It seeks to assist businesses to radically restructure their organization. This is achieved by focusing on the ground-up design of their business processes. Re-engineering highlights on a holistic focus on the business objectives and the processes related to them and this encourages full scale recreation of processes rather than Just the optimization of sub processes. Why is BPR needed? Do businesses really need such a radical makeover? The answer is yes. It is to remain relevant and to keep pace with the ever-changing global markets, customers' expectations and needs and to remain on top of other competitions.
Some may argue that if the old way was working fine, why tear everything down and build everything up again. This takes time, effort and resources. But everything can be improved and this is to increase efficiency and productivity and to minimize wastage and lost. BPR also makes businesses more customer-focused and responsive to changes in the market. This is achieved by reshaping corporate structures around business processes and implementing change by redefining the business tasks in a holistic or process-oriented term.
The winners of tomorrow are also those who gather crucial information and act on them quickly. Making informed business decisions enables businesses to accomplish their business growth and enables them to utilize the information to their competitive advantage. An adequate infrastructure that provides information across the business is needed to execute this vision. Information technology is needed to facilitate the creation of integrated management information. It is crucial in improving coordination and access to information across all business units and allows more effective management of task interdependence.
Enterprise resource planning is business management software. It usually consists of integrated applications. This is used to collect, manage, store and interpret data from all business activities that includes: cost, manufacturing, product planning, service delivery, Marketing and sales, inventory management and even shipping and payment. PER provides an integrated view of the business core processes and often in real time. This is done by usage of common databases maintained by a database management system.
ERP also tracks the business resources (raw materials, cash, and production capacity) and also the status of business commitments (purchase orders, supply orders and payroll) the applications that make up the system shares data across various departments. It facilitates the flow of information between all business functions. This facilitates information flow across all business departments. ERP also manages the connection to outside stakeholders. ERP also helps business owners determine how to best use their available resources.
BPR involves observing and analyzing exactly how the business works to determine any changes that might streamline operation for the organization. ERP and BPR can go hand-in-hand. A cuisines management might use BPR as a method of looking at the current operations of the business to determine how to best proceed when designing or choosing a new ERP. ERP platform handles a number of tasks. Generally, ERP helps businesses manage their finances, staff records and schedule the use of their assets.
Because an ERP addresses number of business tasks, ERP and BPR are often used together to improve operations in a business, especially those with a fundamental problem in organizing its processes and resources. Businesses can profit from using an existing ERP to enhance the effectiveness of BPR. One of the benefits to ERP is that it stores integrated data from all parts of the program and this allows access and examination of data to plan the most effective business process changes. A manager can use company information such as resource and financial data to make the best decisions for change within the business.
ERP and BPR can also be used together to facilitate change management. Once BPR is completed and the course of change determined, ERP is then used to expedite communication and information exchange between staffs affected by the readjustment process. BPR is also helpful in establishing the most effective way of implementing ERP for an existing workforce. Implementing an ERP solution can be challenging. It requires a great deal of planning and proper communication. Here we will discuss the concerns that can arise with ERP implementations. First the implementation has to be done in stages.
This is to avoid confusion and chaos. Secondly appropriate training is important during and after the implementation. All staff should be familiar and comfortable with the usage of the application and this is to avoid it from not being utilized to its full potential. Third is the lack of support from senior management. This causes delays in operations and contributes to ineffective decisions. Forth is the compatibility issues with the chosen ERP modules. Sometimes different vendors are used to implement different ERP and this makes integration quite difficult sometimes.
Fifth is the cost. Any changes are expensive and all requirements must be properly discussed and decided during the planning stage. A detailed plan is needed to ensure that everything works out. The last concern is the investment in infrastructure. ERP requires good processing speed and adequate storage. Most often it requires stable internet connection. Hardware's to support the ERP has to be purchased. ERP and BPR are both crucial to making sound management decisions. We will first touch the importance of ERP. ERP helps business managers keep current on changing business conditions.
This is achieved by accurately monitoring current business activity and comparing it to historical activities and future plans to provide staff with the information they need to keep performances on track. ERP also allows business managers to gain insight into the business. Here is where analysis tools come into part. The tools are needed to help managers understand context and trends. ERP also allows managers to budget, forecast and plan effectively. ERP also uplifts sales performances and improves the visibility of the organizations financial growth.
This allows managers to make better financial decisions. ERP also help manages the business operations and reduces labor cost. It improves product delivery and customer service. All this is achieved with integration of data. ERP increases efficiency and effectiveness in all business processes and managerial processes such as planning and decision making at all level BPR helps align the focus to customer orientated. Data collected is analyses to understand the needs of the customers better and allows a substantial increase of customer satisfaction.
BPR also helps redefine the best business practice for the entire organization and this allows managers to be in better control of all the resources including labor. Everything is maximized to its full potential and wastage is kept to the bare minimum. BPR also helps identify specific problem areas and this enables managers to find the best solution to combat the problems. It also solidifies particular goals and makes it lealer and more accessible by providing the correct support and links to achieving the goal.