Shalagh Rigney, Tara Nolan, Kristen Sibilia March 26, 2008.
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Transcript of Shalagh Rigney, Tara Nolan, Kristen Sibilia March 26, 2008.
Shalagh Rigney, Tara Nolan, Kristen Shalagh Rigney, Tara Nolan, Kristen Sibilia Sibilia
March 26, 2008March 26, 2008
What is Enterprise Resource What is Enterprise Resource Planning?Planning?
Database management system that Database management system that integrates all data and processes of an integrates all data and processes of an organization into a unified system. organization into a unified system.
Integrates accounting, strategic Integrates accounting, strategic planning, sales order management, planning, sales order management, quality control, manufacturing, quality control, manufacturing, marketing, logistics and warehousing. marketing, logistics and warehousing.
History of ERP SystemsHistory of ERP Systems
ERP began in 1960 as systems ERP began in 1960 as systems designed to help control inventory.designed to help control inventory.
Originated in the manufacturing Originated in the manufacturing industry by scheduling industry by scheduling manufacturing processes, although manufacturing processes, although
today it is a system used today it is a system used globally and give globally and give companies companies a competitive edge. a competitive edge.
ERP ERP ADVANTAGESADVANTAGES
Complete orders fasterComplete orders faster Fewer errorsFewer errors Security features to protect against Security features to protect against
outside crimeoutside crime Better customer serviceBetter customer service Improved efficiency and productivityImproved efficiency and productivity Easier to share data across departmentsEasier to share data across departments Complete revenue cycle fasterComplete revenue cycle faster
ERP ERP DISADVANTAGESDISADVANTAGES
Possible inadequate investmentPossible inadequate investment Difficult for usersDifficult for users Ability to customize software is limitedAbility to customize software is limited Expensive to install and maintainExpensive to install and maintain Limited technical supportLimited technical support Prevents ability for business process Prevents ability for business process
to changeto change Risky for large companiesRisky for large companies
How is ERP different How is ERP different from MIS?from MIS?
MIS:MIS:Provides information about the Provides information about the performance of an organization. performance of an organization.
Provides management with Provides management with feedback.feedback.
How is ERP different How is ERP different from MIS?from MIS?
ERP: ERP: Integrates ALL functions of a business Integrates ALL functions of a business
into a unified system including into a unified system including information you would get from a information you would get from a MIS. The MIS is a part of the ERP MIS. The MIS is a part of the ERP
system as a whole.system as a whole.
Enterprise 21: A Enterprise 21: A Complete ERP Complete ERP
SolutionSolutionhttp://www.youtube.com/http://www.youtube.com/watch?v=w_9Eq2nfv1cwatch?v=w_9Eq2nfv1c
COST OF ERPCOST OF ERP
Average Total Cost of Ownership of Average Total Cost of Ownership of ERP is about $15 millionERP is about $15 million
$$
Developing In House ERP Developing In House ERP SystemsSystems
Companies can integrate portions of Companies can integrate portions of an ERP system to meet their specific an ERP system to meet their specific needs. needs.
Why? Costs substantially lessWhy? Costs substantially less
One ERP System:One ERP System:PeoplesoftPeoplesoft
Peoplesoft by ORACLEPeoplesoft by ORACLE Helps Companies with:Helps Companies with: Customer Relationship ManagementCustomer Relationship Management Financial ManagementFinancial Management Supply Chain ManagementSupply Chain Management Project ManagementProject Management Asset Lifecyle ManagementAsset Lifecyle Management Sales and Other ApplicationSales and Other Application
PeopleSoft WebsitePeopleSoft Website
http://www.oracle.com/applications/http://www.oracle.com/applications/peoplesoft-enterprise.htmlpeoplesoft-enterprise.html
Green Mountain Coffee Green Mountain Coffee RoasterRoaster
One Company to Implement One Company to Implement PeopleSoft ERPPeopleSoft ERP
Green Mountain Coffee RoasterGreen Mountain Coffee Roaster Started Implementation 1997Started Implementation 1997 Supply Chain Management, Financial Supply Chain Management, Financial
ManagementManagement Enterprise Performance ManagementEnterprise Performance Management Customer Relationship ManagementCustomer Relationship Management
ResultsResults
Implemented Green Mountain WebsiteImplemented Green Mountain Website Helped to Manage Coffee Production, Helped to Manage Coffee Production,
Its Distribution Process, and Drive Its Distribution Process, and Drive GrowthGrowth
Grown from small company, to leader Grown from small company, to leader of specialty coffee industryof specialty coffee industry
Helped to design Website- brought in Helped to design Website- brought in Consumer MarketConsumer Market
http://www.greenmountaincoffee.com/http://www.greenmountaincoffee.com/
Performance ResultsPerformance Results
More timely Order Management and More timely Order Management and BillingBilling
Great Analytic Ability of Accounts, Great Analytic Ability of Accounts, Balance, ReceivablesBalance, Receivables
Reduction of Losses of Raw MaterialsReduction of Losses of Raw Materials Better Targeted Marketing, Better Targeted Marketing,
Customization of e-mailsCustomization of e-mails Customer Direct doubled sales in 2 Customer Direct doubled sales in 2
years years