Why You Need to Map and Analyse Business Processes | SMC

ERP replacement is often driven by efficiency, automation, and better insight. But a new platform won’t fix broken workflows. If you carry undocumented or inefficient processes into new technology, you usually get faster execution of the same problems.

Many operational issues are not caused by the system itself, but by inefficient, undocumented, or outdated processes that are simply carried forward into new technology.

Business Process Mapping (BPM) provides a structured way to understand current operations, identify what needs to change, and define future ways of working before committing to ERP selection and implementation. This article explains why BPM is a critical step in reducing risk, cost, and complexity in enterprise transformation programs.

Business Process Mapping Summary

Business Process Mapping helps organisations understand how they operate today and define how they want to operate in the future before committing to ERP investment. This article explains why BPM is a critical step before system selection and how it reduces implementation risk, cost, and rework.

Key Takeaways:

  • Current-state clarity creates a baseline for benefits and scope control
  • Separates process problems from system constraints (so you don’t buy software to fix behaviour)
  • Future-state design improves selection (fit-to-process, not vendor-led demos)
  • Early involvement increases adoption and reduces late-stage resistance
  • Clear requirements reduce customisation and improve pricing certainty

Why Map Business Processes Before ERP Selection?

1. To Understand How your organisation Really Operates Today
Before selecting a new ERP or enterprise system, organisations must have a clear, shared understanding of how work is currently done.
This includes fundamental questions:

  • What does the organisation do day-to-day?
  • How are activities performed across functions?
  • Who is responsible for each step?
  • Which tools and systems are used?
  • Are these processes documented and understood?

Research consistently shows this foundation is missing. A TNS Global study of public and private organisations across Australia, New Zealand, and the United States found that 61% had no documented business processes, while 58% believed their documented processes were out of date.

Without a clear picture of current operations, it is extremely difficult to identify meaningful improvement opportunities or define what success looks like post-implementation. It also becomes impossible to measure whether a new system has delivered genuine benefits without a baseline for comparison.

For this reason, our business process improvement consultants at SMC recommend that organisations document and validate current-state processes before embarking on any ERP selection or implementation.

2. To Clearly Define What Should (and Should Not) Change
Once current processes are understood, BPM helps organisations distinguish between:

  • Issues caused by system limitations, and
  • Inefficiencies driven by outdated practices, handoffs, or legacy behaviours

In many cases, BPM reveals that operational pain points are not system-related. Legacy procedures, duplicated effort, and informal workarounds are often the real causes, and these issues will not be resolved by changing technology alone.

A BPM exercise also helps identify which processes contribute to competitive advantage and which create unnecessary friction. This distinction is critical. Organisations that fail to define this often discover too late that a new ERP has unintentionally disrupted a strength that previously differentiated the business.

Understanding what should change and what must be protected ensures system decisions support the strategy rather than undermine it.

3. To Define How the Organisation Wants to Operate in the Future
One of the most common mistakes made during ERP programs is failing to define future-state processes before selecting a system.

A Panorama Consulting poll identified insufficiently defined business processes and workflows as the most frequently cited ‘deadliest sin’ in ERP projects. At the time, more than 61% of organisations had not documented current-state processes, let alone future-state models.

Future-state (or ‘could-be’) process maps allow organisations to articulate how they want to operate regardless of system constraints. Without this clarity, ERP selection becomes reactive and driven by vendor functionality rather than business intent.

Because most organisations replace enterprise systems only every five to ten years, internal teams may not be aware of current platform capabilities. Independent, experienced ERP advisors can help bridge this gap, ensuring future-state designs are both aspirational and realistic. Independent advisors can also help teams understand modern platform capability and avoid designing future-state processes around outdated assumptions.

4. Build Ownership and Reduce Resistance Among End Users
Even the best-designed processes and systems will fail without employee adoption.

Prosci research examining 822 organisations worldwide found that 86% of projects with poor change management failed to meet their objectives BPM plays a critical role in reducing this risk by actively involving the people who perform the work.

A well-run BPM initiative engages:

  • End users, who provide practical insight into day-to-day operations
  • Supervisors and managers, who contribute planning, resourcing, and reporting perspectives
  • Leaders who align operational change with strategic objectives
By involving these groups early, BPM helps answer the questions employees inevitably ask:
  • Why are we changing?
  • What will change?
  • How will it affect me?

This early involvement increases buy-in, reduces resistance, and gives employees a sense of ownership over the change.

5. To Ensure Critical Process Requirements Shape System Selection 
A core objective of BPM is to ensure that essential process requirements are not overlooked during ERP selection.

Research from the University of Wollongong highlighted the importance of aligning business processes with strategic decision-making frameworks to improve outcomes. Given the financial and operational impact of ERP investments, selection decisions must be driven by documented requirements, not intuition or urgency. In practice, this means turning process maps into a prioritised requirements catalogue (must-have vs nice-to-have) and using it to govern demos, scoring, and commercial negotiation.

Solution Minds Consulting’s selection methodology uses BPM outputs as a primary input into defining functional requirements. This approach significantly reduces the risk of selecting a system that cannot support key operational needs and helps maintain alignment between strategy, processes, and technology.

6. To Help Reduce Implementation Costs 
While organisations often aim to implement ERP solutions ‘out of the box’, reality tells a different story. Panorama Consulting found that 93% of organisations customised their ERP solutions, while only 23% implemented standard software without modification.

Customisation increases delivery risk, extends timelines, and raises long-term support costs. In many cases, customisation occurs because key process requirements were not identified early enough.

Conducting BPM before selection allows organisations to:

  • Identify which processes truly require differentiation
  • Prioritise requirements during vendor evaluation
  • Provide clearer inputs for pricing and delivery planning

This significantly improves the likelihood of fixed-price agreements and reduces costly change requests during implementation.

Key Questions Leaders Ask About Business Process Mapping

Business Process Mapping (BPM) is the practice of documenting how work is currently performed across an organisation, including activities, decision points, systems, and roles. It creates a shared, factual view of how the business operates today and provides a foundation for improvement and system decision-making.

BPM ensures organisations understand their current processes, pain points, and requirements before selecting a system. Without this clarity, ERP programs risk selecting software that does not support critical processes, leading to costly customisation, workarounds, and reduced adoption.

Yes. BPM often reveals inefficiencies caused by legacy processes, unclear roles, duplicated effort, or poor handoffs rather than system limitations. Addressing these issues early prevents organisations from assuming a new system will solve operational problems it was never designed to fix.

By documenting current-state and future-state processes, BPM helps define clear requirements, selection criteria, and priorities. This reduces scope creep, limits unnecessary customisation, improves vendor evaluation, and supports more accurate cost and timeline estimates.

No. While BPM requires upfront effort, it typically reduces overall delivery time by preventing rework, redesign, and late-stage changes. Organisations that skip BPM often experience longer implementations due to unclear requirements and avoidable change requests.

Effective BPM involves end users, supervisors, managers, and senior leaders. End users provide operational insight, while leadership contributes planning, governance, and reporting perspectives. Broad involvement also supports early ownership and adoption of future changes.

BPM engages employees early in defining how work will change, helping answer critical questions about why change is needed and what it means for individuals. This early involvement reduces resistance, builds ownership, and improves readiness for new systems and ways of working.

No. BPM is valuable for any initiative involving operational change, system replacement, automation, or performance improvement. It helps organisations improve efficiency, clarify accountability, and align processes with strategic objectives, with or without a new system.

About the Author

Jamon Johnston

Jamon Johnston is CEO and Founder of SMC, with more than 30 years of experience advising mid-sized and enterprise organisations on enterprise software and digital transformation. After senior leadership roles at Andersen and Deloitte, he founded SMC in 2006 to provide truly independent, client-side advisory across Australia and New Zealand. Jamon specialises in helping organisations make confident technology decisions, reduce risk, and deliver successful large-scale transformation programs. He is known for his deep market insight, practical approach, and ability to bring clarity and confidence to complex change initiatives.

Plan Your Business Process Improvement Journey with Independent Advice

At Solution Minds Consulting, our experienced consultants use a structured BPMI approach to help organisations clearly understand their current processes, identify improvement opportunities, and define future-state operations before system selection begins. Want to know more? Contact us today.

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