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Enterprise Resource Planning (ERP) Ryan Armstrong Andrea Miller Alex Brown

Enterprise Resource Planning (ERP) Ryan Armstrong Andrea Miller Alex Brown. ERP. ERP is a software package that tries to integrate all departments and functions of a business into a single system. . ERP .

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Enterprise Resource Planning (ERP) Ryan Armstrong Andrea Miller Alex Brown

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  1. Enterprise Resource Planning (ERP) Ryan Armstrong Andrea Miller Alex Brown

  2. ERP • ERP is a software package that tries to integrate all departments and functions of a business into a single system.

  3. ERP • From technological aspect, ERP has evolved from legacy implementation to more flexible tiered client-server architecture. • From business perspective, ERP has expanded from coordination of manufacturing processes to the integration of enterprise-wide backend processes.

  4. What is ERP? • ERP replaces the standalone computers in finance, HR, manufacturing and the warehouse, and creates a single unified software program divided into software modules that roughly approximate the old standalone systems • ERP allows less data entry which in turn creates more time to focus on customer satisfaction.

  5. Advantages of ERP • Helps reduce operating costs such as such as lower inventory control cost, lower production costs, lower marketing costs and lower help desk support costs. • Facilitate day-to-day costs, ERP systems offer better accessibility to data so that management can have up-to-the-minute access to information for decision making and managerial control. • Support strategic planning, a deliberate set of steps that assess needs and resources; define a target audience and a set of goals and objectives; plan and design coordinated strategies with evidence of success; logically connect these strategies to needs, assets, and desired outcomes; and measure and evaluate the process and outcomes.

  6. Who Provides ERP?

  7. Implementation • Phase implementation (such as Geneva) • All at once. (The Big Bang like Hershey)

  8. Cost of ERP • Called total cast of ownership (TCO) • TCO 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)

  9. Hidden cost • Training • Integrating and testing • Customization • Data conversion

  10. Pitfalls of ERP • Resource shortage • Budgetary limitations • Low margin for error for operational Disruptions • Using wrong ERP system

  11. Case Study: Geneva Pharmaceuticals • North American hub for the generics division of Novartis International AG • Looking to streamline operations and reinvent company process • Razor thin margins due to high competition • Troubles outside the US • Competitive advantage limits ability to deal directly with consumers • Looking to implement SAP’s R/3 ERP System

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