INFO245: Introduction to Enterprise Resource Planning ERP Chapter 3: ERP Systems Background - PowerPoint PPT Presentation


PPT – INFO245: Introduction to Enterprise Resource Planning ERP Chapter 3: ERP Systems Background PowerPoint presentation | free to view - id: 174044-YWVlM


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation

INFO245: Introduction to Enterprise Resource Planning ERP Chapter 3: ERP Systems Background


Others niche/specialty. SYSPRO: Small manufacturers ... Alliance. Platform. Technology. Complimentary software. ERP provides nearly 50% of 'Big 5' revenue ... – PowerPoint PPT presentation

Number of Views:792
Avg rating:3.0/5.0
Slides: 28
Provided by: valu84


Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: INFO245: Introduction to Enterprise Resource Planning ERP Chapter 3: ERP Systems Background

INFO245Introduction to Enterprise Resource
Planning (ERP)Chapter 3 ERP Systems Background
Chapter Objectives
  • What is an ERP system?
  • Who are the ERP vendors?
  • What are ERP partners?
  • What are some sample ERP modules?
  • What does it mean to talk of best of breed
  • What are add-ons to ERP?
  • What are ERP MAPs?
  • How do ERP systems work?

  • What is an ERP system?
  • Packaged software designed for client/server
  • Integrate the majority of business processes
  • Process the majority of business transactions
  • Uses a single, enterprise-wide database
  • Allows access to data on a real-time basis
  • Allows integration between process and planning
  • Support multiple currencies, languages, etc.
  • Can be modified without programming

  • What about Add-Ons?
  • Add-Ons are software packages that
  • are written by third-party developers
  • are written to work with specific ERP systems
  • enable functionality not in the ERP system
  • are encouraged and certified by the ERP vendor
  • Provided by ERP Software Partners
  • These partners provide complete, technically
    verified turnkey software solutions that extend
    and add value to SAP solutions. In addition,
    third-party software vendors can develop
    applications based on SAP's standard,
    release-stable interfaces.
  • Example IBM Datastage provides the ability to
    input data into SAP R/3 database during data

  • ERP Evolution
  • Material Requirement Planning (MRP)
  • Inventory reordering tool
  • Manufacturing Resource Planning (MRP II)
  • Extended to managing manufacturing process
  • Enterprise Resource Planning (ERP)
  • Complete back office
  • Web Enabled Supply Chain
  • Extending the capabilities of ERP to customers,
    suppliers, distributors etc.
  • SOA plays a big role here

Supply Chain Management and Collaborative Commerce
Industry Life Cycle Stages
ERP software industry is here
ERP Vendors
  • Oracle -
  • Peoplesoft -
  • J.D. Edwards -
  • SAP -
  • SSA Global -
  • Others niche/specialty
  • SYSPRO Small manufacturers
  • Banner Universities
  • Meditech Hospitals

ERP Vendors
  • Consolidation is currently taking place in the
    ERP software business
  • PeopleSoft purchased ERP vendor J.D. Edwards in
  • Oracle, after a long battle, acquired PeopleSoft
    in 2005
  • SAP and Oracle are now the two largest ERP
  • Microsoft is challenging SAP and Oracle to sell
    ERP systems to small- and medium-sized businesses
  • Other vendors

The Current Players
  • Founded 1972 in Waldorf, Germany
  • Largest market share (30 - 60)
  • Revenues exceed 5 Billion
  • Used by approx. 60 of multinationals
  • Fourth largest supplier of software trailing
    Microsoft, Oracle and Computer Associates
  • Over 2.5 million users
  • Over 9,000 implementations of R/3 at over 6,000

The Current Players
  • Founded 1978 in the Netherlands
  • Revenues of over 750 million
  • Approximately 3000 clients.
  • Boeing put them in the spotlight in 94
  • Now SSA Global

The Current Players
  • Founded 1977
  • Second largest software provider in the world
  • Known for their DBMS, not ERP
  • ERP Revenues exceed 2.5 Billion
  • Data warehousing
  • Designed to accommodate over 1000 users
  • Meshed with PeopleSoft/JD Edwards
  • Also a strong player in the CRM market with
    acquisition of Siebel
  • Why is this important?

The Current Players
  • Oracle acquired Peoplesoft in 2004
  • Third largest ERP vendor
  • Revenues exceed 1.5 Billion
  • Known for its broad HR Capabilities
  • Designed to accommodate between 10 - 500 users
  • PeopleSoft acquired all remaining shares of J.D
    Edwards in August 2003
  • ERP product OneWorld
  • ERP Revenues exceed 979 million
  • Has been leading supplier of AS/400 applications
  • Designed for between 5 and 500 users

  • What are ERP Partners?
  • ERP vendors dont implement the majority of what
    they sell
  • Why not?
  • SAP uses four types
  • Alliance
  • Platform
  • Technology
  • Complimentary software
  • ERP provides nearly 50 of Big 5 revenue
  • Accenture (Anderson Consulting)
  • PriceWaterhouse Coopers (IBM)
  • Deloitte Touche
  • Ernst Young
  • KPMG (Bearing Point)

What is SAP?
  • A series of integrated core business application
    modules for transaction processing
  • A set of functions that implement best business
  • Client/Server software that processes business
  • A methodology for implementing application
  • Industry-specific applications

From SAPs website
R/3 Core Business Processes
Sales Distribution MaterialManagement Productio
nPlanning QualityManagement PlantMaintenance Hu
Financial Accounting Controlling Fixed
AssetManagement ProjectSystem Workflow Industry
SAP Industry Solutions - example
  • Buy the best application software for
    individual functions/processes in the
  • Integrate yourself to provide same functionality
    as ERP
  • Issues?

  • Dangerous and expensive to try to piece together
    best-of-breed applications
  • The more systems a company has the more break
    points exist
  • Best-of-breed is fine as long you have some kind
    of backbone system
  • Instead of having all apps interconnect, they
    connect to the same single backbone which
    simplifies the integration process

  • ERP MAPs
  • Configuring an ERP system means making choices
    about the models, artifacts and process that will
    be used.
  • Models Representation of reality e.g.
    Organization Structure
  • Artifacts Electronic documents for input or
    output, lists and reports
  • Processes Flexible ways to accomplish -
  • Buying
  • Selling
  • Making
  • Accounting / Reporting

Example Organizational Structures Model
Models of reality. Example how inventory
levels can be tracked. Other
Models Products/Bill of Materials Chart of
Accounts (G/L) Clients Q what might the model
for a client look like?
Company 2
Company 1
PurchasingOrg. 1
Sales Org. 1
Plant 2
Plant 1
Warehouse 1
Warehouse 2
Storage Bin 1
Storage Bin 2
Example Artifacts
  • Invoices
  • Shipping documents
  • Management reports
  • ERP systems delivers a standard set
  • Artifacts can be tailored to organizations
  • What might some artifacts be in banking industry

Example Order Management Process for a
Commit- ment
Credit Check
Configur- ation
Do you think this process is the same across
Sales Distribution
Sales Distribution
Sales Distribution
Materials management
Production Planning
Example of How ERP Works
  • Step 1 Brazilian retailer orders, via the
    Internet, 1,000 shoes from International Shoe Co.
    A sales rep takes the order, routes it to ERPs
    ordering module, ERP checks the retailer credit,
    price, etc. The order is approved.
  • Step 2 Simultaneously ERPs inventory module
    checks the stocks and notifies the rep that half
    the order can be filled immediately from stock.
    The other half will be manufactured and delivered
    in 5 days directly from the factory in Taiwan.

Example of How ERP Works
  • Step 3 ERPs manufacturing module schedules the
    production in Taiwan and instructs the warehouse
    (in Chinese) to ship the shoes to Brazil and
    print up an invoice (in Portuguese).
  • Step 4 ERPs human resources module calculates
    labor requirements. Due to a shortage, the
    personnel manager in Taiwan is instructed to get
    temporary workers.
  • Step 5 ERPs material planning module notifies
    the purchasing manager about a shortage of purple
    dye. A purchase order is automatically issued.

Example of How ERP Works
  • Step 6 The customer logs on via the extranet to
    the companys sneakers division. He can see that
    500 shoes were shipped from the regional
    warehouse. This is done with ERP tracing
  • Step 7 Based on data from ERPs forecasting and
    financial modules, the CEO can determine both
    demand and profitability per product. The
    financial module also converts all foreign moneys
    to U.S., whenever needed

  • ALL
  • What are the major factors that drove Geneva to
    implement SAP (think about both internal and
    external factors)?
  • (My) right side of class
  • Do you think SAP can meet Genevas expectations?
    What expectations do think can be met? Which
    will prove difficult to meet?
  • (My) left side of class
  • Geneva plans to use SAP to change the culture at
    Geneva. What are the advantages and
    disadvantages of this approach to culture change?