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8/9/2019 Class 1 - Intro to ERP
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MIS479W: ERP(Enterprise Resource Planning)
What is an ERP system?
1
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Information system for M/S Customer, Product data
Information system for SCM Products, Inventory, BOM
Multiple, separate databases Not integrated!!
Traditional Decentralized Information Systems
SCMM/S HR A/F
IS for M/S IS for SCM IS for HR IS for A/F
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Traditional Decentralized Systems
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ERP System
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ERP Systems help to Automate Business
Processes: e.g. Order fulfillment
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ERP Advantages
Integration among different functional areas to improve
communication, productivity and efficiency
Order tracking from placement through payment
Manage revenue cycle from invoice through cash receipt
Manage inter-dependencies of complex bills of materials
Shorten production lead time and delivery time
Tracking and reconciliation of deliveries, payments, etc. Accurate forecasting Less inventoryMore profit
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ERP Disadvantages
Implementation cost can be very high
ERPs are often seen as too rigid and too difficult to
adapt to the specific workflow and business
process major change in the way of doing business. Customization of the ERP software is limited.
Most companies are forced to follow the "industry
standard" prescribed by the ERP system
Increased organizational politics
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ERP Vendors
SAP, the German juggernaut - www.sap.com
Systeme, Anwendungen, Produkte in derDatenverarbeitung, or
Systems, Analysis and Products in Data Processing.
Oracle (merged with PeopleSoft/J. D. Edwards)
- www.oracle.com
Microsoft Great Plains, aimed at smallercompanies
SAP Business One is competing product
SYSPRO (Small Manufacturers) Banner: Universities
Meditech: Hospital
http://www.sap.com/http://www.oracle.com/http://www.oracle.com/http://www.sap.com/8/9/2019 Class 1 - Intro to ERP
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SAP
Founded 1972 in Waldorf, Germany
Largest market share (approx. 30%)
Used by most Fortune 500 companies
Over 2.5 million users
2011 Revenues approx. $13.7 billion.
Over 9,000 implementations of R/3 at over 6,000
companies Industry specific solutions
Newer products: Business Objects One, SAP Hanna
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2008 by SAP AG. All rightsreserved.
Modules in SAP ERP System
R/3Client / Server
FI
CO
AM
PS
WF
IS
MM
HR
SD
PP
QM
PM
Sales &
Distribution
Material
Management
ProductionPlanning
Quality
Management
Plant
Maintenance
Human
Resources
Financial
Accounting
Controlling
Fixed Asset
Management
Project
System
Workflow
Industry
Solutions
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ERP Supported Functions
FinancialHuman
Resources
Operations &
Logistics
Sales &
MarketingAccounts
Receivable
Time
Accounting
Inventory Order
Processing
Asset Account Payroll MRP Pricing
Cash Forecast Personnel Plan Plant
Maintenance
Sales Reporting
Cost Accounting Travel Expense Production
Planning
Sales Planning
General Ledger Benefits Mgmt Manufacturing Catalog Mgmt
Profit Analysis Purchasing
Standard
Costing
Quality Mgmt.
Shipping
All of these functions. One software
package. One database
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Two views of Information Systems
View 1 A company should have state-of-the-art IS
Buy a state-of-the-art system even if it costs more
IS folks need to be experts in the IS area only
View 2
A company should have adequate IS as per needs The cost of every IS investment must be justified
IS folks must understand the business first
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Course Objectives
Learn:
What is an ERP system?
Why does a business need an ERP system?
How does an ERP system affect business processes? Use of an ERP system in functional areas of business?
SAP as an example of an ERP system
How can data collected by an ERP system be analyzed?
How does a business implement an ERP system?
This course is as much about business as it is about technology