ERP, BI, and BPM: Streamlining Business Operations
ERP: Enterprise Resource Planning
An Enterprise Resource Planning (ERP) system is an integrated software solution used to manage and automate core business processes across an organization. ERPs consist of multiple modules that cover different areas such as sales, procurement, finance, human resources, and inventory management.
Main Characteristics of ERP
- Integration
- Real-time access to data
- Follows standardized processes
- Customization and flexibility
Benefits of ERP
- Improved efficiency
- Better decision-making
- Enhanced data security
Challenges of ERP
- High costs
- Complexity
Business Intelligence (BI)
Business Intelligence (BI) refers to the tools, technologies, and processes used to collect, integrate, analyze, and present business data. The primary goal of BI is to support better business decision-making through data-driven insights.
Main Characteristics of BI
- Data collection (from ERPs, CRM, etc.)
- Data analysis
- Visualization
Benefits of BI
- Improved decision-making
- Increased efficiency
- Enhanced customer understanding
Challenges of BI
- Data quality
- Integration issues
Business Process Management (BPM)
Business Process Management (BPM) is a systematic approach to improving an organization’s processes, making them more efficient and capable of adapting to changing environments. BPM focuses on end-to-end process optimization, involving both automation and continuous improvement.
Main Characteristics of BPM
- Process modeling
- Process automation
- Continuous improvement
Benefits of BPM
- Increased efficiency
- Better compliance
- Flexibility
Challenges of BPM
- Employees may resist changes in their workflows
- Complexity in implementation
MIMO Case Study: Key Insights
Three Main Topics from MIMO Case Study
- ERP Implementation: MIMO’s experience with SAGE ERP is a clear example of the challenges discussed in the ERP dossier. Issues like poor integration and lack of requirements analysis mirror common problems faced during ERP projects.
- Business Intelligence: The need for better data analysis at MIMO aligns with the concepts covered in the BI dossier. Nerea’s plan to implement a BI system shows the importance of real-time insights and strategic decision-making tools.
- BPM and Process Optimization: MIMO’s struggle with unintegrated systems and manual processes highlights the importance of BPM principles. The case study reflects the need for a systematic approach to process improvement, which is a core topic in the BPM dossier.
Issues in ERP Implementation at MIMO
- Lack of Integration: Key tools like the POS system, Shopify e-commerce, and Basecamp were not integrated with the ERP, causing data silos and manual data entry, which increased the risk of errors.
- Inadequate Requirements Analysis: The technology provider did not fully understand MIMO’s needs, missing important requirements such as hotel billing integration and support for foreign currencies, which hindered the company’s expansion efforts.
- Poor Communication with Technology Provider: Delays and issues were exacerbated by a lack of clear communication and slow response times from the provider. This was especially problematic during critical periods like new store openings.
KPI Selection for MIMO: Gross Profit Margin
KPI Selected: Gross Profit Margin (GPM)
Formula: GPM = ((Revenue – Cost of Goods Sold) / Revenue) x 100
Dimensions for Analysis
- Geographical Location: Analyze gross profit margin by location (e.g., San Sebastian, Seville, Mallorca) to identify which market is performing best.
- Time Period: Monitor the KPI monthly and quarterly to detect trends, seasonal variations, and areas that need improvement.
This KPI helps MIMO assess its profitability, optimize pricing, and manage costs effectively, supporting strategic financial decisions.