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BUS5PB - Principles of Business Analytics

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The third assignment focuses on basic concepts of BPM and applying business analytics to BPM cases. The assignment comprises three tasks. First task is to illustrate the relationships between business intelligence and BPM focusing on the relevance of analytics in BPM.  In task 2, you are required to apply knowledge of balanced scorecard to a laser printer manufacturing business case and analyse/discuss business performance outcomes.  The third task is to design a strategy map and illustrate/explain the cause-andeffect relationships among the designed strategic objectives for a consumer electronics producer.       
Task 01
Develop a short essay that:  
ï‚· illustrates the relationships between business intelligence and BPM.   
ï‚· Defines and elaborates the relevance of analytics in BPM (i.e., performance analytics). You are required to use literatures, graphs, detailed business examples/cases to support your statements.     
The essay is required to be written in a professional format conforming to report guidelines noted below.  
 
Master of Business Analytics          BUS5PB  La Trobe Business School  
2  
Task 02  
Lee Corporation manufactures various types of colour laser printers in a highly automated facility with high fixed costs. The market for laser printers is competitive. The various colour laser printers on the market are comparable in terms of features and price. Lee believes that satisfying customers with products of high quality at low costs is key to achieving its target profitability. For 2011, Lee plans to achieve higher quality and lower costs by improving yields and reducing defects in its manufacturing operations. Lee will train workers and encourage and empower them to take the necessary actions. Currently, a significant amount of Lee’s capacity is used to produce products that are defective and cannot be sold. Lee expects that higher yields will reduce the capacity that Lee needs to manufacture products. Lee does not anticipate that improving manufacturing will automatically lead to lower costs because Lee has high fixed costs. To reduce fixed costs per unit, Lee could lay off employees and sell equipment, or it could use the capacity to produce and sell more of its current products or improved models of its current products. Lee’s balanced scorecard (initiatives omitted) for the just-completed fiscal year 2011 follows:  
Objectives Measures Target Performance
Actual Performance Financial Perspective    Increase shareholder value Operating income changes from productivity improvements $1,000,000 $400,000  Operating income changes from growth $1,500,000 $600,000 Customer Perspective    Increase market share Market share in colour laser printers 5% 4.6% Internal Business Process Perspective    Improve manufacturing quality Yield 82% 85% Reduce delivery time to customers Order-delivery time 25 days  22 days Learning and Growth Perspective    Develop process skills  Percentage of employees trained in process and quality management 90% 92% Enhance information system capabilities Percentage of manufacturing processes with real-time feedback 85% 87%  
1. Please explain whether Lee successful implemented its strategy in 2011. 2. Review Lee’s balanced scorecard against design principles, for example:  a. whether it explains and communicates the strategy; whether it measures what it is designed to achieve; b. whether it needs additional measures relating to customer perspectives and why, etc. c. Would you have included some metrics of employee satisfaction in the learning-and-growth perspective and new-product development in the internal business process perspective? That is, do you think employee satisfaction and development of new products are critical for Lee to implement its strategy? Why or why not? Explain briefly. 3. What problems, if any, do you see in Lee improving quality and significantly downsizing to eliminate unused capacity?
 
Master of Business Analytics          BUS5PB  La Trobe Business School  
3  
Task 03  
E-Appliances manufactures an MP3 player called the Mini. The company sells the player to discount stores throughout the country. This player is significantly less expensive than similar products sold by EAppliances’ main competitor, but the Mini offers less storage space. E-Appliances has recently experienced production problems that have resulted in significant rework costs. The competitor model has an excellent reputation for quality, but is considerably more expensive. E-Appliances would like to improve quality and decrease costs by improving processes and training workers to reduce rework. The managers believe increased quality will increase sales.  
Draw a strategy map and explain the cause-and-effect relationships among the strategic objectives you would expect to see in E-Appliances balanced scorecard.

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