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  1. 1. Enterprise Resource Planning <ul><li>Members in Accounting FAG: </li></ul><ul><li>Andy Wong </li></ul><ul><li>*Eddie Nehme </li></ul><ul><li>Nayef Al-Abdulwahed </li></ul><ul><li>Denise Siele </li></ul>
  2. 2. Today we will be covering: <ul><li>What is ERP? </li></ul><ul><li>History of ERP </li></ul><ul><li>What will ERP do for the accounting department? </li></ul><ul><li>ERP Implementation </li></ul><ul><li>Costs of ERP </li></ul><ul><li>Advantages/Disadvantages </li></ul><ul><li>To ERP or not to ERP? </li></ul>
  3. 3. What is ERP? <ul><li>Is an information system that attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs </li></ul><ul><li>Some of ERP’s functions include: </li></ul><ul><ul><li>Bookkeeping & Accounting </li></ul></ul><ul><ul><li>Human Resource Management </li></ul></ul><ul><ul><li>Planning Production </li></ul></ul><ul><ul><li>Supply-Chain Management </li></ul></ul>
  4. 4. History of ERP <ul><li>ERP has its roots in the MRP and MRPII systems of the 70’s and 80’s. </li></ul><ul><li>Came about as companies realized that the management and flow of information was just as important as materials and inventory management. </li></ul><ul><li>ERP has also evolved considerably with computer and technology advances. </li></ul>
  5. 5. What will ERP do for the Accounting Department <ul><li>To integrate financial data </li></ul><ul><li>Real time information </li></ul><ul><li>Improves efficiency </li></ul>
  6. 6. Implementation <ul><li>Sits on an existing database </li></ul><ul><li>Vendor Selection </li></ul><ul><li>Business Strategy Formation </li></ul><ul><li>Integration </li></ul><ul><li>Testing and End-user Acceptance </li></ul><ul><li>Training </li></ul><ul><li>Rollout </li></ul>
  7. 7. Costs of ERP <ul><li>Costs to implement an ERP system is not just a ‘one-time thing.’ </li></ul><ul><li>Real costs are in constant training, upgrading, and maintenance. </li></ul><ul><li>Average Total Cost of Ownership (TCO) is $15 million. </li></ul><ul><li>Benefits are not seen right away. </li></ul>
  8. 8. The hidden costs <ul><li>Training </li></ul><ul><li>Integration and testing </li></ul><ul><li>Data conversion </li></ul><ul><li>Data analysis </li></ul><ul><li>Consultants ad infinitum </li></ul><ul><li>Replacing your best and brightest </li></ul><ul><li>Implementation teams can never stop </li></ul>
  9. 9. Advantages/Disadvantages <ul><li>Advantages: </li></ul><ul><li>Information entered once into system </li></ul><ul><li>Allows customization </li></ul><ul><li>Provides functionality to interact with other modules </li></ul><ul><li>Disadvantages: </li></ul><ul><li>Implementation is expensive and lengthy </li></ul><ul><li>Maintenance is costly and time consuming </li></ul><ul><li>Data errors are replicated through the system </li></ul>
  10. 10. To ERP or not to ERP? <ul><li>Cost vs long term gain </li></ul><ul><li>Let’s do it!! </li></ul>