The Role of the Enterprise Resource Planning (ERP) in the Business Process Re–engineering (BPR):
The fast movement in the technological world and the new systems that have been developed though the time has played a significant role into re-engineering the business process within any organization. According to Soliman and Youssef (1998), the implementation of ERP is considered to be one of the fundamental element of the BPR process, where the others include objectives, radical change and the examination of the current process. Most companies used to employee IT to the present process, where BPR process needs a radical change to the process. Thus, the implementation of ERP systems is helpful in terms of changing the current process to be aligned with ERP system, which will meet the BPR objective as well as it will be more integrated and productive (Soliman and Youssef, 1998).
On the other hand, Baloglu (2005) suggested that the implementation of ERP systems needs to be aligned with the BPR projects, which will give employees time to accommodate of using the new system. Thus, training employees is an important element in the implementation of ERP and BPR, where might be fail if not applied sufficiently (Glykas, 2013).
Baloglu, A. (2005) Implementing SAP R/3 in the 21st Century: Methodology and Case Studies, Istanbul: Anatürkler Yayınevi.
Glykas, M. (2012) ‘Effects of business process reengineering on firm performance: an econometric analysis’ in Ozcelik, y. (ed.) Business Process Management: Theory and Applications. London: Springer Berlin Heidelberg, 99-111.
Soliman, F. and Youssef, M. A. (1998) ‘The role of SAP software in business process re-engineering’. International Journal of Operations & Production Management, 18 (9): 886 – 895.
2 comments by 1 or more people
ERP could be one of the fundamental element of Business Process Re- Engineering but employing just the IT division to do the business process remodelling would bring in inefficiency to the organisation for the following reason:
Barton in 2001 said that process risk is one major cause for the failure of implementation of ERP. When just the IT division is involved in the remodelling of the business process there could arise ambiguity of the processes that has been used till now and the about the remodelled process brought in. Unless the organisation gives its employees time to adapt to the new process, there could arise issues like the issue Hershey Food Corporation faced in 1999 where there were delays in shipping and delivery due to the confusion of the process in the peak time(Barton,2001).
Barton, P., 2001. Enterprise Resource Planning–Factors affecting success and failure. University of Missouri-Saint Louis, 21.
Arjun Sunil Kumar
08 Apr 2016, 16:09
BRP also play a critical role in ERP implementation. When implementation ERP system, there are two options for organization (Tsai et al., 2010). The first option is necessary reengineer business processes before implementing ERP. If the organization select the first option, the preliminary work for organization is analyzing current business processes. The purpose of the preliminary work is identifying the valued and non-valued activities. When the organization redesigns processes, it could chose the activities to create value for customers. Another options is directly implementing ERP and then avoid BRP. When the company chose this options, all the process in the company need to follow ERP model. This approach of implementation provide a standardized and efficient installed.
Tsai, W., Chen, S., Hwang, E. and Hsu, J. (2010). A Study of the Impact of Business Process on the ERP System Effectiveness. IJBM, 5(9).
20 Apr 2016, 22:56
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