180Systems_AS-IS Business Process vs TO-BE Business Process

AS-IS Business Process vs TO-BE Business Process

AS-IS Business Process

A business process review will document the AS-IS or existing business process. The primary objective is to uncover inefficient and ineffective processes that should be eliminated. It can also be used to uncover requirements for a new system based on what is needed to fix the problems and based on what works well.

Another objective would be to understand the impact of the problems, which can lead to a business case when benefits are identified and calculated in eliminating the problems. An ideal time to do a business process review is when an organization’s existing systems need to be replaced.

TO-BE Business Process

The TO-BE business process is the design of an optimized future business process. This is required when replacing your existing system but who should do it and when?

Some consultants will want to design your TO-BE business process for you prior to the selection of a new system. We think this is a big mistake and will mostly benefit the consulting company. When selecting a new system, you are also selecting an implementer who should have already implemented systems for similar companies. In fact, you should be selecting the implementer based on their industry expertise and ability to optimize your business process. Why invest in the design of the future state when the implementer has already done it? It may need some tweaking, but you don’t need to start from scratch.

Another question is whether time should be spent by the implementer reviewing the AS-IS business process when it’s going to be replaced. The only reason to understand the current state is to flag processes where there are big changes and potential for resistance from employees.

Use of AS-IS When Designing TO-BE

A question that we have heard from ERP implementers is whether time should be spent reviewing the AS-IS business process when it’s going to be replaced. The only reason to understand the current state is to flag processes where there are big changes and potential for resistance from employees.

Michael Burns

Written by Michael Burns

Michael Burns is both the founder and president of 180 Systems. Prior to 180 Systems, Michael was the partner in charge of the IT practice of a CPA firm in Toronto and was also the director of the Canadian mid-market consulting practice of a big four accounting firm.

Michael has provided consulting services to a wide variety of industries including financial, manufacturing, distribution, retail, professional services, real estate, health care, financial services and not-for-profit organizations. Michael has also developed software for many companies including Minicom Data Corporation, Eminex Corporation, and The Faculty of Management Studies at UofT.

Frequently Asked Questions

Q: What is an AS-IS Business Process?

A: It documents your current processes to identify inefficiencies before making improvements.

Q: What is the TO-BE Process?

A: It defines the ideal future state of operations after implementing changes or systems.

Q: Why is it important to document the AS-IS process before creating the TO-BE process?

A: Because understanding the current state helps you design a more realistic and effective future state. It ensures you’re not guessing or missing hidden problems that need solving.

Q: Should consultants design the TO-BE process before selecting an ERP system?

A: Not always. The article suggests it may be better to wait and work with the chosen ERP implementer, who often has valuable industry expertise and knows how to optimize the process efficiently.

Q: When should the AS-IS process be reviewed in ERP projects?

A: When there are major changes expected or areas where employees may resist new workflows. Reviewing the AS-IS process helps anticipate issues and manage change better.

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