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Chapter 2
computer, the Harvard Mark I, predicted in 1947 that only six electronic digital
computers would be needed to satisfy the computing needs of the entire United States.
42 Hewlett-Packard passed up the opportunity to market the computer created by Steve
Wozniak that became the Apple I. And Microsoft founder Bill Gates did not appreciate
the importance of the Internet until 1995, by which time Netscape controlled the bulk of
the Internet browser market. (Gates, however, did dramatically reshape Microsoft around
an Internet strategy by the late 1990s. Its Internet Explorer browser is now more
commonly used than any other.) Thus, even people who are most knowledgeable about a
new technology do not always fully understand its capabilities or how it will change
business and society.
ERP systems have been in common use only since the mid-1990s. As this young
technology continues to mature, ERP vendors are working to solve the adaptability
problems that plague customers. The growth in the computing power of mobile devices
such as smartphones and tablets will create more opportunities for ERP companies to
develop applications that provide customers with instantaneous data while improving
their efficiency.

ANOTHER LOOK

ERP Allows for Bakery Chain Expansion
Au Bon Pain, the bakery and café chain based in Boston, operates 200 outlets in the
United States and Asia. Over the last three years, Health magazine has named Au Bon
Pain one of America’s top five healthiest fast-food restaurant chains. The company had
an interest in expanding, and Tim Oliveri, the company’s chief financial officer, wanted
Au Bon Pain to be able to react to market changes more rapidly while also reducing its costs.
The company’s existing legacy information systems were holding it back, but the company’s
decision to implement an SAP ERP system is now helping it achieve these goals.
The new ERP system replaced disparate systems, some of which were in paper
format. This integrated enterprise system brings the storefront to the back office through
a number of different module implementations. With the single system, the company is
able to reduce its financial reporting cycle from weeks to days, and the system allows
better management of Au Bon Pain’s workforce through a Web-based portal. In addition,
the new system facilitates greater compliance with financial regulations and better sales
management, along with the electronic purchasing of all raw materials.
One impetus for installing this ERP system was for management to be able to digest
information on market conditions, and react quickly to open new stores or renovate
existing stores. For example, cafés in New York City have recently undergone major
renovations, resulting in double-digit sales increases. More cafes are planned to
open soon.
Question:
1. Assume you own and run a small local coffee shop. You do all your ordering of
ingredients for your coffee shop by hand—using pencil, paper, mail, and
telephone. All your sales are recorded by hand in a book, and transcribed for
filing of small-business taxes. How could a small ERP system help your
business become more efficient? What would an ERP system allow you to do?

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