ERP SYSTEMS 4:00-4:15

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 Sales Accounting Purchasing Production Logistics Information?

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

REFERRED TO AS REAL TIME PROCESSING

ERP PROCESSES DATA INSTANTLY  The time that it takes for information to be delivered within an integrated system from the resource to the target is instant! Enter Shipping transaction Relational Database stores raw data Data is instantly available

ERP ENABLES AND SUPPORTS BUSINESS PROCESSES  Procuremen t  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 Database Application Presentation Browser Client PCs, Laptops, etc. Network Application Servers Internet Transaction Server Web Server

SAP BUSINESS SUITE SAP NetWeaver SAP SCM SAP PLM SAP SRM SAP CRM SAP ERP ECC 6.0

SAP BUSINESS SUITE SAP NetWeaver SAP SCM SAP PLM SAP SRM SAP CRM SAP ECC SD MM PP QM PM HRIS WF AM CO FI PS SAP R/3 Client/Server ABAP Basis

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

SAP ERP CORE APPLICATIONS  Accounting –Financial Accounting –Controlling –Asset Management –Treasury  Logistics –Sales & Distribution –Plant Maintenance –Materials Management –Production Planning –Quality Management  Human Resources -Personnel Management -Benefits -Payroll

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

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