Ryan Boyd Luke Duffner Ashley Elinburg Eric Gosselin Dirk Lange Charlotte Prévost Muhammad Zeeshan Ali

1. 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

2. Agilent - CEO Edward W. (Ned) Barnholt Luke Duffner

3. Competitors Luke Duffner

4. 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

5. Agilent’s Five Divisions: Test & Measurement Semiconductor Products Life Sciences/Chemicals Communications Solutions Automated Test Equipment Company Background Luke Duffner

6. 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

7. Financial Information Luke Duffner

8. Angelica BerrieChief Executive Officer Dirk Lange

9. The Boyds Collection Ltd Enesco Group Inc (Main) Competitors Dirk Lange

10. 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

11. 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

12. 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

13. Company Background (cont.) • Financial Information: Dirk Lange

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. 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

21. Additional information: Application of the ERP in the National Institute of Health and Medical Research, France Question 1 & Question 2

22. 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).

23. 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.

24. 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:

25. 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