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Ryan Boyd Luke Duffner Ashley Elinburg Eric Gosselin Dirk Lange Charlotte Prévost Muhammad Zeeshan Ali PowerPoint Presentation
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Management Information Systems Chapter 6 Real World Case 2: Agilent Technologies and Russ Berrie: Challenges of Implementing ERP systems Instructor: Dr. Ahmad Syamil, CPIM, CIRM. Presented by Group 2. Ryan Boyd Luke Duffner Ashley Elinburg Eric Gosselin Dirk Lange

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slide1

Management Information Systems

Chapter 6 Real World Case 2:

Agilent Technologies and Russ Berrie: Challenges of Implementing ERP systems

Instructor: Dr. Ahmad Syamil, CPIM, CIRM

Presented by Group 2

  • Ryan Boyd
          • Luke Duffner
  • Ashley Elinburg
          • Eric Gosselin
  • Dirk Lange
          • Charlotte Prévost
  • Muhammad Zeeshan Ali
agilent ceo
Agilent - CEO

Edward W. (Ned) Barnholt

Luke Duffner

competitors
Competitors

Luke Duffner

company history
Agilent Technologies was formed in 1999 when Hewlett-Packard (HP) split off its measurement business.

Initial Public Offering on Nov. 18, 1999, raises $2.1 billion and breaks records as the largest IPO in Silicon Valley history.

On June 2, 2000, Agilent Technologies becomes a fully independent company, following HP’s distribution of its Agilent shares to HP shareholders.

2002 – Agilent’s first listing on Fortune magazine’s list of the top 500 U.S. companies: No. 212

Company History

Luke Duffner

company background
Agilent’s Five Divisions:

Test & Measurement

Semiconductor Products

Life Sciences/Chemicals

Communications Solutions

Automated Test Equipment

Company Background

Luke Duffner

company background cont
Net Revenue $6.1 Billion

Employees – 36,000

Agilent has facilities in 30 countries

Serves customers in more than 110 countries

Products:

Automated Test Equipment, Fiber-optic equipment, Bioanalyzers, Telecom Network test equipment

Company Background Cont.

Luke Duffner

company history russ berrie and co
Founded by Russ Berrie in 1963

Mission: "Make someone happy®"

1963, the product line consisted of Fuzzy WuzziesTM, little fur mice and stuffed animals

in New Jersey Palisades Park, U.S.

Company History (Russ Berrie and Co.)

Dirk Lange

company background11
Products:

teddy bears and other stuffed animals

baby gifts, soft baby toys, bibs, mobiles and development toys.

picture frames, candles, figurines, home decor gifts, home fragrance products and a wide variety of seasonal and everyday gifts

7,000 items!

Company Background

Dirk Lange

company background cont12
Present in 97 countries

1,775 employees

sales team of over 600 men and women worldwide

55,000 customers (and their customers, who number in the millions)

Company Background (cont.)

Dirk Lange

company background cont13
Company Background (cont.)
  • Financial Information:

Dirk Lange

case history agilent
Agilent says that ERP components in Oracle’s e-Business Suite 11e software froze production for the equivalent of a week leading to massive losses.

The Oracle system handles about half of the company’s worldwide production of test, measurements, and monitoring products.

All of its financial operations

Case History Agilent

Muhammad Zeeshan Ali

contd
Agilent shifted 2200 legacy applications that it inherited from HP to Oracle.

6000 ordered had to be converted to an Oracle-friendly format.

Lesson for Agilent: ERP implementations are more than just a software

They are a fundamental transformation of a company’s business processes.

Contd.

Muhammad Zeeshan Ali

russ berrie and co
2nd try on ERP

Plan to implement J.D. Edwards “One World Xe” ERP system

The project will take 18 months

Sales are anticipated to jump from 225 million during the 1st nine months of 2001 to 1 billion with in the next 12 months.

Russ Berrie and Co.

Ryan Boyd

russ berrie cont
Reasons to be cautious

In 1999: Y2k related migration failure involving an ERP system

From Homegrown distribution, financial, and customers service system to ERP applications. (SAP AG)

Major System failures

Cause Russ Berrie to fall back on there old legacy systems.

Russ Berrie Cont.

Ryan Boyd

question 1
What are the main reasons companies experience failures in implementing ERP systems?

Underestimation of the complexity involved in:

Planning

Development

Training

Trying to convert to the new system to quickly

Failure to sufficiently convert enough data and perform enough tests

Companies rely to heavily on ERP software vendors or on the assistance of prestigious consulting firms

Question 1
question 2
What are several key things companies should do to avoid ERP systems failures? Explain the reasons for your proposals?

Have support from top management

Reengineer the existing business processes

Choose your ERP system carefully

Involve employees who will be affected by the system in its planning and development (design) stages

Integrate the ERP system with other business information systems

Question 2
slide20
Populate the new ERP master file with enough data from the legacy system so that the system can be adequately tested during the testing phase of implementation

Plan on extensive training for employees to enable them to perform new work tasks that will be required by the ERP system

Introduce the ERP system slowly

Carefully select and manage employees and consultants who will be in charge of training and/or implementation – do not rely heavily on consultants or on promises from the software vendors

slide21
Additional information:

Application of the ERP in the National Institute of Health and Medical Research, France

Question 1 & Question 2

slide22

INSERM is composed of 366 research units.

98 % of INSERM laboratories work in collaboration with many different countries: 4,400 International projects (2,240 with European countries, 1,330 with North America) .

These research units are important and also very diversified.

GOAL: To attribute budgets efficiently amongst units

Step 1:(10 years ago)

INSERM create 7 independent divisions which take care of the business of each unit.

Step 2:(2 years ago)

INSERM implemented ERP systems via SAFIr (an American version of Oracle for the French administration).

slide23
These are their main reasons for having experienced failures in implementing ERP systems :
  • First, SAFIr is not appropriate for the French administration.
  • Second, people working in the different medical research units were not prepared at all, to that new software, and the complexity of its application.
  • Third, people didn’t even try to do their best to work with SAFIr.
how inserm could avoid erp systems failures
First of all, INSERM had to work in strong collaboration with the American company to have an application which is totally appropriate.

Second, INSERM should create training for all their staff.

Third, INSERM should divide people into groups: those who have to focus on orders, those who are focus on the invoice payment and another group who are responsible for the balance of payment and the attribution of money from the government.

Finally, INSERM should hire experienced and expert staff to solve every single problem with the software, and not rely too much on the American.

How INSERM could avoid ERP systems failures:
slide25

Question 3Why do you think ERP systems in particular are often cited as examples of failures in IT systems development, implementation, or management?

ERP systems are very expensive and complex software packages

The backbone of a company

Lack of company’s knowledge, preparation, and testing of ERP systems

Scarce resources decrease the likelihood of any project’s success

Think about the human aspect

Choosing the “right” ERP system