Q1:
According to Marianne Bradford, the definition of BPR is "the fundamental, radical redesign in business processes to achieve dramatic improvements in key measures of performance such as cost, quality, speed and service" (Modern ERP, 2nd Edition, 2010, p30). Basically, it is an operational strategy to overhaul core business processes within an organization in an attempt to improve performance and productivity.
For underperforming companies, BPR may be considered as the magic wand to fix problems and achieve performance breakthrough although it doesn’t always turn out that way. They use BPR as a mean of recovery by restructuring existing processes and introducing substantial changes to their day to day operations so that they can reduce cost and increase efficiency and profitability.
Q2:
Redesigning business processes that are integrated with a legacy system poses many challenges due to the scope and complexities of a typical legacy system infrastructure. Most legacy systems lack proper documentation and have layers of data and application redundancy so it’s extremely difficult to change them to align with BRP. Also many companies lack the required technical expertise and budget to replace them. Marianne Bradford states in her book, “Quite often legacy technology, because of the cost, complexity, or risk of change, will ‘trap’ an organization in less than optimal business processes and obsolescent business models” (Modern ERP, 2nd Edition, 2010, p40).
Q3:
1. Lack of management commitment - The top management was not actively involved in the planning, design and deployment of the ERP system. There was no strong commitment from them to force organizational process changes on an enterprise basis and deal with resista...
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... features and evaluate how it would meet the business objectives they set out to achieve.
I would have stayed away from HPT ERP because its built-in processes did not fit with what Vicro wanted to accomplish and Vicro was not prepared to change their business processes to fit HPT, either. It’s evident that implementing HPT onto the company’s existing functions was not going to improve any performance but rather hinder enterprise integration and create more work down the road to support both the old and new systems. Additionally, employees were not involved in the decision process so their opinions were never reflected when choosing HPT. It would’ve been too risky to implement a costly system without input from those who would have to use it every day because it significantly increased the chance of them not embracing the new system and thus making it useless.
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Ziff Davis, an American publisher and internet company, wrote a small document on the top 5 reasons ERP systems fail and how to fix those reasons. The document makes an interesting point of “failure is often a perception, rather than a quantifiable measure of outcomes (Ziff Davis 2),” meaning companies may think they have failed by their perception, when in actuality they didn’t proper measure their outcomes or potential outcomes. The first reason the document goes over is “setting unrealistic expectations at the outset. (3)” The document claims that a company is eager and excited to implement the system without fully defining business requirements and goals (3). This ties back with that perception and measurement dilemma. The company perceived everything was going to be well with the implementation, but failed to measure out goals and requirements. Ziff Davis goes into the fact that companies fail to realize “the level of resource commitment the project will take (5)” and that “Done properly ERP can and will transform your business by automating and re-engineering its beating heart: its business processes. (4)” Again these point out to that perception and measurement factor. Another reason the document goes over is “Not involving key stakeholders (6)”. Ziff...
Bjerke, Juel M. "Week 2 Lecture Notes - Achieving Business Process Excellence and Process Re-engineering." MFGO 601 - The Globally Integrated Manufacturing Company. 2 Nov. 2011.
Business processes perspective is an opportunity for the company to set goals to improve areas of their business which may be not as strong as other areas, such as increasing efficiency on the manufacturing line. It could also be setting goals to launch new products or services quicker than when planned. As stated above, the business processes could progress from the learning and growth perspective (Savkin,
...eral Electric and Others Turned Process into Profits. John Wiley. 2001. Ellis j & Williams D (1993) Corporate strategy and financial analysis. Pitman Grundy T (1998) Exploring strategic financial management. Prentice Hall. Johansson, Henry J., Patrick McHugh, A. John Pendlebury and William A. Wheeler III. Business Process Reengineering: Breakpoint Strategies for Market Dominance. Wiley, 1993. Johnson j & scholes k (2002) Exploring corporate strategy 6th ed. Financial times-Prentice hall. Kubeck, Lynn C. Techniques for Business Process Redesign: Tying It All Together. Wiley-QED Publication, 1995. Price Waterhouse Change Integration Team. Better Change: Best Practices for Transforming Your Organization. Irwin, 1995. Rummler, Geary and Alan Brache. Improving Performance: How to Manage the White Space on the Organization Chart. (2nd Ed.) Jossey-Bass, 1990.
This sounds easier than done, Business Process Ambidexterity is something a lot of the organizations have failed to achieve. Too much focus on the exploitative capabilities and the short term results look good and changes in the industry will blindside the organization. Google Orkut, was once top notch social media platform available but management was too keen to use the existing resources to maintain the platform and satisfied with the growth of the user base overlooking the need for innovation. The management from Orkut was blinded by the short term success of the platform and did not realize and plan for the future. Similarly, too much focus on the explorative capabilities, and organization loses the short term benefits. Firms cannot plan future at the cost of today. Ericsson invested heavily in the future by employing over 30000 researchers and developers for the development of the first analog mobile systems. The company was doing well overall so the problem was not reflected in the numbers but with the crash in the telecom sector means, Ericsson was hit harder than anyone else as they invested mostly in the future at the cost of the today (Brikinshaw & Gibson,
This essay will discuss Enterprise Resources Planning (ERP) implementation, specifically in the factors which can leads that ERP implementation to successful and unsuccessful ERP implementation.
If the companies improve their substandard processes and support their enterprise process capabilities, then there might be huge performance boost. One more thing we have to keep in mind that the process metrics doesn’t surface in organization’s financial statements and not every company is like Pinnacle West. Unless a certain enterprise maturity is attained there won’t be any process maturity because process maturity can ameliorate the immaturity of the enterprise because of some intrepid
A business process is a group of activities designed to produce or deliver a specific output of product or service for a specific customer or market. It is based on a strong concentration on how the work is taking place within an organization, in contrast to be focus on the product itself. A process then is all about delivering and performing specific guidelines of work activities at precise time in a given place with clear beginning, planed end, and to identify what inputs used and outputs to be produce. Business Process Management (BPM) is
Ratinder Core (2011) studied the business process reengineering in the State Bank of Patiala. In India, has been the changing dynamics of the Indian economy has led many of the reforms in the financial sector, especially in banking and insurance sector. To meet new competitive challenges due to the induction of technology in banks and change in customers ' perspective has forced organizations to rethink about the ways of doing business operations activities. She stressed monotheism, amalgamations and pressures to reduce operating banking community costs to the adoption of tools such as Business Process Reengineering (BPR) in order to achieve strategic advantages to organizations. the State Bank
The purpose of implementing an ERP system in a company is when the company isn’t operating efficiently. Look at it like this, when your body is sick, you know you need to take medicine, you just can’t stand the taste. And in the same matter when your company isn’t operating efficiently, you’ve got to take steps to correct it. Most companies just fear the disruption, the learning, and the cost and the inconvenience of it all. “Another way to look at or understand ERP is cars have dashboards so the driver can get to where he or she wants to go. Airports have control towers to make sure everything and everyone gets to where they need to be. All of your typical individual machines have control panels so you can make them do what they are supposed to do”. (Jones, W (2006, 01). Roadmap to Fusion: Engaging Oracle Consulting on the path to your next business platform. Orcacle Corporation World Headquarters,)
ERP has become a nightmarish idea for many companies in previous years, and since its first appearance until almost 25 years later lots have been said about the system. Plenty of failures in the headlines of news-articles together with a high price has made companies think of the actual use of this new system, often articles state the amount of loss a company made by implementing ERP systems. While scholars have proven the ERP system to work. Plenty of large corporations have shown proven benefits from implementing the systems. However failure stories tend to stick better in public opinions.
In today’s fast changing business environment, companies need a competitive edge to survive. Globalization has increased the competition and stress for Platinum Concept. Jim’s company presently focused on differentiation strategy, but now customers focused on necessities and not luxuries. Therefore, they need to develop a strong market strategy. And implementing BPM can aid in the same. BPM strategy provides the business with greater agility to adjust to changing circumstances. (1). Strategy is developed keeping the internal and external views...
According to Chang, (2016), Business Process Management (BPM) is a systematic approach of attaining organization’s goals by improving its management in addition to controlling the essential business processes. Moreover, a business process is defined as a set of activities that aid in accomplishing definite organizational goals. One of the aims of BPM is to trim down human fault and miscommunication as it can be seen in Mike’s Dynatrix Pty Ltd business. It is due to poor infrastructure management, which is significant for maintaining and optimizing an organization’s equipment along with core operations. It is important to note that business process management entails analysis, modeling, design and measurement of an organization’s workflow and are technology enabled. This implies that it is always the point of connection within an organization between the line-of-business and the information technology department.
Business Process Management (BPM) is considered as the umbrella of our research. This chapter introduces an overview of BPM which offers a set of diversity values for organizations. Figure 2.1 represents the different areas that we covered in this chapter.