Erp System Implementation and Business Process Change: Case Study of a Pharmaceutical Company

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Journal of Computing and Information Technology

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ERP System Implementation and Business Process Change: Case Study of a Pharmaceutical Company Vesna Bosilj-Vuksic and Mario Spremic
Department of Business Computing, Graduate School of Economics & Business, University of Zagreb, Croatia

The main objective of this paper is to present the impacts of information technology (IT) and enterprise resource planning (ERP) systems in business process renovation and to discuss selected aspects of the business processes and information modelling. This study presents the results of research conducted on reengineering business processes in Croatian companies, together with the results of analysis of the status and characteristics of ERP systems in Croatian companies. The results of this study were used to form hypotheses, which were then analyzed and compared against the results of a case study conducted by the authors on business process reengineering and the implementation of the SAP software solution in PLIVA pharmaceutical industry, Incorporated (PLIVA pharmaceuticals, Inc). Keywords: business process change, enterprise resource planning (ERP), business process modelling, SAP, PLIVA pharmaceuticals Inc.

This paper stresses the necessity for organizational restructuring in the context of global information connectivity. Business Process Reengineering (BPR) is an organizational method demanding radical redesign of business processes in order to achieve greater efficiency, better quality and more competitive production (Hammer and Champy, 1993). It means analyzing and altering the business processes of the organization as a whole. A business process includes activities and tasks that cross functional and/or organizational boundaries. Information technology (IT) is the most important factor in enabling newly redesigned processes. Modern information technology is oriented towards business processes and communications between persons using these processes, and is therefore called process and information technology (Ould, 1995). In that way, BPR can be described as organizational process redesign, with the direct influence of IT. Despite the fact that many academics and practitioners agree with this idea, BPR and information systems modelling are still performed separately. The objective of this paper is to examine this domain and to propose a framework for business process modelling and IT integration. The primary objective of this paper was to explore the relationship between IT, ERP and business process change. The evaluation of BPR is described in Section 2. A brief overview of ERP systems and the results of ERP systems’ analysis conducted in Croatia are presented (Section 3). The framework for business process renovation and ERP systems modelling is provided in Section 4, as are the results of research on BPR conducted in Croatian companies. A case study of ERP system solutions implemented in the pharmaceutical company PLIVA is described in Section 5. Finally, the conclusions outlining the main findings of this research are presented in Section 6.

1. Introduction
In order to survive in highly competitive business environments, companies have to continuously change their business processes. New conditions in the marketplace have provided a special stimulus to modelling business processes over the past ten years: product expansion, competitive sales conditions, development of global distribution networks, better informed customers, and the orientation of businesses towards satisfying the individual needs of the customer. In the light of this, business process reengineering has often been employed, and information technology is a frequently utilized approach used to improve business processes.

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ERP System Implementation and Business Process Change: Case Study of a Pharmaceutical Company

2. Reengineering Business: History and Evolution
BPR has become one of the most popular topics in organizational management,...
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