Does it make sense to implement ERP if your business isn't planning to restructure its operations?

Very good question, Jon!

The question of planning a restructuring of operations is often driven by a lack performance on the floor. ERP systems are, the vast majority of times, looked at for purchase because a restructure of operations is essential to improve competitiveness. If someone is shipping at 65% on time, does not know what they have in inventory, or what jobs are the correct ones to be working on now, then they have an operational deficiency that must be addressed. This, by its’ nature, is an operational restructuring.

Jason Rourke
www.profitkey.com

It pains me to say it, but an enterprise solution can help to tie all the pieces together, whether process re-engineering is involved or not. There is some value in operating from a shared data base that provides integrity of input to any variety of reporting and analytics.

That said, a fresh look at processes is usually a worthwhile exercise, whether an ERP system is involved or not. To the extent that processes might need revision to meet ERP protocols, that's not so good. To the extent that an ERP can support and/or enable process changes that make a difference in quality, timeliness, accuracy, or cost, that's a much better thing.

ERP implementation or upgrade to satisfy IT imperatives might be necessary at some point, but is usually fundamentally unsatisfying from an operational perspective. In the end, technology application needs to be about the business, not about technology.

I would say, no, it is not a wise course to pursue if you are not willing to make changes to your business processes. They might not even need to be drastic processes, but it is inevitable that implementing enterprise-level tools like CRM and ERP will have an impact upon your current workflow, and if you're not willing to evaluate and alter that workflow (among other things), you can expect the implementation of such a project to be painful -- both in terms of time and cost.

And any potential benefit will be undermined.

Business process adjustment, if not re-engineering, should always precede or be integrated with a deployment of this type, unless the goal is something other than success.

-ASB: http://XeeMe.com/AndrewBaker

Implementation of a new ERP regardless of the reason will result in changes to some business processes. It is inevitable that some current processes have developed as a result of the capabilities or deficiencies of the existing system. As a long time BA/PM in this area I can assure you that one of the biggest causes of new ERP performance difficulty is the attempt to bend the new system to support the old processes; especially when the old processes are a result of people finding a way to master the inefficient system.

ERP implementation requires the restructuring operations, both are integrated. all the modules in the ERP requires the proper flow of process in the organization.

http://www.nichesuite.com/

If a business is unwilling to restructure, refine, or consider change, then they aren't ready to implement an ERP system. There are too many failed ERP projects out there that are a result of that very thing.

Perhaps the 'ideal candidate' for an ERP implementation is the business that is motivated to move to ERP because of the need to refine or restructure processes. They are already ripe for change and are contemplating the benefits that can come from it.

But there are lots of reasons to consider an ERP system. A common one that can result in difficulties if not well-managed, is when an organization has an existing ERP system that is reaching end-of-life, is no longer nimble enough to handle the business needs, etc. When the reason for an implementation is largely because the old one needs to be sent to pasture, then it can be harder to make the case for change or restructuring of business processes since that isn't what has motivated the organization.

Organizations considering an ERP implementation need to assess their readiness by critically analyzing their current processes, attempting to map these to different vendor solutions, and determining what is possible, practical, and desirable. With any integrated, enterprise solution, change is inevitable and benefits can be marginalized or even erased if organizations aren't open to the concept of change.

If you want to enter into an ERP system, you will necessarily have to follow the process path as dictated by the ERP. It is not possible, not to restructure and simultaneously enter into an ERP.