Enterprise resource planning system has five fundamental benefits. First, ERP system improves the productivity of an organization by linking and engaging users, customers, partners and suppliers. Second, the cost of operation is reduced in the company since the company can manage the information technology operation cost by fully utilizing the information system. Third, the ERP facilitates an adaptive and scalable computing solution by collaborating CRM solutions with end-to-end processes. This will eventually increase the flexibility in the organization. ERP also improves governance by providing functionality for corporate governance, therefore, ensures international standard compliance. Lastly, the management can be able to make better decisions using the analysis reports generated by the ERP system.
There various features that make an ERP to relate with business process reengineering. First, the benefits a company gets when an ERP system is effectively implemented almost merge with what can company achieves when they implement business process reengineering. Successful companies have also opted to integrate business process reengineering and implementation of enterprise resource planning system to redesign their operations. This integration enables the company to come up with effective and flexible solutions to its business processes. Champy and Hammer argued that reengineering is the foundation of rethink and radical redesigning of organization’s business processes. The achievements of radical improvement of the business processes include quality product, cost reduction, and effective project scheduling.
The best option for NIBCO is reengineering of its business process before ERP implementation. This option enables the business organization to streamline their operation or activities so that it can leverage the ERP. The company needs to review its current business processes and single out process that do not add value so that they are redesigned to meet the requirements of both the customers and the organization. Moreover, the option enables the organization to build a solution which is tailor-made to fit the uniqueness of the employee’s needs, organizational culture, and structure and information technology resources.
The business process reengineering is more suitable compared to the classical SDLC since it gives the organization the option to review the structure of its business processes before the information system is implemented. Though the cost can be high, the process gives reliable results. On the other hand, the classical system development lifecycle enables the organization to customize the system to fits the specific requirements of the organization. NIBCO is at liberty to make any change to make changes during the implementation process depending on different factors. For instance, the company can decide to change the time frame of the implementation process to ensure that each deliverable or task is effectively handled.
The business process reengineering can fit in the second phase of the implementation process. At this phase, the company can consider analyzing the existing business processes, identify the unworthy and non-value process. This process can either be eliminated or improve these processes so that the business process can be adjusted to fit the requirements of the SAP. At this phase the organization can come up with effective documentation in case the previous version did not gives complete description or outline of the organization’s business processes.
Ganesh Vaidyanathan. Project Management: Process, Technology and Practice. Prentice Hall. 2012