Shalagh Rigney, Tara Nolan, Kristen Shalagh Rigney, Tara Nolan, Kristen Sibilia Sibilia

March 26, 2008March 26, 2008

What is Enterprise Resource What is Enterprise Resource Planning?Planning?

Database management system that Database management system that integrates all data and processes of an integrates all data and processes of an organization into a unified system. organization into a unified system.

Integrates accounting, strategic Integrates accounting, strategic planning, sales order management, planning, sales order management, quality control, manufacturing, quality control, manufacturing, marketing, logistics and warehousing. marketing, logistics and warehousing.

History of ERP SystemsHistory of ERP Systems

ERP began in 1960 as systems ERP began in 1960 as systems designed to help control inventory.designed to help control inventory.

Originated in the manufacturing Originated in the manufacturing industry by scheduling industry by scheduling manufacturing processes, although manufacturing processes, although

today it is a system used today it is a system used globally and give globally and give companies companies a competitive edge. a competitive edge.

ERP ERP ADVANTAGESADVANTAGES

Complete orders fasterComplete orders faster Fewer errorsFewer errors Security features to protect against Security features to protect against

outside crimeoutside crime Better customer serviceBetter customer service Improved efficiency and productivityImproved efficiency and productivity Easier to share data across departmentsEasier to share data across departments Complete revenue cycle fasterComplete revenue cycle faster

ERP ERP DISADVANTAGESDISADVANTAGES

Possible inadequate investmentPossible inadequate investment Difficult for usersDifficult for users Ability to customize software is limitedAbility to customize software is limited Expensive to install and maintainExpensive to install and maintain Limited technical supportLimited technical support Prevents ability for business process Prevents ability for business process

to changeto change Risky for large companiesRisky for large companies

How is ERP different How is ERP different from MIS?from MIS?

MIS:MIS:Provides information about the Provides information about the performance of an organization. performance of an organization.

Provides management with Provides management with feedback.feedback.

How is ERP different How is ERP different from MIS?from MIS?

ERP: ERP: Integrates ALL functions of a business Integrates ALL functions of a business

into a unified system including into a unified system including information you would get from a information you would get from a MIS. The MIS is a part of the ERP MIS. The MIS is a part of the ERP

system as a whole.system as a whole.

Enterprise 21: A Enterprise 21: A Complete ERP Complete ERP

SolutionSolutionhttp://www.youtube.com/http://www.youtube.com/watch?v=w_9Eq2nfv1cwatch?v=w_9Eq2nfv1c

COST OF ERPCOST OF ERP

Average Total Cost of Ownership of Average Total Cost of Ownership of ERP is about $15 millionERP is about $15 million

$$

Developing In House ERP Developing In House ERP SystemsSystems

Companies can integrate portions of Companies can integrate portions of an ERP system to meet their specific an ERP system to meet their specific needs. needs.

Why? Costs substantially lessWhy? Costs substantially less

One ERP System:One ERP System:PeoplesoftPeoplesoft

Peoplesoft by ORACLEPeoplesoft by ORACLE Helps Companies with:Helps Companies with: Customer Relationship ManagementCustomer Relationship Management Financial ManagementFinancial Management Supply Chain ManagementSupply Chain Management Project ManagementProject Management Asset Lifecyle ManagementAsset Lifecyle Management Sales and Other ApplicationSales and Other Application

PeopleSoft WebsitePeopleSoft Website

http://www.oracle.com/applications/http://www.oracle.com/applications/peoplesoft-enterprise.htmlpeoplesoft-enterprise.html

Green Mountain Coffee Green Mountain Coffee RoasterRoaster

One Company to Implement One Company to Implement PeopleSoft ERPPeopleSoft ERP

Green Mountain Coffee RoasterGreen Mountain Coffee Roaster Started Implementation 1997Started Implementation 1997 Supply Chain Management, Financial Supply Chain Management, Financial

ManagementManagement Enterprise Performance ManagementEnterprise Performance Management Customer Relationship ManagementCustomer Relationship Management

ResultsResults

Implemented Green Mountain WebsiteImplemented Green Mountain Website Helped to Manage Coffee Production, Helped to Manage Coffee Production,

Its Distribution Process, and Drive Its Distribution Process, and Drive GrowthGrowth

Grown from small company, to leader Grown from small company, to leader of specialty coffee industryof specialty coffee industry

Helped to design Website- brought in Helped to design Website- brought in Consumer MarketConsumer Market

http://www.greenmountaincoffee.com/http://www.greenmountaincoffee.com/

Performance ResultsPerformance Results

More timely Order Management and More timely Order Management and BillingBilling

Great Analytic Ability of Accounts, Great Analytic Ability of Accounts, Balance, ReceivablesBalance, Receivables

Reduction of Losses of Raw MaterialsReduction of Losses of Raw Materials Better Targeted Marketing, Better Targeted Marketing,

Customization of e-mailsCustomization of e-mails Customer Direct doubled sales in 2 Customer Direct doubled sales in 2

years years