By: Java N Juice Connie Weekley Katie Belcher 1

 Skeptical to incorporate ERP due to size.  If they implement ERP, we they have to hire a full-time computer specialist?  Geek’s Sporting Goods asked us to explain exactly what ERP is and why they should implement this new system. 2

3 Concept Map

 What is ERP?  How can ERP help?  Is ERP right for me?  Why does ERP sometimes fail?  How long does an EPR project take?  What does ERP really cost? 4

 ERP attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs. 5

 Improves the way a company takes customer orders and processes it into an invoice and revenue  EX. When a customer service representative enters a customer order into an ERP system, he has all the information necessary to complete the order (the customer’s credit rating and order history from the finance module, the company’s inventory levels from the warehouse module and the shipping dock’s trucking schedule from the logistics module. 6

 Not really!  As long as a company has more than 1 department, they can use ERP systems.  Again, the purpose of ERP is to integrate all departments different functions. 7

 It’s critical for companies to figure out if their ways of doing business will fit within a standard ERP package before the checks are signed and the implementation begins. The most common reason that companies walk away from multimillion-dollar ERP projects is that they discover the software does not support one of their important business processes. 8

Choice 1Choice 2 Change the business process to accommodate the software, which will mean deep changes in long- established ways of doing business modify the software to fit the process Side effects of choice 1Side effects of choice 2 ~Loose a competitive advantage ~Shake up a companies employees from changing roles and responsibilities ~ Can slow down the already time consuming project ~Introduce dangerous bugs into the system ~make upgrading the software to the ERP vendor’s next release excruciatingly difficult due to customization 9

 Lack of cooperation in the work place. All department must agree that ERP is the best method for improvement or employees will resist using the software or will want IT to change the software to match the ways they currently do things.  The mistake companies make is assuming that changing people’s habits will be easier than customizing the software. It’s not. 10

 Customizations make the software more unstable and harder to maintain when it finally does come to life. The horror stories you hear in the press about ERP can usually be traced to the changes the company made in the core ERP software to fit its own work methods. Because ERP covers so much of what a business does, a failure in the software can bring a company to a halt, literally. 11

 This answer depends on how customized the system need to be.  The more customization, the more problems you will encounter. 12

 Don’t be fooled when ERP vendors tell you about a three or six month average implementation time.  The important thing is not to focus on how long it will take—real transformational ERP efforts usually run between one and three years.  Over the last few years, however, Internet- driven changes have occurred that can drastically reduce how long it takes vendors to deliver ERP modules. (weeks instead of years) 13

 These faster implementations are the result of a new category of ERP software delivery referred to as on-demand or software-as-a-service (SaaS)  SaaS speeds up the process of ERP by having applications hosted by a third party and customers access the multitenant (or shared) ERP applications via a Web connection.  Because the software doesn't need to be installed as in the traditional on-premise manner, implementation times can be drastically shorter than implementing ERP applications on-premise. 14

 According to CIO magazine: Among the 63 companies surveyed— including small, medium and large companies in a range of industries—the average cost was $15 million (the highest was $300 million and lowest was $400,000). 15

 Hidden costs: Training Integration and testing Customization Data conversion 16

Retail ERP For Geek’s Sporting Goods 17

 Aldata  GERS  Island Pacific  Oracle  SAP  Tomax  Lawson  Jesta I.S. 18

 Retail ERP suites are designed to support store operations. Critical functions that must be supported include: point-of-sale (POS) systems point-of-sale retail inventory management ordering and replenishment Receiving loss prevention cross-channel order fulfillment workforce and task management 19

 Retail specific components – Unlike a general ERP package, retail ERP suite offers retail centric components that are customized to meet the specific requirements of a retail organization in an effective and efficient manner. This makes a retail ERP suite much more suitable to meet the specific requirements of a retail organization.  Segment specific expandability option – Within the retail sector, there is a wide variety of different segments that vary in their nature and scope of operations. A retail ERP package has provisions to meet the varying needs of the different segments within the retail sector. 20

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 Configuration and scalability  Support for advanced functionality  Segment specific expandability option  Phased implementation support  Support for the store system 22

 Lack of price differentiation  High installation costs  Non-customized technical support  Security concerns  Low flexibility  Situation misfit  Complex usage  Weakest link problem 23

24 Strengths and Weaknesses of Retail ERP

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 In the current business environment, the retail industry faces two major challenges that threaten its profitability and the long- term survival prospects. Market competition & Regulatory pressures 27

 ERP promotes efficiency and reduces any scope for waste: Efficiency is critical to survive in the retail industry.  Retail ERP can help identify the specific requirements of the consumer so the company can respond to them quickly before a competitor will. 28

 In order to meet the regulatory standards, the retailers require an enterprise wide process visibility, data access and near-instant performance reporting.  Retail ERP monitors and dispatches the necessary information of the flow of goods all the way from supplier to the cash register and then back to accounting as well as other functions of the retail organization. 29

 Yes!  Keep customization to a minimum  Make sure the entire company (employees) are willing to make the changes  Utilize all components and features of the ERP system  Shop around. Make sure you choose the system that fits you best 30

Questions? 31