1. What are the advantages of the re-engineering method of implementing ERP?
Advantages of reengineering method of implementing ERP
The five reasons why business process reengineering should start before your ERP implementation:
• Maintain your competitive advantage. Yes, your current enterprise systems are probably a mess . . . if they even exist. You probably have a ton of spreadsheets, manual workarounds and other inefficiencies that make you wonder how your organization has managed to survive and thrive for this long. But you probably also have business processes that give you a competitive edge, no matter how painful or inefficient they may be. Business process reengineering without ...view middle of the document...
An exception to this rule is vanilla, back-office functions such as HR and accounts payable. Lean Six Sigma, on the other hand, is a set of tools that can be used to define your own set of best practices, efficiencies, and competitive advantages that you likely don’t want to be replicated by industry peers. The graphic below illustrates some of the lean Six Sigma activities that Panorama’s team has built into its business process reengineering methodology:
• Faster realization of business process improvements and business benefits. When we help clients identify process improvements, we often find that although a new ERP system may help automate and further enable process changes, many improvements can be rolled out independent of the chosen ERP software. For example, if a company decides that it wants to incorporate a purchase order approval workflow to institute tighter controls on procurement costs, it may decide to do so via email approvals until a more robust ERP system is in place to further automate this change. In addition, from an organizational change management perspective, “spoon feeding” changes to employees sooner is more effective than waiting to implement a massive degree of change all at once during an ERP implementation.
• Avoid the “paving the cowpaths” trap. Companies that fail to define business process improvements prior to their implementations are much more likely to simply automate their existing broken processes. The reason? Once an implementation starts, the meter is running on expensive technical consultants, so every minute spent making process decisions or agreeing to changes costs time and money. This set-up forces most project teams into the path of easiest resistance (i.e., simply configuring or customizing the software to fit existing processes). On the other hand, companies that take the time to define processes up front ultimately end up accelerating their implementation durations and minimizing extra costs, allowing the technical resources to focus on how the software can be best configured to meet those
2. What are the benefits reported from implementing ERP?
Benefits Reported from implementing ERP
A true Enterprise Resource Planning (ERP) system integrates both internal and external information flows used by the organization within a single, comprehensive solution. An ERP solution incorporates the practical systems used by organizations to manage the basic commercial functions of their business, such as: planning, inventory/materials management, purchasing, manufacturing, finance, accounting, human resources, marketing and sales, services etc. The objective of the ERP solution is to drive the flow of information between all internal business functions while managing connections, or "touchpoints," to outside stakeholders.
ERP solutions run on a variety of computer hardware and network configurations, including "on premises" (i.e. client/server) or hosted (i.e. "cloud-based" or Software as a...