Enterprise resource planning 1st by mary summer chapter 10

Enterprise Resource Planning, 1st
Edition by Mary Sumner
Integrated Case Study: Bandon
Group, Inc.

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Business Background
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Family owned distributor of office equipment,
also leases
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Grew due to good customer service, technical
support, and innovative products
Currently has four divisions
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Decentralized to meet needs of local markets
Corporate headquarters handles central
administrations, information systems support

Primary objective to generate 10% profit for reinvestment
Excellent sales organization and professional service
organization

Serves mid-market companies
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Reputation for quality and service at cost-effective price

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Information Systems
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Custom software developed
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Handles administrative information systems
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Most are generic
Meter click billing software unique for industries

Outgrew legacy system

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Hired Director of Information Technology
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Searched for commercial off-the-shelf package to
support administrative information systems
Selected OMD
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Supported meter-based billing
Web-based interface
Not built with relational database, so ad hoc difficult

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Sales Tools
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Sales Prospecting
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Acquired Pivotal
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Supports ad hoc queries in relational database
Use external market databases to create prospect
databases
Did not integrate with OMD
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Customer information had to be re-entered
Inconsistencies existed
Licenses lapsed
» Sales people adopted contact management tools

CRM applications developed internally
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Service alerts, excess volume reports

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Other tools, continued
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Evaluated several CRM tools
– Microsoft CRM
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Integrates with Office, but not OMD

– Soaring
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Sales prospecting package
Based on Microsoft SQL server
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Integrate with OMD

– Microcomputer-based sales programs
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Goldmine
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inexpensive

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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ERP Considerations
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Lack of integration
Duplication of data
Data inconsistencies
Trouble with migrating data
Central IT staff small
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Competition employing ERP
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Difficult to supply support, training for multiple
systems
Many had eBusiness solutions

OMD had proprietary database and could
not move to eBusiness
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Information Systems Study
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External consulting firm needed
– Analyze current system
– Assess problems
– Propose changes
– Address senior management concerns
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Need for tactical and strategic information
Need to standardize business practices
Need for more targeted marketing

© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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Study Steps
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Step 1: Purpose and scope of the study
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Step 2: Executive management interviews
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Objectives
Benefits
Four division Presidents and CFO
Develop list of major objectives for integrated system

Step 3: Critical success factors, measures, IT needs
Step 4: In-depth interviews: problems,
goals/opportunities, IT needs, priorities
Step 5: IT infrastructure by location
Step 6: List of IT priorities, Bandon Group and
divisions and software systems support
© Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition

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