Business process reengineering is a strategic approach aimed at optimizing how organizations operate. In the context of ERP systems, it’s relevant both when implementing a new system and when improving an existing one.
When deploying a new ERP solution, companies often take the opportunity to rethink and reorganize their internal processes. This helps them align with best practices and the capabilities of modern ERP platforms, moving away from outdated and inefficient methods in favor of more structured and effective workflows. In the case of an existing system, reengineering focuses on optimization, reducing manual operations, and introducing automation – all of which drive productivity and reduce costs.
It’s important to distinguish between effectiveness and efficiency. Effectiveness means doing the right tasks that bring value to the business, while efficiency is about doing those tasks in the best possible way with minimal resources. A well-configured ERP system should support both by providing automation, standardization, and overall process improvement.
Reengineering is not a one-time effort, but rather a continuous process of adapting to evolving technologies and business needs. Given how fast markets change, reviewing and optimizing processes every 3 to 5 years is recommended to ensure systems remain efficient, competitive, and aligned with current technological advancements.
A key stage in the reengineering process is analyzing the current state – the “AS-IS” model – to identify weaknesses and opportunities for improvement. This is followed by designing the “TO-BE” model, where processes are streamlined and integrated with the ERP system. Improvements might include automating sales processes, implementing customer portals for better communication, eliminating unnecessary steps, or reducing task completion time. For manufacturing companies, ERP systems can enhance resource planning by providing real-time data on inventory and raw material consumption.
Beyond the technological aspects, the human factor should not be overlooked. Today’s workforce expects modern digital tools that simplify their work and provide flexibility. ERP solutions that offer mobile access, automated reporting, and intuitive interfaces are not just a competitive advantage—they’re also essential for attracting and retaining talent. For example, companies with modern ERP platforms that support remote work are often more appealing to younger professionals who value work-life balance.
To measure the success of reengineering efforts, organizations typically track metrics such as reduced process cycle times, fewer manual tasks, and improved customer satisfaction. ERP systems are often integrated with additional tools like WMS (Warehouse Management Systems) to streamline operations further and minimize the need for manual data entry. In many cases, companies work with consultants who help pinpoint weaknesses and recommend optimal solutions. A well-executed consultation accelerates the reengineering process and ensures the ERP system is fully aligned with the business’s needs.
Your ERP system may be running – but are you getting the most out of it? Business process reengineering can seem complex, but with the right approach, the results can be transformative. Our team can help you identify inefficiencies and build more effective processes. Get in touch with us >>
