Frequently Asked Question
Why is it important to optimize business processes?

While organizations continue to implement ERP solutions to improve efficiencies, many
ERP implementations have a long history of unsatisfactory results. A view of ERP
implementation outcomes shows that 52% projects faced the situation of cost overruns.
Organizations also have to understand that ERP implementations are not just technical
implementations of software but are transformations that invariably impact business
process and organizational design. For ensuring the success of an ERP implementation, it
is evident that ERP technologies must be coupled with Process Optimization to realize its
complete value. Integrating processes, technology and human resources with productivity
improvements to match can result in significant cost savings.

Business Process Optimization involves redesigning processes to achieve increased
efficiencies. Process Optimization means gaining an understanding of the current state of
processes, evaluating them for non-value adding steps, gauging the potential for
standardization of similar processes all over the organization, identifying technology and
process integration points and determining how best to take advantage of system features
to achieve the desired functionality.

These projects require top down support besides financial and resource commitments.
Proactive application helps achieve significant cost reduction while creating an effective
and result driven work force. This leads to maximizing the capabilities of an ERP system.
Implementation of an ERP system with this approach gives the maximum ROI as it
addresses process, people, information and technology simultaneously. Using this
approach helps organizations in achieving a synergistic relationship between technology
and process. Usually, unhappiness with ERP projects can be traced to the absence of
strategic identification of business processes, which further must be designed and put in
place before the purchase of the new technology.

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