Professional Documents
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Implementing ERP
AGENDA
Problems Analysis of the Problems THE Problem Possible Solutions and Analysis Implementation and Analysis The Aftermath
PROBLEMS
Current System Software Provider (Issues) Future Growth
Companys Approach
Outages
MAJOR PROBLEM
IMPLEMENTATION
One Phase activity Customization Mirror of Operations
IMPLEMENTATION (CONT.)
Strong Integration Partner Selecting and Implementing Experienced with ERP Business knowledge and Technical Skills KPMG
SELECTION OF ORACLE
Request for Proposal (10 days)
10 days
ORACLE
Manufacturing Capability Long-term Development Flexibility
TEAM FORMATION
Extended
100 Best and brightest from across all Ciscos business community 5 team tracks Order entry Manufacturing Finance Sales/Reporting Technology Team management structure
CRP 0
Began Training Getting the application up and running Demo of quote and cash
Make system work within their specific areas Go without modifications Process Documentation/ tracking sheets Modification strategy After Sales Support package
CRP 1
CRP 2
Including major modifications Communication through single Data warehouse Historical and Future data bridging Test Software and Hardware
CRP 3
Check readiness to go live Rerunning on a Saturday Made the nod their heads
ANALYSIS OF CRP
CRP 0&1: Build on previous work to develop a deeper understanding of the software
Identifying necessary modifications Compressed training hours Six months work in one month (Lack of Tests)
GOING LIVE!
Disturbingly Unstable (Avg. 1 time shutdown) Hardware Architecture and sizing Vendors Responsibility Huge transaction volumes Inefficient processing of common tasks After Two months of efforts, System was now STABLE
ANALYSIS
Top-management Support Collaborative Efforts Top management Support Effective Negotiations Limited Modifications
ANALYSIS (CONT.)
Net Sales
$9,000,000 $8,000,000 In thousands $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 1995 1996 1997 Years 1998 $2,232,652 $4,096,007 Net Sales $6,440,171 $8,458,777
RETURN ON INVESTMENT
ROI = (Gain from Investment Cost of Investment) / Cost of Investment (186121600*-15000000)/15000000
1140.81%
Considering 80% growth rate and assuming ERP will facilitate in Achieving this growth.
CAN WE DO IT AGAIN?
NO!
Good Timing
Cost Reductions
Luck!
RECOMMENDATIONS
Continuous Upgrading
THANK YOU!