A Student Introduction to ERP
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The document defines an ERP (Enterprise Resource Planning) system as an integrated tool that supports various business processes across an organization, promoting efficiency through real-time information sharing. It highlights the main components of ERP, including software modules for finance, sales, and logistics, as well as various vendors like SAP and Oracle. Although expensive to implement, an ERP system can yield a high ROI by breaking down barriers within the company and enhancing operational visibility.
A Student Introduction to ERP
- 2. Define an ERP system How ERP makes companies better Discuss software vendors The components of an ERP system What is ERP? Why Use ERP? Who makes ERP? Click Mouse Reveal Next Phase What are the attributes of ERP?
- 3. Enterprise: A unit of economic organization or activity. Resource: An ability to meet and handle a situation. Planning: The establishment of goals, policies, and procedures for a social or economic unit. Source: Merriam-Webster
- 5. ERP System: ….because it is a company-wide, cross- functional, tool, that helps a business, or a company, to be successful in its operations.
- 6. • A set of integrated software modules for supporting all of an enterprise’s processes in real-time. • Sales, Production, Logistics, Purchasing, Accounting, and Human Resources share relevant information with each other as needed.
- 7. • Uses programs (modules) are 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.
- 8. •It breaks down the walls and barriers within a company. Too, it removes the obstacles that can be related to a differences in geographical locations of external resources. Internally and externally.
- 9. 0 2 4 6 Expected Sales 1st Quarter 2012 ERP’s information is very visible and up to the second. Examples: Inventory Mgmt., Financial Status, Hiring Training, Customer Credit
- 11. Transactions are processed efficiently and quickly
- 12. Enter Shipping transaction Relational Database stores raw data Data is instantly available The time that it takes for information to be delivered within an integrated system from the resource to the target is instant!
- 14. I.e.. Consultant Fees, Licensing, Training. Change Management
- 15. Account & Finance A/F Marketing & Sales M/S Human Resources HR Supply Chain Mgmt. SCM
- 16. Account & Finance A/F (business processes) Marketing & Sales M/S (business processes) Human Resources HR (business processes) Supply Chain Mgmt. SCM (business processes)
- 17. • 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
- 18. SAP Modules are Packaged, Pre-Written, Programs (logic) that execute in the background when transactions are performed. • Production Planning (PP) • Materials Management (MM • Sales & Distribution (SD) • Financial (FI) • Controlling (CO) • Human Resources (HR)
- 19. Modules execute the business processes and can overlap business functionalities and promote integration. 1) A Customer Service Representative works in the M/S functional area. 2) The Customer Rep creates a Sales Order 3) The transaction initiates from the SD Module, and runs in the background 4) Other modules, like MM and FI, are called accordingly if the transaction includes credit checking, and/or allocating inventory. Summary: When a user in a functional area runs a transaction it could use one or many modules to process the business transaction.
- 20. SAP FI Module- FI stands for Financial Accounting SAP CO Module- CO stands for Controlling SAP PS Module – and PS is Project Systems SAP HR Module – HR stands for Human Resources SAP PM Module – where Plant Maintenance is the PM SAP MM Module – MM is Materials Management - SAP QM Module - QM stands for Quality Management SAP PP Module – PP is Production Planning SAP SD Module – SD is Sales and Distribution SAP BW Module – where BW stands for Business (Data) Warehouse SAP EC Module – where EC stands for Enterprise Controlling SAP TR Module – where TR stands for Treasury SAP IM Module – where IM stands for Investment Management SAP QM Module – where QM stands for Quality Management SAP – IS where IS stands for Industries specific solution SAP – Basis SAP – ABAP SAP – Cross Application Components SAP – CRM where CRM stands for Customer Relationship Management SAP – SCM where SCM stands for Supply Chain Management SAP – PLM where PLM stands for Product Lifecycle Management SAP – SRM where SRM stands for Supplier Relationship Management SAP – CS where CS stands for Customer Service SAP – SEM where SEM stands for STRATEGIC ENTERPRISE MANAGEMENT SAP – RE where RE stands for Real Estate
- 22. MM FI PP M/S SCM A/F HR SD ….two totally different tings Functional Areas SAP Modules CO HCM
- 23. What are the attributes of an ERP System? 1. SAP 20.4% 2. Microsoft Dynamics 14.9% 3. Oracle eBusiness Suite 9.8% 4. Epicor Software Corporation7.9% 5. Infor Global Solutions4.1% 6. Oracle JD Edwards3.1% 7. Oracle PeopleSoft2.6% 8. IFS North America2.2% 9. Sage North America1.9% 10. Activant Solutions, Inc.1.4%
- 25. ERP, while expensive to implement, if done correctly has a high Return of Investment (ROI) due to its ability to connect and share information with all parts of a business.