Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Putting the Enterprise into the Enterprise System By: Thomas H. Davenport

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Discussion Outline A lesson on the values, pitfalls, and requirements for successful Enterprise Resource Planning –The promise of Enterprise Resource Planning Systems (ERP’s) –Why ERP Systems Fail –A Plan for Successful ERP –Advise for Bush Boake Allen –Advise for Alibris Conclusion/Questions

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker ERP in Action Central DB Inventory/Supply apps – shipping, scheduling, purchasing Sales apps - quotes, order entry Financial apps - Credit, invoicing, AP, AR, GL Manufacturing. apps - B.O.M.s, forecasts MRP

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Why Launch an ERP Project To integrate disparate systems –Provides savings and efficiencies –Improved customer service To provide centralized control, or To decentralize control To maximize central and local control – the federalist approach To support an overall business strategy

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker ERP Win Stories Autodesk used to ship most customer orders in two weeks…now they ship 98 % of their orders same day IBM’s storage systems division reduced the time to re-price all of its products from 5 days to 5 minutes, and the time to ship a replacement part from 22 to 3 days Fujitsu Microelectronics reduced cycle time for filling orders from 18 days to 1 ½ days and the time to close the financials from 8 to 4 days

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Why ERP Systems Fail Is it because they are complex? Yes Is it because the company’s culture is not consistent with the system? Yes Is it because they can level the competitive playing field? Yes Most often it is because the ERP system was not designed is as integral part of the business strategy

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Bush Boake Allen The Business Situation: Long Development cycle (customer feedback loop)…long cash collection cycle Commodity type business…they need a competitive advantage Fragmented supply chain (no source more than 4%) Local control in each country to meet local market needs with centralized financial control Market growth coming from developing countries Technology available to expedite the process (Project Mercury) Recommendation: Evaluate strategies for improving customer service, expediting the development process, creating a competitive advantage and aligning the organization and the ERP system to facilitate this task Leverage Mercury to create a competitive advantage (bring customers on site to collaborate on the final stages of development) Design the ERP using the Federalist model – the right amount of local and centralized control Launch the ERP on a small scale where it is needed /needed most

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Alibris The Business Situation: Converting a service to retail outlet No real clear business strategy No clear definition for an ERP system No more cash New opportunity No working eCommerce solution New money…new solution…big decision Recommendation: Refine strategy to consolidate orders and deliver to customers. Clarify competitive advantage and how the IT solution supports it. Problem that there are no people in the organization who have solved a similar problem to what is faced. Find the right people. Gradual installation will be difficult. Need cash now, and at the same time should not ‘band-aid’ a solution then shortly have to change the look and operation of the website. A bad launch could doom the company. Need a solution that works now, and has growth capability.

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Designing an ERP System for Success Make the ERP System a part of company’s strategy Align the organization and the system around the business strategy and ensure that both are optimized Leverage technology and the organization to attain/sustain a competitive advantage Get the right people on the bus Use the divide and conquer approach to install the ERP system

Anthony Dunams, Jake Elston, Mark Forrest, Frank Morey, Russ Smeback, Kevin Tucker Any Questions…No Questions! Thank You