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Enterprise Resource Planning (ERP)

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Enterprise Resource Planning (ERP) Amanda Randall Bridgette Walker Overview What is ERP? Costs Things to Consider Major ERP Suppliers Trends Questions What is ERP? – PowerPoint PPT presentation

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Title: Enterprise Resource Planning (ERP)


1
Enterprise Resource Planning (ERP)
  • Amanda Randall
  • Bridgette Walker

2
Overview
  • What is ERP?
  • Costs
  • Things to Consider
  • Major ERP Suppliers
  • Trends
  • Questions

3
What is ERP?
  • Enterprise Resource Planning systems-
  • (ERPs) integrate all data and processes of an
    organization into a unified system. A typical ERP
    system will use multiple components of computer
    software and hardware to achieve the integration.

4
What can ERP do for my business
  • There are five major reasons why companies use
    ERP
  • Integrate financial information
  • Integrate customer order information
  • Standardize and speed up manufacturing processes
  • Reduce inventory
  • Standardize HR information

5
What does ERP Cost?
  • Total Cost of Operation
  • the average TCO was 15 million
  • Hidden Costs
  • Training
  • Integration and Testing
  • Customization
  • Data Conversion

6
Things to Consider
  • 1. Cost of the ERP system, both upfront and
    on-going
  • 2. Solution's expandability and flexibility
  • 3. Software oriented architecture or not
  • 4. Whether to use internal, vendor or third-party
    provider for implementation and support
  • 5. Solution's ability to integrate with upcoming
    technologies, such as manufacturing execution
    systems (MES)
  • 6. Calculate the ROI, generally reaped through
    reduced errors, improved collaboration and
    enhanced real-time visibility
  • 7. Number of locations, warehouses and
    manufacturing plants the solution should support
  • 8. The number and type of modules a software
    developer offers - and which ones are most
    applicable
  • 9. The ERP vendor's viability and reputation for
    technological innovation, customer support and
    ongoing software development
  • 10. Past experience with the vendor, as well as
    referrals

7
Things to Consider (Cont.)
  • How long will an ERP Project take?
  • Implementation time 3-6 months
  • Total Transformation time 1-3 years
  • Why do ERP systems Fail?
  • Employee resistance
  • Customization efforts

8
Advantages and Disadvantages
  • Advantages
  • Integration
  • Efficiency
  • Cost Reductions
  • Less Personnel
  • Accuracy
  • Disadvantages
  • Expensive
  • Inflexible
  • Can be difficult to use
  • Compatibility problems
  • High switching costs

9
Major ERP Suppliers
  • Top 5 Suppliers
  • SAP
  • Oracle Applications
  • SSA Global Technologies
  • Sage Group
  • Microsoft Dynamics

10
Trends
  • E-Commerce
  • Not intended for public consumption
  • Customers and Suppliers want access to ERP
    information
  • Two Channels of access needed
  • B2C
  • B2B
  • Integration Difficulties

11
Sources
  • http//www.2020software.com/BuyingGuides/manufactu
    ring-ERP-software-for-SMBs.asp
  • http//en.wikipedia.org/wiki/Enterprise_resource_p
    lanning
  • http//www.cio.com/article/40323
  • http//www.youtube.com/watch?v9gFzr5COJrg
  • http//projectmanagement.ittoolbox.com/documents/p
    opular-q-and-a/erp-implementation-advantagesdisadv
    antages-1503
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