ERP SYSTEMS

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WHAT IS ERP?

 Enterprise (E) Resource (R) Planning (P)

 A set of integrated software modules for supporting all of an
enterprises business processes in real-time
 Sales, Production, Logistics, Purchasing, Accounting, and Human
Resources share relevant information with each other as needed
 Uses programs (modules) and software to manage info in every area of
the business
 Uses common databases and shared management reporting tools
 Uses integration to streamline processes that occur in real-time.
 ERP is a company-wide, cross-functional, tool, that helps an
organization to be successful in its operations
FUNCTIONAL SILO VIEW OF AN ORGANIZATION

Information?

Production
ADVANTAGES OF AN ERP SYSTEM

 It breaks down the walls and barriers within a company.

IT HELPS MANAGEMENT TO MAKE BETTER DECISIONS

 ERP’s information is very visible and up to the second

 Examples: Inventory Mgmt., Financial Status, Hiring
Training, Customer Credit
Expected Sales
1st Quarter 2012
5

0
REFERRED TO AS REAL TIME PROCESSING
ERP PROCESSES DATA INSTANTLY

 The time that it takes Enter Shipping

for information to be transaction
delivered within an
integrated system from
the resource to the Relational Database
target is instant! stores raw data

Data is
instantly
available
 ERP ENABLES AND SUPPORTS BUSINESS PROCESSES

 Procurement
 Fulfillment
 Production
ERP FROM 10,000 FEET
COMPONENTS OF AN ERP SYSTEM

 Hardware
- Servers, fax machines, printers, communication networks, etc.
 People
- Who work in M/S, SCM, FI, and HR
 Software (modules/programs/logic)
 Business Functions
 Business Processes
 Centralized Databases
 Information/Raw Data
LEADING ERP VENDORS

 SAP
 Microsoft Dynamics
 Oracle eBusiness Suite
 Epicor Software Corporation
 Infor Global Solutions
 Oracle JD Edwards
 Oracle PeopleSoft
 IFS North America
 Sage North America
 Activant Solutions, Inc.
GETTING DATA OUT OF ERP SYSTEMS

 Types of reports
– Routine reports/“canned”
o Weekly sales, production, expenses reports
– Ad-hoc
o Sales of product for X period of time versus X period of time last year
– Exceptions
o When certain conditions occur outside predetermined thresholds
– High-level executive summary
– Drill-down detailed
 Where does the information come from?
– Live ERP environment: data is generated in real-time from the live
environment
– Data Warehouse
GETTING DATA OUT OF ERP SYSTEMS

 Example of reporting options in an SAP environment:

– SAP Business Intelligence
– SAP Business Warehouse
– BEx Web
– BusinessObjects Enterprise
– Crystal Reports
– SAP Query
– InfoSet Query
– AD Hoc Query
– Quick Viewer
– DART for tax reporting
– WinShuttle
– Duet for Microsoft Office
GETTING DATA OUT OF ERP SYSTEMS

 In what formats can data be generated from ERP?

– It will depend on reporting utility and technology used, but common
formats include:
o Spreadsheet
o .csv
o .pdf

 If extracting data directly from the database then additional

options may be available using database capabilities
SAP ERP
WHAT IS SAP?

 It’s an acronym:
– S A P =“Systems, Applications, and Products in Data Processing”
 That stands for a company: SAP AG
– Founded in Walldorf, Germany in 1972
– World’s Largest Business Software Company
– World’s Third-largest Independent Software Provider
 It’s the name of the software sold by SAP:
– SAP R/2
– SAP R/3
– SAP ERP
 Company Statistics
– Over 40,000 employees in more then 50 countries
– 1500 Business Partners
– 36,200 customers in more then 120 countries
– 12 million users
– 100,600 installations
SAP ARCHITECTURE

 Client/Server Environment
– Client – hardware/software environment that can make a request for
services for a central repository of resources
– Server – hardware/software combination that can provide services to a
group of clients in a controlled environment
 Three – Tier Structure
– GUI
o Graphical User Interface or Web Interface
– Application Server
o One or more, help distribute work load
– Database Server
o One single data repository
SAP ARCHITECTURE

PCs, Laptops, etc. Browser Client

Network

Web Server
Internet
Presentation Transaction
Server

Application Application
Servers
Database
Database
SAP BUSINESS SUITE

SAP PLM

SAP SAP SAP

SRM ERP ECC 6.0 CRM

SAP SCM

SAP NetWeaver
SAP BUSINESS SUITE

SD FI
MM SAP PLM
CO
PP AM
SAP R/3 SAP SAP SAP
Client/Server SRM ECC CRM
QM ABAP PS
PM Basis
WF
SAP SCM
HR IS

SAP NetWeaver
SAP SOFTWARE APPLICATIONS

 Solutions  Small & Medium Size Solutions

– SAP ERP - Business One
– SAP CRM - Business by Design
– SAP PLM - SAP All-in-One
– SAP SCM
 Platforms
– SAP SRM
- Enterprise Services Architecture
– SAP Analytics
- SAP NetWeaver Platform
– SAP Manufacturing
– SAP Service
– SAP Mobile Solutions
– SAP xApps
SAP ERP CORE APPLICATIONS

 Accounting  Human Resources

– Financial Accounting - Personnel Management
– Controlling - Benefits
– Asset Management - Payroll
– Treasury
 Logistics
– Sales & Distribution
– Plant Maintenance
– Materials Management
– Production Planning
– Quality Management
CASE STUDY

 Company:
– Global operations, HQ in USA
– 6 billion sales
– 22,000 employees
– Manufacturing and engineering
– Multiple acquisitions
– Mainframe based systems plus dozens of different ERP and business systems
 Started deploying SAP in 2006 (still in process of deploying!)
– Rolled out geographically and by business process
– No single retention or purging policy: are trying to determine appropriate
approach
– Infrastructure is Oracle database, SAN storage, LINUX servers
– Have 4 environments: production, sandbox, DR, and test
CASE STUDY-SAP MODULES DEPLOYED
CASE STUDY: BACKUP POLICY FOR SAP
SAP EASY ACCESS MENU
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