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Class Discussion (ERP Vendors)

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Class Discussion (ERP Vendors)

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Class Discussion (ERP Vendors)

  1. 1. Class Discussion Find a list of ERP vendors and the type of industry for which they supply ERP IACT422 Asset and Maintenance Intensive Industries , Automotive, Chemical Distribution, Enterprise Asset Management, Fashion  Diadora Food and Beverage, Furniture, Life Sciences, Manufacturing, Paper Product Service Management, Steel Intentia International ( www.intentia.com) Order Fulfilment , Sourcing and Procurement, Supply & Demand Transportation and Distribution I2 (www.i2.com) Automotive, Cement, Chemical Industries, Consumer Industries , Distributors, Electric Utilities, Foundry, Life Sciences, Marine, Metals, Minerals, Mining ABB Automation ( www.abb.com/automation ) Complex production facilities, offices or homes Invensys (www.invensys.com) All types of industries Oracle Peoplesoft ( www.peoplesoft.com) All types of industries SAP (www.sap.com) Type of Industry ERP Vendors
  2. 2. Class Discussion Find a list of ERP vendors and the type of industry for which they supply ERP IACT422 Financial Service, Health, Professional services Kewill (www.kewill.com) Small & medium Business, Aerospace & Defense, Automotive, Chemicals, Clinical, Communication, Consumer Goods, Energy, Hospitality, Insurance, Medical , Oil & Gas, Public Sector, Pharmaceutical Seibel (www.seibel.com) Banking Institutions, Brokerages, Financial services companies, Insurance companies, Fortune 1000 organizations FlexiInternational Software (www.flexi.com) Travel agents, Security, Education, Jewellery, Retail and Food & Beverages Dualsoft Solutions (www.dualsoftsolutions.com) Manufacturers of aerospace and defense equipment, electronics, industrial products, medical devices and transportation equipment Cincom Systems (www.cincom.com) Accounting firm, Manufacturers of automotive supplies, industries equipment, medical devices and pharmaceutical products, Mills, Transportation companies CSB Systems (www.csbsystems.com) Type of Industry ERP Vendors
  3. 3. Class Discussion Case studies of two implementations of ERP solutions by a given vendor Extract 1 : Diadora Success Story By Tittle : Movex Fashion Helps Diadora Keep in Step with Customers What it is about? Diadora’s management and employees are empowered to make better, more informed decisions across the organization and throughout the entire supply chain. Customer: Diadora: CASE STUDY 1 IACT422
  4. 4. Class Discussion IACT422 Extract 1 : Diadora Success Story By Customer Diadora: accurate data , save time management 8. information is derived from standard, consistent business processes for rolling up financial items and calculating results 7. has a common tool and a single environment 6. making financial data readily accessible to executive management 5. a purchase order is automatically generated , 4 has improved efficiency and customer service, because customers now know what’s available and when, at the time they place their orders 3. the ability to access data quickly was a major improvement 2. sales, marketing, sourcing and finance personnel now have total access to pertinent data, such as a fully updated customer database and complete financial information. 1. Benefits
  5. 5. Class Discussion IACT422 Extract 1 : Diadora Success Story By Customer Diadora: take around six months to complete , now currently in plan for Taiwan 5 carried out in stages in Hong Kong 4 covers the company’s entire supply chain including planning, procurement, warehousing, customer relationship management and financial management. 3 supports Diadora’s operations in Hong Kong and Taiwan 2 partnership between Intentia and Diadora was forged in August 2001 1 The Implementation
  6. 6. Class Discussion IACT422 Extract 1 : Diadora Success Story By Customer Diadora: With the successful implementation of Intentia’s fashion solution, plans are also being made to establish Hong Kong as Diadora’s central hub and ‘center for excellence’.This will drive efficiency and serve as an example for best practices and world-class operations for Diadora’s network of offices throughout Europe, the UK and the US. The next step is to implement Movex fixed assets and, possibly, business performance applications in the near future. Future Plans
  7. 7. Class Discussion Case studies of two implementations of ERP solutions by a given vendor Extract 2 : NEWELL RUBBERMAID Success Story By Tittle : Newell Rubbermaid turns to Intentia’s Data Warehouse for Clarity and Better Decision-Making What it is about? The writing instruments division of consumer goods giant Newell Rubbermaid was formed as the result of an aggressive three-year acquisition strategy. That’s why the company is implementing a data warehouse from Intentia that will cut reporting time from three days to one. The data warehouse will unite the business and prepare it for more acquisitions and expansion into new markets. Customer: NEWELL RUBBERMAID CASE STUDY 2 IACT422
  8. 8. Class Discussion IACT422 Extract 1 : NEWELL RUBBERMAID By Customer NEWELL RUBBERMAID consistent and gives management an instant view of the business with the ability to drill down to detailed analyses by site, customer, key account, brand and product line using a Web browser 6. fast decision-making is accurate, collaborative information. 5. able to pose questions that previously would have been impossible to ask and get sensible and meaningful answers. And that’s leading to better quality decision-making. 4 improved cash flow by tens of millions of US dollars, and the company is on course to reduce IT costs from three to 1.7 percent of sales, 3. took only four weeks and one person to set up and implement a pilot of Movex Business Performance Warehouse (BPW). 2. a single business model, costing tens of thousands of US dollars in consulting time 1. Benefits
  9. 9. Class Discussion IACT422 Extract 1 : NEWELL RUBBERMAID By Customer Newell Rubbermaid: Gratton says he and his team ran the Sandford pilot from September 2002 until January 2003, having discussed with users the sort of business measurement models they required. He says, “Some modification work was needed, which is what you’d expect. But Movex BPW has a very flexible framework, unlike the rigidity of many other systems in which it’s expensive to make changes. It has metadata exchange which means you can bring in any business rules and non-Movex data.” Gratton adds that Movex BPW was used for all cube development (a cube is the storage format that enables multi-dimensional analysis). “It took just ten minutes to build each cube, whereas previously it would have taken many weeks to start from scratch. And this could have multiplied out of control because cubes would have been built for each country. Implementation
  10. 10. Class Discussion IACT422 Extract 1 : NEWELL RUBBERMAID By Customer Newell Rubbermaid: Newell Rubbermaid Europe already has 25 million order lines in its Movex database, and that’s growing at the rate of 50,000 a day. And Gratton says the biggest sites have yet to go live. “The database will be at least four times bigger than it is today, and our aim is to use Movex BPW to give managers information transparency across 300 business sites throughout Europe. “ This will enable them to respond more quickly to the dynamics of the business as it continues to grow organically and through acquisition.” Future Plans
  11. 11. <ul><li>The benefits from enterprise resource planning are claimed to include: </li></ul><ul><ul><li>Facilitates macro level decision making by having access to consolidated data/information </li></ul></ul><ul><ul><li>Transparency across entire organization </li></ul></ul><ul><ul><li>Integration of all standard business process (human resources, financials, operation) </li></ul></ul><ul><ul><li>lower inventory carrying costs </li></ul></ul><ul><ul><li>lower ordering costs </li></ul></ul><ul><ul><li>lower production costs </li></ul></ul><ul><ul><li>lower accounting and record keeping costs </li></ul></ul><ul><ul><li>lower investment in equipment </li></ul></ul><ul><ul><li>lower investment in plant & land </li></ul></ul>Class Discussion Discuss the advantages/disadvantages of implementing an ERP solution for your company Advantages IACT422
  12. 12. <ul><ul><li>reduced assembly line down-times </li></ul></ul><ul><ul><li>more flexible production processes </li></ul></ul><ul><ul><li>more efficient lot sizes and scheduling </li></ul></ul><ul><ul><li>reduced errors due to better coordination </li></ul></ul><ul><ul><li>the cost and efficiency improvements (mentioned above) could increase profitability or increase market share (at a lower price) </li></ul></ul><ul><ul><li>reduced number of stock-outs </li></ul></ul><ul><ul><li>reduced fulfillment times </li></ul></ul><ul><ul><li>increase process transparency for the customer </li></ul></ul><ul><ul><li>allow greater product customization, and thereby better match the exact needs of the customer </li></ul></ul><ul><ul><li>the customer satisfaction improvements (mentioned above) could increase sales volume, increase sales revenue (due to a higher effective price, ie. - no discounts), increase market share, and increase profitability </li></ul></ul>Class Discussion Advantages IACT422
  13. 13. Class Discussion Advantages <ul><li>Provides integration of supply-chain, production and administrative processes </li></ul><ul><li>Creates commonality of databases </li></ul><ul><li>Can incorporate improved, redesigned, “best processes </li></ul><ul><li>Increases communication and collaboration worldwide </li></ul><ul><li>Helps integrate multiple sites and business units </li></ul><ul><li>Is packaged with a software core that is off-the-shelf coding </li></ul><ul><li>Can provide a strategic advantage over competitors </li></ul><ul><li>lower transportation costs </li></ul>IACT422
  14. 14. <ul><li>The limitations and pitfalls of the enterprise resource planning are claimed to be: </li></ul><ul><li>the systems can be very expensive to install and maintain </li></ul><ul><li>ERP are often seen as too rigid, and difficult to adapt to the specific Workflow and Business process of some companies, this is cited as one of the main cause of their failure. </li></ul><ul><li>some systems can be difficult to use </li></ul><ul><li>the system is no better than the weakest link in the chain - a problem in one department or at one of the partners will affect all the other participants </li></ul><ul><li>Training expenses are high because workers almost invariably have to learn a new set of processes, not just a new software interface. </li></ul><ul><li>ERP is a complex system, need highly trained and comfortable with the tech jargon embedded in the software </li></ul>Class Discussion Disadvantages IACT422
  15. 15. Class Discussion Disadvantages <ul><li>requires careful planning, which is key to getting integration off on the right track. </li></ul><ul><li>ERP dictates the process design in this method, where the focus is on just a few key processes, such as those contained in an ERP system's financial module. </li></ul><ul><li>expertise in ERP is limited, with staffing an ongoing problem </li></ul><ul><li>Involves an ongoing process for implementation, which is often never completed </li></ul>IACT422
  16. 16. Class Discussion Disadvantages <ul><li>If the ERP system is integrated with a supply chain management system, other potential problems include: </li></ul><ul><li>the system is vulnerable to a strike or labour problem at any one link in the chain </li></ul><ul><li>there can be transportation inefficiencies if small lots of product are transported several times before reaching the consumer/user </li></ul><ul><li>once a system is established, switching cost are very high for any one of the partners (reduced flexibility and strategic control at the corporate level) </li></ul><ul><li>the blurring of company boundaries can cause problems in accountability, lines of responsibility, and employee morale </li></ul><ul><li>there is a resistance to sharing sensitive internal information, information that may be essential to the process </li></ul><ul><li>there are compatibility problems with the various legacy systems of all the partners </li></ul><ul><li>customers may order more than they require (as in the dot.com/telecommunications boom and bust of 2001) </li></ul>IACT422
  17. 17. Class Discussion References: <ul><li>John Satzinger, System Analysis & Design in a Changing World, Chapter 14, 2002 </li></ul><ul><li>Erin Callaway, ERP-The Next Generation, 2000 Computer Technology Research Corp. </li></ul><ul><li>Intentia International (www.intentia.com) </li></ul>IACT422

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