Download - Hasbro Develops a Global System Strategy
Hasbro Develops a Global System StrategyKristian, Benli & Jansen
05/03/2023
05/03/2023
Hasbro One of the largest toy
manufacturers in the world
Operating in North America, Latin
America, South America, Asia
Pacific and Europe
$4 billion revenue (2010)
5,800 employees (2010)
They want a new ERP system to
compliment their global strategy
05/03/2023
Introduction to ERP System Integrating business
processes into a single
software system
Allows data flow to be
automatic and more
efficient
Accessible through
departments and
corporation
ERP System
Customer Relationship Management
Financial Management
Supply Chain Management
Manufacturing Resource Planning
Human Resource
Management
05/03/2023
SAP/R3
Implemented in 1998
Big bang adoption
Expanded to 27 different
countries
Easy customization
05/03/2023
Key Problem 1: Inefficient ERP System
27 different countries
27 different business processes
Different terminologies
Unnecessary steps
Needless forms or process division
Resulted in very inefficient business processes
05/03/2023
Key Problem 2: Can’t maximize opportunities in foreign operations
Current system was not standardized and centralized
Finance & accounting, HR, and strategic management need to
be centralized
Migrating to a multinational company
Hasbro are expanding to new regions of the world
Revenue will grow larger outside the United States
New ERP system needs to be integrated quickly and efficiently
to maximize growth
05/03/2023
Solution:SAP ECC6 Successor of SAP R/3 For mature markets Long implementation time Complex
SAP Business One Immediate need For emerging markets Move to bigger ERP infrastructure when markets are mature
The result is a larger SAP enterprise infrastructure supporting Hasbro’s global strategy
05/03/2023
Reasons for implementing ERP
To im
prove
busin
ess p
erform
ance
To bett
er in
tegra
te sy
stem ac
ross
mult
iple l
ocatio
ns
To bett
er se
rve cu
stomer
s
To ens
ure r
epor
ting /
regu
lator
y com
plian
ce
To re
place
an old
ERP or le
gacy
syste
m
To pos
ition t
he co
mpany
for g
rowth
To m
ake e
mployee jo
bs ea
sier
To st
andar
dize g
lobal
busine
ss ope
rations
To re
duce
worki
ng ca
pital
To app
ease
the p
aren
t com
pany o
r othe
r stake
holder
s
Becau
se other
compan
ies hav
e ERP
0%2%4%6%8%
10%12%14%16% 15%
14%
12%11% 11%
10%
8% 8%
5%4%
3%
Source: Panorama Consulting’s 2014 ERP Report
05/03/2023
Justification of solutionImproving decision-making Shared service structure
Individualized support to local units Quick accessing and analyzing of trends and sales data Improve analysis of point-of-sale data
Improvement in operations Flexibility and scalability Integrates business processes Reduce operating costs Data consistency
Results in a unified vision for the future
05/03/2023
Type of Benefits Realized
Availa
bility
of in
formatio
n
Impro
ved p
rodu
ctivit
y and
effic
iency
Increas
ed in
teracti
on ac
ross
enterp
rise
Less
duplic
ation o
f effo
rt
Impro
ved d
ata relia
bility
bette
r infor
med de
cision
-makin
g
Impro
ved i
nteracti
on with
custo
mers
Contro
ls for
complia
nce
Impro
ved i
nteracti
on with
supp
liers
Impro
ved l
ead-tim
e and i
nvento
ry lev
els
Reduce
d dire
ct op
erati
ng and
/or la
bor co
sts
Reduce
d IT m
ainten
ance
costs
We didn
't ach
ieve any
bene
fits 0%
2%4%
6%8%
10%12%
14%16%
14%
11%10%
9% 9%8%
7% 7% 7%6%
5%4%
2%
Source: Panorama Consulting’s 2014 ERP Report
05/03/2023
ERP Project Duration
36%
25%
15%
15%
7%
2%
Over schedule by 25% or lessOn scheduleOver schedule by 26%-50%Over schedule by more than 76%Over schedule by 51% to 75%Earlier than scheduled
Source: Panorama Consulting’s 2014 ERP Report
05/03/2023
ERP Implementation Costs
37%
32%
12%
9%
6%4%
On budgetOver budget by 25% or less26% - 50% over budgetUnder budgetOver budget by more than 76%51% - 75% over budget
Source: Panorama Consulting’s 2014 ERP Report
05/03/2023
Potential issues for the implementation Complexity might be underestimated
Less focus on business and lower efficiency
The needs and benefits may be overestimated
Inconsistency with existing business processes
Political laws, speed, reliability, standards, personnel, social
expectations, and culture differences
05/03/2023