Leveraging capabilities for digitally supported process improvement: a framework for combining Lean and ERP

Abstract

PurposeEnterprise resource planning (ERP) and Lean are both widely used approaches to business process improvement. However, research is limited on their interactions when implemented in combination, leveraging the advantages of both. The purpose of this paper is to propose a generic framework for implementing ERP and Lean in combination to develop digitally supported business process improvement capability and improved competitiveness.Design/methodology/approachPrinciples and elements for the framework were derived from the extant literature and subsequently applied as input for solution incubation using design science research (DSR) in a five-year case study. Study results and learnings enabled solution refinement and the development of a generic framework for digital supported process improvement capabilities.FindingsThe paper presents a case study narrative and proposes a framework for digitally supported business process improvement capability based on Lean and enabled digitally by ERP. The framework delivers tangible productivity and quality improvements deployed, and an increase of continuous improvement capability.Originality/valueThis paper provides a novel generic framework and a set of guidelines for implementing Lean and ERP in SMEs and/or service companies to improve their business process excellence. The paper contributes to the scientific literature by providing insights on how SMEs and service operations can integrate Lean and ERP methods, digitalize and streamline processes in the organization and build continuous improvement capabilities.

Business Process Automation in SMEs: A Systematic Literature Review

“…Enterprise Resource Planning (ERP) is very popular in organizations because "it offers value through automation and integrating internal business processes, helping to reduce cycle time" [52]. So, this technology can be viewed as a means of business process automation [52][53][54] to "increase productivity, reduce costs, and meet customer requirements" [54]. Seymour and Koopman [109] mentioned that ERP was the evolution of WfMS/BPMS.…”

“…Seymour and Koopman [109] mentioned that ERP was the evolution of WfMS/BPMS. ERP systems digitalize the flow of information and provide functionalities to support operational business processes [53]. ERP "can maintain and automate standardized work while ensuring that work is done in exact sequence and format" [53].…”

“…ERP systems digitalize the flow of information and provide functionalities to support operational business processes [53]. ERP "can maintain and automate standardized work while ensuring that work is done in exact sequence and format" [53]. Aboumasoudi et al [100] define ERP as a system that connects accounting, inventory control, financial operations, supply chain, and human resources functions.…”

“…Once the task of choosing the process to automate and the supporting technology is finished, and the environment is prepared for the transition of work paradigm, it is important to reflect on how the organization can perceive the success or advantages of the new scenario compared to the previous one [53]. In van der Aalst et al [115], it can be found that to measure process improvement, organizations can use a lot of Key Performance Indicators (KPIs), also known as Process Performance Measures (PPM).…”

“…The technologies/tools that can be helpful to BPM and BPA, changing and improving business processes, are Blockchain [8,10,15,19,20,[35][36], Robotic Process Automation (RPA) [13,15,19,21,23,[37][38][39][40][41][42][43][44][45][46][47][48], Artificial Intelligence (AI) [13, 15, 19, 21, 23, 31, 36, 41-42, 44, 49-50], ERPs [21,[51][52][53][54], and Workflow Management/ Business Process Management Systems [12, 27, 36, 40-42, 51, 55-56]. It is usual to find a use of RPA technology in BPM and BPA [14-15, 23, 26, 31, 38, 48].…”