V K Agnihotri

The Implementation of ERP is not the

change which we are looking for to
add the business value and to
improve the business returns, rather it
(Implementation) provides us an
opportunity to carry out the said
change through improved Business
Process Management.


Let us try to understand difference between a business
function and a business process.
Business processes are by nature inter-functional, that is,
they span multiple business functions.
Business Functions are usually specific to departments
which concentrate/ specialize certain skills and/or
knowledge. Common examples of such functions are
Manufacturing, Marketing, Sales, Human Resources, and
Finance.
Even the simplest of processes involves the application
of specialist skills found in different
departments/functions

Lets consider a Business Process such as Sales Order Processing
it involves following steps (Business Functions)
Taking the Order (Sales Function)
Planning the Production (Production Planning Function)
Planning for materials (Material Requirement Planning Function)
Procuring the Materials ( Procurement & Logistics Function)
Making the Product (Manufacturing Function)
Shipping the Finished Product (Shipping Function)
Invoicing the Customer (Billing Function)
Obtaining the payment from the customer (Collection Function)
Process are not ends in themselves. They have a purpose, they create and
deliver results that customers care about.
If we want the ERP implementation to add value to our business and
bring returns, then we have to analyze and bring improvement to
business process as a whole. Improving individual functions will not
deliver the desired goals.
ERP provides a host of new techniques for Customer Relation
Management.

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