1 / 11

Enterprise Resource Planning

Enterprise Resource Planning. Enterprise Resource Planning - a software system that integrates core business areas such as manufacturing, distribution, financials and human resources. Example: A warehouse in Singapore enters a customer order

issac
Télécharger la présentation

Enterprise Resource Planning

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Enterprise Resource Planning • Enterprise Resource Planning - a software system that integrates core business areas such as manufacturing, distribution, financials and human resources. • Example: A warehouse in Singapore enters a customer order • data automatically flows to other areas of the company. • It would flow to the financial and accounting people in New York • Automatically update accounts receivable.

  2. Enterprise Resource Planning • The order would also flow to the manufacturing operations in Europe instructing them to make another component. • Inventory levels would automatically be reduced in the warehouse and an order would be placed to replenish inventory.

  3. Benefits of ERP • One common system - less duplication, more efficient • Customer focus - better customer service • Open communications among business partners • Adherence to standard business practices

  4. Benefits of ERP • Y2K compliant • Removes need for in-house development • Good reporting capabilities • Support for multiple currencies and languages.

  5. Disadvantages of ERP • High cost • Forced change of processes • Very complex software • Lack of trained people • Not Internet-ready

  6. ERP Vendors • SAP - Systems Applications Products in Data Processing 29% market share - Honda, IBM, Bank of Canada, P & G • BAAN - Dutch - 5% - Russell Stover Candy, Mercedez Benz, Boeing, Nortel • Peoplesoft - California - 6% - NBA, Adidas, Anderson Consulting, Hilton Hotels, NYNEX

  7. ERP Vendors • Oracle - California - 10% - USPS, CBS, Nike, Kodak, Toronto Dominion Bank • J.D. Edwards - Colorado - 7% - Harley Davidson, Saab Automobile, BellSouth Cellular Corporation, Holiday Inns, Fox Television Stations

  8. Success Stories • Autodesk (computer aided design software maker) • Reduced delivery time from two weeks to less than 24 hours • IBM Storage Systems Division • Reduced time to re-price – 5 days to 5 minutes • Time to ship a replacement part – 22 to 3 days • Time to complete a credit check – 20 minutes to 3 seconds

  9. Success Stories • Fujitsu Microelectronics • Reduced the cycle time for filling orders – from 18 days to 1.5 days • Time to close financial books – from 8 to 4 days

  10. Horror Stories • FoxMeyer Drug – software helped drive the company into bankruptcy • Dell computer – software will not fit its decentralized management model • Applied Materials – overwhelmed by the organizational changes involved • Dow Chemicals – spent seven years and 500 million dollars on R/2 – now starting again with R/3 • Hershey’s – missed timely deliveries

  11. Reasons for failure • Software logic and the company strategy may not match! • Examples – p. 125 of Devenport article

More Related