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Enterprise Resource Planning (ERP)

Enterprise Resource Planning (ERP). Amanda Randall Bridgette Walker. Overview. What is ERP? Costs Things to Consider Major ERP Suppliers Trends Questions. What is ERP?. Enterprise Resource Planning systems-

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Enterprise Resource Planning (ERP)

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

  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/manufacturing-ERP-software-for-SMBs.asp • http://en.wikipedia.org/wiki/Enterprise_resource_planning • http://www.cio.com/article/40323 • http://www.youtube.com/watch?v=9gFzr5COJrg • http://projectmanagement.ittoolbox.com/documents/popular-q-and-a/erp-implementation-advantagesdisadvantages-1503

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