BPR v/s ERP - Part 2
Understanding the linkage between defined Critical parameters, defined Implementation model using a case study helps acquiring practical explanation for the "what", and "how" they contribute to help understand the thin line between ERP Implementation and Business Process Reengineering.
The success or failure of any ERP implementation exercise depends on certain key tangible and measurable variables. An integral part of any ERP implementation exercise is streamlining of business processes. However, the converse does not hold true. This gives organizations the option of adopting one of the following 2 scenarios:
- Scenario 1: Implement ERP as business requirements and then streamline all business processes accordingly
- Scenario 2: Streamline Business processes and then Implement ERP based on the outcome and requirements.
A practical approach (Analysis in practice) has been considered to evaluate the above mentioned scenarios.
Angle 1 - Considering Critical Parameters (CP) : We define these variables as CPs that will collectively ensure predicts the outcome of the implementation. We have considered the following CPs:
- ERP Misfit
- Heavy customization
- ERP consultant efficiency
- Business Process Reengineering
- Knowledge transfer
- Project buffer consideration
- Unclear ERP objective
- User perspective
- Change Management.
Angle 2 - Cost Implications
This study is an attempt in helping to understand user perspective and change management as key factors for any Implementation. Understanding and drawing the expectations clearly and doing "As-is" vs "To-be" process mapping check helps in defining Process Re-engineering. The above factors will help evaluate the critical parameters and give the organizations a Risk-fit model to evaluate their ERP implementation.