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Benefits of Business Process Re-engineering

Categories
  • Improve Business Processes
  • Leverage Technology
Tags
  • business process
  • business process management
  • improve processes
Business Process

Project teams and internal company departments sometimes rely too heavily on existing processes and ERP (Enterprise Resource Planning) systems to get them through the day. No matter the scale of your business or the ERP software you use on a daily basis, business process reengineering should be something to consider.

According to statistics published by Learn G2 Crowd, most organizations experience an average of 70% project failure, with 75% of teams stating that their projects were slated for failure from the start. This disparity in morale and productivity stems from the use of inadequate ERP vendors or ERP failure and digital strategy which doesn’t coincide with practical, real-world project applications.

This makes business process management a must, especially for companies in competitive industries such as IT, engineering and digital content management. Let’s take a look then at several benefits of ERP reengineering which can greatly help your business going forward.

Constant Industry Iteration

No industry is free of competition among corporate entities, startups and businesses. However, business process reengineering can help your brand stand out from the crowd.

Managing your ERP systems so that you are able to provide up-to-date services to your stakeholders is something worth considering in terms of process reengineering. You can always do a client audit to find process delays and then find out what your clientele typically expects to see in a modern company in your niche. Once you find out what your bottlenecks are through an audit, you can conduct some internal change management in terms of your ERP software processes.

Competitive Client Servicing

Before paying ERP consultants to take a look at your business processes and their iterative potential, you should consider the DIY approach to do so. After all, the ERP processes put in place in your company will be used by your management and employees – not by an external third-party consultant.

This makes the typical ERP implementation and SAP vs. Oracle debate to the forefront since process reengineering can bring a multitude of benefits to your office floor. First of all, your (and your competitors’ clients) will always seek competitive services, pricing and project management for their needs.

By reevaluating your processes to make sure that they are free of bottlenecks and ERP failure, you will effectively raise the servicing bar in your industry. The result of this is a much better word of mouth in regards to your brand, more clients at your doors and a more positive public brand image.

Professional Learning OpportunitiesHR Professional

The people employed by your HR department are individuals with professional and personal aspirations. Business process reengineering can introduce new layers of professional learning, additional education and skillsets to your employees.

This type of upgrade can be highly beneficial for your company since it will incentivize people to renew their contracts, stay loyal to your company and spread positive impressions of their time on your office floor. After all, the ERP software you use is only as good as the processes you’ve implemented through constant change management, so make sure to use the tools at your disposal wisely. Don’t rest on your laurels and offer your employees a chance to learn new skills in regards to updated and streamlined business processes.

Lowered Margin for Error

We’ve touched on project failure rates previously and for a good reason. Many companies use inadequate business processes or rely on outdated ERP vendors for their ERP software needs. However, business process reengineering can lower the margin for error drastically by allowing you to find ERP failure and digital strategy bottlenecks in the process.

For example, an existing bottleneck might slow down your project production rates across the company for years without anyone realizing the mistake. This typically happens due to negligence on part of the HR department or mismanagement of existing ERP systems.

In order to raise the success rate (and client satisfaction) of your projects, conduct business process reengineering on a preemptive basis within your company. It’s better to do a pass for safety’s sake rather than to wait for your reputation and revenue to take a hit.

Streamlined Transition & Leadership Grooming

Even though you may have reliable managerial staff and an executive board you trust fully, this will not always be the case. Corporate entities should always be on the lookout for leadership grooming opportunities and prepare adequate transition processes for those occasions.

What better way to prepare today’s office staff for leadership roles than by creating ERP systems which are reliable and promote fast turnaround times and delivery of high-quality results. Employees are far more likely to look for advancement opportunities and accept more challenging tasks if the existing processes, job allocation and management are at a satisfactory level.

ERP consultants may offer insightful information about your business processes. However, it will always be up to you and your management to find ways to entice employees into taking on more duties with bigger payoffs for their careers.

Return on Process Investment

One of the biggest reasons most companies fall to the sidelines in terms of ERP software implementation is the fear of creeping expenses. However, ERP consultants and ERP vendors should be seen as investment opportunities, not as a necessary evil.

Working for the betterment of your internal business management will ensure that your company is seen in a favorable public light. More lucrative and sizable stakeholders will only approach companies which can provide success assurances in terms of project deliverables.

And while ERP implementation and SAP vs. Oracle remains a topic of heated debate, you should choose the option that suits your company’s scale, industry and needs the most. Chase trends in a smart way and don’t simply go with the industry flow. Invest into business process reengineering selectively and your return on investment will always remain in the positive.

In Summary

Before considering business process reengineering in your own company, make sure to reach out to ERP consultants for a preliminary review of your company. The benefits of reevaluating and improving your existing processes far outweigh any small downtime that may be caused by the change management at that point. Plan your business’ development with the foreseeable future in mind and your ERP processes will reflect those plans.

Marie Fincher is a content writer at TrustMyPaper company with a background in marketing, technology and business intelligence. She frequently writes about datascience, BI, new marketing trends and branding strategies. Marie gradually changed her focus from working in marketing to writing about it.

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    January 7, 2021 at 1:49 am

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