Shalagh Rigney, Tara Nolan, Kristen Sibilia March 26, 2008

What is Enterprise Resource Planning? Database management system that integrates all data and processes of an organization into a unified system. Database management system that integrates all data and processes of an organization into a unified system. Integrates accounting, strategic planning, sales order management, quality control, manufacturing, marketing, logistics and warehousing. Integrates accounting, strategic planning, sales order management, quality control, manufacturing, marketing, logistics and warehousing.

History of ERP Systems ERP began in 1960 as systems designed to help control inventory. ERP began in 1960 as systems designed to help control inventory. Originated in the manufacturing industry by scheduling manufacturing processes, although today it is a system used globally and give companies a competitive edge. Originated in the manufacturing industry by scheduling manufacturing processes, although today it is a system used globally and give companies a competitive edge.

ERP ADVANTAGES Complete orders faster Complete orders faster Fewer errors Fewer errors Security features to protect against outside crime Security features to protect against outside crime Better customer service Better customer service Improved efficiency and productivity Improved efficiency and productivity Easier to share data across departments Easier to share data across departments Complete revenue cycle faster Complete revenue cycle faster

ERP DISADVANTAGES Possible inadequate investment Possible inadequate investment Difficult for users Difficult for users Ability to customize software is limited Ability to customize software is limited Expensive to install and maintain Expensive to install and maintain Limited technical support Limited technical support Prevents ability for business process to change Prevents ability for business process to change Risky for large companies Risky for large companies

How is ERP different from MIS? MIS: Provides information about the performance of an organization. Provides management with feedback.

How is ERP different from MIS? ERP: Integrates ALL functions of a business into a unified system including information you would get from a MIS. The MIS is a part of the ERP system as a whole.

Enterprise 21: A Complete ERP Solution _9Eq2nfv1c _9Eq2nfv1c

COST OF ERP COST OF ERP Average Total Cost of Ownership of ERP is about $15 million $$

Developing In House ERP Systems Companies can integrate portions of an ERP system to meet their specific needs. Companies can integrate portions of an ERP system to meet their specific needs. Why? Costs substantially less Why? Costs substantially less

One ERP System: Peoplesoft Peoplesoft by ORACLE Peoplesoft by ORACLE Helps Companies with: Helps Companies with: Customer Relationship Management Customer Relationship Management Financial Management Financial Management Supply Chain Management Supply Chain Management Project Management Project Management Asset Lifecyle Management Asset Lifecyle Management Sales and Other Application Sales and Other Application

PeopleSoft Website t-enterprise.html t-enterprise.html t-enterprise.html t-enterprise.html

Green Mountain Coffee Roaster One Company to Implement PeopleSoft ERP One Company to Implement PeopleSoft ERP Green Mountain Coffee Roaster Green Mountain Coffee Roaster Started Implementation 1997 Started Implementation 1997 Supply Chain Management, Financial Management Supply Chain Management, Financial Management Enterprise Performance Management Enterprise Performance Management Customer Relationship Management Customer Relationship Management

Results Implemented Green Mountain Website Implemented Green Mountain Website Helped to Manage Coffee Production, Its Distribution Process, and Drive Growth Helped to Manage Coffee Production, Its Distribution Process, and Drive Growth Grown from small company, to leader of specialty coffee industry Grown from small company, to leader of specialty coffee industry Helped to design Website- brought in Consumer Market Helped to design Website- brought in Consumer Market

Performance Results More timely Order Management and Billing More timely Order Management and Billing Great Analytic Ability of Accounts, Balance, Receivables Great Analytic Ability of Accounts, Balance, Receivables Reduction of Losses of Raw Materials Reduction of Losses of Raw Materials Better Targeted Marketing, Customization of e- mails Better Targeted Marketing, Customization of e- mails Customer Direct doubled sales in 2 years Customer Direct doubled sales in 2 years