Growing business dictates his own conditions to enterprise. Sometimes there is need to break the rules and move from one business model to another. Each business model involves business processes optimized and localized to specific company needs [1]. Transition from one model to other requires business processes amendments. There are a lot of ways to improve business processes like Business System Planning, Continuous Process Improvement, Total Quality Management [2] (fig.1).
Fig. 1. Ways to improve business processes
One of the way to do it is using Enterprise Resource Planning systems (ERP-system). ERP-system can be considered as a set of Information Systems (IS) integrated together within company [3]. Information System has realized business processes for particular business cases. There are limited number of processes within ERP-system. The feature of ERP-system is that all processes are predefined and well known before system implementation.
Objectives
The objective of the paper is considering ERP-system as business processes improve engine to obtain company effectiveness. To realize this aim ERP-system will be analyzed, advantages and disadvantages of the system will be discussed.
1. ERP-system architecture
Business objects are the basis of ERP-system (like Purchase Order, Goods Receipt, Incoming Invoice etc.). Combination of business objects shapes business process (fig.2). Business process improvement lies in process analysis, modification and optimization. As a result, processes are converted into a new once. Most improvement methods (fig.1) require special algorithms based on complex assessment, best practices and regulations. Using ERP-systems are quite different. Processes in ERP-system are built based on business objects. If for example someone needs to realize business process within ERP, the only way to do it just using predefined objects, which cannot be combined spontaneously. So, «TO BE» model is almost ready and are founded on sets of ERP business objects. Moreover, the model is optimized and approved [4].
Fig. 2. ERP-system architecture
2. Advantages and disadvantages of ERP-systems
Let us consider advantages and disadvantages of ERP-system implementation as process improvement method [5]. At first, we have to understand clearly, that ERP-system is not just an application. There is Enterprise Resource Planning strategy to optimize sales, purchasing, production and financials activities inside company. ERP-system is only one means to program this strategy.
ERP-system implementation has strong points displayed at tab.1. Such systems obtain already predefined solutions based on building blocks. This is very important because we know «TO BE» model even without deep analysis of «AS IS» business process situation. Hence, analysis stage does not take too much time. The difference between ERP and IS systems is in automation size: ERP covers almost all processes of enterprise in spite of IS involving only partial solutions. ERP-system orients to holdings, multinational companies and corporation at a time IS – departments.
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