From supply chain management all the way to environmentalism, the manufacturing industry is often faced with complex issues in order to stay competitive in a growing market.
The fact is that nowadays the need for proper infrastructure is no longer a simple discussion behind closed doors, but a requisite for any business to succeed.
Technology advancements ensure companies – across the board – have constant visibility on the comings and goings of operations, financial assets, and the most important: areas in which a company needs to improve.
Leading businesses to longer focus on whether to incorporate new technology, but rather when and what type of tools.
Enterprise Resource Planning (ERP) and Business Process Management (BPM) software are two solutions that are becoming more and more crucial for modern businesses.
So, how do you figure out which system is right for your business objectives?
Let’s take a look.
What is the difference between ERP and BPM?
The goal of Business Process Management is to improve the flow of business processes. It benefits a company by streamlining the correlation between users, machines, and systems.
Many tasks that are done manually between a variety of systems become automated, providing better opportunities for workers who can now focus on projects of higher priority.
A BPM system increases productivity, reduces human errors, and develops better communication across departments. This is particularly valuable to companies with multiple locations.
ERP, on the other hand is a unique software that houses all your core foundations: HR, CRM, finance, procurement, project management, supply chain, and much more.
It manages daily activities by providing decision-makers with real-time data that helps plan, predict, and report on operations throughout the company. Global visibility and unified processes are the backbone of an otherwise stable infrastructure that gives businesses the upper hand of running a business.
The difference between BPM and ERP is mainly that an ERP is used to centralize all data into a single database (goodbye siloed systems) whereas BPM software focuses on facilitating the flow of data between each branch through automation.
BPM vs ERP:
Which is better for manufacturing?
Let’s face it, when it comes to choosing the right technology for your business, the number of choices out there is overwhelming. It can be difficult taking the time to search the net for the right tool for your processes.
Manufacturers implement complex processes and more often than not these are managed by different vendors, departments, and locations. It can quickly become a tricky situation to manage when data collection and financial audits are required.
Therefore, it’s not really about which is better, but more so about the role of BPM in ERP systems. Both go hand-in-hand to create a unified platform for better business outcomes.
Can BPM be a substitute for an ERP system?
As mentioned above, the question shouldn’t focus on which software is better, it should center on the idea that these two systems complement each other.
BPM helps define the business processes that are streamlined by a modern ERP.
In fact, a BPM system can actually help guide companies when it comes to choosing which ERP to implement as well as the types of ERP modules to add to their current range of business processes.
Business Process Management software shouldn’t be used as a substitute to an ERP, but rather as a way to maximize the powerful abilities that come with an ERP system through recognised automated processes and workflow management.
The Importance of Business Process Management (BPM) Consulting
Before buying a house, it’s important to do an inspection to ensure that the structure is standard and there are no hidden issues that could cause expensive repairs down the line.
The same goes for implementing software, specifically an ERP. Before launching an advanced system, you need someone to go in and analyze the current layout and figure out what’s missing and what’s intact.
Business Process Management (BPM) consulting is just that. It involves the work of consultants and specialists who are experts in system analysis and business processes.
By reviewing existing processes, BPM consultants establish a workflow map that lays out the foundation for a new ERP solution as well as a thorough assessment of the current setup. This way they can properly draft a new plan based on current and future systems.
Uniformed Visibility
Consultants will review current specks in order to gain insight into projects, integrations, automations, and processes. This will pinpoint the strengths and weaknesses of the current process model and how to improve the different aspects for enhanced visibility.
They will then work with internal decision-makers to allocate responsibilities and assignments to a specialized team to implement changes.
Integrations
A consultant will deep dive into the current status of systems and integrations. Decisions will be based on how well certain integrations are working and whether or not current the business is benefiting from the platforms.
Potential redesigns and BPM tools may be suggested to improve data process management and automation.
Updated Software
A BPM consultant has the knack for deciphering out-dated technology and will always provide cutting-edge software as an option to not only reduce costs but improve business outcomes.
For example, if a legacy system is delaying the product-to-delivery process, they will help embed system workflows for increased productivity.
Operational Efficiency
Traditional systems are known for keeping businesses in the past, this is particularly obvious when it comes to operations.
A consultant will come in and identify current bottlenecks and answer these concerns with effective dashboards as well as new compliant and standardized processes.
What are the risks of ERP Implementation without BPM Consulting?
Let’s go back to the house analogy. You won’t buy a house without looking at it first, so why implement an ERP system without taking a complete look of your current processes.
Without first establishing your current business objectives and performance goals, you are not likely to have a positive experience with a new ERP system. You will end up with brand-spanking-new technology that is nowhere near being used to its full potential.
This will lead to ineffective processes, and, for a manufacturing company with complex processes, a very disorganized mess to clean up.
Other common risks include:
- Increase Costs that exceed the original budget
- More time spent on repairing backend issues
- Prolonged manufacturing lifecycle
- Unsatisfied customers and employees
- Inaccurate data and poor workflow automation
To truly understand the extent of an ERP system, the key lies in working alongside experts that know what needs to be done to take full advantage of powerful tools for the best possible business outcome.
EC Solutions: Combine the power of BPM and ERP
With 20 years under our belt, our expertise extends well beyond that of implementing ERP solutions like Epicor.
Our team of consultants have years of experience in implementing, customizing, and providing insight into business decisions that have helped manufacturing companies excel.
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