The role of Information Technology in a Business Process Reengineering project is important. One of the bigger challenges that managers nowadays face is having customers benefit through efforts that intend to integrate technology into business processes. In making it happen, the practical complexity is frequently the one factor that can match the huge expectations.
Lack of awareness of current objectives, relationships and existing strategies are just a few of the many stumbling blocks; other obstacles in what tends to be a significant change management program are: not able to effectively lead, absence of actively owning the project, not paying sufficient attention to core needs, and missing realism in the design. Last but not least, failing to take both current – and future needs into consideration has led many project into failure.
Process Engineering Topics
Quite a few manufacturing companies nowadays are dealing with typical challenges like packed marketplaces, limited budgets and constraints on resources. The immediate visibility of increased efficiencies, return on investment (ROI), and benefits is extremely important when dealing with strategic information technology (IT) systems implementations, as for instance Enterprise Resource Planning (ERP).
The move to a quick, effective, and swift implementation after having made the decision to embrace an ERP system that is anticipated to deliver benefits, is far from being simple and easy. In addition, the expected business benefits that were anticipated with ERP implementations have been long in coming. Studies show that resistance to change from end users, lengthy program life cycles and vague business requirements are main contributors to ERP implementation disappointments. Additional budget spends are regularly reduced because the value of the investment is not realized. Even worse, business results could decline significantly and the risk of closure can happen if the expected business benefits do not take place.
So What Can be the Reasons that Implementing ERP Causes So Many Headaches?
The core of the business is being affected by ERP. Hence it interferes with every day business, and brings about aggravations to users, well before the actual benefits have come into realization. In order to reach success, the disruption to business as usual has to be minimal; besides a smooth transition from current state to the realization of the business benefits, the change has to be managed effectively and in consultation with the community of stakeholders and users. The program life cycle can be controlled by identifying clear milestones.
Lastly, a proven method is required that accounts for the determining factors of success when introducing and utilizing IT. Among these decisive elements are not only the harder concerns of managing and leading technology, finances and projects and programs, but also the soft issues like leading and motivating employees, and communicating regularly and effectively. Early participation of experienced know how, already from day one of the program, is crucial. When undertaking a huge implementation of an ERP system, going it alone is not the wise thing to do.
Continuous Process Improvement
Just about any sector, from retailing to car manufacturing, is continually reformed by changes that are initiated by technology and which affect integrated supply chains, their suppliers and their customers. These advancements can lead to failure and increase the overall costs, or when successfully applied can lead to improved service and will significantly improve the ability to face competition, lower costs and consequently increase profitability.
In addition, generating substantial profits is known to be difficult through the utilization of the required tools, and the management of technology suppliers. It is of utter importance that a method is found that is able to integrate business processes with technology, as well as the capability of this technique to adapt continuously. One should not expect that it can rely on a sole – or for that matter a step by step change; to achieve success, it requires to be a continuous, dynamic process.
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