ERP helps businesses manage resources, while BPR analyzes operations to streamline processes. They can be used together to improve operations, but BPR may find that an ERP is unnecessary. ERP can also aid in BPR and facilitate change management.
Enterprise resource planning (ERP) is a software platform that helps business owners determine how best to use available resources. Business process reengineering (BPR) involves observing and analyzing how the business works to determine changes that could streamline the way the business works. ERP and BPR can go hand in hand. An organization’s management might use the BPR as a means of examining a company’s current operations to determine how best to proceed when designing or selecting a new ERP.
The goal of business process reengineering is to determine what changes can be made in the way the business operates to improve aspects of a business. Often, BPR will focus on a specific part of the business, such as cost, customer service, or marketing and advertising. Using the BPR does not necessarily lead to ERP. While ERP and BPR are related, a well-conducted BPR may find that there is no need for an ERP platform in the industry. A company conducting BPR may decide to abandon an ERP method for reasons including cost, effectiveness, or maintenance.
As an integrated type of software that operates across multiple business departments, an ERP platform handles a number of tasks. In general, ERP programs help business owners manage their finances, keep employee records, and plan the use of their assets, whether it be buildings, machinery, labor, or money. Since an ERP addresses not just one business activity, but a range of business activities, ERP and BPR are often used together to improve operations in a company with a fundamental problem in organizing its processes and resources.
Implementing business process analysis usually begins with examining the company’s ability to achieve the goals stated in its mission statement. Effective BPR usually involves dividing existing business operations into smaller units and improving processes within the subdivided business units. In general, the objectives during the BPR include improving the effectiveness and efficiency of the process, improving adherence to regulations or specifications established for the product or service, and controlling the variables in each process.
Just as ERP and BPR can be used together to enhance an existing ERP platform, a business executive can benefit from using an existing ERP to improve the effectiveness of BPR. One benefit of an ERP is that it stores integrated data from all parts of the program, allowing an executive to access and examine the data to plan for more effective business process changes. An executive can use company information such as assets and financials to make the best change decisions within the company.
ERP and BPR can also be used together to facilitate change management. Once the BPR is completed and the course of change determined, ERP can be used to facilitate communication and information exchange for staff members affected by the readjustment process. The BPR can also be used to help determine the most effective way to implement the use of ERP for an existing workforce.
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