Business processes are the DNA of your organization. They make your organization unique, and differentiate it from the competition. While you can purchase an ERP system with built-in business processes, you should stop and ask yourself if you really want to do this. Do you want to “work for the software,” or do you want the software to work for you?
If you chose the second option, you are well on your way to making your processes more effective and efficient than your competitors.
When evaluating your business processes, you should determine whether they contribute to your organization’s bottom line. Regardless of industry, most organizations have one thing in common: inefficient processes. Whether these processes are manual, duplicative or customary (we’ve always done it this way), they are hurting your bottom line and need to be improved – especially before you select new ERP software.
Quantifying the Cost of Inefficiency
The cost of inefficiency is very real and very tangible, even though it may not seem as concrete as the known line items in your project budget. How much time is being wasted on current activities and how much time could you save with automation? Apply these time savings to decreased labor costs and other process benefits, and you will understand the measurable cost of inefficiency.
Selecting Enterprise Software
Once you’ve evaluated and improved your processes through business process reengineering, you can find an ERP system that’s a good fit for your organization.
Buying an ERP system is like getting married – you’re in it for decades so you want to make the right decision. A third-party can be your matchmaker and help you find the enterprise software that’s just right for your organization and its optimized processes.
When an upstream petroleum oil exploration and production company needed to transition their ERP system from SAP to Epicor9, the company requested professional help in evaluating its business processes.
Following a proven business process reengineering methodology, Panorama mapped the company’s current and future-state business processes to ensure accurate input into the new system. In addition, Panorama oversaw the company’s project plan, milestones, resources and budget.
In the end, the oil and gas company saw quantifiable improvements to its operational efficiency and effectiveness. These improvements were realized less than one year after the beginning of the engagement.
Let’s Do This
Business process reengineering can yield enormous costs savings for your organization and ensure that your digital transformation achieves a positive return on investment. However, improving your business processes is no easy task. Organizations should engage an ERP consultant with a strong methodology and a proven record of success across industries.