| The aim of an ERP system is to provide an | | | | increased efficiency, accountability and transparency |
| integrated solution to all business areas of a particular | | | | for continued auditing and analysis of the process. |
| enterprise. Ideally, you have one software system | | | | In many of the available solutions, in addition to |
| that the entire company can access and work with. | | | | automating the routing of documents and tasks from |
| So, for example, all the data for finance, sales, | | | | one person to another, email or SMS notification is |
| accounting, human resources and inventory is | | | | employed to inform the next person in the chain of |
| managed in one central repository and each business | | | | events that a document or process requires their |
| group within the organization accesses only the | | | | attention. Rules can often be set so that another |
| subset of data that they need. | | | | person in the chain is notified if a document remains |
| Workflow as a concept is nothing new. Even before | | | | at a particular status for too long (e.g. if the tracking |
| the era of computers, there have always been | | | | document for an item in a repair shop remains by a |
| established procedures for handling operations within | | | | certain technician at the status "in process" for more |
| a corporate structure. Take a purchase order, for | | | | than two days, both the technician and his or her |
| example: an employee notifies their manager that | | | | supervisor will receive automatic notification so that |
| they require a particular item; the manager then puts | | | | they can investigate the delay). |
| in a requisition, which, depending on his level of | | | | BPM and workflow functionality are increasingly a part |
| authority, may need to be bumped further up the | | | | of many ERP solutions, and it makes sense to |
| management chain until it is authorized; it is then | | | | implement such process maps and controls early in |
| handed over to the purchasing coordinator and finally | | | | the game in order to maximize the benefits of the |
| purchased. The workflow can be relatively | | | | ERP system. Some ERP vendors offer built-in |
| straightforward or very complex, but it is basically a | | | | workflow functionalities, while others offer possibilities |
| business process that consists of a number of | | | | for third-party integration. If third-party solutions are |
| sequential tasks performed in a particular order or | | | | employed, it's very important that the ERP and BPM |
| following a set of rules that is designed to facilitate a | | | | Workflow groups understand and communicate about |
| particular objective. Examples of processes for which | | | | the technology and processes that are being |
| workflows are commonly in place include order | | | | implemented. |
| processing and fulfillment, sales cycle and campaign | | | | Remember: workflows involve humans, and the |
| management, performance reviews, medical | | | | people involved at all levels of the process should also |
| insurance claims processing, expense reporting, | | | | be involved in the initial mapping out of the processes |
| warranty management, invoice processing and more. | | | | before they are implemented. While mapping out the |
| The ERP workflow can be part of the larger concept | | | | process, you may discover new and better ways to |
| of Business Process Management (BPM), which is a | | | | perform tasks or provide better oversight. The |
| more holistic approach to business processes. | | | | defining and modeling phase is often a learning |
| Companies that employ BPM aim to optimize their | | | | process for both employees and managers. |
| business processes while striving to be more | | | | Collaboration during the definition process can |
| efficient, more effective, and improve the level of | | | | produce enhanced processes, improve performance |
| tracking and control built into their processes as a | | | | of both the system as a whole and of individual |
| whole. | | | | employees, and ultimately foster a sense of |
| BPM and workflow implementation force companies | | | | "ownership" in each individual regarding his or her part |
| to sit down and evaluate their processes and the | | | | in the process itself. |
| rationale behind them: what is the flow of a particular | | | | In conclusion and to recap, workflow and BPM |
| task (e.g. draft -> ready -> financial approval | | | | systems control the flow of information between |
| -> final authorization -> sent to vendor), what | | | | individuals or departments, and direct it to the next |
| possible scenarios exist, what rules need to be | | | | appropriate processing stage according to an |
| applied at each stage of the process (e.g., a purchase | | | | established workflow map. A good system should |
| order cannot be moved from a status of "cancelled" | | | | enable managers to monitor the progress of a |
| to "sent to vendor" or any order over $10,000 needs | | | | particular process within the workflow, handle |
| another level of authorization), who is involved at | | | | exceptions, escalate individual exceptions and |
| each stage and what level of authority should they | | | | generate reports that can be used to improve |
| be granted. Creating a detailed blueprint of business | | | | performance. It is therefore advisable that you make |
| processes, streamlining and regulating the workflow | | | | BPM and workflow one of your priorities when |
| facilitates a greater degree of control; enhanced | | | | selecting or implementing an ERP software solution. |
| ability to respond to any potential issues; and | | | | |