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Apple Computers, Inc. Presented By.. Kelvin Chong Edward Hwang Hyunsook Yoo Ching-Hsuan Hong. Agenda. What is Apple? (Brief Background) SWOT Analysis GAP Analysis Tangible/Intangible Benefits Assumption Benefit Areas Projections. Agenda. What is Apple? (Brief Background)
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Apple Computers, Inc. Presented By.. Kelvin Chong Edward Hwang Hyunsook Yoo Ching-Hsuan Hong
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
What is Apple? - Founded by Steve Jobs and Steve Wozniakin California on Jan 3, 1977. - Survived competition of IBM - Products: • Macintosh line of desktop and notebook computers • iPod digital music player • Xserve server • Xserve RAID storage products • MAC Operating System
Apple • Faced challenges in its early stage; - Extremely strong competition • Large investment in R&D • OS • System/Hardware technology • Design • Invented the GUI Interface
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
SWOT – Strengths vs Weaknesses Strengths • Brand • Design • Marketing • Loyal customer base • Distribution (stores, partners) • Customer support (service) Weaknesses • Inventory held • Narrow range of customers • SCM (outsourcing)
SWOT – Opportunities vs Threats Threats Opportunities • CRM • SCM • Globalization (Multi-Currency and Languages) • Growth • Increase customer satisfaction • Strong competition (Dell, IBM, SONY, IRIVER) • M&A (Mergers and Acquisition) • Timing
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
GAP Analysis “As Is” Legacy System High inventory cost Complicated SCM - lots of paper work ERP Implementation “To Be” Lower inventory level Just In Time (JIT) Accurate Process Improved efficiency CRM
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
Tangible/Intangible Benefits Tangible Benefits • Increase market share • Improve data accuracy • Improve HR efficiency • Improve quality • Improve sales efficiency • Invoice processing/Billing • Decrease procurement costs • Improve project management efficiency • Improve time-to-market • Improve on-time delivery Intangible Benefits • Improve customer satisfaction • Improve employee morale • Improve receivables management • Reactive to changes faster
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
Assumptions • Apple has legacy systems, not ERP. • Apple keeps inventory in their shops. • Apple has a narrow users • E.g. Students, computing professionals, graphic professionals, and home users. • Sales expected to increase after 2006 • Intel will be the microprocessor supplier for Apple. • There will be new SCM relationships between Intel and Apple.
Assumptions • Sales Profit/Working Capital • Sales will go up (CRM), Costs will go down. (SCM) • Working capital is expected to increase as profit climbs. • Expenses/Costs Perspective • General and administrative costs will go down (Automation). • Inventory • After Go-Live in 2006, Inventory is expected to go down. • Conversion to JIT (Just In Time) production • Due to JIT, inventory warehouses can be virtually eliminated
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
Benefit Areas • Globalization • Global business can increase the Apple’s • market share. • Integrated ERP system allows offices to better… • Communicate • Synergize • international management via tools such as multi currencies and languages. • Revenue Improvement • Increase in sales due to improved customer service • By utilizing the new CRM, attend to our customers’ needs, yielding higher sales
Benefit Areas • Productivity Improvement • Reduce finance and accounting cost (E.g. Reduce manual input, Real time information for more accurate budgets.) • Reduce human resources administrative cost (E.g. Increase process automation.) • Material Cost Reduction • Reduce the purchase price of materials (E.g. E-procurement) • Throughput Improvement • Increase capacity (E.g. Automated system, Real time, Analysis tools, Right Information at the right time and at the right place.)
Agenda • What is Apple? (Brief Background) • SWOT Analysis • GAP Analysis • Tangible/Intangible Benefits • Assumption • Benefit Areas • Projections
Sales Profit – Enhancements (1/2) Dollars in Millions
Sales Profit – Enhancements (2/2) Gross Margin
Expenses/Costs – Enhancements (2/2) Dollars in Millions