Cost Estimate and Accounting in ERP
February 12, 2025
Shift in the Process: A shift in the process is defined as a pattern in which seven consecutive data points appear on only one side of the mean. Statistical studies have shown that if the number of points on one side of the mean is less than 7 then it is not a non-random pattern […]
Today, South Korea is one of the largest economies in the world. It is the 12th largest to be precise. However, the influence it has in global markets is significant. It is home to many multinational corporations which compete against the best in the world. For instance, American markets are flooded with Korean manufactured automobiles. […]
Large IT Projects and Delays and Cost Overruns It is estimated that more than 80% of IT (Information Technology) projects often are behind schedule as well as having cost overruns. This is especially the case with large IT projects that involve multiple stakeholders and take a lot of time to complete. There are many reasons […]
Definition of Six Sigma Six Sigma is not a mere methodology or a quality tool. It is a philosophy i.e. a systematic way of thinking to solve quality problems. Six sigma involves use of statistics to convert raw data into facts about how the processes of the organization are being run. The thrust is on […]
The Consequences arising from the Shock of Grey The world is ageing before our eyes, and the moot question to ask ourselves as citizens of nations, as employees and workers of corporates, and as children of aged parents as to whether we are ready for the consequences of the so-called “Shock of Grey”. This term […]
Enterprise Resource Planning (ERP) and Business Process Re-engineering (BPR) evolved almost at the same time i.e. 1st half of 1990. Both relates to radical redesign of an organization at a relatively short period. Both are having the primary intend to optimize workflow and improve productivity. But, the chicken and egg question remained, whether an organization reengineer business process before implementing ERP or directly implement ERP and reengineer by adopting standard business process, included in the ERP package.
BPR means not only change but radical change within a short period. This change is achieved by complete revamp of organizational structure, business process workflow, job description, performance measurement and adoption of information technology. Some of Basic characteristics of BPR are:
A successful BPR implementation brings significant improvement to productivity, customer service and bottom-line. There are pain and difficulties during implementation and instances where BPR efforts did not achieve desired result. Notwithstanding, the risk is worth taking. Otherwise, there will be grater risk of being overtaken by competitors who develop and progress rapidly through BPR.
BPR or ERP: For successful of BPR implementation, Information Technology plays the role of a key enabler. Therefore, a question is raised whether it is logical to directly implement ERP and re-engineer business processes by adopting world class practices, contained in ERP packages. This approach would avoid embarking on BPR which is expensive, time consuming and often risky. Also reengineered process arising out of BPR exercise may not be best of class. On the other hand, there is a grave risk in this approach if a proper ERP package is not chosen. Process orientation and ownership will be lacking from employees which may lead to major implementation difficulties.
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