GBI Case Study Case Study Sample
An organization/process matrix acts as a valuable tool in assisting an organization identifies the type of production approach that is more efficient in the prevailing market environment. The matrix helps identify products based on the volume of production and the amount demanded by customers each year. Global Bikes Inc (GBI) is the world’s best manufacturer of sports bikes used by people from all corners of the world. The company specializes in the production of off-road trail racing and long-distance road racing sports bikes. GBI uses the modern technologies and innovations to produce unique bikes that meet customer expectations. In order to ensure total productivity and better customer relations, the organization/process matrix will be constructed for GBI. The company is a process-centric organization calling upon the management to think more of processes rather than the functional areas of the company. The main processes followed by GBI include design, build, sell and support. The process matrix will play a significant role in understanding the production approach practiced by the company on the basis of volume of production and the amount of customization required.
Global Bikes Inc (GBI) organization/process matrix
In most instances, people work on process or tasks without understanding the impact of the process. Operations that take place on a regular basis in an organization, for instance, bikes production in GBI, should be delegated to a particular team in order for them to become more standardized. The above is a process matrix for creating a new customer at GBI. In creating a new customer, the system requires the following information, the name of the customer, location, gender, and the type. Once a new customer is created, the system creates the customer quotation depending on the demand. Once the quotation is created, sales order referencing that particular quotation is created, and the sales process starts. The system looks in the database to check the availability of the demanded product in the check stock status category. The customer takes look at the available stock through shops survey in order to determine the specific product to purchase. The main advantage of this process is that it is more flexible, unique, and offers quality results. On the other hand, the process is always inefficient and not cost-effective.
The second process involves creating the contact person and changing customer. The process must involve a sales process where the customer orders for batch/multiple products, or low volume products. Product development is one of the most critical aspects at GBI. The company invests greatly in product development in order to win the global competitive advantage by focusing on innovation, safety, speed, and quality. When a customer makes an order for bikes, the process matrix gives chance for various changes depending on customer’s demands. The manufacturer makes a decision on the mode of production needed depending on customer’s demands. The following process plays a significant role in increasing the efficiency of each step of manufacturing because of repeated processes. On the other hand, sometimes the system gets confused because of repeated activities that end up affecting the overall productivity. The availability of an effective process matrix helps eliminate such challenges, especially when developed using modern software programs.
Enterprise Business Process (ERP) plays a major role in ensuring smooth running of processes within the organization. GBI’s ERP integrates all Information Technology operations taking place in different manufacturing centers across U.S. The above matrix helps in simplifying ERP operations at GBI through promoting advanced business platform in a highly controlled environment. Additionally, consistence is achieved across all operations taking place globally. In the second process, the customer relation’s platform provides services to customers all over the continent demanding GBI products. In order to ensure quality services to customers and continuity, GBI created an extensive partner operation. Currently, GBI delivers best-in-class products to customers using effective supply chain channels made possible by effective process matrix. On the other hand, the company has a strong relationship with suppliers (Magal and Weidner 10-11).
The next process level represents the delivery process. Once a customer orders for products, the company sales department ensures that all products ordered are delivered to the customer within the specified period. The organization database keeps records of all customers registered in the SAP system. The delivery process starts immediately after the display of orders in the system and ensuring all products are available in the stock. The system picks materials on the delivery note and posts goods to the stock list in order to come up with the customer invoice. The sales and distribution department (SD) takes the responsibility of collecting and distributing products to customers. SD is the primary organizational unit level at GBI and takes control of all distribution channels utilized in all manufacturing plants. The sales area undertakes sales organization, distribution and division processes. The SAP Easy Access Menu path is used to display the organization structure units. The path consists of the following:
Sales and distribution
Material Data Business Business Partner Display Customer information
The SD department keeps records for all sales and studies them in order to determine the position of the company in relation to competitors. The data entry strategy used in the SD minimizes delays observed using manual processes. The system creates master data for each new customer eliminating instances of double processing, or matched invoices. The high technical nature of GBI products makes the company embrace use of the internet as the primary source of information. GBI maximizes its potential through creating awareness to customers and other business partners on the importance of integrating IT and ERP in marketing products to a large audience (Magal and Weidner 11). On the other hand, the process matrix makes it easier for the organization to change customer information following the following menu path:
Logistics ► Sales and Distribution ► Master Data ► Business ► Partner ► Customer ► Change ► Sales and Distribution
Additionally, the matrix makes it easier to search for customers in the database by entering the customer code provided during customer registration process.
Use of models in the organization helps in understanding and execution of various operations that brings challenge to the company. GBI operation matrix is applicable to various organization frameworks for effective differentiation of business. Moreover, the online application promotes effective communication between people from different locations. Organizations that incorporate IT in their systems end up winning the global competition. One of the major factors that the organization should remember is to use updated programs that are compatible to daily changes occurring in the technology world.
Magal, S. and Weidner, S. Organization Structure Global Bike Inc.: Background and overview of
GBI strategy and operations organization structure. SAP ERP G.B.I. 2013