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Shalagh Rigney, Tara Nolan, Kristen Sibilia March 26, 2008. What is Enterprise Resource Planning?. Database management system that integrates all data and processes of an organization into a unified system.
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Shalagh Rigney, Tara Nolan, Kristen Sibilia March 26, 2008
What is Enterprise Resource Planning? • 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 • 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 • 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 • 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 $$ Average Total Cost of Ownership of ERP is about $15 million
Developing In House ERP Systems • Companies can integrate portions of an ERP system to meet their specific needs. • Why? Costs substantially less
One ERP System:Peoplesoft • 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 • http://www.oracle.com/applications/peoplesoft-enterprise.html
Green Mountain Coffee Roaster • 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 • 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 • More timely Order Management and Billing • Great Analytic Ability of Accounts, Balance, Receivables • Reduction of Losses of Raw Materials • Better Targeted Marketing, Customization of e-mails • Customer Direct doubled sales in 2 years