Describe benchmarking and its relationship to erp

As the business processes are supported by IT or ERP systems, IT related business controls can be . Define the scope of automated controls for benchmarking. Benchmarking is a process of measuring the performance of a company's or installing a new customer relationship management (CRM) system to enable. Therefore, for the benefit of corporate executives, students and the interested general populace, the key steps in the benchmarking process are highlighted.

For instance, improving one core competency at the detriment to another proves to be of little use.

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Therefore, many choose to document such processes in detail a process flow chart is deemed to be ideal for this purposeso that omissions and errors are minimized; thus enabling the company to obtain a clearer idea of its strategic goals, its primary business processes, customer expectations and critical success factors. An honest appraisal of the company's strengths, weaknesses and problem areas would prove to be of immense use when fine-tuning such a process. The next step in the planning process would be for the company to choose an appropriate benchmark against which their performance can be measured.

The benchmark can be a single entity or a collective group of companies, which operate at optimal efficiency. As stated before, if such a company operates in a similar environment or if it adopts a comparable strategic approach to reach their goals, its relevance would, indeed, be greater. Measures and practices used in such companies should be identified, so that business process alternatives can be examined.

Also, it is always prudent for a company to ascertain its objectives, prior to commencement of the benchmarking process.

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The methodology adopted and the way in which output is documented should be given due consideration too. On such instances, a capable team should be found in order to carry out the benchmarking process, with a leader or leaders being duly appointed, so as to ensure the smooth, timely implementation of the project. Exploratory research, market research, quantitative research, informal conversations, interviews and questionnaires, are still, some of the most popular methods of collecting information.

What is BENCHMARKING? What does BENCHMARKING mean? BENCHMARKING meaning & explanation

When engaging in primary research, the company that is due to undertake the benchmarking process needs to redefine its data collection methodology. Drafting a questionnaire or a standardized interview format, carrying out primary research via the telephone, e-mail or in face-to-face interviews, making on-site observations, and documenting such data in a systematic manner is vital, if the benchmarking process is to be a success.

Data analysis, data presentation preferably in graphical format, for easy referenceresults projection, classifying the performance gaps in processes, and identifying the root cause that leads to the creation of such gaps commonly referred to as enablersneed to be then carried out.

Benchmarking Process

This generally means that far-reaching changes need to be made, so that the performance gap between the ideal and the actual is narrowed and eliminated wherever possible.

Best practices[ edit ] Most ERP systems incorporate best practices. This means the software reflects the vendor's interpretation of the most effective way to perform each business process.

Systems vary in how conveniently the customer can modify these practices. They can also help comply with de facto industry standards, such as electronic funds transfer. This is because the procedure can be readily codified within the ERP software and replicated with confidence across multiple businesses who share that business requirement. These systems are typically configured by systems integratorswho bring unique knowledge on process, equipment, and vendor solutions. Direct integration—ERP systems have connectivity communications to plant floor equipment as part of their product offering.

This requires that the vendors offer specific support for the plant floor equipment their customers operate. ERP vendors must be experts in their own products and connectivity to other vendor products, including those of their competitors.

Database integration—ERP systems connect to plant floor data sources through staging tables in a database. Plant floor systems deposit the necessary information into the database. The ERP system reads the information in the table. The benefit of staging is that ERP vendors do not need to master the complexities of equipment integration. Connectivity becomes the responsibility of the systems integrator.

An EATM offers the benefit of being an off—the—shelf solution. Custom—integration solutions—Many system integrators offer custom solutions. These systems tend to have the highest level of initial integration cost, and can have a higher long term maintenance and reliability costs.

Long term costs can be minimized through careful system testing and thorough documentation. Custom—integrated solutions typically run on workstation or server-class computers. Implementation[ edit ] ERP's scope usually implies significant changes to staff work processes and practices. Modular ERP systems can be implemented in stages. The typical project for a large enterprise takes about 14 months and requires around consultants.