ERP starts with Business Process: Standardization?
Business Process is a prerequisite of ERP. Standardized process is a integral part of it.
Then, there comes the perception: standardization would quite often limit the flexibility. However, Hammer and Stanton; quite oppositely, proposed standardization would enable flexibility in the way of allocating personels with less training effort. The reason for this would be explained through the controlled and uncontrolled dynamics. For the controlled dynamics, flexibility can be achieved through standardization.
To enrich the arguement, there would be another factor that impact on this. It is the learning curve of learning experience. While standardization allows un-trained employee to execute different tasks in different roles successfully (which means flexibility), the learning curve in this situation would be barely achieved. People gain experience through learning curve by doing a same task in a period of time. Unfixed and changing tasks could cause confusion for staff and inhibit the learning curve. When standardized process links with role & responsibilty, the learning curve should be considered. Process standardization, if promoting flexibility, would obmit the value of the learning curve.
Nguyen, Le Thang (1760903)
3 comments by 3 or more people
It seems almost impossible to achieve absolute standardization and flexibility with the implementation of ERP. Flexibility would require companies to customise their systems in order to satisfy customer requirements. On the other hand, a standarised approach means having a repeated process to meet constant demands. It is necessary to understand these tradeoffs in order to align a company’s business strategy and choosing a suitable ERP module.
13 May 2019, 21:50
Disagree with your idea about ERP starting with standardized business process. it has be identified by Chtioui that although standardization causes the optimization of business process and helps the enterprise develop their strategy for globalization further, the standardization can generate inefficiency and subsequently make up of a non-negligible risk for the company.
21 May 2019, 20:24
Peaw (peow) Kaitwatcharachai
Hello. Thang. I am really impressed with your ideas by using ‘the learning curve’ to argue against standardised process. In my opinion, I actually agree with what you said at some point. Standardised process can barricade the creativity of the staffs regarding problem solving and creativity. However, organisations require routine work such as retailing industry. Standardised process is of importance for the industry success. Hence, I would say standardised process is importance in certain circumstances based on the applicability of the business process.
23 May 2019, 15:57
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