Business Process Optimization Maximizes ERP Results

Organizations used to blame their ERP systems when implementations didn't produce costs savings or measurable boosts in productivity. Now, most realize that implementing technology alone isn't enough – that improving processes is also critical to success. However, you don't have to endure the old and radical approach of process re-engineering to get there. Instead, you can significantly improve your ROI through business process optimization (BPO) – a more focused, less painful, and much more affordable approach.

BPO eliminates bottlenecks and redundancies, enabling you to take full advantage of your ERP technology. CherryRoad has helped organizations streamline specific processes in order to recruit faster and better, reduce expenses, close the books faster, focus collections, streamline payroll, and much more. Consider these impressive results of specific BPO efforts:

Eliminating unnecessary approvals. One organization had multiple approval levels that kept it from streamlining workflow and kept employees from using the software's self-service capabilities. Standardizing the approval levels enabled the organization to use self service, cut transaction cycle time by more than 50 percent, and eliminate outdated policies.
Streamlining customizations and eliminating shadow systems. A large public sector organization had over 150 customizations just in the Financials applications. By analyzing these customizations – and the business needs behind them – our BPO effort found that more than 50 percent could be eliminated through redesigned, streamlined processes and better utilization of existing technology. In addition, we discovered that eliminating multiple shadow systems would drive savings of more than $225,000 annually.
Focusing on significant purchases. At a large financial services company, the Accounts Payable and Purchasing department spent the majority of its time focused on low-dollar, low-value activities like entering redundant data and handling minor transactions. By converting targeted transactions to monthly, electronic invoices or the Procurement Card program, they increased electronic invoicing by 255 percent. Improvements such as these typically eliminate 25 percent or more of the manual transactions and allow key resources to pursue more valuable activities like strategic sourcing and reverse auctions.

In the past, ignoring process opportunities and specific measurement programs often initiated a destructive cycle, as organizations disappointed with their project results blamed the technology, and then were reluctant to further invest in the system and related processes. This drove them to inadequately fund and scope upgrades, which crippled their ability to leverage the technology and led to even further disappointment. By undertaking a focused, strategic BPO program, organizations can break this cycle and finally achieve the ERP performance and payback they expect.

CherryRoad has the expertise required to optimize your organization's inefficient processes. To learn more, download our white paper, Increasing the ROI in ERP through Business Process Optimization, and contact us at info@cherryroad.com.