BPR and ERP: Some important factors

PROCESSES, organization, structure and information technology is the key components of BPR which automates business process across the enterprise and provides an organization with a well-designed and well-managed information system. Organization has two options to choose from when it comes about BRP. First option is reengineer business processes before implementing ERP and the second is directly implement ERP and avoid reengineering.

In the first case, before implementing ERP, the organization needs to analyze current processes, identify non-value adding activities, and redesign the process to create value for the customer. This would be a customized solution considering the organization's structure, culture, existing IT resources, employee needs and promises relatively less disruption to routine work during the change programmer.

It is likely to have a high probability of implementation. But the reengineered process may not be the best in the class, as the organization may not have access to world-class research and best practices. Moreover, this may be the only chance to radically improve in the near future and going for less than the best may be a costly mistake. Also, developing an in-house application or implementing a modified ERP can never be an advisable practice.

The second option of implementing ERP package is to adopt ERP with minimum deviation from the standard settings. All the processes in a company should conform to the ERP model and organization has to change its current work practices and switch over to what the ERP system offers. This approach of implementation offers a world-class efficient and effective process with built-in measures and controls, and is likely to be quickly installed.

But if the employees do not have good understanding of their internal customer needs or current processes, or if these processes are not well defined and documented, then It is quite possible that while selecting the standard process from the ERP package, employees may not be able to perceive the difficulties likely to be encountered during the implementation stage. Employees would lack process ownership and orientation. Other than technical issues, issues like organization structure, culture, lack of involvement of people, etc, can lead to major implementation difficulties. It may lead to a situation where the organization may have to again reengineer its processes. This could be a very costly mistake.

There is also other option of reengineering business process during implementation of ERP also exists. It may sound to be the best option but, being an ideal situation; it does not seem to be a practical option and is likely to cause maximum disruption to existing work. It should not be forgotten that during BPR and ERP initiative, routine work is still be carried out and customers need to be served.

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