Enterprise Resource Planning, 1st

Edition by Mary Sumner

Integrated Case Study: Bandon

Group, Inc.

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-1

 Business Background

Family owned distributor of office

equipment, also leases
Grew due to good customer service, technical
support, and innovative products
Currently has four divisions
Decentralized to meet needs of local markets
Corporate headquarters handles central
administrations, information systems support
Primary objective to generate 10% profit for re-
investment
Excellent sales organization and professional service
organization
Serves mid-market companies
Reputation for quality and service at cost-effective price

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-2

 Information Systems

Custom software developed

Handles administrative information systems
Most are generic
Meter click billing software unique for industries
Outgrew legacy system
Hired Director of Information Technology
Searched for commercial off-the-shelf package to
support administrative information systems
Selected OMD
Supported meter-based billing
Web-based interface
Not built with relational database, so ad hoc difficult

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-3

 Sales Tools

Sales Prospecting
Acquired Pivotal
Supports ad hoc queries in relational database
Use external market databases to create prospect
databases
Did not integrate with OMD
Customer information had to be re-entered
Inconsistencies existed
Licenses lapsed
Sales people adopted contact management tools
CRM applications developed internally
Service alerts, excess volume reports

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-4

 Other tools, continued

Evaluated several CRM tools

Microsoft CRM
Integrates with Office, but not OMD
Soaring
Sales prospecting package
Based on Microsoft SQL server
Integrate with OMD
Microcomputer-based sales programs
Goldmine
inexpensive
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-5
 ERP Considerations

Lack of integration
Duplication of data
Data inconsistencies
Trouble with migrating data
Central IT staff small
Difficult to supply support, training for multiple
systems
Competition employing ERP
Many had eBusiness solutions
OMD had proprietary database and could
not move to eBusiness
Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-6
 Information Systems Study

External consulting firm needed

Analyze current system
Assess problems
Propose changes
Address senior management concerns
Need for tactical and strategic information
Need to standardize business practices
Need for more targeted marketing

Prentice Hall, 2005: Enterprise Resource Planning, 1st Edition ICS-7

 Study Steps

Step 1: Purpose and scope of the study

Objectives
Benefits
Step 2: Executive management interviews
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 ICS-8