Wednesday, January 23, 2013

ERP Software can Measure Success of a business process

What cannot be measured, cannot be controlled

You can't manage what you don't measure. It is an old management adage that is accurate today. Measures should be created along with Business process owners. Business process owners know the function and workflow better than any other stake holder of the company. You can't manage for improvement if you don't measure to see what is getting better and what isn't. 

In the case of process of product development, for instance, the measure for Fast to market value could be time taken from concept taken from concept design to availability of product. The measure for new product functionality could be% of sales from new product. These are also objective measures of the value of the product development Business process .

Productivity measurement is a key to any business. Productivity measurement has 2 different dimensions to it, Input data for measurement and output data for measurement. Output could be in the form of goods produced or services rendered.

Output may be expressed in:

Physical quantity
Financial value

Where else, Measures of Input comprises of the resources used to produce output. The most common forms of input are labour and capital.

Measurement plays an important role in your management of productivity. It helps to determine if your organization is progressing well. It also provides information on how effectively and efficiently your organization manages its resources.

Now that we know how important is measurement for the success of a Business process , let us identify how ERP adds value to each of the processes. ERP can help in the reduction of elapsed time from concept to availability by improving collaboration, either within the company or between collaborating companies, while enhancing the coordination of concurrent activities. Likewise ERP reduces time to achieve regulatory approval through workflow and document-management solutions. Thus each process and its success measure is mapped directly to one or more ERP interventions and/or tools. 

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1 comment:

  1. Thanks for your greatful informations on ERP Implementations, this systems for my Web Design Company in bangalore effeciently. Keep up to update more informations on organizational management.


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