Meta Description: Discover how aligning business processes with modern ERP solutions enhances
efficiency, reduces costs, and ensures successful implementation.
In today’s business environment, aligning your business processes with modern ERP (Enterprise Resource
Planning) solutions proves crucial for achieving smooth operations and growth. The success of your ERP
system depends heavily on how well your processes fit with it. Unfortunately, many businesses struggle with
this because of misconceptions and poor alignment.
One common misconception is the belief that simply getting a top-tier ERP system will automatically improve
performance. However, without aligning your processes, even the best ERP system can fall short. In this
blog post, we will guide you through aligning your business processes with ERP solutions to ensure a
smooth transition and improved efficiency.
Why Do ERP Implementations Often Fall Short?
ERP implementations often come with high expectations, but statistics show a different story: many ERP
projects fail to meet their goals. According to a study by RubinBrown, 55-75% of ERP projects don’t deliver
the expected benefits. Common reasons for these failures include poor process analysis, lack of user
involvement, and resistance to change.
Many businesses jump into ERP implementation without fully understanding their current processes and how
they will fit with the new system. This leads to misalignment, where the ERP system doesn’t support the
business’s needs, causing inefficiencies and frustration.
Taking A Process-First Approach
A process-first approach means examining and improving your business processes before choosing an ERP
system. This way, you ensure that the ERP system you select fits your operational needs perfectly, leading to
a smoother implementation and better results.
What Are The Benefits of the Process-First Approach?
● Improved Efficiency
By streamlining processes first, you can find and fix redundancies and bottlenecks, making your operations
more efficient.
● Better Fit
Understanding your processes allows for better customisation of the ERP system to meet your specific
needs.
● User Adoption
Clear, optimised processes make it easier for employees to adapt to the new system, leading to better user
adoption.
● Cost Savings
Avoiding unnecessary customisation and rework reduces implementation costs and timelines.
Step-by-Step Guide to Process Analysis and Optimisation
A. Map Your Current Processes
Start by documenting all existing processes in your organisation. This helps you visualise how tasks are
currently performed and how data flows across different departments.
B. Identify Their Inefficiencies and Bottlenecks
Analyse the mapped processes to find inefficiencies and bottlenecks. Look for repetitive tasks, manual data
entry points and areas where delays often occur.
C. Envision Your Ideal Processes
Once you’ve identified inefficiencies, imagine the ideal state of your processes. Think about how tasks could
be automated, streamlined or restructured for maximum efficiency.
D. Align Your Improved Processes with Your ERP Capabilities
Finally, align your optimised processes with the ERP system’s capabilities. Make sure the ERP solution you
choose supports the refined processes and can grow with your business.
Case Study: Before and After Process Alignment
Before Process Alignment
A mid-sized manufacturing company struggled with fragmented processes and manual data entry, leading to
frequent errors and delays. Their ERP implementation initially failed because it didn’t align with their existing
processes.
After Process Alignment
After adopting a process-first approach, the company thoroughly mapped and optimised its workflows. They
selected an ERP system tailored to their refined processes, resulting in a 30% increase in operational
efficiency and a significant reduction in errors and delays.
Calculating the ROI of Process Optimisation
Factors to Consider
- Time Savings: Reduced time spent on manual tasks.
- Error Reduction: Fewer costly errors and less rework.
- Productivity Gains: Improved employee productivity due to streamlined processes.
- Customer Satisfaction: Better service delivery, leading to higher customer satisfaction.
Sample Calculations
Calculate the ROI by comparing the costs of process optimisation and ERP implementation against the
benefits gained; for example, increased revenue and reduced operational costs.
Overcoming Common Challenges in Process Alignment
Once you have identified the challenges to implementing your process alignment, you can resolve them.
Here are three examples of common challenges and how you can meet them:
● Resistance to Change
Engage stakeholders early and explain the benefits of process optimisation.
● Inadequate Training
Provide thorough training to ensure a smooth adoption of new processes and ERP systems.
● Data Quality Issues
Ensure data accuracy during the transition to avoid errors and discrepancies.
Next Steps for Business Leaders
We can now look at how you are going to initiate your process optimisation project.
● Assess Your Needs
Conduct a thorough assessment to understand your current problems.
● Engage Your Stakeholders
Involve key stakeholders from the start to get their insights and support.
● Select a Partner
Choose a consulting partner with a proven track record in process optimisation and ERP
implementation.
Look for a partner who ideally has expertise in your industry, a deep understanding of ERP systems
and a collaborative approach to working with your team.
Aligning your business processes with modern ERP solutions is essential for unlocking their full potential. By
adopting a process-first approach, you can ensure a smoother implementation, better user adoption, and
significant operational improvements.
Are you ready to transform your business with optimised processes and a powerful ERP solution? Contact
Cogent Connective today to start your journey towards operational excellence and sustainable growth. Let’s
bridge the gap together!
