The use of best practice business processes in an organisation delivers measurable and sustainable advantages over time and also enhances the performance of the business. They can be considered as operational imperative for any organisation which aims at achieving world-class operations, characterized by high level of service along with most cost effective implementation. In an organisation, best practices business processes support organisation’s requirements and environment, cut short lengthy and complex processes to simple and fewer steps, handle all documents types on consistent basis through a standardized process, automate the new processes, ensure the all key participants are included in the process and automatically associate all relevant information to each of the ERP transaction (Leon 2007).
Creation of Value
Legacy information systems are traditionally function based and are not integrated across multiple functional areas or geographical locations. The use of legacy systems require that the capture of same information multiple times, at multiple places and they lack the availability of information in real-time. The processes as well as jobs within the business were made to ensure that the information remained a local good. As a result, organisation who used them suffered from lack of knowledge across the enterprise. There were also asymmetries between the different local and functional groups and the top management.
Enterprise Resource Planning on the other hand, provides firms with models for transaction-processing that can be integrated with other activities. Through implementation of standard enterprise processes and a unified database that covers a range of activities and locations, ERP systems have the capability to provide integration across multiple business areas and geographical locations. As a result, ERP system greatly improves the decision-making capabilities of an organisation in a wide range of metrics such as reduction in personnel strength, lower inventory size, speeding up of processes. In particular, the use of ERP creates value by changing the nature of organization in several ways (Leon 2007).
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