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Task: Preliminary Business Report

Student Name
Name of the University

Task: Preliminary Business Report

Background
The present case study is about Compostwiz Pty Ltd., a private company owned by Jenny. The
issue is that although the business experienced a strong growth in the initial years, however, there
was a decline in sales and profit in the year 2014 and the same trend was observed in the years
2015 and 2016. Thus, the objective of the present report is to highlight the importance of
Business Process Management (BPM) and the associated benefits of BPM to Jenny.
BPM and Strategy
Business Process Management can be described as an art as well as the science of observing how
different activities and tasks are carried out in an organizational setup so as to ensure consistency
in the outcomes and so as to take advantage of opportunities to improve as highlighted by Dumas
et al. (2013). A BPM approach should now become a part of Compostwiz Pty Ltd. so as to
improve the way business activities are performed at the company as adopting a BPM approach
can act as a source of competitive advantage for the company and can contribute towards its
success and even its survival in the near future.
As highlighted in the case study, Jenny has observed that due to lack of automation, there is a
great delay in the order processing, which is creating a strong communication barrier between
the team members. This indicates that there is a strong need for adopting the methodology of
business process reengineering. Business process reengineering, as a concept, can be described
as a radical rethinking and redesigning of the core activities and tasks performed by any business
to bring about improvements in the cycle time of the processes, the productivity and efficiency of
the activities and in the quality as stated by Chang (2016). As far as the present case is

concerned, it is quite evident that the product is of prime quality and there is no competitor in the
market which can produce a comparable device. Thus, Compostwiz Pty Ltd. is already enjoying
the benefits arising out of product differentiation and innovation as explained by Chang (2016).
However, the company needs to work upon improving the cycle time as well as the productivity.
This can only be done if Jenny can bring about some degree of automation in the current order
processing system, currently followed at Compostwiz Pty Ltd.
There are multifarious benefits associated with adopting a business process management
approach for Compostwiz Pty Ltd. Firstly, the BPM approach will provide the benefit of clear
ownership as indicated by Dumas et al. (2013). The increased accountability of the group
members can essentially help Jenny minimize the perceived tension between the group members.
Secondly, the adoption of automated IT solution will help Jenny to assess the information
regarding at any point of the value chain. Value chain can be described as the all the activities or
tasks undertaken by any company so as to add value to the product as mentioned by Ward and
Peppard (2016). Thirdly, the automation of primary activities, such as order processing, can
substantially reduce the cost of business activities as highlighted by Chang (2016). This can help
Compostwiz Pty Ltd. to sustain profits in the future. Fourthly, integration of a Supplier
Relationship Management system can help Compostwiz Pty Ltd. to manage the orders coming
from various suppliers and can help the managers maintain and sustain good relations with the
suppliers. This can also act as a source of competitive advantage for the company. Keeping in
mind the advantages arising out of the adoption of BPM, it is advisable that Compostwiz Pty Ltd.
adopt the BPM strategy so as to sustain the position of market leader.

References
Chang, J.F., 2016. Business process management systems: strategy and implementation. New
York: Auerbach Publications.
Dumas, M., La Rosa, M., Mendling, J. and Reijers, H.A., 2013. Fundamentals of business
process management. Heidelberg: Springer.
Ward, J. and Peppard, J., 2016. The Strategic Management of Information Systems: Building a
Digital Strategy. 4th ed. United Kingdom: John Wiley & Sons.