MOIS 433 Presented by : Maha Baligh Extreme ERP Makeover
Definition Single instance ERP: “Is to rip out all the multiple systems that are now used in the company and replace them with one data store that serves the entire company, no matter how diversified or geographically spread it is”
65% of american compoanies which cost between 1$billion to 5$ billion are considerining ERP consolidation. Getting rid of the existing ERP and replacing it with amonolithic system from a single vendor. All needed information will come from SAP, Oracle and People Soft. Context
Why single instance ERP: Government post Enron accounting legislation, all company financial data will originate from one source Eliminates consolidation errors and reduces the time taken to close the books. Run reports showing cross-promotion opportunities, places they could reuse equipment or leverage purchasing power Creates new revenue opportunities and and helps cut costs
Databases large enough to serve entire enterprises didn’t exist Unaffordable prices Connecting to that single database from faraway locations was almost impossible Why single instance ERP was hard to achieve?
Why single instance now? Storage is much cheaper than five years ago Connecting to the database is no longer a problem ERP vendors offer modules; Supply chain and product lifecycle management Inconsistent information that cant be trusted anymore
Financial Reporting: the Esselte Case Operations in 120 countries 22 ERP systems Information wasn’t consistent, it couldn’t be trusted anymore Takes weeks to close their books, an army of accountants Replaced 18 of the 22 systems with single instance systems It takes days to close their books
View Sonic Case 1997 it had 3 ERP’s which are entirely independent 2001 Replaced it with single instance of Oracle Saved $1million on hardware Cut it’s annual maintenance by150,000 Reduced Oracle support staff from 26-full time employees to 9
Ensco international 700 million$ offshore drilling company with 56 offices around the globe Had ERP system for each function area After the single instance ERP; inventory information is in one place, they can visualize purchasing habits, run reports on anything and analyze maintenance trends
Reasons for not adopting single instance ERP: Cost; they spent a a lot on their ERPs Why change it when it’s working They are forced to buy functions that they don’t need in order to get the full benefit of the system
1.Common place business process 2.Extends across al the divisions 3.Older systems that needs replacement 4.Multiple ERPs from a single vendor … When do you need single instance: