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PROJ6009 Business Process Management

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How Do Enterprise Resource Planning Systems Affect Firm Risk?

In A Handbook of Business Transformation Management Methodology.




Business process Management (BPM) and the Enterprise Resource Planning (ERP) are very closely related management information technology that helps to improve the performance of the business operation by assessing their existing condition and finding solution is a automatic environment. The report focuses on the implementation of ERP system in BPM for a chosen company named Samsung Company that can allow the business operation to be more simplistic as well as cost and time efficient. In this report the process, tools and criteria for the implementation process have been analysed. The advantage of incorporating IoT system in the BPM has been assessed with cost benefit analysis.  The accountability of life cycle in Samsung Company has been also taken into the consideration while examining the implementation.

ERP options integrated in the BPM for Samsung Company 

The Business process Management of the Samsung company is highly integrated with its ERP or Enterprise Resource Planning technology that allows the business authority to examine the existing manufacturing system, supply chain, resource allocation and cost efficiency within a automated business process to provide a profitable and sustainable development. The major options integrated within the ERP system of Samsung company are scheduling, resource allocation, financial controls and even consumer relationship management (Balko & Vasudevan, 2014). Moreover the ERP options on the Business process management of Samsung Company focused on assessing, monitoring and updating the executions of the business operation.


Processes, tools, and criteria to evaluate ERP options 

Many tools are used to evaluate ERP options within the BPMS system of the Samsung company. The major evolution criteria of ERP tools are Consumer relationship, account management, bank reconciliation, benefit administration, CRP or Capacity Requirements Planning, MRP or Material Requirement Planning, BOM or Bill of Materials, Logistics management, Business Intelligence or  BI, Email Tools, Business to Consumers Commerce, Advance Allocations, Change management, API integration, flexible network design and Advance Planning System and Training (Leon, 2014). Apart from that, the financial stability, Vendor management and Support installation of the ERP are also essential.

ERP system support the supply chain, logistics, procurement, and performance monitoring

The Samsung Company can use ERP or Enterprise Resource Planning technology in their logistics, quality management, monitoring and procurement operation by utilising the automating controlling and the resource allocation in order to increase their operational and functional productivity.  Samsung Company can use ERP for their supply chain management in order to calculate the most price and time efficient chain planning for inbound and outbound logistics (Tian & Xu, 2015). Samsung Company uses ERP integrated with their KPI and scorecard system for their recognition and rewording procedure. Samsung company is also using the ERP system integrating with the BPM for the procurement process that comprises analysis of existing condition, finding the scope of improvement, determining the required resources and planning of the most effective resource collection process.

IoT facilitate BPM or affect ERP application in Samsung company

Samsung uses Internet of Things (IoT) from 2nd generation development of multi duplex network system in order to execute a real time monitoring and controlling environment for the logistics, manufacturing and HR management system. After the intervention of 4th generation of wireless networking the IoT has the wider opportunity with the smart phones, tablets, laptops and other portable platforms. For upcoming years, Samsung Company is planning to execute a virtual operation and simulation program with the incorporation of ERP in order to examine the success factors a prototype development (Vom Brocke, Petry  & Gonser, 2016). On the other hand, ERP system is under the use of virtual team management and marketing across the globe.

Opportunities for improvement in evaluating commercial packages or other options

The commercial operation of Samsung Company is manly distributed in electronics and electrical products and services. Therefore, the improvement of the commercial packages would involve with the price base marketing and product selection procedure for the products and service. ERP system can help the market selection, targeting and pricing strategy of the commercial packaging system of the Samsung Company. ERP is very beneficial for the implementing BPM where the accounts, finance and billing system for the commercial transactions are implemented (Bullen, Microsoft Technology Licensing LLC, 2018). Along with the commercial packaging the ERP system of BPM can be also widely utilisable for partnership selection, communication system and even in legal compliances. 

Figure: Accountability of ERP in the BPM

Source: (Ewe, Pekerten & Ma 2016)

Cost-benefit analysis of integrating ERP with BPM 100

In order to conduct the cost benefit analysis of utilising ERP with the BPM in the Samsung Company the financial report of the 2016 and estimation of 2020 of this company has to be analysed.

Options of utilisation

Changed Cost for using ERP in BPM (+ represents increase and – represents decrease)

Changed Benefit of using ERP in BPM (+ represents increase and – represents decrease)

Return on investment



Consumer relationship



Logistics operation



CSR activity



Marketing and Promotion



Procurement process










(50%-46%)= 4%

Table: Cost benefit analysis

Source: (Created By author)

From the above cost benefit analysis it has been clear that the after incorporating the ERP system in the BPM of the Samsung Company the benefit can be increased 4% more than the increase of the Cost.

Implementation plan for Samsung Company 

In Implementation plan, the Samsung Company should focus on the change management process where the workforce and the management operation can work in a synchronised operation. Samsung has to analyse the driving force and estimated resistance force for these changes (Dar et al., 2015). Then, the management of the organisation can execute defreeze, change and en-freeze plan with appropriate leadership and managerial operation. The implementation plan should be utilised in both in house and outsource operation. However, the primary focus of this plan should be more on in house development.

Accountability of life cycle

Throughout the incorporation of ERP in the BPM of the Samsung company the company should also focus on their life cycle plan of manufacturing procedure. This would help to alter the logistics and the supply change management according to the implementation plan in both national and global business operation.


The report focuses on the implementation of ERP system in BPM for a chosen company named Samsung Company that can allow the business operation to be more simplistic as well as cost and time efficient. From the above report, it has been found that incorporating IoT system, accountability of life cycle process, tools and criteria are the major components of the BPM system under the process of incorporating ERP.



Balko, S., & Vasudevan, K. (2014). U.S. Patent No. 8,849,747. Washington, DC: U.S. Patent and Trademark Office.

Bullen, G.N., Microsoft Technology Licensing LLC, (2018). Enterprise resource planning oriented context-aware environment. U.S. Patent Application 10/026,058.

Dar, K., Taherkordi, A., Baraki, H., Eliassen, F., & Geihs, K. (2015). A resource oriented integration architecture for the internet of things: A business process perspective. Pervasive and Mobile Computing, 20, 145-159.

Ewe, T., Pekerten, O., & Ma, L. (2016). U.S. Patent No. 9,420,054. Washington, DC: U.S. Patent and Trademark Office.

Leon, A. (2014). Enterprise resource planning. McGraw-Hill Education.

Tian, F., & Xu, S. X. (2015). How Do Enterprise Resource Planning Systems Affect Firm Risk? Post-Implementation Impact. Mis Quarterly, 39(1).

Vom Brocke, J., Petry, M., & Gonser, T. (2016). Business process management. In A Handbook of Business Transformation Management Methodology (pp. 137-172). Routledge.


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