Hasbro, a large toy manufacturer, wants to implement a new global ERP system to standardize processes across its many international operations. Its existing SAP R/3 system led to inefficient processes across 27 countries with different business rules. The new SAP ECC6 and SAP Business One systems will allow Hasbro to better integrate systems, comply with regulations, and position itself for continued global growth in a standardized way.

1. Hasbro Develops a Global
System Strategy
Kristian, Benli & Jansen

2. Hasbro
 One of the largest toy
manufacturers in the world
 Operating in North America, Latin
America, South America, Asia
Pacific and Europe
 $4 billion revenue (2010)
 5,800 employees (2010)
 They want a new ERP system to
compliment their global strategy

3. Introduction to ERP System
 Integrating business
processes into a single
software system
 Allows data flow to be
automatic and more
efficient
 Accessible through
departments and
corporation
ERP
System
Customer
Relationship
Management
Financial
Management
Supply Chain
Management
Manufacturing
Resource
Planning
Human
Resource
Management

4. SAP/R3
 Implemented in 1998
 Big bang adoption
 Expanded to 27 different
countries
 Easy customization

5. Key Problem 1: Inefficient ERP System
 27 different countries
 27 different business processes
 Different terminologies
 Unnecessary steps
 Needless forms or process division
 Resulted in very inefficient business processes

6. Key Problem 2: Can’t maximize
opportunities in foreign operations
 Current system was not standardized and centralized
 Finance & accounting, HR, and strategic management need
to be centralized
 Migrating to a multinational company
 Hasbro are expanding to new regions of the world
 Revenue will grow larger outside the United States
 New ERP system needs to be integrated quickly and
efficiently to maximize growth

7. Solution:
SAP ECC6
 Successor of SAP R/3
 For mature markets
 Long implementation time
 Complex
SAP Business One
 Immediate need
 For emerging markets
 Move to bigger ERP infrastructure
when markets are mature
The result is a larger SAP enterprise infrastructure supporting Hasbro’s global
strategy

8. Reasons for implementing ERP
15%
14%
12%
11% 11%
10%
8% 8%
5%
4%
3%
0%
2%
4%
6%
8%
10%
12%
14%
16%
To improve
business
performance
To better
integrate
system
across
multiple
locations
To better
serve
customers
To ensure
reporting /
regulatory
compliance
To replace an
old ERP or
legacy system
To position
the company
for growth
To make
employee
jobs easier
To
standardize
global
business
operations
To reduce
working
capital
To appease
the parent
company or
other
stakeholders
Because
other
companies
have ERP
Source: Panorama Consulting’s 2014 ERP Report

9. Justification of solution
Improving decision-making
 Shared service structure
 Individualized support to local units
 Quick accessing and analyzing of trends and sales data
 Improve analysis of point-of-sale data
Improvement in operations
 Flexibility and scalability
 Integrates business processes
 Reduce operating costs
 Data consistency
Results in a unified vision for the future

10. Type of Benefits Realized
14%
11%
10%
9% 9%
8%
7% 7% 7%
6%
5%
4%
2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
Source: Panorama Consulting’s 2014 ERP Report

11. ERP Project Duration
36%
25%
15%
15%
7%
2%
Over schedule by
25% or less
On schedule
Over schedule by
26%-50%
Over schedule by
more than 76%
Over schedule by
51% to 75%
Earlier than
scheduled
Source: Panorama Consulting’s 2014 ERP Report

12. ERP Implementation Costs
37%
32%
12%
9%
6%
4% On budget
Over budget by
25% or less
26% - 50% over
budget
Under budget
Over budget by
more than 76%
51% - 75% over
budget
Source: Panorama Consulting’s 2014 ERP Report

13. Potential issues for the
implementation
 Complexity might be underestimated
 Less focus on business and lower efficiency
 The needs and benefits may be overestimated
 Inconsistency with existing business processes
 Political laws, speed, reliability, standards, personnel, social
expectations, and culture differences