For many businesses, the process of a new ERP system can be a challenging time. New demands are placed on the company, the staff and the consultants providing their services. There are so many tasks that need to be completed: install and configure the new system, migrate the historic data from the legacy system, train the users, develop new reports, and many more. All of this workload is in addition to the basic tasks of running the business. How could it be possible to add in any more activity. Isn't this enough?
Yet many companies do add in an additional task, (and many, many more should): Incorporating "best practices" into the new system is a critical step in gaining the greatest possible benefits from the new ERP system.
Let's start by defining "best pratices". A common definition is the "best way to do something: the most effective or efficient method of achieving an objective or completing a task". These "best practices" are typically developed, over time, within a particular industry or environment, often thru a lengthy process of trial and error. Learning from common mistakes, the process requires continual refinements and adjustments. think of this process of defining a "best practice" as an ongoing series of improvements. Adapt your process as circumstances change, both internally within your organization and externally within your competitive landscape. Yesterday's "best practice" may become tomorrow's millstone.
Your consulting partner for the ERP implementation should be advocating for the adoption of current "best practices", based on their knowledge, experience, and understanding of your competitive landscape. It is their role and responsibility to educate you about the successes (and failures) of your competitors. Learn from them and where appropriate and suitable, adopt their recommendations.
How does your consulting partner know where to find improvements? One of their key tasks should be the completion of an exhaustive within your organization. The BPR begins with a series of interviews with key executives, managers, and staff employees, to fully understand and document your company's current processes and methods of completing critical processes. These current processes are then compared to what is currently considered to be industry "best practices", trying to identify potential improvements. Wherever possible then, the existing processes should be upgraded to incorporate improvements and efficiencies, allowing your company to benefit from them.
It is a critical mistake to simply repeat existing business processes within the new system, as the implementation of the new ERP System is an excellent time to make changes and break old habits. There can be a certain comfort level in deploying the new ERP system to closely mimic the old system ( most of us are not really comfortable with change ) but it would be a wasted opportunity and significantly reduce benefits to refuse to change.
At TMC, a detailed business process review is considered a vital component of the implementation of a new ERP system. We strongly recommend that a BPR be conducted prior to any significnat change to the ERP system, and the benefits will resonate within the organizaiton for years to come.
By TMC, Your partner.
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