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?"

Data Processing & Decision Networkpresents:

Enterprise Resource Planning· Davidson, Paul, · Paterson, Jennifer· Dyrud, Brian, · Neal, Lindsay

The ERP acronym is erroneous; resource and planning are not involved in ERP.

Enterprise is the true ambition of ERP.

How can ERP increase business performance?

Improve the order fulfillment processCross link business departments

Why ERP?

Companies can compete at the same levelIncreases customer and B2B relationship

Benefits of ERP Systems

Offers a single depot of information

Real time Management capabilities

So what can ERP do?

Automate tasks Standardize company information

                                                                         

                                                                             

ERP Solutions (a few front runners in the industry)

Software provider for service industries

Lawson and integration

Manages critical information in the most cost effective way

The vision of Oracle…

Real Time Enterprise uses no intermediaries

People Soft has implemented Pure Internet Architecture

Helps businesses of all sizes

SAP’s Business One Software uses current IT programs

ERP Logistics

ERP efforts usually run between one and three years.

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.

Five major reasons for ERP.

Integrate financial information Integrate customer order informationStandardize and speed up manufacturing processes Reduce inventory Standardize HR information

Will ERP fit the way We do Business?

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. change the business process to

accommodate the software modify the software to fit the process

What does ERP really cost?

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.The TCO numbers include getting the software installed and the two years afterward.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).

When will I get payback from ERP—and how much will it be?

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.Median annual savings from the new ERP system were $1.6 million.

What are the hidden costs of ERP?

TrainingIntegration and testingCustomizationData conversionData analysis

What are the hidden costs of ERP?(Cont.)

Consultants and infinitumReplacing your best and brightestImplementation teams can never stopWaiting for ROIPost-ERP depression

Why do ERP projects fail so often?

Disagreement among departmentsResistance to changeInability to see the big picture

This is where ERP projects break down

How do companies organize their ERP projects?

The Big BangFranchising strategySlam dunk

How does ERP fit with e-commerce?

E-commerce means IT departments need to build two new channels of access in to ERP systems. B2C B2B

ERP success stories

EarthGrainsIndian Motorcycle CompanyA&POffice Depot

EarthGrains (The Problem)

$1.9 billion bakery products company.The division had no integration: order-to-cash picking delivery accounts receivable

Management lacked detailed understanding of business operations

EarthGrains (The Solution)

Implemented SAP's R/3 in 1999They were able to analyze customer profitability180 low-margin retailers were unwilling to change their purchasing patterns, therefore, they were no longer servicedEliminated the 20 percent of the product line, that was unprofitableIn the first year, the division's earnings jumped by more than 70 percent

Tips for Implementing ERP

Define what it is you expect from ERPAssess risk Maintain control and outsource when possibleMonitor outsourcer performanceMake changes early concerning the control structure

Tips for Implementing ERP, cont.

Designate a managerBreak it upPlan and implement quicklyEnsure appropriate resourcesInstall only what you needMonitor all systems

Outsourcing

Why should you outsource? Concentrate more on core

competencies Increase in number and capabilities of

external suppliers Keep up with the latest technology Money saving

Avoiding Problems

Install the right thingTake one step at a timePrioritizeTest for problems before installation

1st Time Success

ERP is not magic; it takes careful planningTechnology can’t fix a flawed business strategyDefine your business strategyBe flexibleDesignate a capable leader

Challenges and Hard Lessons Learned

Some companies have spent fortunes on an ERP software and implementation only to find that their business performance has not improved at all.

Nestle Hershey

Why do ERP projects fail so often?

It’s the process!!

Demo of Live ERP System

Lawson SoftwareMD Anderson Cancer Center Procurement Accounts Payable Inventory Control Asset Management

ERP for Everyone

ERP to the RescueYour ERP Package GuideThe ShowstoppersBefore you Buy

“Gib’s law:

“Computers are unreliable, but humans are even more unreliable”

Any Questions?