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Consolidating business processes

consolidating business processes-81

The consolidation of several business units or several different companies into a larger organization.Business consolidation is used to improve operational efficiency by reducing redundant personnel and processes.

When a company buys another company, it might become sufficiently large to serve customers on a national or international basis.Many organizations are consolidating back-office functions across business units, companies and geographical locations.Some establish Shared Service Centers to provide non-strategic roles such as accounting or HR to the entire organization.In praxis, this step is frequently omitted from IT projects.This condition cannot be ascribed to lack of knowledge on the part of the project manager; rather, the reason lies in the high degree of complexity, intricacy and interdependency of business processes.The benefits come not only from cost reduction but more frequently from increased productivity and quality of service.

By centralizing or consolidating functions such as B2B e-commerce your business becomes more agile as it can grow quickly without the expense of re-inventing or extending your back-office functions.

The result is a trading community supported by a number of different solutions from a number of different suppliers on a number of different platforms.

Merger and acquisition adds further to the challenge by introducing the necessity to consolidate an entire new set of B2B systems.

Most medium and large organizations will have developed piecemeal B2B solutions over time.

This is very often on a national or business unit level.

(2011) Consolidating Business Processes as Exemplified in SAP ERP Systems. (eds) S-BPM ONE - Learning by Doing - Doing by Learning. Communications in Computer and Information Science, vol 213.