Managing an Enterprise Resource Planning System in a Dynamic Business Environment Steve Savis IT Team Leader, PeopleSoft Project Monsanto Company Enterprise Resource Planning • What Is Enterprise Resource Planning (ERP)? • The Evolution of ERP • ERP at Monsanto • Challenges of Managing the ERP System • The Future of ERP • Questions What Is ERP? • multi-module application software that helps organization manage its core business • product planning, inventory maintenance, supplier interaction, order tracking, financial and HR management • relational database system, client/server distributed architecture • business process analysis and retraining • rich functionality across all areas The Evolution of ERP • 1960s: Inventory Control • 1970s: Material Requirement Planning (MRP) • 1980s: Manufacturing Resources Planning (MRP-II) • 1990s: Enterprise Resource Planning (ERP) ERP at Monsanto • PeopleSoft project began in 1991 • First major company to implement PeopleSoft • HR, Payroll, and Benefits • Oracle platform • Team of 20 developers • U.S., Canada, Asia/Pacific, Latin America North ERP at Monsanto • • • • • • • U.S. Salaried and Wage Payrolls Center for Employee Services Total Compensation Employee Stock Purchase Plans Position Management EEO/AAP External Vendor Interfaces Challenges of Managing the ERP • • • • • Application Development Upgrades Globalization Mergers, Acquisitions, and Divestitures Communicating IT Value Application Development • • • • • Change Control Impact Analysis Testing and Documenting Training and Support Demand Management Upgrades • Development Freeze • Dealing with Customizations • Hardware Requirements of Other Applications • Beware of New Features • Intrateam Communication • Client Commitment Globalization • • • • • Requirements Definition Language Barriers Data Integrity Client Resistance “Follow-the-sun” Support Mergers, Acquisitions, and Divestitures • • • • • Understanding the Business Asking the Right Questions Collecting Data Clarifying Roles and Responsibilities Holding Debriefing Meetings Communicating IT Value • • • • Budgetary Crosshairs Quantifying the Benefits Providing Realistic Estimates Linking to New Technology The Future of ERP • move from client/server applications to Internet-based applications • “Enterprise applications for the Internet economy” • electronic commerce, sales force customization, and customer relationship management software • self-service applications; Web-based order entry Questions