Topic > Enterprise Resource Planning - 1319

1.1 OVERVIEW OF ERP AND BPR Economic globalization has formulated new conditions in the market. These conditions have given rise to instability and intense competition in the business environment. There are various factors against which competition in the market has incremental growth and these factors include price, quality and selection, service and timely delivery. Competition is further intensified by increasing cooperation between different countries around the world, the elimination of barriers and technological innovations. From these changes came the need for organizational transformations, which further lead to changes in all processes, organizational climate and organizational structure. This change is characterized by an emerging information technology, Enterprise Resource Planning (ERP). ERP system is responsible for integrating an organization's business processes and helps them gain competitive advantages which may include increasing productivity, meeting customer demands, increasing quick response capabilities of customers, reduction of cycle time, improvement of flow efficiency, and rapid generation of financial information [2]. ERP systems help enable managers to control the entire business and speed up decision making. How the top management detects the need for ERP implementation and whether the top management considers ERP implementation as simple automation of the existing system or something else are the major questions related to ERP implementation. ERP implementation is not simply considered the automation of existing business processes, as it requires various changes in these enterprise business processes to implement the best possible practices [4]. But there are some challenges that ERP implementations face, for example ERP system implementations are very complex in nature, they also involve very high costs and problems during and after implementation are not uncommon in ERPs. Therefore, these issues force numerous organizations in the industry to reconsider their new plans in relation to this business system and ERP implementation. In ERP implementation, systems are developed and designed so that they can be used to support the organization's business processes, therefore ERP implementation and business process should have close connections. Business Process Reengineering (BPR) is a process that involves the adoption of process perspectives on businesses and represents a fundamental rethinking of organizations. BPR can be well defined as the fundamental rethinking and radical redesign of business processes with the aim of achieving exceptional refinement of performance measures, such as cost, quality, flexibility, accuracy, service and speed [5].