The ABCs of ERP (Enterprise Resource Planning) By Sanjay Anand April 2004

About Me 20 years business and technology experience of which 10 years is in ERP ranging from Programmer to Partner J.D. Edwards OneWorld (now PeopleSoft) Certified Professional (Consultant) and Instructor (Trainer) Worldwide Consultant of the Year, Valuable Teamwork, Special Achievement, Pioneer, Foundation etc. Awards Expertise in all Functional (Business) and Technology Phases of ERP Implementations and Project Lifecycles Clients included Domestic (US) and Global (US, Europe, Asia) Fortune 500 and Global 2000 companies MSc in Technology, MS in Computers (BITS Pilani); MBA in Management, MS in Finance (Boston College)

What is ERP? Combination of That Integrates And Replaces Business Management Practices Information Technology Solutions That Integrates Company Functions/Departments Business Processes and Goals And Replaces Old Standalone Computers Paper and Manual Processes Business & Technology ERP is a unified and integrated technology framework that runs your business

Examples of ERP Tier 1 (2/3 of Market) Tier 2 (1/3 of Market) SAP Baan Oracle PeopleSoft J.D. Edwards Tier 2 (1/3 of Market) Lawson Great Plains And Many Others

Modules of ERP Financials Distribution Manufacturing HR and Payroll General Ledger Accounts Receivable Accounts Payable Fixed Assets Contract/Service Billing Distribution Sales Order Management Purchasing/Procurement Inventory Management Warehouse Management Transportation Mgmt Customer Service/CRM Customer Self Service Manufacturing Shop Floor Control Product Data Mgmt Resource/Capacity Plan Materials Planning Work Orders Quality Management Product Configuration HR and Payroll Human Resources Payroll and Benefits Recruitment Labor Rules Employee Self Service

Industries Using ERP Traditional Manufacturing More Recent Additions Aerospace Defense Automotive Chemical Pharmaceutical Consumer Goods Oil and Gas More Recent Additions Banking & Insurance Healthcare Public Administration Education Retail Utilities Telecommunications

Benefits of ERP Improved and Streamlined Work Process Integrated Financial and Other Information Streamlined and Efficient Supply Chain Data Availability for Decision Making Speed up Manufacturing Processes Timely and Accurate Information Improved Customer Response Time Improved Competitive Advantage Reduced Paper and Human Errors Single Database and Unified View

Disadvantages of ERP Evident Costs of ERP Hidden Costs of ERP Time Installation, Setup, Configuration, Training Money Hardware, Software, Consulting Services Hidden Costs of ERP Technical Integration, Testing, Customization, Conversions Human Training, Consulting, Culture, System Performance

ERP Metrics Inventory Distribution Technology Customers Increased Turnover Less Obsolescence Cycle Count Accuracy Distribution Favorable Pricing Order Fulfillment Rate Accurate Orders Reduced Returns Technology Less IS Overhead Centralized System System Availability Customers Increased Loyalty Faster Deliveries Brand Recognition CRM & Self Service

Implementing ERP Big Bang Method Phased-in Method Entire Company cuts over simultaneously Used to be popular; very high risk approach Slam Dunk Approach Vanilla non-customized instant implementation Instant ROI but subsequent BPR challenging Phased-in Method One Company Function/Department at a time Most popular method today; controlled risk ‘Franchising’ Approach Separate ERPs, consolidated Financials Works best for disparate business units

Scope and Scale of ERP J.D. Edwards PeopleSoft Typical Scale 2,300 applications 2,600 tables 3,800 reports 5,800 programs 11,000 dictionaries PeopleSoft 3,000 applications 3,200 tables 4,000 reports Typical Scale ’00s of users ‘000s of customers Scores of interfaces ‘000s of transactions GBs of data Integrations CRM, SCM, EAI etc. B I, D W, K M etc. B2B, B2C, B2G etc.

Questions and Answers Enterprise Resource Planning Information Technology Industry Opportunities and Employment US-India Offshore Outsourcing Any Other Topics of Interest Speaker’s Contact Information Phone / Fax: +1-909-363-8619 E-mail: sanjay@anands.com