Enterprise Resource Planning ERP

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• Enterprise Resource Planning (ERP)

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What is ERP?

• attempts to integrate all departments and
  functions across a company onto a single computer
  system that can serve all the particular needs of
  the enterprise
• runs off a single database so that the various
  departments can more easily share information and
  communicate with each other

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ERP (continued)

• performs core corporate activities and increases
  customer service augmenting corporate image
• approach can have a tremendous payback if
  companies install the software correctly
• popular ERP systems are SAP, Oracle and Baan

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ERP Changes Customer Information

• a salesperson anywhere in the world would be able
  to find out whether the capacity and inventory
  are available for a new order, would be able to
  determine a feasible delivery date and would feel
  confident that the information about this order
  would not be lost

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How Long Does an ERP Project Take?

• companies that install ERP do not have an easy
  time
• to do ERP right, the way a company does business
  and the way people do their jobs will need to
  change
• real transformational ERP efforts usually run
  between 1 to 3 years on average

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What Does ERP Really Cost?

• prices can range anywhere from 500,000 to 300
  million
• those who have implemented ERP packages agree
  that certain costs are more commonly overlooked
  or underestimated than others such as
• training
• integration and testing
• data conversion

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Why Undertake ERP Within Finance Functional Area
Group?
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ERP in Finance FAG

• to integrate financial data as the finance
  department tries to understand the company's
  overall performance, it may find many different
  versions of the truth. Accounting has its own set
  of revenue numbers, sales has another version
  etc
• ERP creates a single version of the truth that
  cannot be questioned because everyone is using
  the same system.

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Advantages of ERP in Finance FAG

• permits effective control and eases
  interdepartmental information flow
• readymade solutions for most problems (automate
  buy or sell decisions)
• timely responsiveness
• suppliers and customers can have
• on-line communication

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Advantages (continued)

• zero downtime
• allows for accurate development of business
  forecasts
• accounts between departments can be settled
  electronically with electronic cash

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Disadvantages of ERP in Finance FAG

• alteration of financial business processes and
  standards
• high costs (many hidden expenses)
• long implementation period
• difficult to operate and maintain

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Implementation

• identify the best solution for 240co, a solution
  that's specific to our industry, configured for
  best practices, and optimized to help us rapidly
  realize bottom-line benefits.
• develop a strategy focused on our key priorities
  (maximize the wealth of the shareholders of
  240co)

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Implementation (continued)

• throughout the evaluation process, ensure the
  project remains on schedule and on budget
• use training and knowledge management, services
  and support to ensure 240co performs at the
  highest levels

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Risks

• loss of large amounts of money
• business processes and employees may not adapt to
  ERP system therefore leading to the destruction
  of the company
• due to the enormous time commitment, may become
  too absorbed with new system and loss sight of
  primary objectives.

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Recommendation

• we recommend the implementation of ERP within the
  Finance FAG and therefore within 240co because it
  simplifies transactions as well as improve
  financial integrity
• buy ERP Package
• structure is already standardized
• documentation is part of the system

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• Thank you for your attention!
• Rosangela Coscarella
• Amina Deria
• Ali Hashemi
• Andrey Orobinsky