Chapter 2: Enterprise Systems
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Outline
 Enterprise Systems
 Types of Enterprises Systems
 Types of Data in ES
 Super Skateboard Builders, Inc.
 SAP Overview
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Enterprise Systems
 Three stages of evolution
 Stage 1: Stand-alone Mainframe Systems
 Stage 2: Client-Server Architecture
 Stage 3: Service-Oriented Architecture (SOA)
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
The New Stack – Process Is the Next Platform
Client
Punch Card or Terminal
(10’s ofCustom
users)
PC or Internet
Any Device
(1000’s of users)
(Millions of users)
Composites
Applicatio
n
Data
Management
Application
OS and
Database
Mainframe
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Application
Application
Application
OS
OS
OS
DB
OS
OS
OSApplications
OS
OS
DB
OS DB
OS DB
OS
OS
Client
Server
Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SOA
Composites
OS
OSApplications
OS
OS
DB
OS DB
OS DB
OS
OS
3-tier Client Architecture
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Types of Enterprise Systems
 The ES Application Suite
 Enterprise Resource Planning (ERP)
 Supply Chain Management (SCM)
 Supplier Relationship Management (SRM)
 Product Lifecycle Management (PLM)
 Other classifications
 Best of breed vs. Niche applications
 Software as a service (SaaS)
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
The application suite
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SAP ERP Solution Map
End-User Service Delivery
Financial Analytics
Analytics
Financial Supply Chain
Management
Financials
Treasury
Talent Management
Financial Accounting
Workforce Analytics
Management
Accounting
Workforce Process Management
Corporate Governance
Workforce Deployment
Procurement
Inventory and Warehouse
Management
Inbound and Outbound
Logistics
Transportation Management
Product Development and
Manufacturing
Production Planning
Manufacturing Execution
Product Development
Life-Cycle Data Management
Sales and Service
Corporate Services
Sales Order Management
Real Estate
Management
Enterprise Asset
Management
Aftermarket Sales and Service
Project and
Portfolio
Management
Travel
Management
Environment, Health,
and Safety Compliance
Mgmt.
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Professional-Service Delivery
Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Quality
Management
Global Trade
Services
SAP NetWeaver
Procurement and Logistics
Execution
Shared Service Delivery
Human Capital
Management
Operations Analytics
SAP Supply Chain Management
Demand & Supply
Planning
Procurement
Manufacturing
Warehousing
Transportation
Real World Awareness
Supply Chain Visibility
Supply Network
Collaboration
Supply Chain
Management with Duet
Safety Stock Planning
Supply Network
Planning
Distribution Planning
Strategic Sourcing
Purchase Order Processing
Invoicing
Production Planning & Detailed
Scheduling
Manufacturing Visibility & Execution &
Collaboration
MRP based Detailed Scheduling
Inbound Processing &
Receipt Confirmation
Outbound Processing
Cross Docking
Sales Order Processing
Freight Management
Billing
Planning & Dispatching
Supplier Collaboration
Physical Inventory
Service Parts Order Fulfillment
Rating & Billing &
Settlement
Supply Chain Event Management
Strategic Supply Chain Design
Warehousing & Storage
Driver & Asset
Management
Network Collaboration
Auto ID / RFID and Sensor Integration
Supply Chain Analytics
Supply Chain Risk Management Sales & Operations Planning
Customer Collaboration
Demand Planning in MS Excel
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Service Parts Planning
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Outsourced Manufacturing
SAP NetWeaver
Order Fulfillment
Demand Planning &
Forecasting
SAP Supplier Relationship Management
Purchasing Governance
Global Spend Analysis
Category Management
Compliance Management
Sourcing
Central Sourcing Hub
RFx / Auctioning
Bid Evaluation & Awarding
Collaborative
Procurement
Legal Contract Repository
Contract Authoring
Self-Service Procurement
Supplier Collaboration
Supply Base Management
Contract Negotiation
Services Procurement
Contract Execution
Direct / Plan-Driven
Procurement
Catalog Content Management
Web-based Supplier Interaction
Direct Document Exchange
Supplier Network
Supplier Identification & Onboarding
Supplier Development & Performance
Management
Supplier Portfolio Management
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Contract Monitoring
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SAP NetWeaver
Contract Management
SAP Product Lifecycle Management
Product Management
Product Strategy and
Planning
Product Portfolio
Management
Product Data Management
Product Master and
Specification and Recipe Service and Maintenance
Structure Management Management
Structure Management
Product Costing
Visualization and
Publications
Tool and Workgroup Project and Resource
Integration
Management
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Product Quality
Management
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Market Launch
Management
Product Change
Management
Configuration
Management
Document
Management
SAP NetWeaver
Engineering, R&D
Collaboration
Product Compliance Product Intelligence
Manufacturing
Collaboration
Service and
Maintenance
Collaboration
Product Development and
Collaboration
PLM Foundation
Supplier
Collaboration
Requirements
Management
Innovation Management
SAP Customer Relationship Management
Sales
Sales Planning
Performance
& Forecasting
Management
Segmentation & List
Management
Territory
Management
Campaign Management
Accounts &
Contacts
Opportunity
Management
Real-Time Offer
Management
Quotation &
Order
Management
Service Order Service Contract Complaints &
Case
In-House Repair
Management Management
Returns
Management
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Pricing &
Contracts
Installed Base
Management
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Lead Management
Incentive &
Commission
Management
Warranty
Management
Time &
Travel
Resource
Planning
Business Communication
Management
Marketing Resource
Management
Trade Promotion Management
Service
Interaction Center
Web Channel
Sales
Partner Channel Management
Marketing
Other classifications of ERP systems
 Best of Breed
 Niche
 Software as a Service
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Types of Data in ES
 Organizational Data
 Master Data
 Transaction Data
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Organizational Data
 Defines the organizational structure of the enterprise
 Includes definitions of:
 Companies (subsidiaries, etc.)
 Divisions based on, product or geographical hierarchy
 Sales organizations
 Purchasing organizations
 Physical facilities: plants, warehouses, distribution centers
 HR organization
 Functional areas, reporting relationships
 Data rarely changes
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Master Data
 Define key entities in an organization
 Customers
 Basic information: name, address, contact information
 Financial information: payment terms, methods
 Sales information: delivery terms
 Vendors / suppliers
 Similar information as customer
 Products




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Basic data: description, weight, color
Purchasing data
Sales data
Manufacturing data
Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Master Data
 Employees
 Basic data
 Personal data: dependents
 Payroll data
 Tax data
 Data changes occasionally
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Transaction Data
 Data that is the consequence of day-to-day transaction
 Who, what, when, where, how, how much
 Sales
 Customer, products, quantities, dates and times, location
(shipping, delivery), sales person
 Purchase
 Vendor, products, quantities, dates and times, location
(delivery), sales person, requester
 Production
 Materials, quantities, facilities, resources (machine, people),
dates and times, locations (storage, production)
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Super Skateboard Builders, Inc.
 History
 Product Line
 Customers
 Vendors
 Plant Layout
 Employees
 Information Systems
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SSB, Inc. - Product List
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SSB, Inc. - Customer List
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SSB, Inc. - Vendor List
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SSB, Inc. - Plant Layout
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
SSB, Inc. - Organizational Chart
John Z. Boeve
(President)
Maria Rivera
(Office Manager)
Catherine
VanderBos
(Plant Manager)
Charles Skivers
(Shop Floor)
Patrick Stevens
(Sales Manager)
Shana Smith
(Accountant)
David Bloomberg
(Warehouse
Manager)
Tom Jones
(Warehouse)
Mark McKendry
(Shop Floor)
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009
Martha Seward
(Purchasing
Manager)
SAP Overview
Copyright SAP AG 2008
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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009