Why are Companies Constantly Upgrading their ERP Systems?
February 7, 2025
Bankruptcy is one of the natural states which a company may find itself in. Entrepreneurship is primarily about taking risks. When companies take risks, some of them succeed, whereas others fail. Hence failure is a natural part of the business. However, many critics of bankruptcy laws believe that there isn’t a need for an elaborate […]
The Wirecard and Infosys Scandals are a Lesson on How NOT to Treat WhistleblowersWhat is the Wirecard Scandal all about and Why it is a Wakeup Call for Whistleblowers Anyone who has been following financial and business news over the last couple of years would have heard about Wirecard, the embattled German payments firm that had to file for bankruptcy after serious and humungous frauds were uncovered leading […]
Why the Digital Age Demands Decision Makers to be Like Elite Marines and Zen MonksHow Modern Decision Makers Have to Confront Present Shock and Information Overload We live in times when Information Overload is getting the better of cognitive abilities to absorb and process the needed data and information to make informed decisions. In addition, the Digital Age has also engendered the Present Shock of Virality and Instant Gratification […]
Why Indian Firms Must Strive for Strategic Autonomy in Their Geoeconomic StrategiesGeopolitics, Economics, and Geoeconomics In the evolving global trading and economic system, firms and corporates are impacted as much by the economic policies of nations as they are by the geopolitical and foreign policies. In other words, any global firm wishing to do business in the international sphere has to be cognizant of both the […]
Why Government Should Not Invest Public Money in Sports Stadiums Used by Professional FranchisesIn the previous article, we have already come across some of the reasons why the government should not encourage funding of stadiums that are to be used by private franchises. We have already seen that the entire mechanism of government funding ends up being a regressive tax on the citizens of a particular city who […]
Business in present times is very challenging and dynamic. The nature of markets, life cycle of products and services as well as the Customers and their expectations have changed. So has competition. No business can survive this change unless and until they re-invent themselves and equip themselves to face competition. While some Organizations build their competitive edge on research and development, some bank of human resource and delivery or support capabilities while many choose to bank on their Organization as the competitive edge.
By Organization we mean an Organization structure that is built on sound business processes that enables each and every resource to bring the best to the table and to deliver their promise to the customer. It also enables them to change and adapt to new requirements very fast thus enabling them to meet the new challenges emerging in the business environment on daily basis.
When we talk about Business Process Engineering or improvement, we are not referring to something that is entirely new to the business world. Along with industrialization we do see that the Organizations developed processes to help increase their productivity, aid in mass production as well as to help eliminate the obstacles. But then these processes were being relied upon to help co-ordinate the functions and not necessarily to drive the business operations. The processes relied upon people to follow them and the people needed to be supervised all the time to ensure productivity. At the same time we also see the earlier Organizations existing with hierarchical structures and division of authority, power and absence of delegation.
If we look at the phenomenal growth of the multinational companies who have made global impact in the past few decades, it is very clear that these Organizations chose to re-invent themselves and change to be ahead of the times. The re-invention of the Organization happened on the basis of business processes driving the business operations. Such processes depended upon delegation of authority as well as specific responsibilities too. These Organizations chose to end the bureaucracy that plagued them and embrace efficiency in the form of re-orienting themselves to the market requirement. The outcome of such changes is very evident as under:
Entire Organization aligned itself to focus on customer with every individual from management to operations keeping customer satisfaction as the goal of the entire Organization. Such alignment naturally leads to the Organization tuning in to the Customer requirement, anticipating his needs and focusing on planning for products for tomorrow. Automatically we see such Organizations building on their competitive advantage and an edge over competition.
Organizations gain a lot by improving their business processes. The removal of redundant processes and bureaucracy in decision making and un necessary paper work/documentation as well as hierarchical structure helps increase the productivity, efficiency as well as yields better return on investments made in the operational areas besides reducing mistakes and errors that cost the Company.
With efficient processes and visibility of performance, people get motivated to perform better. Imagine the effectiveness of the sales team when they find the new business process demanding less of their time in writing reports and documentation and giving them more time to be in front of the customer and close sales. The Organization will definitely benefit on the sales front.
Finally Business processes when designed and implemented well are very effective in driving, controlling and managing the business operations. The responsibilities and authorities get defined making the Organization more democratic and dynamic.
In the long run, bringing in business processes to manage the business helps the Organization expand its operations and businesses in multiple locations, geographies and markets while continuing to retain effective control over all business units.
Your email address will not be published. Required fields are marked *