The Effectiveness of the

ERP System at Starbucks

 What is ERP?
1.1. S/W used to integrate data from
different departments

Abstract
How is this useful?
2.2. It provides the manager with
information to make informed
decisions
Introduction
What does ERP bring to the table?

It enables integration of information from different

departments, processes and functions
● This allows a manager from one department to access information from all other
departments
Background

● Starbucks is a global retailer of specialty coffee

with its headquarters in Seattle, Washington

● The company was established in 1971 and

initially sold high-quality coffee in its retail
stores

● Over time, the company has added more

products to its portfolio such as high-quality tea,
milk, sandwich products, soft drinks and film
and music discs.
Background continues…
So is the progress made by
Starbucks…

● The company had only one store located in

Seattle when it was founded by Gordon Bowker,
Zev Siegl and Jerry Baldwin.

● Howard Schultz purchased the company from

the original owners in 1987 when it had only six
stores.

● Soon after the change of ownership, Starbucks

started expanding rapidly and by 1992 it had
more than 140 stores, some of which were
outside the US.
Growth of Starbucks

5,886 15,011 24,000

2002 2007 2017

Number of stores by year

These created a
need for ERP at
Starbucks
 !
Starbucks uses ERP software called
Oracle OLAP
About Oracle OLAP:
● Oracle OLAP is a multidimensional analytic engine
embedded in Oracle Database 12c.
Oracle
● It allows users to analyze information from multiple
database systems at the same time.
OLAP
● It is based on multidimensional data model and allows
the user to query on multi-dimensional data

● It delivers sophisticated calculations using simple SQL

queries and produces results with speed of thought
response times.
The benefits of ERP system to
Starbucks

Frequency among the employees

Frequency of the themes among the

managers
Weaknesses/issues of the ERP system
● Contribution to the organization’s positive

Findings
performance.
● Integration of information is the positive aspect of
the ERP system that is acknowledged by most
employees and all the managers.
● Corroboration improvement also ranks high.
● Cost savings ranks very low possibly.
● The employees ranked customer service relatively high
probably.
 Conclusion
● The ERP system is crucial for organizations as it integrates information
from different sources and helps managers make informed decisions.
● Starbucks has implemented the system and found many benefits. While
previous studies have had mixed results, it's essential to overcome
implementation challenges and adhere to critical success factors.
● Starbucks experienced occasional computer system failures and lack of
employee training, but upgrading systems and offering training can mitigate
these issues.

Continuing to upgrade the ERP system with changing technology is recommended…