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Muhammad Nauman Habib
Professor, Pakistan
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Is BPR Helping ERP or is ERP Helping BPR?
My main area is BPR. I just want to know your expert opinion (just general) regarding the relationship of BPR and ERP.
It is a fact that BPR uses technology for efficiency however, I have come across that ERP is doing the same.
So my question is how are these two tools interrelated, and which one is helping the other?
Is BPR used to implement ERP or is ERP helping BPR?
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Djoki EWANE, Cameroon
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BPR Helping ERP or ERP Helping BPR 1. Implementing an ERP system requires the company to have all its process properly organized, in order to have the ERP to function properly.
For example, in an industrial company, certain processes need to work in a specific interrelated way:
- Production requires raw materials and derives product demand from clients (sales).
- Production also implies maintenance, so there is a need for spare parts. That requires procurement.
While implementing an ERP, these processes must be realigned to fit with the system. Maintenance for instance, needs to reorganize and describe all the ranges of maintenance. If not, the system will not deliver its best as far as maintenance, spare parts procurement, and inventory management are concerned.
2. On the other hand, in order to implement a BPR initiative, supporting it with an ERP system is not a must, but it is a possibility.
Therefore, to answer your question, depending on the organization of your processes, ERP can oblige you to perform a BPR. But you can achieve a successful BPR improvement without using an ERP system.
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Muhammad Nauman Habib
Professor, Pakistan
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Take ERP as a Part of BPR @Djoki EWANE: Thank you for your kind insight. Here comes another question in my mind.
If BPR is already relying on IT as an integral part then why not take ERP as a part of BPR instead of taking them as two different processes?
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Jaap de Jonge
Editor, Netherlands
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Why ERP is Often not a Part of BPR @Muhammad Nauman Habib: Indeed it seems logical from your viewpoint to have ERP as a part of 'the BPR effort'. After all, IT has to support the business. However, there are several reasons why things don't always work that way:
- ERP projects are typically company-wide efforts, BPR projects are typically focused on just one business activity.
- ERP projects involve large investments so they are negotiated and funded typically at CFO level. BPR projects are often funded at the business unit or at the business function level.
- ERP projects are often managed by the IT function of a firm, while BPR projects are managed at the business level.
- Many companies are afraid for the complexity of having several BPR efforts to optimize certain processes (think of integration, communication). An ERP, although probably not offering an optimal solution, at least has the benefit that it is already working in an integrated way and requires less complex communication.
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Muhammad Nauman Habib
Professor, Pakistan
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Why ERP is Often not a Part of BPR @Jaap de Jonge (Editor): Agreed. However, if you go through BPR-research studies you will find that most of the respondents (sample) selected are MIS managers or ICT managers. What do you say about that?
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Jaap de Jonge
Editor, Netherlands
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Why BPR Respondents are IT People @Muhammad Nauman Habib: Perhaps the business people are too busy and ask their IT person to do the paperwork ;-).
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Muhammad Nauman Habib
Professor, Pakistan
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Why BPR Respondents are IT People @Jaap de Jonge (Editor): Hahaha well that is not what we call CSR or ethics. I believe that might affect the outcome and may create problems.
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Jaap de Jonge
Editor, Netherlands
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Why BPR Respondents are IT People Seriously, yes indeed that might affect the outcomes, but I think it is the reality in business / management practise.
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Moderated AI
Netherlands
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The Relation Between ERP and BPR Enterprise Resource Planning (ERP) and Business Process Reengineering (BPR) are closely related concepts that often intersect in the context of organizational transformation. While they serve distinct purposes, they can complement each other in achieving organizational goals. Here's how they relate to each other:
- ERP AS A TOOL FOR BPR: ERP systems are software solutions designed to integrate and streamline core business processes, such as finance, human resources, supply chain management, and customer relationship management, into a single unified platform. When implementing an ERP system, organizations often undergo a process of business process analysis and redesign to align their existing processes with the functionalities offered by the ERP software. This process of aligning business processes with ERP functionalities can be considered a form of BPR.
- BPR DRIVEN BY ERP IMPLEMENTATION: The implementation of an ERP system often serves as a catalyst for broader BPR initiatives within an organization. ERP systems require organizations to standardize and rationalize their business processes to fit the capabilities of the software. This can lead organizations to reevaluate and redesign their existing processes to eliminate inefficiencies, redundancies, and bottlenecks, thus driving BPR efforts.
- ENHANCED PROCESS VISIBILITY: ERP systems provide organizations with real-time visibility into their business processes and operations through centralized databases and reporting capabilities. This visibility enables organizations to identify areas for improvement and optimization, facilitating BPR initiatives aimed at enhancing process efficiency, effectiveness, and agility.
- SUPPORTING PROCESS AUTOMATION: ERP systems often include workflow automation capabilities that automate routine tasks and streamline business processes. By automating manual and repetitive tasks, ERP systems enable organizations to achieve greater efficiency and productivity, freeing up resources for more value-added activities. This automation aspect of ERP can support BPR efforts by reducing process cycle times and improving overall process performance.
- CHANGE MANAGEMENT: Both ERP implementation and BPR initiatives require effective change management to ensure successful adoption and implementation. BPR involves significant changes to organizational structures, roles, responsibilities, and workflows, which can impact employees at all levels of the organization. ERP implementation similarly requires employees to adapt to new technologies, processes, and ways of working. Effective change management strategies are essential for managing resistance to change, promoting user adoption, and ensuring that desired outcomes are achieved.
In summary, while ERP and BPR are distinct concepts, they are sometimes closely intertwined in the context of organizational transformation. ERP systems can serve as enablers for BPR by providing tools and capabilities to streamline and automate business processes, while BPR initiatives can be driven or supported by the implementation of ERP systems to achieve greater efficiency, agility, and competitiveness.
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Jesus Perez ibarra
ICT Consultant, Mexico
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BPR and ERP are Going Together If you are carrying out business process reengineering and currently many manual operations are conducted, then you might implement an ERP to reduce and integrate these manual operations.
On the othe...
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