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

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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

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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