ERP vendors have designed their systems around standard business processes, based upon best business practices. Different vendor(s) have different types of processes but they are all of a standard, modular nature. Firms that want to implement ERP systems are consequently forced to adapt their organisations to standardised processes as opposed to adapting the ERP package to the existing processes. Neglecting to map current business processes prior to starting ERP implementation is a main reason for failure of ERP projects. It is therefore crucial that organisations perform a thorough business process analysis before selecting an ERP vendor and setting off on the implementation track. This analysis should map out all present operational processes, enabling selection of an ERP vendor whose standard modules are most closely aligned with the established organisation. Redesign can then be implemented to achieve further process congruence. Research indicates that the risk of business process mismatch is decreased by:
- Linking each current organisational process to the organisation's strategy
- Analysing the effectiveness of each process in light of its current related business capability
- Understanding the automated solutions currently implemented
ERP implementation is considerably more difficult (and politically charged) in organisations structured into nearly independent business units, each responsible for their own profit and loss, because they will each have different processes, business rules, data semantics, authorisation hierarchies and decision centers. Solutions include requirements coordination negotiated by local change management professionals or, if this is not possible, federated implementation using loosely integrated instances (e.g. linked via Master Data Management) specifically configured and/or customised to meet local needs.
A disadvantage usually attributed to ERP is that business process redesign to fit the standardised ERP modules can lead to a loss of competitive advantage. While documented cases exist where this has indeed materialised, other cases show that following thorough process preparation ERP systems can actually increase sustainable competitive advantage. |
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