3.5 Business Process with ERP

When organization needs to implement ERP system, it has to consider two options:

Reengineering business process first before applying ERP:

			Organization will have to analyze existing processes, identify non adding activities for customers, focus
			on the important activities for the organization and redesign processes to achieve customer satisfaction.

Then the organization develops an in house ERP system or purchases it from vendors.

			The problem is if the company enhances greatly its processes it may not find an ERP system that can
			adopt with the enhancements made.

The second option is that processes shouldn't be changed until the implementation of ERP system:

ERP system may be used as a base for business processes improvement.

All processes in the organization should conform to the new ERP system.

			The problem is if employees don't have a good understanding of their processes or these processes
			are not well documented then it is likely to encounter problem during the implementation of ERP system

3.5 Business Process with ERP

There is a third option in which process reengineering is conducted while implantation of ERP.

This option may result to a mess in the organization because it may lead to maximum disruption in the work