Business Process Engineering and ERP Implementation

Running head: BUSINESS PROCESS ENGINEERING 1
Business Process Engineering
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BUSINESS PROCESS ENGINEERING 2
Introduction
When it comes to BPR a lot of changes are made which includes the organization structures the
management systems and much more. As a processor, you will learn to focus on new business
processes and to also be able to diagnose and fix any problems with a company’s current
methodology and be able to redesign it. The success of a BPR can result in not only a reduction
in company costs and spending but it can also create massive improvements in quality customer
service and other business endeavors that could be improved. How BPR works is that it
refocuses on customer needs, redesign core processes as well as to reorganize a business into
cross functioning groups with an end to end responsibility. The BPR will be rethink basic
organization and issues of the people and to help improve business processes across the
organization.
A Successful BPR can really cut unnecessary company spending and focus on what is most
important with the company products which is quality and improve also on the needs of the
customer as well. One can also help develop better methods that can assist with making a lot
better products and cut down on company spending which in turn will not force the company to
charge high prices for their products and services. It can also increase the competition with other
competitors for their business as well.
ERP (Enterprise Resource Planning)
ERP system is a collection of management software that integrates companies in running diverse
functions such as purchasing, inventories, dealer, product planning, sales, marketing, tracking an
organized database, and accounting. ERP systems in a company are concerned with the
managing and the integrating the important part of the business.

BUSINESS PROCESS ENGINEERING 3
Diagram of SAP R/3
ERP system is different from the traditional systems such as MIS, TPS, and DSS as it brings all
the business process together in an enterprise. Thus maintaining the transactions occur one time
at the source. It unites all departments, open communication and all database into one accessible
database. The traditional systems such as:
TPS (Transaction Processing System)
MIS (Management Information System)
DSS (Decision Support System)

BUSINESS PROCESS ENGINEERING 4
They perform routine operations on a regular basis and provides data to other systems but used to
have limited support for decision making. Whereas in ERP system decision making support is
high. The ERP system in an enterprise results in making information flow dynamic and
immediate, resulting the increment in its usefulness and value. TPS, MIS, and DSS these all are
types of information system used in an organization in different level. In these systems the
information is isolated to particular system and hence if any information is needed we need to
enter particular system to transfer data to the system. But in ERP system, company uses to
connect its business activities across departments so everyone is working with the same data and
processes i.e. in ERP system there is a common interface and terminology.
No ERP cannot support all levels of management, since it allows each level to utilize information
in customized manner. For example: upper-level management can only utilize reports suited to
their positions within an organization whereas operational management can only utilize detailed
reports for their specific functions. Each level management have their own specific working area.
The migration of existing data to a new SAP system from existing legacy system is very
important to the success of a new ERP implementation strategy. The data in the legacy systems