ERP is a well known business transformational system and almost all of the best in class organizations have deployed it to conduct their business. We all know that ERP is not one of the economical solutions and takes lot of organization's resources while deploying and after deployment to maintain and continuously improve the design, data structure and configuration. These days after just concluded recession, the focus on cost is more than ever and every investment needs to go through a magnified scanner before they are approved. While continuous improvement and innovation is essential to stay ahead of the competition, it has now become more important to come out with a ROI based approach and there is when the role of BPM or Business Performance Management comes into picture.
BPM has multiple definitions, but if we state it simply - it is meant to manage the performance of business through a set of processes that defines goals, KPIs, metrics etc. against which a business is measured. Though the metrics decided by business can be measured by using ERP itself but lately it is seen that usinf much evolved BPM solutions have started making a considerable impact on the way these measurements are done and corrective actions are taken. The ROI of these solutions is also much improved as BPM solution deployement in most cases is economical. Till some time back, BPM solutions were being used for categories like:
- Strategy Management
- Financial planning, budgeting and forecasting
- Reporting and consolidations
- Profitability and cost management
In addition of above categories, now BPM is increasingly being considered as the essential extension of ERP in areas like Supplier payment processing, credit management, sourcing etc. and it is time that we also start looking at the positive and the negative aspects of using a BPM solution to complement our ERP deployment and take more and more benefit from it.