Transcript ERP Systems: Enterprise Resource Planning

Shalagh Rigney, Tara Nolan, Kristen Sibilia
March 26, 2008
What is Enterprise Resource Planning?
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Database management system that integrates all
data and processes of an organization into a unified
system.
Integrates accounting, strategic planning, sales order
management, quality control, manufacturing,
marketing, logistics and warehousing.
History of ERP Systems
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ERP began in 1960 as systems designed to help
control inventory.
Originated in the manufacturing industry by
scheduling manufacturing processes, although
today it is a system used globally and give
companies a competitive edge.
ERP
ADVANTAGES
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Complete orders faster
Fewer errors
Security features to protect against outside crime
Better customer service
Improved efficiency and productivity
Easier to share data across departments
Complete revenue cycle faster
ERP
DISADVANTAGES
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Possible inadequate investment
Difficult for users
Ability to customize software is limited
Expensive to install and maintain
Limited technical support
Prevents ability for business process to change
Risky for large companies
How is ERP different from MIS?
MIS:
Provides information about the performance of
an organization. Provides management with
feedback.
How is ERP different from MIS?
ERP:
Integrates ALL functions of a business into a
unified system including information you would
get from a MIS. The MIS is a part of the ERP
system as a whole.
Enterprise 21: A
Complete ERP Solution
http://www.youtube.com/watch?v=w
_9Eq2nfv1c
COST OF ERP
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Average Total Cost of Ownership of ERP is
about $15 million
Developing In House ERP Systems
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Companies can integrate portions of an ERP
system to meet their specific needs.
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Why? Costs substantially less
One ERP System:
Peoplesoft
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Peoplesoft by ORACLE
Helps Companies with:
Customer Relationship Management
Financial Management
Supply Chain Management
Project Management
Asset Lifecyle Management
Sales and Other Application
PeopleSoft Website
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http://www.oracle.com/applications/peoplesoft
-enterprise.html
Green Mountain Coffee Roaster
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One Company to Implement PeopleSoft ERP
Green Mountain Coffee Roaster
Started Implementation 1997
Supply Chain Management, Financial
Management
Enterprise Performance Management
Customer Relationship Management
Results
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Implemented Green Mountain Website
Helped to Manage Coffee Production, Its
Distribution Process, and Drive Growth
Grown from small company, to leader of
specialty coffee industry
Helped to design Website- brought in Consumer
Market
http://www.greenmountaincoffee.com/
Performance Results
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More timely Order Management and Billing
Great Analytic Ability of Accounts, Balance,
Receivables
Reduction of Losses of Raw Materials
Better Targeted Marketing, Customization of emails
Customer Direct doubled sales in 2 years