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- (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.

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

What does ERP Cost? Total Cost of Operation Hidden Costs the average TCO was $15 million Hidden Costs Training Integration and Testing Customization Data Conversion

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

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

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

Major ERP Suppliers Top 5 Suppliers: SAP Oracle Applications SSA Global Technologies Sage Group Microsoft Dynamics

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

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