12/4/12 ERP vs BPR, ERP and Business Process Reengineering

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ERP vs BPR

Business Process Reengineering (BPR) is one of the most important tasks that need to be

employed ahead of the implementation of the Enterprise Resource Planning. BPR analyses the

current business process of any company and determines the preceding steps to improve the

efficiency of the business process. It is purely an analysis tool which gives you a perfect

picture about the current situation of the company and also gives you the impending steps

you need to take to reach the potential growth rate. Business process reengineering is also

called as Business Transformation Process or Business Process Redesign or Business Process

Change Management.

Business process reengineering is the very important aspect in the ERP implementation. By

conducting business process reengineering, the business owner comes to the current stage of

the business operations so that the benchmark will be kept to achieve with the help of ERP

implementation.

The ERP software implementation is mainly based on the results of business process of

reengineering. With the implementation of the enterprise resource planning software, the

vendors try to reach the potential growth rate of the business organization as shown in the

BPR study.

BPR is obviously a part of the enterprise resource planning implementation. It is considered as

the most important aspect because based on this study only, the business owner decides

whether to implement the ERP or not. If they plan to implement enterprise resource planning,

the implementation will be based on the results of the BPR and with the ERP implementation

they will try to fulfill the gaps shown in the BPR study.

There are many parameters need to be considered before implementing ERP software. The

vendor take some pre defined functions of the business operations and makes the enterprise

resource planning to fit into the defined functions. With the help of BPR analysis, the vendors

consider the customization of the ERP applications. BPR acts as the GAP analysis in the

implementation process of enterprise resource planning software.

BPR is a tool to analyze the business operations and suggests the required steps to be taken

to meet the potential growth steps of the company where as the enterprise resource planning

application leverage the company to meet the potential growth rate by integrating all the

functional departments of the company such as accounting, production, sales and other

related departments. BPR is the tool used to know the pain areas of the company where as

ERP is implemented to handle the pain areas of the company.

However, both the tools are very important for any company as each one has got its own pros

and cons. You may face some problem in implementation, if BPR study is done. You may not

reach the potential growth rate without implanting the enterprise resource planning

applications.

It is true that both ERP and BPR are interrelated in many ways. Practically, both the tools are

used effectively in the business environment. One is to analyze the process and other is to

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used effectively in the business environment. One is to analyze the process and other is to

integrate the business process effectively.

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