05 Apr BPM is the Key to solving the ERP paradox
Organizations tend to implement ERP-software in order to gains benefits such as improved business performance. But in many cases ERP-systems fail to deliver on these gains. We call it the ERP paradox. And You-Get has the solution!
Why implement an ERP?
Businesses anticipate substantial returns from their ERP implementations. The top 5 reasons to implement an ERP* are:
- Replace old ERP / Legacy system
- Improving business performance
- Integrate systems across locations
- Position company for growth
- Reporting / rules compliance
* Panorama Consulting Solutions 2015.
However, research among IBM’s ERP Consultancy and Implementation practices found out that the key challenges during implementation are inflexible functionality, exessive customization and poor return on investment.
Inflexibility of ERP systems leaves the organizations using them with two choices. Either they have to change their own way of doing business to suite the ERP system, which is quite counterproductive, or they must customize their ERP system. And we all know how expensive customizing an ERP system is. Significant customization of an ERP system leads to new challenges, with the majority of ERP implementations going over budget and over schedule. Most of the implementations do not reach their goals and planned benefits.
What if we could have…?
Business process management (BPM) is a management approach that is focused on optimizing business processes. BPM brings together processes, people, knowledge and systems.
You-Get can prove with successful customer cases that BPM is a great fit for companies and organizations struggling with their ERP challenges. The principal idea is to let ERP systems do what they are good in: complete transactional capabilities. BPM brings a process layer on top of the transactional layer of ERP. The application of a leading BPM platform (IBM) brings easy configuration of business processes with simple and flexible functionality.
Benefits of using BPM on top of ERP
Whereas the ERP Transactional layer is the premiere integrated business application platform with robust and complete transactional capabilities, the BPM Process layer brings simple process configuration and ERP transaction tailoring, through a flexible, highly productive user interface. This ensures the right amount of process differentiation, driven by business need – not by time and cost.
Key benefits that BPM brings are Business Agility (adapt quickly to changing business conditions) and more Control (know the current status of your processes and the quality they produce). Next to that a stronger Business Case, improved flexibility and reduced customization are essential benefits as well.
What to do next?
When this is applicable for your business and you are intrigued and triggered by the above, please register for the upcoming Webinar on June 22nd, 11.00h on BPM is the Key to solving the ERP paradox, so we can share more details with you on the benefits of using BPM on top of an ERP solution.