SAP/IT Business Plan

 Mission Statement  Organization  Image FX Implementation  SAP Image FX Training Plan  SAP/IT Budget  Target Conversion Plan

Mission Statement  Implement and support SAP  Integrate all systems within the company  Create a more organized and flexible business structure  Improve interdepartmental business functions and communications  Collaborate and convert Target systems to SAP  Provide efficient and practical business processes

ImageFX Organizational Structure CEO CIO CFODirector of Business Development VP MarketingVP Human Resources Director of Personnel Recruiting Director Benefits Manager HR Generalists Marketing Director Marketing Director Marketing Director Marketing Analysts Marketing Analysts Marketing Analysts Director of Licensing Risk Analysts VP Finance Director of ITSAP Director VP R&D Budget Director Finance Director Operations Manager SAP System Analysts Assoc. Director Of Manufacturing Assoc. Director Of Research Design Engineers

SAP/IT Organizational Structure CIO Alex Tumarinison Director of IT Alexandra Torres SAP Director Justin Sileo IT Operations Manager Lorenz Capalad SAP Systems Analyst Albert Roh SAP Systems Analyst Kathryn Gorski SAP Systems Analyst Justin Hedin SAP Systems Analyst Stephen Jordan SAP Systems Analyst Gibson Kim SAP Systems Analyst Rohit Kumar SAP Systems Analyst James Regan SAP Systems Analyst Phillip Yang

ImageFX Implementation Strategy  ImageFX will utilize the following core SAP modules to successfully maintain all business processes: -FI (Financial Accounting) -MM (Materials Management) -CO (Controlling) -HR (Human Resources)

ImageFX Phased Implementation Plan Finance Controlling Materials Management Human Resources Phase 1 Phase 2 Phase 3 ConfigurationTesting Configuration Testing

SAP Image FX Training Plan  Employees trained in executing SAP transactions and in the SAP business processes  Hire consulting firm for in-house training Develop and deliver customized courseware Develop and deliver customized courseware Courseware can be reused Courseware can be reused Provide specialized training on SAP modules Provide specialized training on SAP modules

Training Strategy Human Resources Training  Benefits (2 people)  Employee Management and Time Management (3 people)  Applicant Management (2 people)  Payroll (3 people)  Travel Expenses (2 people)

Training Strategy Financial Accounting  General Ledger and Special Ledgers (2 people)  Assets Accounting (2 people)  Tax (2 people)  Accounts receivable and Accounts payable (3 people)

Training Strategy Materials Management  Electronic Data Interchanges (3 people)  Inventory Management and Purchasing (3 people)  Information System and Invoice Verification (3 people)  Consumptions Based Planning (3 people)

Training Implementation Plan Finance Controlling Materials Management Human Resources Phase 1 Phase 2 Phase 3 ConfigurationTesting Configuration Testing Training

SAP/IT Budget Cost of Hardware $55,226 Cost of SAP Software 1,500,000 1,500,000 Cost of Add-Ons 12,452 12,452 Cost of Implementation 180, ,000 Cost of Training 55,000 55,000 Cost of Maintenance 266, ,505 Lost Opportunity Costs 200, ,000 Cost of Upgrade 600, ,000 Operating Expenses 76,500 76,500 GRAND TOTAL… $2,945,683

Accounting Oracle Financials Marketing Access/Excel/ SAS Management Accounting Oracle Financials Current Target Systems Sales Oracle (Proprietary) Credit Card Proprietary Payroll PeopleSoft Benefits PeopleSoft Training Proprietary Budgeting Proprietary Purchasing Proprietary

Proposed Target System Configuration SAP Box Financial Accounting (FI) Human Resources (HR) Materials Management (MM) Sales and Distribution (SD) Controlling (CO) Credit Card (Proprietary System)

Consolidation of Target’s Legacy Systems into SAP

Target Conversion Strategy  Target maintains both proprietary and off-the-shelf SW  95% of Target’s systems and functionality are supported in SAP  Target’s Sales system is proprietary and costly to maintain; converting it to SAP asap provides biggest return for Target’s investment  Credit Card system will be retained due to its sophisticated features  HR systems are running on PeopleSoft  Accounting Systems are running on Oracle Financials

PeopleSoft vs. SAP HR Numerous Modules Flexibility Pre-Planned Business solutions for quick setup Modules for specific tasks, efficient for companies that do not require many modules Integrated system with other modules Modules with more functions for small and large corporation Contains private financial program within system Easily works with the financial module for efficient ERP function

Oracle Financials vs. SAP FI Numerous Set of Options Many unnecessary features that are being maintained Optimal usage of required modules. Any extras can be loaded when needed. Separate IT Staff IT Staff works with all aspects of SAP Ability to communicate with other modules. Combines HR and Finance, but not full capability of HR module.

Target Conversion Plan Finance Sales and Distribution Controlling Materials Management Human Resources Phase 1 Phase 2 Phase 3 Phase 4 MidwestNortheastWestSouth

Strength Is In The Image The Strength Is In