In this presentation, Business Process Management is described. Various kinds of analysis is performed on real-time IT issue of a Startup - BigBasket.

1. IT Issue/Technology
Presentation
Utkarsh Agrawal
Business Process Management
1

2. Content
• Business Process Management
• Importance and Principles of BPM
• BPM Life Cycle and Analysis
• BPM - Case Study: Big Basket
• Current State: Drop Shipping Model
• Problem Statement
• Alternatives and Methods
• Porter’s 5 force analysis
• Mintzberg’s 5 Ps of Strategy analysis.
• SWOT Analysis
• Super SWOT Analysis
• Fishbone Model As-Is and To-Be
• Ansoff Matrix
2

3. What is Business?
• Individuals, interacting together, to perform a set of activities to
deliver value to customers and a return on investment to the
stakeholders
• Business implements and uses business process
What is Business Process?
• Process is a defined set of activities or behaviours performed by
humans or machines to achieve one or more goal
• Composed of a collection of interrelated tasks or activities which
solve a particular issue
• Business Process can be managed using Business Process
Management.
3

4. 4
Hierarchy of BPM

5. 5
Business Process Management
• “Business Process Management is a generic term, that
encompasses the techniques, structured methods, and means to
streamline operations and increase efficiency”
• “BPM techniques and methods enable you to identify and
modify existing processes to align them with a desired (improved)
future state.”
• Enables an enterprise to align its business processes to its business
strategy, leading to effective overall company performance
through improvements of specific work activities either within a
specific department, across the enterprise or between
organisations.

6. BPM is not..
• The automation of manual tasks
• Re-engineering the Enterprise
• Change Management
• Six Sigma
• A management methodology
• Workflow or BPM technology
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7. 7
Importance of BPM

8. 8
Principles of BPM:
• Organise around outcomes not tasks.
• Correct and improve processes before (potentially)
automating them.
• Establish process and assign ownership.
• Standardise processes across the enterprise.
• Enable continuous change.
• Improve existing processes, rather than build radically
new or ‘perfect’ processes.

9. BPM Life Cycle
9

10. Business Process Analysis
• Clear documentation of the process and greater understanding
• Robust data on how the process is performing
• Identify the obstacles that cause delay to certain processes
• Identify which user actions are hindering the process and
where inefficiencies are
• Better training for new employees taking on the process
10

11. 11

12. 12
BPM: Case Study
• India’s largest online
food and grocery
store
• Founded in 2011
• Pan-India presence
in about 30 Indian
towns and cities
• Vast customer base
of 6 million

13. Order Delivered
Delivered
directly to the
customer at
the chosen
time
Place Order
Customer
places order
for items from
website or
app and
choose a
delivery time
Order Picked up
Delivery boys
picks up the
item from the
retailer
Current State: Drop Shipping Model
13

14. 14
Problem Statement
• Dependency on retailers
• High logistics cost
• High delivery time
• Low profit margin
• High maintenance cost of website and mobile app

15. 15
Alternatives
Alternatives
Inventory Model Hybrid (Drop Ship
+ Inventory)

16. Alternative details
16

17. 17
As-Is To-Be
Dropship Model Inventory Model Hybrid
Business Zero inventory
Just pick up
items from
vendor, pack and
ship product to
customer
Items stocked in the
warehouse
Packed and shipped
from the warehouse
Mix and match of
dropship and inventory
model
Perishable items like
vegetables and fruits
picked from local
vendors;
Items with longer life are
stocked in warehouse
Return on Investment Low; High cost of
products cost of
delivery
High; Buy from
suppliers at wholesale
price
High; Items from Stock as
well as local vendors
As-Is To-Be Analysis (Part 1)

18. 18
As-Is To-Be Analysis (Part 2)
As-Is To-Be
Dropship Model Inventory Model Hybrid
Business Continuity
and Agility
Only sell items
available with
the local
retailers.
Stock high quantity of
products and provide
wide variety in bulk
quantity in times of
shortage
Ability to delivery
products in bulk quantity
as well as reply on local
vendors for perishable
and items not in stock to
ensure business
continuity
Economy & Efficiency High
dependency on
retailers; more
delivery time
There is no
dependency on
retailers and optimum
delivery time; however
need to discard unsold
perishable items like
fruits and vegetables
Slight dependency on
retailers for perishable
items.

19. 19
As-Is To-Be Analysis (Part 3)
As-Is To-Be
Dropship Model Inventory Model Hybrid
Infrastructure Maintenance of
online application
and logistics
Require an
inventory
management
system.
Need an inventory
management system as
well as tie-ups with local
retailers
Time to deliver Delivery boys have
to check availability
of item with local
vendors which
increases delivery
time. It is difficult to
deliver as per
customer
convenience
Items readily
available in the
inventory so
delivery as per
customer
convenience is
feasible
Items readily in inventory
available can be delivered
faster. Unavailable items
can be delivered later.

20. 20
Porter’s 5 Forces

21. Porter’s 5 Forces
Competitors: High
• High number of competitors.
• Low entry barrier as initial
investment is low.
• Low storage costs as groceries are
taken from retailers
• Competitors providing low price
have upper hand.
• No prior experience required as no
innovation required.
New Entrants : High
• Being part of big retail network is
not a difficult task.
• Low launching cost for new
entrants.
• Low advertising cost
• No advantage for the
incumbents as new entrants can
take over customers by
providing good pricing.
21

22. Suppliers Negotiation Power: Low
• Rate at which groceries are
provided by suppliers depends on
the state and central law change
which does not change
frequently.
• Easily switch from one supplier to
another.
• More pressure for supplier as they
have to provide good quality.
Customers Bargaining Power : High
• Drop-Ship model came to existence
to make it easy for consumers to buy
groceries without coming out of their
house.
• Customer demand varies from time
to time.
• Not satisfying customer demands
leads to switch to competitors.
• Customers can easily switch between
competitors as there is no cost to
switch .
Substitutes: Medium
• Switching to substitute is easy.
• Brand value for groceries is not
primary concern
Porter’s 5 Forces
22

23. Porter’s 6 Additional Forces for Threats
• Political & Legal Environment: LOW
Government rules and laws affect not very frequently.
• Complementors: LOW
Complementors are the retailers as the firm takes supply from them .
• Technical Environment: MEDIUM
Innovative capabilities is not a prime concern as website or mobile
app is the only mode to take care.
23

24. Porter’s 6 Additional Forces for Threats (Contd)
• Demographic Environment: HIGH
Customer demands vary time to time and need to be satisfied.
• Social Environment: LOW
Social culture and context does not clearly define the groceries that is
ordered.
• Macroeconomic Environment: MEDIUM
Price rise of groceries do affect the business, but won’t stop
customers from buying daily use groceries
25

25. Mintzberg’s 5 Ps of Strategy
Plan
Agile and
flexible business
model and a
course of action.
Pattern
Quick turn of
stock which
keeps
customers
coming back for
new product
and look what
has worked in
the past.
Position
Differentiate
services from
the competitors
and provide
better services
than others.
Ploy
To stay ahead
of the
competitors and
play maneuver
to outwit
competitor.
Perspective
Quickly picking
up on new
marketing,
sales, offers,
etc. trends
25

26. Swot Analysis
Strengths
• Quick delivery
• Real-time tracking
• Discounts/Coupons and
Combos
• Availability of product
• Bulk order delivery within time
frame is not possible
Weaknesses
• Expiry of perishable goods
• Warehousing cost
Opportunities
• Online market offers huge
growth
• Growth in India has huge
potential
• International expansion
especially in emerging markets
Threats
• Models with inventory keeping
• Higher price tag than local store
• Logistics cost add up to
delivery charges
• Long time to achieve break-
even
SWOT Analysis (As-Is)
26

27. More than SWOT: Super SWOT
• What’s not super about SWOT?
SWOT breaks down the problem but it doesn’t
provide solution.
• Super SWOT allows your team to collectively:
• Create strategies by combining your strengths and
weaknesses with what is happening in
marketplace.
• Justify why a strategy fits into a bigger picture
• Examine and mitigate for risk
27

28. • Open new stores in tier II
cities in India.
• Build distribution centers in
to lower delivery charges
• Be the trendsetter Promote
the company’s vision to be
an eco-friendly company.
• Inventory keeping can help
achieve break-even and
increase revenue
• Use AI to show tailor made
recommendations for users
• Increase the brand equity
through better service.
• Charge products at
competitive price in local
grocery store standards.
• Produce a signature
collection.
• Reduce dependency by
maintaining inventory
• Increase spending for
marketing campaign.
• Delivering on e-bike will
create an impact on
environment.
Strengths
Weaknesses
Super SWOT Analysis
Opportunities Threats
28

29. 29
Dropship
(As-Is)
Cost
Economy &
EfficiencyInfrastructure
Security
Business Continuity
and Agility
IT Maintenance
PayrollLogistics
Bulk orders not
feasible
More
Delivery
Time
High Dependency
on retailers
Website
Mobile
Medium
Management
of
Infrastructure
IT Security
Low security
of Goods
Price Fluctuations
Dependency of Retailers
Fishbone Model (As-Is)

30. 30
Hybrid
(To-be)
Cost
Economy &
EfficiencyInfrastructure
Security
Business Continuity
and Agility
IT Maintenance
Increased
Labour
Low Logistics
cost
Bulk orders
possible
Faster
Delivery
No more
Dependency on
retailers
Website
Mobile
High
Management
of
Infrastructure
Increased IT
Security High security
of Goods
No more price control
by retailers
Fixed Price
Fishbone Model (To-be)

31. Product
Development
Diversification
Market Penetration Market Development
Markets
Products
Current
New
Current
New
Ansoff Matrix
31

32. Ansoff Matrix
Product Development
• Recommended products
• Inventory Improvement
• Information gathered
according to the customer
requirements
• Manufacture your own
products: Self-Branded(In-
house)
Market Penetration
• Big Basket encouraged its
current customers to buy more
by giving exceptional value at
low cost
• Big Basket has variety of
groceries available in the
market
• Big basket has started making
its own products
Market Development
• Identified potential user
groups in the current sales
areas.
• Considers selling in new
locations in new market.
• User-Friendly Administrative
Website
Diversification
• Big Basket - Specializes in
their In-house products and
takes the opportunity to
expand its reach to new
market
P
r
o
d
u
c
t
Market
32

33. 33
STAKEHOLDER ROLE RESPONSIBILITY CURRENT DESIRED
CEO Sponsor Develop strategic innovation to
increase the profit of the
business
Designing leading-edge
online food and grocery
store
Reach out to more to the
customers and ask for
feedback
Top Management Oversee Implement goals and objectives
and use skills and ideas to
sustain and improve upon
multiple advances in the online
food and grocery industry
Growth oriented and
focused on building
partnerships
Improvise business models
and infrastructure. Allocate
more resources towards
improvisation of the services.
Customers Buy food
and grocery
online
Order and pay the bills online Contented and satisfied
with the service provided.
Accustom to changing
technology and business needs
and be familiar with the
process engaged during the
same
Employees Contribute Provide services to the
customers with quality products
Meeting goals and
objectives of the
business
Provide continual support
ensure timely delivery with
changes in technology
Stakeholder Analysis

34. 34
STAKEHOLDER ROLE RESPONSIBILITY CURRENT DESIRED
IT Enable and
Support the
website
Progress, develop and
deliver a website with all
the products needed by
the customer along with
the security of the
payments by the customer
Able to meet
expectations with
current software
resources(Website
and mobile app)
Keeping up with the top-
notch technology and
innovation
Suppliers Supply
quality
products
and
services
Meet the demands and
expectations of the
customer in terms of
products, services and
competitive cost of the
products
Keep up with the
availability of
products
Be expected to be
consistent, meet policies
and keep pace with
growing changes in the
online food and grocery
industry

35. 35
Criteria Dropship Model Inventory Model Hybrid Model
Cost
Effectiveness
Medium X High √ Very High √
Timely delivery Low X Very High √ Very High √
Loss of
perishable
goods
Low √ Very High X Medium √
Variety of Items
sold
Low X High √ Very High √
Bulk Delivery Low X Very High √ Very High √
Labor Cost Low √ High X High X
Recommendations