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 Production 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 Expected Sales 1st Quarter 2012 5 0 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 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 Browser Client PCs, Laptops, etc. Network Web Server Internet Transaction Server Presentation Application Application Servers Database Database SAP BUSINESS SUITE SAP PLM SAP SRM SAP ERP ECC 6.0 SAP SCM SAP NetWeaver SAP CRM SAP BUSINESS SUITE SD FI MM SAP PLM CO PP AM SAP R/3 Client/Server ABAP Basis QM PM HR SAP SRM SAP ECC PS WF IS SAP SCM SAP NetWeaver SAP CRM 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 SAP EASY ACCESS MENU NEXT TOPIC GROUP EXERCISE