Your SlideShare is downloading. ×
0
Dirt Bikes Case Study

    Team E :

     Ryadh ZITOUNI
     Ekaterina YAZYKOVA
     Melissa ZEPHIR
     Yann LANDREV...
Contents
    1. Business Challenge

     Current Situation
     Challenge
    2. Business Solutions (Objectives)

    ...
Diagram of IS
                Business
                Challenge

   People




                Information   Business
 Or...
1.1 Current Situation
  Dirt Bikes USA is a small company

  founded in 1991 that manufactures and
  sells racing and off...
1.1 Current Situation

    As Top Managers we have to focus on

    Financial Reporting based on the information
    we h...
1.1 Current Situation
   DUPONT ANALYSIS :

To Be Successful, a business must manage its:
      – Operating Profits
     ...
1.1 Current Situation
   Assets / Liabilities / Equity

                          2008         2007         2006
Accounts ...
1.1 Current Situation


           Formula                        2008      2007        2006
PM         = Net Income / Rev...
1.2. Business Challenge

  More Competition (new comers)

 Market is growing up
 Outdated systems
 Manual business pro...
2. Business Solution
  Reduce Costs

 Increase capacity by squeezing costs
 Improve asset turnover
 Reduce excess inve...
3. Information System
    People :

     Appoint new management team (tech friendly)
     Design strategic transformati...
3.1. ERP System
    Enterprise resource planning (ERP) is an

    enterprise-wide information system designed
    to coor...
3.2. Information System : ERP
    Benefits of an ERP System :

     Help reduce operating costs :(inventory
      contro...
3.3. IS : ERP Modules
E.G :Order Fulfillment Process

             Generate         Submit
 Sales
              Order           Order



Accoun ...
3.4. Providers & Costs Study
    Implement ERP System :

     Software : SAP, ORACLE, OPEN SOURCE
     Hardware : Dell ...
3.4. Open Pro
OpenPro Cost Study
  Number of employees: 129

  Number of named users: 20

  Upfront costs (licenses, customization,

...
3.5. Investment Analysis
    Feasibility :

     Fixed costs (Hardware, Software Training) : $70,800
     On going cost...
3.7.Securing IS
  Confidentiality

 Availability
 Integrity
 Access control
     Identification
     authentication
4.1. Balance Scorecard
4.2. Financial Perspective

Objective        Measure   Target           Initiative
                            10% per ye...
5. Sources
  Wikipedia
                             (http://en.wikipedia.org/wiki/Information_security )


 Prenhall / L...
Thank You
Upcoming SlideShare
Loading in...5
×

Mis Team E

1,364

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,364
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
40
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Mis Team E"

  1. 1. Dirt Bikes Case Study Team E :   Ryadh ZITOUNI  Ekaterina YAZYKOVA  Melissa ZEPHIR  Yann LANDREVIE
  2. 2. Contents 1. Business Challenge   Current Situation  Challenge 2. Business Solutions (Objectives)  3. Information System (Plan)   3.1. ERP System  3.2. Benefits of an ERP  3.3. ERP Modules  3.4. Providers (SAP, ORACLE, OPEN SOURCE)  3.5. Investment Analysis  3.6. Securing IS 4. Controls   4.1. Balance Score  4.2. Financial Perspective 5. Backups / Sources 
  3. 3. Diagram of IS Business Challenge People Information Business Organization System Solutions Technology
  4. 4. 1.1 Current Situation Dirt Bikes USA is a small company  founded in 1991 that manufactures and sells racing and off-road dirt bikes.  Dirty Bikes produces 4 bikes models : Enduro 250, Enduro 550, Moto 300, Moto 450, and sells it between $3.250 and $9.000  Headquarters are in Carbondale, Colorado. The company has approx. 129 employees.
  5. 5. 1.1 Current Situation As Top Managers we have to focus on  Financial Reporting based on the information we have on the consolidated statements of income and the balance sheet from 2006 to 2008.
  6. 6. 1.1 Current Situation DUPONT ANALYSIS :  To Be Successful, a business must manage its: – Operating Profits – Level of Assets – Amount of Debt FIVE KEY FINANCIAL RATIOS :  • Profit Margin (PM) • Total Asset Turnover (TAT) • Equity Multiplier (EM) • Return on Investment (ROI) • Return on Equity (ROE)
  7. 7. 1.1 Current Situation Assets / Liabilities / Equity 2008 2007 2006 Accounts Receivable 12 872 000 12 981 000 13 083 000 Accounts Payable 7 592 000 8 694 000 8 943 000 Cash & Cash equivalents 6 891 000 7 197 000 6 994 000 Total Assets 59 442 000 62 527 000 65 077 000 Total Liabilities 25 136 000 27 414 000 29 592 000 Shareholders’ Equity 34 306 000 35 113 000 35 485 000
  8. 8. 1.1 Current Situation Formula 2008 2007 2006 PM = Net Income / Revenue 15,03% 11,41% -2,40% TAT = Sales / Total Asset 1,04 1,02 0,92 EM = Total Asset / Total Equity 1,73 1,78 1,83 ROI = Net Income / Total Asset 103,51% 102,46% 92,42% ROE = NI/S x S/TA x TA/SE 26,95% 20,82% -4,07% PM = Profit Margin SE = Shareholders Equity TAT = Total Asset Turnover EM = Equity Multiplier ROI = Return on Investment ROE = Return on Equity
  9. 9. 1.2. Business Challenge More Competition (new comers)   Market is growing up  Outdated systems  Manual business processes
  10. 10. 2. Business Solution Reduce Costs   Increase capacity by squeezing costs  Improve asset turnover  Reduce excess inventory  Decrease Account Receivable / Increase Cash on Hand  Increase profitability 10% per year  Increase productivity
  11. 11. 3. Information System People :   Appoint new management team (tech friendly)  Design strategic transformation plan Organization   Adopt best-practice processes Technology   Implement ERP  Deploy Intel server running windows operating system  Depoy SQL Server database
  12. 12. 3.1. ERP System Enterprise resource planning (ERP) is an  enterprise-wide information system designed to coordinate all the resources, information, and activities needed to complete business processes such as order, fulfillment or billing. An ERP solution is characterized by  supporting a variety of business functions such as manufacturing, supply chain management, financials, projects, human resources, and customer relationship management from a shared date store.
  13. 13. 3.2. Information System : ERP Benefits of an ERP System :   Help reduce operating costs :(inventory control, production, marketing and help desk support)  Facilitate day to day management : (backbone data warehouses, better accessibility to data for decision making and managerial control. helps track actual costs of activities and perform activity based costing)  Support Strategic Planning
  14. 14. 3.3. IS : ERP Modules
  15. 15. E.G :Order Fulfillment Process Generate Submit Sales Order Order Accoun Check Approve Generate ting Credit Credit Invoice Manufa Assemble Ship cturing Product Product Fulfilling a customer order involves a complex set of steps that requires the close coordination of the sales, accounting, and manufacturing functions
  16. 16. 3.4. Providers & Costs Study Implement ERP System :   Software : SAP, ORACLE, OPEN SOURCE  Hardware : Dell and Microsoft  Training : 20 named users  Maintenance : Flat Support or per user Costs : * Delivery   SAP : $16,8 Million . SAP : 20 Months  ORACLE : $12,6 Million .Oracle : 18,6 Months  Open Pro : $200,000 . OP : 17,8 Months
  17. 17. 3.4. Open Pro
  18. 18. OpenPro Cost Study Number of employees: 129  Number of named users: 20  Upfront costs (licenses, customization,  training, and implementation): $40,000 or, $2,000 per user  Hardware and operating system (Dell and Microsoft): $30,800  On-going support from Compiere partner: $24,000/year or, $1200 per user  On-going support as percentage of upfront costs ($24,000 / $40,000): 60%
  19. 19. 3.5. Investment Analysis Feasibility :   Fixed costs (Hardware, Software Training) : $70,800  On going costs (Support, Maintenance) : $64,000  Other Costs : $50,000  TOTAL : $184,800 Acceptability : The ERP System will increase  profitability 10% per year  Current Gross Profit : $20 457 000  20,457,000 x 0,10 = $2,045,700  ROI = 2,045,700 / 184,800 = 11,07  Delay : 18 Months Risk : Very low 
  20. 20. 3.7.Securing IS Confidentiality   Availability  Integrity  Access control  Identification  authentication
  21. 21. 4.1. Balance Scorecard
  22. 22. 4.2. Financial Perspective Objective Measure Target Initiative  10% per year  Sales Profitable ROE  10% per year  # of Customer Revenue Growth PM  Costs  5%  Investment ROI Dividends 3%  Sales PM
  23. 23. 5. Sources Wikipedia  (http://en.wikipedia.org/wiki/Information_security )  Prenhall / Laudon (http://wps.prenhall.com/bp_laudon_mis_9/32/8212/2102336.cw/index.html ) Managing Information System (Prentice  Hall 2007)  Oracle / SAP / OpenPro
  24. 24. Thank You
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×