Process focus in ERP: why it is so important for you

From high energy costs to fragile supply chains and a shortage of skilled workers – companies today face a variety of challenges that threaten their existence. At the same time, they must be able to stay a decisive step ahead of the competition in a highly competitive global market environment.

Maximum efficiency and speed are therefore more important than ever. Companies can only achieve this with an ERP system that makes them more flexible and faster – be it through optimal user guidance, automated processes or AI-supported activities. In this article, we take a closer look at the crucial role a process-oriented ERP plays in this.

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Process focus: What does that actually mean?

An ERP system is an extremely complex software solution. No wonder: it maps the processes of all departments in a single application and is used throughout the company. The range of functions and functionality must be correspondingly broad.

The problem is that a traditional ERP solution only supports a data-centric approach to use. This means that users have numerous different functions at their disposal with which they can complete their tasks in different ways. The result is an overloaded user interface with lots of input fields. Although this provides maximum freedom, it can also be quite confusing and overwhelming.

On the other hand, there is the process focus, which aims to map workflows and processes in a targeted manner. The user is only shown the information and decision-making options that are actually required for a specific work step. Only a small section of the overall data from various data pools is displayed on the user interface. Simply structured workflows provide users with clear orientation.

A process-oriented ERP offers these decisive advantages

1. reduced complexity for the user

Traditional ERP systems with a data-centric approach do not offer optimal usability. A confusing user interface, hard-to-find information and long click paths slow down even the best employees. They need an excessive amount of time for a task, which in turn inhibits motivation and productivity.

An ERP system with a process focus, on the other hand, supports users in their work. It hides irrelevant functions and flexibly adapts the interface to the user’s needs. By guiding employees step by step through their tasks, they find their way around intuitively.

Basically, a process-oriented workflow in ERP can be run through just as easily as an online order. And without prior familiarization and lengthy training.

The result:

• Users are able to carry out activities at high speed.
• The overall efficiency of the company increases noticeably.
• Employee satisfaction is increasing.
• New employees can use the ERP system immediately, which speeds up onboarding processes.

2. error prevention through targeted guidance

The complicated user interface of a traditional ERP system brings with it another problem: it increases the likelihood of operating errors. In an overloaded user environment, it is easy for users to inadvertently enter incorrect data or accidentally trigger a process. It goes without saying that work then comes to a standstill, as the error has to be rectified first. The workflow comes to a standstill and efficiency decreases.

The more frequently such mishaps occur, the more time is required for corrections. And the more tedious and grueling it is for employees. In serious cases, incorrect operation of the software can even have tangible consequences for the company.

Let’s take an example from the warehouse:

• A user enters incorrect stock levels.
• This leads to production bottlenecks or unnecessary repeat orders.
• This results in delays in production or overfilled warehouses.
• The company must reckon with delayed deliveries, dissatisfied customers and additional costs.

Although such negative effects can be avoided through additional checking and approval processes, these also increase the workload and costs. The much better solution is a process-oriented ERP system that reduces human error to a minimum right from the start. As the software clearly specifies the individual activity steps and guides the user through the entire task process, employees find their way around optimally. They know exactly what information they need to enter in which field. As unnecessary functions are not even displayed, incorrect operation is unlikely.

The result:

• Processes run smoothly, which saves a lot of time and money.
• Correct input ensures reliable data that serves as the basis for sound business decisions.
• Employees are more motivated because they make fewer mistakes and make faster progress.
• Punctual deliveries and precise order processing improve customer satisfaction.

Nowadays, companies need to be able to adapt as flexibly as a chameleon.

3. more flexibility and adaptability

Whether changes in the market, innovative technologies or constantly growing customer requirements: These days, companies need to be able to adapt as flexibly as a chameleon. They regularly face new challenges that require them to be extremely agile. Failure to do so could put them at a competitive disadvantage.

If companies have a conventional ERP system in operation, individual modifications usually involve a great deal of effort. Changes to the standard system require time-consuming and cost-intensive programming, which can only be accomplished with specialist know-how.

In a process-oriented ERP system, on the other hand, it is often sufficient to modify the defined process. Sometimes such a modification is even possible with little or no programming effort. Incidentally, a software solution with a process focus also allows for optimal optimal display on mobile devices. This is what makes flexible, location-independent work possible in the first place.

The result:

• Companies can react quickly and flexibly to trends.
• Time and costs for adjustments are reduced to a minimum.
• Both the ability to act and the competitiveness improve.
• Employees can work productively on the move.

4. simpler process analyses and optimizations

With a classic ERP solution, users often perform a specific task in different ways. They all ultimately reach their goal – but the question arises as to how efficient the respective solution approaches are. It is difficult to find out, because process analysis is difficult with a data-centric approach. Logically, if the actions of the users differ too much from one another, there is no homogeneous process and data basis.

The situation is different with a process-oriented ERP system: Here, all employees go through one and the same process with little complexity in order to complete a task. For example, all purchasers first select an article, then enter the required article quantity and finally select the desired supplier. After verification, the order is immediately forwarded to the supplier.

Such a uniform standard process makes it possible to precisely analyze and evaluate user actions with the help of tracking tools. This provides companies with valuable information on throughput times and resource utilization, for example. This data in turn serves as a basis for identifying weak points and potential for improvement.

The result:

• Processes can be optimized in a targeted manner and quickly adapted to new requirements.
• Delays and inefficient processes are a thing of the past.
• Operating costs are reduced and productivity increases.

5. automation of standard processes

Process analysis is the basic prerequisite for another important factor in increasing efficiency: automation. Only when there is only one predefined standard route for a process can a company identify opportunities for automation and set up purely automated processing for a manual workflow. Humans then only have to monitor the process and give their approval if necessary.

Automation is particularly worthwhile for activities that are regularly carried out in large numbers. These include processes such as ordering items, preparing payroll and processing receipts. Rule-based process automation, in which the system makes decisions based on predefined variables, is usually sufficient.

The result:

• The same activities are always carried out faster and more efficiently.
• The work and costs involved are reduced.
• Digitalization is significantly reducing errors in standard processes.
• Specialists have more time to devote to more important tasks.

6. optimal use of generative AI

Generative AI today and in the future

Generative AI (GenAI) is already being used successfully in modern ERP systems. With the help of large language models (LLMs) , for example, the technology answers users’ questions in natural language and generates texts for service staff in a matter of seconds.

The prerequisite is a solid database that serves as a reliable source of information for the artificial intelligence. This means that the AI must have constant access to high-quality facts for its training – from documentation or directly from the ERP system, for example. Otherwise, there is a high risk that users will receive incorrect or nonsensical answers – which would be fatal in a business environment.

But the potential of GenAI for the ERP system of the future is even greater. Instead of simply spitting out texts on request, it should actively assist users in their daily work. It should be able to independently identify routine processes that always run in the same way and carry them out automatically on request. Humans will then only have to intervene in exceptional cases.

Artificial intelligence can, for example, reorder materials on its own initiative or adapt the ERP dashboard to the individual needs of users. In the not-too-distant future, generative AI will most likely behave like a personal virtual assistant behave. Users will probably talk to the system, seek advice on process optimization and discuss different scenarios with the AI.

Process focus as a basic requirement

However, data alone is no longer sufficient as a knowledge base for intelligent automation. Instead, the technology must acquire comprehensive knowledge of the company’s own processes and their individual steps. Otherwise, there is a risk that it will perform tasks incorrectly and cause more chaos than benefit.

The process focus is therefore also essential for the optimal use of generative AI. This is because the technology can only acquire the necessary process knowledge if the functionality of the ERP system is process-oriented. It is important that the specific company processes are available in a language that the AI can interpret – for example in the graphical specification language Business Process Model and Notation.

The result:

• AI-based automation enables routine tasks to be processed at a significantly higher speed.
• Urgently needed personnel resources are freed up.
• Employees have more freedom for creative activities.
• The company works more efficiently, giving it a significant competitive advantage.

Conclusion: You win the race with process focus

With a process-oriented ERP system, companies are on the winning side today and in the future. Not only does it provide the basis for more user-friendliness and economical processes, it is also a prerequisite for the advanced use of artificial intelligence.

In particular, the ability to automate intelligently will soon determine whether a company can hold its own against the competition or not. In the end, only those companies that can operate extremely quickly and efficiently with the help of generative AI will prevail. Those who miss out on technological developments will fall by the wayside sooner rather than later.
APplus, for example, offers the option of focusing on processes in ERP with its Flow Mode. In this mode, the user is guided step by step through their tasks and runs through an optimally designed workflow that noticeably reduces their daily workload.