Download - ERP Presentation Slides
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?