ERP and Business process redesign
7 important questions on ERP and Business process redesign
What are the two methods to transform business processes?
2. business process improvement
Differents between formal and informal processes
Informal processes are developed organically by employees.
What are criteria to formalize business processes
2. Customer satisfaction and differentiation
3. standardization
4. value- added activities
5. improved agility and speed
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Business proces reengineering (BPR)=
the fundamental, radical redesign of business processes that an organization undertakes to achieve breakthrough performance in key measures of cost, quality, speed and service. Radical changes result in excess 60% of improvement.
Technology enabled reengineering (constrained engineering) =
meaning that the information system’s design constrains the process design. This is used when implementing an ERP system.
Business Process Improvement (BPI) =
involves gradual improvement to business processes over time (less than 30% improvement). BPI is incremental and evolutionary. The scope of intensity of BPI is much smaller, but the goals are very similar.
Core Competency Processes=
the study of core competencies and others forms the heart of business strategy. To determine how well a core competency is performing, companies use benchmarking to measure and compare their processes against strong competitors that have the same core competency in order to identify quality gaps.
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