Question

ERPs often require BPR because

Answer 1

Business Process reengineering is an important ideology that focuses on re-designing existing processes in order to attain more productivity, quality and cycle time. The benefits which could be attained by adopting BPR allow the management to re-design their existing processes into more innovative ways before heading to a more advanced level through an Enterprise Resource Planning strategy. The following reasons illustrate why BPR is important to be implemented before moving to ERP directly;

• Meet Competetive edge; The current system of the enterprise may be included of lot of complicated manuals, spreadsheets, records of transactions, balances, etc. However, this existing system had been giving a competitive advantage to the enterprise for a long period of time. However, this competitive advantage cannot be met easily if you directly switch to Enterprise Resource Planning. Therefore, the Business Engineering Process will support the enterprise to cope with competitive pressures while moving to ERP.
• Benefits of Lean Six Sigma; There is an important component in Business Process Reengineering called Lean Sx Sigma. It is a set of best practices that helps the entity to identify the root cause of a problem and how to address them by providing world-class solutions. It enables the entity to think out- of- box. Lean Six Sigma of BPR assists you to understand the situations well before moving to ERP.
• In-depth understanding of Business processes; It is always necessary to give a deep understanding to employees about business improvements before going to automate the entire business system. BPR does this efficiently by familiarizing the employees with the new platform before ERP implementation begins.
• Saving of extra cost and resources; Certain enterprises that fail to redefine their existing business processes prefer to directly adopt ERP. However, this could cause additional costs and require more resources. A well-planned BPR can cut these extra costs and resources and it enables the technical team to come up with the best configuration practices that would help to meet the industry standards.