History of ERP Package

SAP - The Company

• Founded in 1972 in Waldorf, Germany
• 4th largest software supplier in the
world
• Revenues over $5 billion in 1998
• SAP growing over 40% a year
• 1997 market share was 31% of the
worldwide
• Over 9,000 installations at 6,000
companies with more than 2,500,000
users in over 50 countries
• An average of 25% of revenue invested
in R&D
 SAP - The Product
• Integrated turn key solutions
• Open systems
• Client / server architecture
• Enterprise data model
• Extensive functionality
• Non-industry specific
• Multinational
 SAP - Control Feature
• SAP standard delivered automated
enablers
– Document balancing, database integrity, automatic posting, match codes.
• SAP Work Flow
• SAP configurable enabler
• Application Security
• Reports – ABAP, ABAP Query, Report Write
 Oracle - The Company
• Founded in 1977
• 2nd largest software supplier in the
world
• Revenues over $8 billion in 1998
• More than 6,000 customers in 76
countries
 PeopleSoft - The Company
• Revenues over $1.3 billion in 1998
• Growing over 60% a year
• 1997 market share was 8.4% of total
ERP
• software license market
• International growth and expansion will
be focus
• 1997 ERP market share was 8.3% of
total ERP license revenue
– 50% of applications revenue comes from services

• Oracle’s applications license revenue is

growing at 18% a year; significantly less
than its rivals
 Baan - The Compan
• Founded in 1978 in the Netherlands
• 5,500 employees worldwide
– Announced 20% headcount reduction in Oct. 98

• Revenues over $684 million in 1997

• n 3,000 clients in 5,000 sites worldwide
• n 1997 ERP market share was 5%
• n Sales strategy changed in 1997 to
drive 50% of
• sales through channels and value-added
resellers
 Top 10 ERP Vendor
• SAP
• PeopleSoft
• Oracle
• Computer Associates
• Baan
• J. D. Edwards
• System Software Associates
• Geac Computer Corp.
• IBM
• JBA Holding
 Human Resources
• Recruiting
• Compensation
• Assessment
• Development and Training
• Planning
 Accounting and Finance
• General Ledger
• Financial Reporting
• Costing
• Budgeting
• Accounts Payable
• Accounts receivables
 Sales and Marketing
• Lead tracking
• Sales forecasting
• Customer management
 Operations
• Order management
• Inventory management
• Customer service
 Manufacturing
• Inventory
• Planning
 What makes ERP different
• Integrated modules
• Common definitions
• Common database
• Update one module, automatically
updates others
• ERP systems reflect a specific way of
doing business
• Must look at your value chains, rather
than functions
 Benefits of ERP
• Common set of data
• Help in integrating applications for
decision making and planning
• Allow departments to talk to each other
• Easy to integrate by using processed
built into ERP software
• A way to force BPR (reengineering)
Vendors
 Difficulty in implementation
• Very difficult
• Extremely costly and time intensive
• Typical: over $10,000,000 and over a
year to implement
• Company may implement only certain
modules of entire ERP system
• You will need an outside consultant
 Common Pitfalls
• Do not adequately benchmark current
state
• Did not plan for major transformation
• Did not have executive sponsorship
• Did not adequately map out goals and
objectives
• Highly customized systems to look like
old MRP systems