Enterprise Resource Planning (ERP) is a software that consists of a group of applications and tools that aim mainly to monitor business functions, operations and processes across an organization, providing reliable information to different units of the company such as finance and accounting, sales and distribution, human resources and others. In addition, with the daily evolution of information technology, the ERP system has been progressing and building itself for the last two decades, until it took the shape we all know now.
On the other hand, Business Process Management (BPM) can be identified as the discipline that reaches for the maximum control and management of organizational structure and format of the business processes, which eventually leads to enhanced business process management.
This research paper is exploring the impact of ERP on the effectiveness of business process management by evaluating ERP potential development on business processes and how automation provided by ERP would affect these processes. In addition, this study aims to demonstrate the functionalities of ERP, and their possible positive effect the system may have on business performance, even though some studies argue that not all ERP implementation project succeed.
The paper is organized as follows: the first section will discuss ERP's definition, evolution and history, functionalities, the implementation stages of ERP systems, benefits of ERP and the cloud ERP and its types. The second section will discuss the definition of business processes management. In addition, the BPM methodologies including business process architecture, how to make the right choice for methodology and process classification framework. The last section will discuss and explore how investing in ERP can improve BPM by explaining the budget, time and plan needed for ERP systems and business processes re-engineering and system integration to match with the ERP systems. Also this section includes benefits and risks of ERP on BPM by evaluating ERP effectiveness and efficiency and assessing risks.
Table of Contents
1. Introduction
2. Literature Review
2.1 Enterprise Resource Planning (ERP)
2.1.1 ERP Definition
2.1.2 ERP Evolution and History
2.1.3 ERP functionalities
2.1.4 ERP Implementation
2.1.4.1 Implementation Strategies
2.1.4.2 Implementation Procedure
2.1.4.3 Implementation Challenges
2.1.5 ERP Benefits
2.1.6. ERP Model
2.1.6.1 Cloud ERP
2.1.6.1.1 Definition and Function
2.1.6.1.2 Cloud ERP Types
2.2 Business Process Management (BPM)
2.2.1 BPM Definition
2.2.2 BPM Methodologies
2.2.2.1 Construction of Business Process Architecture
2.2.2.2 Choosing the best methodology and the ten principles
2.2.3 The BPM map
2.2.3.1 Processes, activities and tasks
2.2.3.2 The Process Classification Framework
2.2.4 BPM Assessment
2.2.4.1 Maturity Assessment
2.2.4.2 Life Cycle Assessment
2.3 The Impact of ERP on BPM
2.3.1 Investing in ERP for BPM Improvement
2.3.1.1 ERP Implementation
2.3.1.2 Business processes re-engineering and system integration
2.3.2 Benefits and risks of ERP on BPM
2.3.2.1 ERP effectiveness and efficiency
2.3.2.2 Assessing risks
2.4 Research Gap
3. Methodology
Research Objectives and Themes
This research paper explores the impact of Enterprise Resource Planning (ERP) systems on the effectiveness of Business Process Management (BPM) within the banking sector in Egypt. The central research question investigates how ERP implementation affects business performance and whether such automation provides measurable improvements to organizational processes.
- The evolution, functionalities, and implementation strategies of ERP systems.
- Core principles and methodologies of Business Process Management (BPM).
- The relationship between ERP investment, business process re-engineering, and system integration.
- Identification of risks and benefits associated with ERP implementation in the banking industry.
- The use of qualitative research methods and semi-structured interviews for data collection.
Excerpt from the Book
2.1.1 ERP Definition
In the past decade, the IT evolution has been rising exponentially with evident effect on an organization’s operations, proving its vitality in serving business needs and enhancing business performance. As more organizations around the world started realizing the importance of IT while witnessing its rates of success, the higher the demand has risen for ERP systems. (Silva and Oliviera, 2015: 197)
Enterprise Resource Planning (ERP) is a fully capable system comprised of integrated applications that to manage daily business operations such as accounting, finance, human resources and manufacturing. Moreover, ERP systems link together a plethora of business processes and enable the flow of data between them. As a result, using ERP systems create a more collaborative, efficient and inclusive environment among the organization’s units, which greatly helps in streamlining and facilitating decision-making. (Scrutu and Lupu, 2016: 145,153).
Summary of Chapters
1. Introduction: Outlines the definition of ERP and BPM, establishes the research focus on their interaction, and explains the structure of the paper.
2. Literature Review: Provides a comprehensive overview of ERP systems, including their history and implementation strategies, examines BPM methodologies, and analyzes the specific impact of ERP on business processes.
3. Methodology: Describes the qualitative research design, specifically the causal approach and the use of semi-structured interviews conducted within the Egyptian banking sector.
Keywords
Enterprise Resource Planning, ERP, Business Process Management, BPM, Business Performance, ERP Implementation, Cloud ERP, Process Architecture, Banking Sector, System Integration, Qualitative Research, Change Management, Organizational Readiness, Information Technology, Process Re-engineering.
Frequently Asked Questions
What is the primary focus of this research paper?
The paper examines the impact of ERP system implementation on the effectiveness of Business Process Management within the banking industry.
What are the main thematic areas covered?
The research addresses ERP history and functionality, BPM frameworks, implementation strategies, associated risks and benefits, and the relationship between ERP and organizational performance.
What is the core research question?
The central question is: "What is the impact of ERP implementation on business performance in the banking industry?"
Which research methodology is employed?
The study uses qualitative research, specifically a causal method involving semi-structured interviews with IT and operational staff in five banks.
What topics are discussed in the main body of the paper?
The main body covers theoretical foundations of ERP and BPM, implementation stages, re-engineering business processes, and assessing risks and organizational readiness.
Which keywords best characterize this study?
Key terms include Enterprise Resource Planning, Business Process Management, Banking Sector, ERP Implementation, and System Integration.
How is the "Cloud ERP" model defined in the text?
Cloud ERP is described as a version of ERP that runs on internet connection, requiring no additional on-site IT hardware, and operating on a pay-per-use model.
What are the identified risks of ERP adoption?
Risks include poor vendor selection, lack of top-management involvement, ineffective communication, failed process re-engineering, and technical complications during implementation.
How does the author categorize the stages of ERP implementation?
The author identifies three main stages: pre-implementation, execution, and post-implementation, with each requiring specific planning and testing.
- Quote paper
- Shorouk Sherif (Author), 2018, The Impact of ERP on the Effectiveness of Business Process Management, Munich, GRIN Verlag, https://www.grin.com/document/456255
