Enterprise Resource Planning Systems (ERP)

Enterprise
Resource Planning
Systems (ERP)
INFSY 489 / IST 402
Spring 2005
ERP
 Systems designed to integrate all of
an organization’s information
 Technical Perspective
 Integrates an organization’s computing
 Consistency
 Efficiency
ERP
 Financial Perspective
 Economic savings from integrated
system
 Organizational Perspective
 End-users learn to use one system
 Enhances intra-organization
communication
ERP History
 Started by SAP in early 1970’s
 Vendors usually made sales of modules
rather than whole systems
 Minimize risk
 High price tag
 Since Y2K, vendors have shifted

 Towards small to midsize firms
 Fill in missing modules in large companies
SAP
 Systems, Applications, and Products
in Data Processing (SAP)
 Name of the company
 SAP AG (German company; translation issues)
 SAP America
 Name of the software
 SAP R/2 – Mainframe version
 SAP R/3 – Client/Server version
© SAP AG and Th
e Rushmore Group, LLC 2004
SAP
 Founded in Germany (1972) by former
IBM employees
 World’s fourth largest software
provider
 World’s largest provider of Integrated
Business Solutions software
 SAP Business One: Small business
 Company stock trades on the Frankfurt
and New York exchanges
© SAP AG and Th
Integrated Business
Solutions
Software Vendors
 SAP
 Oracle (PeopleSoft, J.D. Edwards)
 Microsoft – Great Plains, Axapta,
Solomon
 IBM
 BAAN
 IFS
© SAP AG and Th
Architecture
 Central relational database (e.g., Oracle,
Informix, Microsoft SQL and many others)
 Client/Server – three-tiered
 ERP Component – Oriented towards
common identifiable business modules
(FI, MM, SD, CO, PP, HR)
 Add-ons:
 Customer Relationship Mgmt (CRM)
 Supply Chain Mgmt (SCM)
 Product Lifecycle Mgmt (PLM)
© SAP AG and Th
Three-Tier SAP Structure
 GUI – Graphical User Interface or
Web Interface
 Application server (one or many)
 Database server (one single location)
© SAP AG and Th
SAP Enterprise System
SD FI
Sales and Financial
Distribution Accounting
MM CO
Materials Mgmt. Controlling
PP
Production
SM Planning
R/3 AM
Fixed Assets
Mgmt. EC
Service
Mgmt.
Client / Server Enterprise
QM Integrated Business PS
Controlling
Quality
Project
Mgmt.
PM Solution WF System
Plant Maintenance Workflow
HR IS
Human Industry
Resources Solutions
© SAP AG and Th
Business Modules
 Collections of logically related
transactions within identifiable
business functions
 MM (“Buy”)
 PP (“Make”)
 SD (“Sell”)
 FI and CO (“Track”)
 HR
© SAP AG and Th
Accounting
 Balance Sheet
 List of assets, liabilities, and owner’s
equity for a specific date
 Account
 Ledger
 Journal entry
 Chart of Accounts
 T account
Smith Photographic Studio
Balance Sheet
September 30, 2004
______________________________________________________________________
Assets
Current assets:
Cash $ 1,631.00
Accounts receivable 1,775.00
Supplies 890.00
Prepaid rent 1,600.00
Total current assets $ 5,896.00
Plant assets:
Photographic equipment $17,500.00
Less accumulated depreciation 175.00 17,325.00
Total assets $23,221.00
========
Liabilities
Current liabilities:
Accounts payable $ 2,000.00
Salaries payable 115.00
Total liabilities $ 2,115.00
Owner’s Equity
Betty Smith, capital 21,106.00

Total liabilities and owner’s equity $23,221.00
========
SAP
 SAP was developed to support
manufacturing
 Integrated that with financial and
account functions
ERP Advantages
 Integrated system shared by all users
 Coordinate information flow across
organization
 Lower computing costs in the long run
 Better customer service
 Strategic cost advantages
 Improve decision making
 Support business growth
ERP Disadvantages
 Impose one procedure for entire
organization
 Best Practices
 May involve significant change in how
work is done
 Lower computing costs in the long run
 May not be realized
 Hidden costs of lost productivity on new
system
Access SAP at PSU
 After clicking on
the SAP icon on
the desk top, the
Logon screen
appears
 Select the “New”
button
Access SAP at PSU
 Enter the
Description,
Application
Server, select
the R/3 radio
button, and
enter “00” as
the system
number.
 Then click “OK”
Access SAP at PSU
 Select your SAP07
description
 Click on “Logon” button
 Enter the client at 403
 Enter your access
account ID
 Starting password is
“init”
 Change your password
to your access account
ID, i.e., drw102
Access SAP at PSU
 Never, ever, finish your SAP session
by closing your window.
 You will not be automatically logged out
of the system
 Your user ID will not disconnect from
SAP for about 30 minutes.
 Always Logoff the system!
Access SAP at PSU over
the Web
 To access SAP from the Web, enter
the following URL:
 http://s07.win.psu.edu/scripts/wgate/
webgui/!
 Client is 403

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Enterprise

 Since Y2K, vendors have shifted

Betty Smith, capital 21,106.00

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