Extreme ERP Makeover

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8 Νοε 2013 (πριν από 3 χρόνια και 5 μήνες)

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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 h
ad 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:



Co
st; 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: