Enterprise Resource Planning

Members in Accounting FAG:

Andy Wong *Eddie Nehme Nayef Al-Abdulwahed Denise Siele

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?

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

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.

What will ERP do for the Accounting Department

To integrate financial data
Real time information Improves efficiency

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

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.

The hidden costs

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

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

To ERP or not to ERP?

Cost vs long term gain Lets do it!!