Enterprise Resource Planning

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Enterprise Resource Planning

• Members in Accounting FAG
• Andy Wong
• Eddie Nehme
• Nayef Al-Abdulwahed
• Denise Siele

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Today we will be covering

• What is ERP?
• History of ERP
• What will ERP do for the accounting department?
• ERP Implementation
• Costs of ERP
• Advantages/Disadvantages
• To ERP or not to ERP?

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What is ERP?

• Is an information system that attempts to
  integrate all departments and functions across a
  company onto a single computer system that can
  serve all those different departments particular
  needs
• Some of ERPs functions include
• Bookkeeping Accounting
• Human Resource Management
• Planning Production
• Supply-Chain Management

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History of ERP

• ERP has its roots in the MRP and MRPII systems of
  the 70s and 80s.
• Came about as companies realized that the
  management and flow of information was just as
  important as materials and inventory management.
  
• ERP has also evolved considerably with computer
  and technology advances.

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What will ERP do for the Accounting Department

• To integrate financial data
• Real time information
• Improves efficiency

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Implementation

• Sits on an existing database
• Vendor Selection
• Business Strategy Formation
• Integration
• Testing and End-user Acceptance
• Training
• Rollout

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Costs of ERP

• Costs to implement an ERP system is not just a
  one-time thing.
• Real costs are in constant training, upgrading,
  and maintenance.
• Average Total Cost of Ownership (TCO) is 15
  million.
• Benefits are not seen right away.

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The hidden costs

• Training
• Integration and testing
• Data conversion
• Data analysis
• Consultants ad infinitum
• Replacing your best and brightest
• Implementation teams can never stop

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Advantages/Disadvantages

• Advantages
• Information entered once into system
• Allows customization
• Provides functionality to interact with other
  modules

• Disadvantages
• Implementation is expensive and lengthy
• Maintenance is costly and time consuming
• Data errors are replicated through the system

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To ERP or not to ERP?

• Cost vs long term gain
• Lets do it!!