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

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