Problem analysis

Currently ABC company is encountering number of issues among which are, issues with the
ticket and seat bookings and the fees are also being incorrectly debited from the accounts of
customers. The reason being the error in the system is the tedious and the complex mailing
procedure executed by the agent and the organization in the booking mechanism, and the lack
of coordination and communication resulting in this problem.

Catering mechanism is also another issue encountered by the company, this has resulted in
train delays and various times results in the unfulfillment of the company to offer
refreshments to the passengers. It has been analysed that the company has issues in
coordinating the specifications to its suppliers and which leads in interruption in the flight
and failure to offer the passengers with snacks on time. This has the potential to annoy them.

Accounting issues are another major problem in the company, which has led in errors and
discrepancies in financial reports. Delay in the processing mechanism is the reason behind
this issue. The suppliers invoice the paper which require more time to process and therefore
results in lack of coordination, delays and eventually in the financial inconsistencies. This
way the organization is failing to provide good performance. The problem is further
intensified with the use of the postal system.

The customers experiences are going low due to the problems they are facing with the
scheduling trains. The reason behind this issue is the acute shortages of trains the company
owns. The problem is further intensified due to the issues in the procurement and delivering
system in the organization. It has been further analysed that the company has issues in
employee management and employee supervision. The main reason concerning the existence
of this issue is that single staff is responsible for the overall scheduling process.

The issues encountered by the company in maintaining the train occurs because it has to
oblige by the rules and guidelines set by the regulatory agencies. The train has to be taken off
services in case the train owned by the company fails to fulfil the set standards. For this
purpose, in order to maintain the trains, the company has hired external contractors; any delay
from the contractors’ side led result the trains being off service for a longer time and led in
scheduling issues.

Issues in marketing and sales is also analyzed in the company. The problem is caused mainly
due to inadequacy of a formal IT team that the company possesses. Issues in allocating
scheduling and the catering services are the reasons behind the problems in sales and
marketing.

Proposed solution

Formulation of an apt sales and marketing techniques for the organization are the primary
issues. However, these issues can be overcome with the suitable selection and utilization of
business process architecture, which is nothing but the blue print of the enterprise that offers
common understanding of the company and is used to streamline strategic and tactical
demand. In this case, the suitable business process for the ABC company needs to be
hierarchical model with the development of the IT unit for the organization, which will assist
in minimizing the coordination issue and will help in implementing suitable policy for the
company. The IT solution will assist in minimizing the delay and process time for the various
departments involved in the process.

The analyzed gap prevailing between the set valued proposition of the company and its
implementation in the practical life. In this scene, the chosen business process assists in
minimizing the gap and the IT solution assists in minimizing the time and efficient solution.
The future state of the business process in an organization is defined by the “To be” process.
In this regard, it has to be the hierarchical process and it requires to be included in it.
Moreover, it can be further mentioned that the company need not pursue the business
structure that it is currently pursuing.

Figure: Business Process Diagram

It is advisable for the company to focus on its support and management process
followed by the implementation of the IT tools and techniques in the process as this will help
in resolving the issues to a great extent. Implementation of these techniques will help in the
development of marketing and sales policy, in the catering mechanism, the accounting system
as well as the issues of passengers being charged unnecessarily. The suitable choice of
technique has to be done as per the diagram.
The organizational structure should be in hierarchical fashion because the business process
structure is also hierarchical with the incorporation of Information Technology.
Hierarchical organization structure

Solution Consideration
Business Process Management changes can prove to be extremely costly and valuable
considering the surroundings. Considering the situation and issues the company is currently
facing, it can be said that these changes are essential. It has been analysed from the company
performances that the company’s revenues has narrowed down in the recent times; the
company has seen loss in the last two years and the margin of the loss is widening. In this
context, the losses which have been encountered by the company is primarily due to the
difficulties in the areas of marketing and sales, aircraft maintenance and scheduling issues
which has resulting in customer dissatisfaction.

In this regard, utilization of the IT tools would help the company to minimize the functioning
time for the processes eventually bettering the service quality. High investment cost is needed
in order to utilize the tools for the process. Furthermore, it will not be difficult for the
company to implement the IT tools considering the political situation in the countries where
the organization performs support technological advancement. It is suggested to the company
to train its employees regarding the change, which will further add to the overall cost. It is
important on the part of the organization to focus on the aspect of customer satisfaction. This
factor comes under the sales and marketing strategy.
This will have implication not only within but also outside of the organization. In this case it
can be further said that these suggestions will aid in improving the internal environment of
the organization improving coordination within the company and bettering effectiveness.
This would lead to resolving the problems of accounting, maintenance of trains and train
scheduling. Furthermore, customer experiences will be better as their issues will be addressed
which is an external phenomenon for the organization. One more external phenomenon is that
it will assist in launching the service to the right group of subscribers as market research will
have to be performed for the purpose. This way the proposals will affect the organization
from inside as well as outside.

Recommendation

In the formulating recommendation for ABC company, it has been apparent that there is a
dire need for funds and other sources of investments by the company, which will be needed
in order to carry out the business process management system. This is crucial for the
company in the present context as failing to have the needed budget will result in
unfulfillment of performing the redesigning and development program. Involvement and
Implementation of the ICT (Information and Communication Technology) is of utmost
significance in its coordinating mechanism. This will assists the company in facilitating the
process and the needed time. The company should ensure that the customers’ facilitation is
performed in a proper manner. This includes offering them with timely refreshments. Also,
eliminating the issues of discrepancies in accounts and the minimization of the complicacies
in the coordination mechanism will aid the company in addressing the concern in a better
way. In this regard, it is important on the part of the company to perform market research in
order to identify the potential market and the set of customers. The company is required to
perform this task in the most effective manner by itself or hire some professional in the field
who would do it for them. Depending upon the market research results the company requires
to put up its marketing strategy and advertisement. The sales and the services offered by the
company will be improved to large extent through this. To minimize loss and drive the
company towards a path of profit is the ultimate motive of ABC company.