Over the last two decades Enterprise Resource Planning (ERP)-based solutions have gained increasing acceptance in the corporate and industrial world, so much so that it has become the primary platform for many progressive and mature organizations. Despite this, the extent and correct usage of ERP-based platforms varies widely across organizations. This is due to the following reasons
- Inherent complexity of ERP solutions
- High total cost of ownership (TCO) due to expensive licenses
- Limited process visibility
- Reduced agility due to the rigidness of the system
- Integration Limitations
Though organizations are continuously adopting new technologies and solutions, employees often have a high level of resistance in adapting advanced technologies such as ERP, because of the complexity of the system. In addition to the employee resistance, organizations are also facing challenges in rolling out the ERP systems across the organization due to expensive licensing cost which increases the TCO. Also scalability becomes a tedious task due to the rigidness of these ERP systems resulting in a less agile organization.
Business Process Management (BPM) can help in overcoming both the user resistance and the TCO challenges. This it does by enhancing existing technology investments thereby becoming increasingly popular with value focused CTOs!
The increasing inclination of organizations towards solutions like BPM is because it serves as a business monitoring and orchestration layer on ERP systems. In addition to shielding complexities from the end-users and other stakeholders in the business ecosystem, it provides a simple easy-to-use, user friendly interface for all stakeholders, enabling them to use the previously complex and rigid ERP systems, resulting in improved employee efficiency and higher operational efficiency.
Organizations will be able to reduce the TCO by reducing the need for numerous licenses by introducing a BPM layer on their existing ERP layer; this will also result in reduced cost of maintainability. In addition to maintainability the organization can leverage on the BPM platform to easily scale business processes per the dynamics of the business ecosystem helping the organization become highly agile.
Apart from the aforementioned benefits of introducing BPM into the IT landscape, it also acts as an actionable integration layer, which helps track and trace Business KPIs and enforces the right action is taken by the right people to conform to standards.
In a nutshell BPM is the next natural step in the evolution of any business that wants to go beyond the transactional efficiencies accomplished with ERP to achieve competitive advantage.