Information Technology and Retail

Supply Chain Systems

POS Inventory Management

Enterprise Retail Systems

Workforce Management

Store Operation Systems

Store-Level demand Perishable Management

Need of accurate information and make it available to store, warehouse, distributors, etc. Before it was used for recording of data of sales only. Today even individual customer can be served as per his needs as highly sophisticated IT systems are available now.

MANUFACTURING

RETAIL

E-COMMERCE

Demand Planning

Items Management

Assortment Planning Replenishment Planning Mark-Down Optimization

RFID

Store Development Content Management Back Office Integration

Web site Analytics

Master Planning

Data Synchronization

Inventory Optimization
Supply chain Tracking

Partner Collaboration

Efficient stocking of merchandise,

Collection of Data, Efficiency in operations,

Helps Communication among departments.

The scale and the scope of operations,

The financial resources of organization, The nature of business,

Human Resources Available.

What is an ERP System?

Why implement an ERP system? How should ERP systems be implemented?

Conclusion

Simplistic Definition ERP - Enterprise Resource Planning Detailed Definition ERP (Enterprise Resource Planning) systems typically include the following characteristics: An integrated system that operates in real time (or next to real time), without relying on periodic updates. A common database, which supports all applications. A consistent look and feel throughout each module. Installation of the system without elaborate application/data integration by the Information Technology (IT) department.

Requests Suggested purchase order Blanket orders Receipt of Goods (ROG) Invoice verification Materials provided Etc

Quotations Sales order management Blanket orders Sales order production list Shipping processing/Goods issuing Deliveries Invoicing

 Installing an ERP system has many advantages -both

direct and indirect.

The direct advantages a) include improved efficiency b) information integration for better decision-making c) faster response time to customer queries

Tangible benefits are those measured in monetary

terms and intangible benefits cannot be measured in monetary terms but they do have a very significant business impact.

Tangible benefits: Improves the productivity of process and personnel Lowering the cost of products and services purchased Paper and postage cost reductions Inventory reduction Lead time reduction Reduced stock obsolescence Faster product / service look-up and ordering saving time and money Automated ordering and payment, lowering payment processing and paper costs

Intangible benefits: Increases organizational transparency and responsibility Accurate and faster access to data for timely decisions Can reach more vendors, producing more competitive bids ; Improved customer response Saves enormous time and effort in data entry ; More controls thereby lowering the risk of misutilization of resources Facilitates strategic planning Uniform reporting according to global standards

Obtain the right mix of people, processes and technology!!

People
Project Structure Should be aligned to processes

Process
Implementation Process (outlined in detail) Adapt your processes to those of the ERP.

Technology
Hardware Software Integrated Systems

1.

Definition and Analysis Hold discussions with various functional personnel to establish the actual number of systems operating at client site, what they are used for, why and how often Produce the Project Scoping Document outlining current situation, proposed solution and budgeted time Challenge : REQUIRES EXPERTISE

2. Design

Prepare various functional reports - specifies current scenario and wish list Prepare Design document which specifies how the system is going to work Prepare test scripts to be followed on system testing Map out the interface paths to various modules Challenge : INFORMATION SHARING Availability of staff

3. Build

Configure system as per set up document specifications i.e. transfer conceptual model into reality Test system to verify accuracy (preliminary tests) Challenge : TECHNICAL ENVIRONMENT System functionality

4. Transition Train users on their specific areas Assist in test data compilation and system testing by users Finalise the Live system and captured opening balances Challenge : USER RESISTANCE Understanding and acceptance data preparation

Technology is an enabler, not the driver (it is there to assist the organization to achieve business goals) It is a means to an end, not the end

ERP systems provide a mechanism for implementing systems where a high degree of integration between applications is required. To successfully implement, a proper mix of people, process and technology should be maintained.

Legacy system could not handle 80% annual growth rate of Cisco. Constant band-aids to meet business needs resulted in the application becoming too much spaghetti. Systems outages became routine exacerbated by the difficulties of recovering from outages. CIOs View point
-Each functional area had to make its own decision regarding changing the legacy system and fund it. -Not in favor of ERP solution because it could become a mega-project

January1994: The legacy system crashed because a work around due to the systems inability to perform malfunctioned, corrupting the central database. Shut down the company for two days.

Autonomous approach to replacing legacy systems in Order Entry, Finance and Manufacturing will not work.

SVP of Manufacturing took the lead-put together a team in February to investigate the replacement

1.

Could not be an IT-only initiative -Must have the very best business people on the project. Need a strong integration partner to assist in both selection and implementation of the ERP solution. Selected KPMG because they brought experienced people to the engagement, not greenies. Team of 20 people tapped the actual experience of large corporations and knowledge of sources such as Gartner Group -Narrowed the field to 5candidates within 2days

2.

3.

4.

5. After a week of evaluating the packages at a high level, two prime candidates were selected Oracle was one. Size of the vendor was an issue in the selection. 6. Team Spent 10 days on the Request for Proposals. Vendors given 2 weeks to respond.
7.

Visited reference clients of each vendor as part of due diligence.

8. Vendors invited for a 3 day software demo. To show how software could meet Ciscos needs using sample data from Cisco .

9. Oracle selected because Better manufacturing capability Made number of promises about long term development of functionality Same location as Cisco

Total Time : 75 days Time clock: May 1, 1994 Next step: Board Approval

1.

2.
3. 4.

5.

Ciscos Financial Year: August 1-July 31 Constraint : Can not implement in Quarter 4 One option : July/August 1995 Rejected it-too late Worked back wards :
Qtr 3 System should go live So it would be completely stable for Qtr 4
Target Date : February 1995 Project Time : 9months

1. 2.

Cisco had NO CHOICE but to move Three Options

1. Upgrade legacy system 2. Replace it in parts 3. Big bang implementation One ERP solution for all systems in 9 months time

3. 4.

ERP Project Cost : $ 15 Million

Single largest capital project at the time

Justification :
- No CostBenefit Analysis. -We are going to do business this way.

ERP System became one of Ciscos top 7 goals for the year.

Executive Steering Committee - VPs of Manufacturing & customer Advocacy - Corporate Controller & CIO - Oracles Senior VP of Applications - KPMGs Partner-in-charge of West-Coast Consulting Project Management Office - Ciscos Business Project Manager - KPMGs Project Manager Team of 100 members placed onto one of 5Tracks (process areas) - Order Entry, Manufacturing, Finance, Sales/Reporting and Technology

Function Area Tracks had - Business Leaders, It Leaders - Business and IT Consultants (KPMG and Oracle) - Users

Hand-Picked the best and brightest Rules of engagement - Short-term - No career change - It was a challenge To each Person - the project was THE opportunity.

The Project was divided into 4 different versions

Version 0

This version had trainings for the learners. Configuration of Oracle Packages, Small Parallel Tiger Team set up by the system Realized that modification were required despite compelling reasons not to.

Goal: Make the system work in each track Modeled the business process in detail and documented the issues Weekly 3-hour meetings with track leader store solve issues Found that software could not support huge number of business processes Classified required modifications as Red, Yellow or Green Steering Committee had to approve a Red 30 developers needed for 3 months After-sales support needed another package since Oracle could not handle it.

October 1994: Most difficult part of the project Project scope had expanded Major modifications to Oracle New after-sales support A data warehouse was necessary Did not convert any history - the data warehouse became the bridging system for reporting history and future in an integrated data conversion. Final test with full complement of users - Captured a full days business data - re-ran it on a Saturday in January 1995 - Team members gave go signal after watching each track executing the simulated day.

1.

Over sight by Top Management

CEO made the project one of the companys top 7 goals for the year and track edits progress in executive staff meetings, company- wide meetings and board meetings.

2.

Project was NOT an ITonly Initiative

Hand-picked the best business people to work with IT personnel on the project. Team of 100 members placed on to one of 5 tracks (process areas).

1.

Implementation Responsibility at Two Levels

-Executive Steering Committee composed of VPs of Manufacturing and Customer Advocacy, CIO, Corporate Controller and Senior VPs of Vendors. -Project Management Office headed by business manager overseeing the 5 tracks, each of which had a business leader and an IT leader jointly overseeing the work of the team.

Well Communicated Top Management Commitment Put Best People on Team Can Do Team Attitude High Priority in Company Project End Date Defined by Business Factors Select Hungry Vendors Financially Strong Vendors High-Level Vendor Personnel on Steering Committee Structure of Hardware Contract ( Capability- Based ) Seasoned, Experienced Consulting Support.