Overheard in a computer shop: Customer: "I'd like a mouse mat, please."

1. 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?"

2. Data Processing & Decision Networkpresents: Enterprise Resource Planning · Davidson, Paul, · Paterson, Jennifer · Dyrud, Brian, · Neal, Lindsay

3. The ERP acronym is erroneous; resource and planning are not involved in ERP. • Enterprise is the true ambition of ERP.

4. How can ERP increase business performance? • Improve the order fulfillment process • Cross link business departments

5. Why ERP? • Companies can compete at the same level • Increases customer and B2B relationship

6. Benefits of ERP Systems • Offers a single depot of information • Real time Management capabilities

7. So what can ERP do? • Automate tasks • Standardize company information

9. ERP Solutions(a few front runners in the industry)

10. Software provider for service industries Lawson and integration

11. Manages critical information in the most cost effective way The vision of Oracle…

12. Real Time Enterprise uses no intermediaries People Soft has implemented Pure Internet Architecture

13. Helps businesses of all sizes SAP’s Business One Software uses current IT programs

14. 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.

15. Five major reasons for ERP. • Integrate financial information • Integrate customer order information • Standardize and speed up manufacturing processes • Reduce inventory • Standardize HR information

16. 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

17. 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).

18. 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.

19. What are the hidden costs of ERP? • Training • Integration and testing • Customization • Data conversion • Data analysis

20. What are the hidden costs of ERP?(Cont.) • Consultants and infinitum • Replacing your best and brightest • Implementation teams can never stop • Waiting for ROI • Post-ERP depression

21. Why do ERP projects fail so often? • Disagreement among departments • Resistance to change • Inability to see the big picture • This is where ERP projects break down

22. How do companies organize their ERP projects? • The Big Bang • Franchising strategy • Slam dunk

23. 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

24. ERP success stories • EarthGrains • Indian Motorcycle Company • A&P • Office Depot

25. 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

26. EarthGrains (The Solution) • Implemented SAP's R/3 in 1999 • They were able to analyze customer profitability • 180 low-margin retailers were unwilling to change their purchasing patterns, therefore, they were no longer serviced • Eliminated the 20 percent of the product line, that was unprofitable • In the first year, the division's earnings jumped by more than 70 percent

27. Tips for Implementing ERP • Define what it is you expect from ERP • Assess risk • Maintain control and outsource when possible • Monitor outsourcer performance • Make changes early concerning the control structure

28. Tips for Implementing ERP, cont. • Designate a manager • Break it up • Plan and implement quickly • Ensure appropriate resources • Install only what you need • Monitor all systems

29. 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

30. Avoiding Problems • Install the right thing • Take one step at a time • Prioritize • Test for problems before installation

31. 1st Time Success • ERP is not magic; it takes careful planning • Technology can’t fix a flawed business strategy • Define your business strategy • Be flexible • Designate a capable leader

32. 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

33. Why do ERP projects fail so often? • It’s the process!!

34. Demo of Live ERP System • Lawson Software • MD Anderson Cancer Center • Procurement • Accounts Payable • Inventory Control • Asset Management

36. ERP for Everyone • ERP to the Rescue • Your ERP Package Guide • The Showstoppers • Before you Buy

38. “Gib’s law: “Computers are unreliable, but humans are even more unreliable”

39. Any Questions?