Do Not Confuse Re engineering and ERP Implementation

Companies should separate reengineering modifications from ERP implementations

If a single word has dominated the world of business in the 1990's it is "reengineering" - a process that reforms business practices for optimum performance, customer service, and financial return. Teams are organized, studies are made, money is spent, and dreams are hatched, but for most companies, not that much changes. "Can-identify-the-problem" people far outnumber "can-solve-the-problem" people, so that problems are found but left unresolved, adding to workforce cynicism. In all this team problem-solving and supposed reforming, too many forget that changing business procedures is a complex activity. Some companies have implemented reengineering in a continually impoving environment, but most have abandoned reengineering as just another fad.

The theory behind reengineering is a good one - modifying procedures and behavior to the needs of the business. Most companies were implementing these type changes long before the term "reengineering" came into existence. Yet, a complete company overhaul is often beyond what companies are willing to tackle - the effort is too much and the impact too large. For this reason, companies should separate reengineering modifications from ERP implementations. Installing a broad-based ERP system is a complicated job involving a high level of risk, especially as it relates to cost and timing. Adding other factors that are complex in their own right, such as reengineering, can often doom a project.

IF the work processes to be used in an ERP system have not been established prior to trying to install one, "reengineering" should take place to establish the work processes to be used in such systems (i.e., Oraclle ,SAP R/3, etc.). It should take place "prior to and in preparation for" an ERP implementation - not in conjunction with, and should be in a state of continually updating as the dynamic enterprise must continually change to meet changing market demands.