that can automate the back office
processes. New process will support the work of each employee by providing right information
all the time. Due to fast communication and accurate data, the delay in accepting order by
production department is reduced to 1 day. There is one alignment issue and that is information
integrity. As the whole data will flow throughout the system, it can be hard to decide which user

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get access to which data. Each employee will get a medium to access the system and acquire the
required information. The solution will include authentication and authorization approach so that
basic data integrity and security can be implemented in the business process. As the organization
will include an information system into its environment, the process of maintaining the system
also gets added to the business process architecture. Management should hire people to maintain
the system and make sure system should be up and running.
Solution Considerations:
There are some important considerations which must be taken by Ben’s Omnicrons so
that new system can be implemented without any type of issues. These important considerations
are discussed below.
 While the new systems are being implemented there can be risk of increased delay times
which must be considered.
 Due to the time limitation, training must be provided to the employees who are weak in
computer related knowledge so that new system can be implemented successfully.
 Extra managerial effort must be provided at the time of new system implementation.
 There can be potential problem during the information system implementation as this
type of system are not universal (Pearlson, Saunders and Galletta 2019). So, Ben’s
Omnicrons must consider this and should be prepared for this.
 The Ben’s Omnicrons should also consider to install all the required hardware and the
software systems within time.
 Potential risks which are associated in this case with the information system
implementation must be taken care of very carefully and should be minimised as soon as
possible as this can cause increase in the cost for the implementation process.

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 Also, while investment is done on the information system it should be considered that the
benefits from information system must be exceeding the opportunity cost.
Recommendation:
In this aspect an information system will be implemented so that current paper based
business process of Ben’s Omnicrons can be replaced with some automated technology. It will
help Ben’s Omnicrons to improve the overall efficiency of the organization. Regarding the
organization some recommendation are shared in the below section.
 Here, email communication should be implemented for improving the communication
process among the suppliers and the organization. With that professional relation with the
customers can be also maintained for speeding up the whole process.
 It is also recommended to always keep the employees of the organization motivated
towards their work. In this aspect, for the improving the morale of the employee
continuous motivation can be implemented.
 Only the mouth marketing is not enough in this type of cases. So, it is recommend to
adopt a new type of marketing strategy. Also, new IT departments must be installed
within the organization for that it is recommended to hire new and qualified IT
professionals. Also, a systematic infrastructure must be implemented within the
organization.
 Also, it is recommended to always invest in the new type of business process system
which should be better that the previous one. This will increase the sales for the
organization which will be increasing the overall profit while reducing the cost at the
same time.

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Bibliography:
Chang, J.F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
Fleacă, E. and Fleacă, B., 2016. The business process management map–an effective means for
managing the enterprise value chain. Procedia Technology, 22, pp.954-960.
Harmon, P., 2019. Business process change: a business process management guide for
managers and process professionals. Morgan Kaufmann.
Pearlson, K.E., Saunders, C.S. and Galletta, D.F., 2019. Managing and using information
systems: A strategic approach. John Wiley & Sons.
Roberts, J.H., Kayande, U. and Stremersch, S., 2019. From academic research to marketing
practice: Exploring the marketing science value chain. In How to Get Published in the Best
Marketing Journals. Edward Elgar Publishing.
Van Der Aalst, W.M., La Rosa, M. and Santoro, F.M., 2016. Business process management.