Jenny’s Compostwiz Pty. Ltd. Business Process Management

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Fig. 2.4 GAP MODEL FOR COMPOESTWIZ PTY. LTD.

- PROPOSED SOLUTION

The business process architecture (BPA) for any organisation is a collection of processes that are carried out and the relationship among these processes (Barros 2007, p.1). By incorporating architecture process, helps in efficient and smooth running of business. By connecting different processes in a business, it helps in building relationships between different departments like finance, production, logistics etc. Along with this, it helps in maintaining value chain as well as maintaining crucial functions like finances, IT, procurement, logistics and so on. By strategically developing business process architecture from the existing process, helps in proper execution and future business development. By linking all processes together in an enterprise not only ensures smooth flow across end to end process but also avoids any mistakes that could happen while carrying out day-to-day processes, saves time, improves efficiency with which more work can be done.

BPA would bring a difference in jenny’s company since there is no proper check to the flow of the process in the company. Also work is carried out manually and by maintaining files or post-its which cannot be relied on. By incorporating BPA, all the departments in the company will be interconnected and a set flow can be maintained so that there is no question of ever ill-functioning. This will lead to more productivity in the work and efficient working in the company. Since the company sales are down at the moment, they have to identify the current flow and formulate strategically an architectural plan for betterment of the company.

To-Be Process-

By formulating and implementing BPM process, they would be able to identify and rectify the mistakes so that the profit of the company which is seen to be going down over last two years could be changed. Work can be carried out faster and efficiently between the production, logistics and accounting departments without delay. This will give a clear picture whether the plans developed by the company to generate profits/increase sales are the same as the To-Be process that is formulated so that they can be followed. A picture view of Compostwiz Pty Ltd of how their process should be is given in fig.1.2. The company would be able to function more efficiently by incorporation of Enterprise Resource Planning System (ERP).

Fig. 3.1 To Be Process Diagram for Jenny’s Compostwiz Pty. Ltd

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Incorporation of ERP-

ERP is a software that can connect different functional departments together and facilitate communications across departments. Resources can be aligned with the help of this software and in case of any mal-functioning, can be corrected and aligned with company’s strategies and the goals that are to be achieved and connected with other departments (Harmon 2007, p.90). Different advantages of implementing this software are as follows-

- The biggest benefit that compostwiz will have is the time management. Like Mike requires three days to physically check the availability and then convey the message further. This can be avoided by using the intranet, by incorporating ERP it will automate the system fully.

- Compostwiz Pty Ltd is maintaining lot of paper work and post-its which has the risk of loosing in causes of any adverse events as well as they have to follow-up through these paper.

- ERP will help in maintaining the invoices generated for customers and receiving invoices from the suppliers.

- ERP would also be helpful in keeping a tract of revenues that the company will be having so that they can plan future strategies.

- ERP would also ensure that supply chain in the company in maintained and followed efficiently.

- Automating procedure from receiving order from customers, making sales order, checking inventory, receiving sales order by logistics and accounting, storing shipping details in software and categorizing and making invoices as well as making payments, all can be automated increasing productivity.

- Solution considerations

Cost of implementation

The cost of the ERP system can be the first factor need to be considered. Price varies from different brand or different type of software. The normal bottom line is $150,000-$750,000.

Elements that affect the cost of implement SAP Business One include: functional requirements, data conversation, geography, reporting requirements, skill set of users, number of users, integration requirements, and development requirements.

Here is an example for implement SAP Business One (comprehensive implementation) – 50 users – Finance, Distribution, manufacturing, mobility, business intelligence reporting and CRM requirements. Total solution pricing estimate $190,000. This includes 50 users of SAP Business One software, year one annual maintenance and all implementation services

Risk of implementation

1. Training & education

Most urgent risk of changing the business to totally new management system is the employees may not get used to the new system. Training and education can be expensive but necessary for the business. Trained and skilled system users can make the best benefit for company (Umble et al., 2003 Edwards and Humphries, 2005).

2. Employee resistance the change

Some employees may refuse to use the new system because they are not getting used to a totally different work process (Stanton et al., 1992). Habits can affect people’s activities. It would be a waste if no one is using the new system. And what’s more, the business process does not change at all. The company’s profit cannot get improved.

3. Conflicts & coordination

There may be a chance that employees from different departments do not work on well together. Coordination and cooperation is significant. The conflicts among employees make the work process less efficient.

4. Lack of resources of IT support

A different new information system may be confusing for some employees. IT supports is significant in the whole working process. Some previous