Benefit Analysis
Value Chain – Business Process Hierarchy Approach
Value Chain
Business Process Hierarchy (BPH)
• To carry out a proper business process analysis would require the BPH to built up to at least level 4,
i.e. business process flows.
Approach to Harmonization
1)
Fit/Gap Analysis Method
• To analyze the reference process for fit and document the gaps.
• This method require the Business Process Hierarchy and an inventory of business processes, supported the ERP and
satellite application Systems.
• The outcome shall be an indication of the how many of the existing processes are able to meet business requirements,
and the gaps shall serve as inputs to the SOR/SOW.
2)
Benefits Analysis method
• To establish a harmonized process that would be able to generate the most optimal benefits, drawing from the best of
both organization.
• This method involve gathering of benefits of the business processes and establish the process as reference templates for
harmonization, this is based on the premises that business processes that were able to provide the most optimal benefits
will be most appropriate.
3)
Application functional analysis
• Application functions available from the reference ERP and its satellite systems together with custom application and
enhancements are used to "design" the harmonized process.
• The approach allow two companies that are merging to leverage on the available functions and including replacing
certain custom applications and enhancements.
• Activation of these functions should serve both entities as the harmonized processes will contain both existing functions
and new functions/features.