8/14/2019 Group 9A ERP vs BOB

1/22

GROUP 9A

Gopinath Subramaniam | Puneet Mathur

Saurav Gupta | Sumesh Gopurathingal | Utsav Bhatt

8/14/2019 Group 9A ERP vs BOB

2/22

ERP vs. Best-of-Breedfor a Logistics CompanyA Comparative Analysis

8/14/2019 Group 9A ERP vs BOB

3/22

ENTERPRISE RESOURCE

PLANNING

(ERP)

8/14/2019 Group 9A ERP vs BOB

4/22

Enterprise Resource Planning System is a system which covers all

core functions of an enterprise

Software package which covers at least 2 or more systems

Instances: Supply Chain Management (Purchasing, Manufacturing

& Distribution) HR system, Accounting system, Financials, Product

Lifecycle Management System, Customer Relationship

Management ERP gets all functional departments to be in one integrated system

making it cross functional and enterprise wide

Example of ERP vendors are Oracle, SAP, IBM and etc

8/14/2019 Group 9A ERP vs BOB

5/22

8/14/2019 Group 9A ERP vs BOB

6/22

$47 million turnover company

Had been using homegrown system for 10 years

Old system has hindered the growth of company

Try building a new integrated system but failed

Chose ERP solution by People Soft 17 modules

Finished the whole project within 2 years For a

$2 million dollar investment

8/14/2019 Group 9A ERP vs BOB

7/22

$ 47 million turnover company

Had been using homegrown system for 10 years

Old system has hindered the growth of company

Try building a new integrated system but failed

Chose ERP solution by People Soft 17 modules

Finished the whole project within 2 years For a $ 2million dollar

investment

BEST OF BREEDS(BOB)

8/14/2019 Group 9A ERP vs BOB

8/22

Specialized software solutions for specific purposes

Typically includes Customer requirement processing, purchase order

processing, inventory management, warehouse management and supplier

management

More focused in scope and generally caters to a specific business area like

supply chain, customer relationship, manufacturing, warehousing, human

resources etc. Usually provides additional functionality and expertise when compared to ERP

Very widely used during 1990s as compared to ERP offerings for supply chain

but less popular now

Manhattan Associates, i2 Technologies, Logility etc.

8/14/2019 Group 9A ERP vs BOB

9/22

8/14/2019 Group 9A ERP vs BOB

10/22

Turnover - $700 million in 1996

Manual supply chain processes

Chose best-of-breed solutions for automation

Integrated 9 separate components including solutions from

Manugistics Inc., Oracle Corp.

Implementation completed in more than 3 years

8/14/2019 Group 9A ERP vs BOB

11/22

Cost v/s content

Cost cited as most important factor for deciding upon

new business application

Inclination towards

Reducing number of vendors and license issues

Keep TCO calculation simple

Building long term relationships

8/14/2019 Group 9A ERP vs BOB

12/22

Standardization Moving towards standards based approach Open Source implementations

SaaS Use of SaaS as a medium for integration

Emergence of SOA Reduces integration challenges Helps retain modularity of application development E.g. Red Prairie

8/14/2019 Group 9A ERP vs BOB

13/22

$ 47 million turnover company

Had been using homegrown system for 10 years

Old system has hindered the growth of company

Try building a new integrated system but failed

Chose ERP solution by People Soft 17 modules

Finished the whole project within 2 years For a $ 2million dollar

investment

EVALUATION

8/14/2019 Group 9A ERP vs BOB

14/22

ERP system may act as a hedge against obsolescence of stand aloneBOB system provider

BOB ERPLength 2 - 4 years 1 - 2 years

Flexibility Higher Lower

Cost Higher LowerComplexity Higher Lower

Quality ofSolution

Higher Lower

Staff Training Longer Shorter

UpgradingNew version of BOB may pose

problems

Future modules takecare of compatibility

issues

8/14/2019 Group 9A ERP vs BOB

15/22

High, Low High, High

Low, Low Low, High

How integral is Supply Chain for Business success?

How complex isthe SCM

requirement?

BOB

ERP

Itdepends !

Itdepends !

8/14/2019 Group 9A ERP vs BOB

16/22

Standardized ERP Solution

BOB - 4 BOB - 6BOB - 5 - WMS

BOB - 3BOB - 1 BOB - 2

8/14/2019 Group 9A ERP vs BOB

17/22

ERP Best Of Breeds

8/14/2019 Group 9A ERP vs BOB

18/22

8/14/2019 Group 9A ERP vs BOB

19/22

8/14/2019 Group 9A ERP vs BOB

20/22

Positives

Integration of system - SCM, CRM, HR, Finance, Purchase etc. all in one

Reduces operating costs

Removes the risk of duplicating data, software, storage etc.

Provides pertinent information of the entire organization

Negatives

Quality of solution is lower

Customization level is limited

Underutilization of ERP system

8/14/2019 Group 9A ERP vs BOB

21/22

Positives

Fit to enterprise - A best-of-breed system is more specific in scope andthus provides more accurate solutions to the problems at hand. An

organization can thus purchase the best fit solution as per theirrequirements.

Offers better quality solutions For organizations that experience acomplex warehouse management structure, an ERP solution might beunable to meet its advanced requirements and a best-of-breed solution

would be the most suitable choice to fill in the gaps.

Higher flexibility The best-of-breed solution offers flexibility in terms ofconfiguration and customization to suit buyers requirements.

8/14/2019 Group 9A ERP vs BOB

22/22

Negatives

Involves higher costs A stand alone best-of-breed supply chain solutionwould need to be integrated with other stand alone systems and thus

involve higher costs for implementation as compared to an ERP systemwhich comprises of several integrated sub modules.

Implementation cycle The implementation cycle is longer for a best-of-breed as it is more complex in design than ERP solutions.

Issues with data integration - Integrating the b-o-b system with othermodules like financial, CRM etc. is a highly complex and time consumingprocess and is prone to errors.

Training - The best-of-breed solutions take longer time to be trained uponwhen compared to ERP systems.