erp paper - Andrew Trevelise David Hicks Jeff Schultz Noris...

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Andrew Trevelise, David Hicks, Jeff Schultz, Noris Pasic MIS 204H Prof. Glantz 10 December 2006 ERP Systems: Success and Failure As businesses enter the blur economy, data becomes more and more difficult to manage. Data from multiple functional areas is often stored in different places in different ways. Enterprise resource planning, or ERP, systems are used to solve this problem. Instead of each functional are having its own computer system, the entire company Under Armour: An ERP Success Story The sports apparel company Under Armour was founded in 1996 by former Maryland football player Kevin Plank. Specializing in compression athletic apparel, Under Armour grew rapidly. By 2001, the company was so large that it required an ERP system. Instead of using an integrated system to handle orders, Under Armour was still manually entering and storing all orders. Backorders were kept on clipboards in a warehouse closet. Dave Demsky was hired as the information-technology director and tasked with finding and implementing an ERP system. He chose the Lilly Software ERP system. This was an interesting choice, as the Lilly system is designed for light manufacturing firms, but Demsky liked the fact that he could easily customize it (Fogarty). The system implementation was a major success. The system cost $300,000 to implement, but according to Demsky, “We did $50 million [in sales] that year [2002], so $300,000 [spent on the ERP system] wasn't that bad” (Fogarty). The ERP system did more than
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simply increase sales for Under Armour. It has allowed them to upgrade from a 65,000 square
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erp paper - Andrew Trevelise David Hicks Jeff Schultz Noris...

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