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Business Process Re-engineering: A Critical Success Factor in Implementation of Enterprise Resource Planning Presented by: Jasmin S. Ponce.

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Presentation on theme: "Business Process Re-engineering: A Critical Success Factor in Implementation of Enterprise Resource Planning Presented by: Jasmin S. Ponce."— Presentation transcript:

1 Business Process Re-engineering: A Critical Success Factor in Implementation of Enterprise Resource Planning Presented by: Jasmin S. Ponce

2 PROBLEMS 1.) What is the role of business process management and re- engineering in the success of ERP implementation? 2.) How suit is the ERP software chosen with current business process? How important is the identification of business process structure and business processes associated with the company’s existing IT systems in the beginning of ERP project and relate this to the business processes contained within ERP system? 3.) What is the cycle time expended for redesigning the processes and obtaining the expected results? 4.) How communication between stakeholders inside and outside the organizations affects the BRP and ERP implementation? 5.) What is the role of BRP team in the implementation process?

3 ANALYSIS 1.) Business process re-engineering is the most common reason that companies walk away from multimillion dollar ERP projects is that they discover that the software does not support one of their important business processes. 2.) Redesigned processes require corresponding realignment in organizational control to sustain the effectiveness of the reengineering efforts. This realignment typically impacts most functional areas and many social systems within the organization. The resulting changes may significantly affect organizational structures, policies, processes, and employees. 3.) BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo". The compounding effect of not meeting timelines is the reason why many other risks of ERP implementation are influenced by scheduling and contingency risk. 4.) BPR projects must have a timetable, ideally between three to six months, so that the organization is not in a state of "limbo". The compounding effect of not meeting timelines is the reason why many other risks of ERP implementation are influenced by scheduling and contingency risk. 5.) ERP implementations may trigger profound changes in corporate culture. If people are not properly prepared for the imminent changes, then denial, resistance, and chaos will be predictable consequences of the changes created by the implementation.

4 CONCLUSION 1.) ERP is not simply the automation, as it requires various changes in existing business processes of the organization to implement best practices. Based on previous studies on BPR, this study infers that companies should consider BPR during ERP system initiation. The efficiency and effectiveness of ERP systems is based on the efforts to be made regarding Business Process Reengineering in the organization. 2.) Processes and activities have to be aligned with new system. Customization is an integral part of ERP implementation. The goal of customization in ERP implementation is to ensure that the companies’ requirements match with ERP solution. 3.) ERP often requires extensive customization but customization of the system should be avoided or should be kept at the minimum level because customization associates with a longer time and higher cost of implementation. 4.) ERP implementation lack of user participation may lead to failure of ERP system. 5.) The quality of end to end business process integration may be realized only if the management put in considerable efforts regarding BPR and further communicating the change process to the staff.

5 RECOMMENDATION 1.) Recognize the importance of business process reengineering in ERP implementation 2.) Alignment of the organization strategy, structure, and business processes with the chosen ERP system 3.) Consider the time cycle expended for business process reengineering and ERP implementation 4.) Realize an effective communication in an organization 5.) Appreciate the importance of BPR and ERP team in an organization 6.) Provide adequate resources on the project


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