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ERP Presentation Slides


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ERP Presentation Slides

  1. 1. Overheard in a computer shop: Customer: "I'd like a mouse mat, please." Salesperson: "Certainly sir, we've got a large variety." Customer: "But will they be compatible with my computer?"
  2. 2. D ata P rocessing & D ecision Network presents: Enterprise Resource Planning · D avidson, Paul, · P aterson, Jennifer · D yrud, Brian, · N eal, Lindsay
  3. 3. <ul><li>The ERP acronym is erroneous; resource and planning are not involved in ERP. </li></ul><ul><li>Enterprise is the true ambition of ERP. </li></ul>
  4. 4. How can ERP increase business performance? <ul><li>Improve the order fulfillment process </li></ul><ul><li>Cross link business departments </li></ul>
  5. 5. Why ERP? <ul><li>Companies can compete at the same level </li></ul><ul><li>Increases customer and B2B relationship </li></ul>
  6. 6. Benefits of ERP Systems <ul><li>Offers a single depot of information </li></ul><ul><li>Real time Management capabilities </li></ul>
  7. 7. So what can ERP do? <ul><li>Automate tasks </li></ul><ul><li>Standardize company information </li></ul>
  8. 8.                                                                                                                                                        
  9. 9. ERP Solutions (a few front runners in the industry)
  10. 10. <ul><li>Software provider for service industries </li></ul><ul><li>Lawson and integration </li></ul>
  11. 11. <ul><li>Manages critical information in the most cost effective way </li></ul><ul><li>The vision of Oracle… </li></ul>
  12. 12. <ul><li>Real Time Enterprise uses no intermediaries </li></ul><ul><li>People Soft has implemented Pure Internet Architecture </li></ul>
  13. 13. <ul><li>Helps businesses of all sizes </li></ul><ul><li>SAP’s Business One Software uses current IT programs </li></ul>
  14. 14. ERP Logistics <ul><li>ERP efforts usually run between one and three years. </li></ul><ul><li>To do ERP right, the ways you do business will need to change and the ways people do their jobs will need to change too. This takes time and money. </li></ul>
  15. 15. Five major reasons for ERP. <ul><li>Integrate financial information </li></ul><ul><li>Integrate customer order information </li></ul><ul><li>Standardize and speed up manufacturing processes </li></ul><ul><li>Reduce inventory </li></ul><ul><li>Standardize HR information </li></ul>
  16. 16. Will ERP fit the way We do Business? <ul><li>The most common reason companies walk away from ERP projects is that they discover the software does not support one of their important business processes. </li></ul><ul><ul><li>change the business process to accommodate the software </li></ul></ul><ul><ul><li>modify the software to fit the process </li></ul></ul>
  17. 17. What does ERP really cost? <ul><li>Meta Group recently did a study looking at the total cost of ownership (TCO) of ERP, including hardware, software, professional services and internal staff costs. </li></ul><ul><li>The TCO numbers include getting the software installed and the two years afterward. </li></ul><ul><li>Among the 63 companies surveyed—including small, medium and large companies in a range of industries—the average TCO was $15 million (the highest was $300 million and lowest was $400,000). </li></ul>
  18. 18. When will I get payback from ERP —and how much will it be? <ul><li>A Meta Group study of 63 companies found that it took eight months after the new system was in (31 months total) to see any benefits. </li></ul><ul><li>Median annual savings from the new ERP system were $1.6 million. </li></ul>
  19. 19. What are the hidden costs of ERP? <ul><li>Training </li></ul><ul><li>Integration and testing </li></ul><ul><li>Customization </li></ul><ul><li>Data conversion </li></ul><ul><li>Data analysis </li></ul>
  20. 20. What are the hidden costs of ERP? (Cont.) <ul><li>Consultants and infinitum </li></ul><ul><li>Replacing your best and brightest </li></ul><ul><li>Implementation teams can never stop </li></ul><ul><li>Waiting for ROI </li></ul><ul><li>Post-ERP depression </li></ul>
  21. 21. Why do ERP projects fail so often? <ul><li>Disagreement among departments </li></ul><ul><li>Resistance to change </li></ul><ul><li>Inability to see the big picture </li></ul><ul><li>This is where ERP projects break down </li></ul>
  22. 22. How do companies organize their ERP projects? <ul><li>The Big Bang </li></ul><ul><li>Franchising strategy </li></ul><ul><li>Slam dunk </li></ul>
  23. 23. How does ERP fit with e-commerce? <ul><li>E-commerce means IT departments need to build two new channels of access in to ERP systems. </li></ul><ul><ul><li>B2C </li></ul></ul><ul><ul><li>B2B </li></ul></ul>
  24. 24. ERP success stories <ul><li>EarthGrains </li></ul><ul><li>Indian Motorcycle Company </li></ul><ul><li>A&P </li></ul><ul><li>Office Depot </li></ul>
  25. 25. EarthGrains (The Problem) <ul><li>$1.9 billion bakery products company. </li></ul><ul><li>The division had no integration: </li></ul><ul><ul><li>order-to-cash </li></ul></ul><ul><ul><li>picking </li></ul></ul><ul><ul><li>delivery </li></ul></ul><ul><ul><li>accounts receivable </li></ul></ul><ul><li>Management lacked detailed understanding of business operations </li></ul>
  26. 26. EarthGrains (The Solution) <ul><li>Implemented SAP's R/3 in 1999 </li></ul><ul><li>They were able to analyze customer profitability </li></ul><ul><li>180 low-margin retailers were unwilling to change their purchasing patterns, therefore, they were no longer serviced </li></ul><ul><li>Eliminated the 20 percent of the product line, that was unprofitable </li></ul><ul><li>In the first year, the division's earnings jumped by more than 70 percent </li></ul>
  27. 27. Tips for Implementing ERP <ul><li>Define what it is you expect from ERP </li></ul><ul><li>Assess risk </li></ul><ul><li>Maintain control and outsource when possible </li></ul><ul><li>Monitor outsourcer performance </li></ul><ul><li>Make changes early concerning the control structure </li></ul>
  28. 28. Tips for Implementing ERP, cont. <ul><li>Designate a manager </li></ul><ul><li>Break it up </li></ul><ul><li>Plan and implement quickly </li></ul><ul><li>Ensure appropriate resources </li></ul><ul><li>Install only what you need </li></ul><ul><li>Monitor all systems </li></ul>
  29. 29. Outsourcing <ul><li>Why should you outsource? </li></ul><ul><ul><li>Concentrate more on core competencies </li></ul></ul><ul><ul><li>Increase in number and capabilities of external suppliers </li></ul></ul><ul><ul><li>Keep up with the latest technology </li></ul></ul><ul><ul><li>Money saving </li></ul></ul>
  30. 30. Avoiding Problems <ul><li>Install the right thing </li></ul><ul><li>Take one step at a time </li></ul><ul><li>Prioritize </li></ul><ul><li>Test for problems before installation </li></ul>
  31. 31. 1 st Time Success <ul><li>ERP is not magic; it takes careful planning </li></ul><ul><li>Technology can’t fix a flawed business strategy </li></ul><ul><li>Define your business strategy </li></ul><ul><li>Be flexible </li></ul><ul><li>Designate a capable leader </li></ul>
  32. 32. Challenges and Hard Lessons Learned <ul><li>Some companies have spent fortunes on an ERP software and implementation only to find that their business performance has not improved at all. </li></ul><ul><ul><li>Nestle </li></ul></ul><ul><ul><li>Hershey </li></ul></ul>
  33. 33. Why do ERP projects fail so often? <ul><li>It’s the process !! </li></ul>
  34. 34. Demo of Live ERP System <ul><li>Lawson Software </li></ul><ul><li>MD Anderson Cancer Center </li></ul><ul><ul><li>Procurement </li></ul></ul><ul><ul><li>Accounts Payable </li></ul></ul><ul><ul><li>Inventory Control </li></ul></ul><ul><ul><li>Asset Management </li></ul></ul>
  35. 36. ERP for Everyone <ul><li>ERP to the Rescue </li></ul><ul><li>Your ERP Package Guide </li></ul><ul><li>The Showstoppers </li></ul><ul><li>Before you Buy </li></ul>
  36. 38. “ Gib’s law: <ul><li>“ Computers are unreliable, but humans are even more unreliable” </li></ul>
  37. 39. Any Questions?