Building the ERP Business Case Building Taeseong Jeon Yonwook Ra YoungGoog Kim Taeseong Jeon Yonwook Ra YoungGoog Kim

- 2 / 11 - INDEX Dell? (Background) Market share and revenue SWOT analysis GAP analysis The results of ERP Implementation Conclusion

- 3 / Dell?  DELL Computer Inc (found in 1984)  By Michael Dell with $1000 asset.  Produced the customized computer to meet customer's needs based on his own experience.  Strategy  Cyber management "Build-to-order"  Customized PC that are ordered by individuals each time. Exceptional customer service 24/7 Toll free technical support Sending out repair person next day after the customer's request.

- 4 / Dell?  Result of strategy  Increased net profit of 168 million dollars per a year  Number 1 computer retailer in the world past 4 years  Internet ordering makes more profit than phone ordering Daily profit of around 4-6 million dollars Expecting 120 million dollars next year  Support  Let individual customers choose and educate themselves about the products  More than downloads per a day from Dell's website  15 million dollars savings in customer service budget.

- 5 / Market share and Revenue  Market Share in PC market [Source: IDC, 2005]DellHPIBMFusitsuAcerEtc.Qty 31,770,10028,063,00010,492,0007,182,0006,451,000-

- 6 / Market share and Revenue  Dell’s net revenue [Source: IDC, 2005]

- 7 / SWOT Analysis  Dell’s SWOT SWOT Strengths Weakness OpportunityThreats Keeping Cost down A build-to-order manufacturing Just-In-time inventories Direct sales to customer Pioneering use Internet No chance for the buyer to take a look at the actual products before purchase Short product life due to the low quality parts Dell ranked number 1 computer retailer in the USA IDC forecasts 8.7% of growth in PC market, 2005 New HP & IBM are right behind for competition Longer delivery period (3X slower than HP) HP’s partnership with Intel is expected to place HP on the cutting edge PC

- 8 / Gap Analysis  Dell’s As-Is & To-Be Forecasted growth in PC market Need improvement in relationship with partners Competitors selected alliance strategy (HP+Intel) Longer delivery time compared to other competitors ERP ImplementationVision Customer satisfaction guarantee Efficient management in supply chain Keeping leader position in PC market Accomplishment in technical advantage between partners

- 9 / The results of ERP Implementation  Real Case – BPIC [Source: BPIC.co.uk, 2005] Inventory Reduction On time delivery or stock availability Manufacturing cost due to both more efficient use of people and equipment as well as productivity Stock record accuracy Bill of material accuracy 30% To 95% Down 10% Up to 95% Up to 98% 75% To 99% Down 50% Up to 99% Up to 100% Typical Better companies

- 10 / Conclusion  Dell has potential growth  Last year, PC market increased by 14.7%  IDC forecasts the growth of PC market will be 8.7%  Dell can accomplish the vision by ERP implementation  Inventory system will be improved  Delivery time will be fast up to 99%  Dell’s data loss will be decreased  Dell can have sufficient information efficiently

- 11 / 11 - Thank you