Finance Functional Area Group

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Finance Functional Area Group

• Caterina Lo Mascolo
• Chi Ling Cheung
• Anna Shipilova
• Carl Flintoff

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ERP

• Enterprise
• Resource
• Planning

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What is ERP?

• An information system which uses an integrated
  database in order to achieve a high degree of
  integration within and across different business
  functions.

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ERPs Capabilities

• Financials -accounts receivable/payable
• -cash management
• -general ledger
• -profitability analysis
• Operations and logistics
• Sales and Marketing
• Human Resources

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ERP A Useful Tool!

• Back end integration
• Carries out important corporate functions and
  requirements
• Increases customer satisfaction through advanced
  integration
• Popular ERP systems SAP, PeopleSoft, Oracle

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Oracle

• Oracle Financial Analyzer (part of the Oracle
  E-Business Suite)
• A complete application for financial reporting,
  analysis, budgeting and planning
• Through integration it allows businesses to make,
  manage and measure decisions across corporations
• Controls costs, analyzes performance, evaluates
  opportunities and formulates future direction

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Oracle (continued)
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ERP Today

• Installation of an ERP System takes anywhere from
  1 to 4 years depending on the complexity of the
  corporation
• Cost of the implementation ranges from 500,000
  to 300,000,000
• Effort needed is enormous!
• Often it is necessary to alter the business
  processes in order to suit the limitations of the
  ERP system

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ERP Today (continued)

• Some corporations find ERP results in too much
  effort and too little rewards when the need for
  integration is minimal or when their business
  changes too rapidly
• Ex. Dell Computer

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ERP Within The Finance Functional Area Group
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Role of ERP Within the Finance Fag

• Serves as a decision making tool by linking all
  pertinent financial information from other FAGs
  and arranging it in order to aid in the decision
  making process
• Integrates financial data for the use of internal
  and external customers

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Advantages of ERP in the Finance FAG

• Gathers required data and assists with capital
  budgeting, NPV, cash flows etc
• Keeps updated information on current and
  potential financial investments for 240co
• Automatically collects financial information and
  closely integrates records from accounting and
  finance
• No training is required once ERP is implemented

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Advantages (continued)

• Automatically updates 240cos trading volumes and
  stock values
• Provides readymade automated solutions for
  financial queries
• Eliminates problem of the stovepipe and allows
  for a quicker response when vertical dimension
  with other FAGs is required (ie Accounting
  dept.)

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Advantages (continued)

• Allows for accounts between departments to be
  settled with the use of electronic cash
• Enforces consistency of financial data shared
• Assures that financial data comes from the source
  of the transaction
• Zero downtime
• Financial data can be accessed by any specified
  user

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Disadvantages of ERP in the Finance FAG

• Extremely expensive to implement
• May require the re-engineering of the financial
  business process
• Lengthy implementation period ( 1 to 4 years)
• Requires a substantial amount of effort to
  implement and maintain

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Potential Risks!

• Costs may outweigh benefits
• ERP system might be outdated with relation to the
  business process by the time of its installation

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Recommendation

• Implementation of an ERP system, specifically the
  Oracle Financial Analyzer
• Will provide leverage to 240co through instant,
  secure access to multidimensional financial data
  over corporate intranets and the World Wide Web
• Implemented throughout all functional areas of
  240co
• Should benefit all functional areas

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• Have a great afternoon!
• The Finance FAG