Introduction to ERP

What is ERP

Enterprise Resource Planning –

Is a business management software system that integratescore business functions within the supply chain of anorganization including areas such as financials and humanresources

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ERP structure

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ERP

• Integrated view of core business transactions

• Real-time

• All transactions captured in a central database

• Track business resources—cash, raw materials and productioncapacity

• Provides the status of business commitments such ascustomer orders, purchase orders to vendors, payables andreceivables and payroll

• Facilitates information flow between all business functions suchas Sales & Purchasing, Purchasing & Manufacturing, andAccounting

• Manages connections to outside stakeholders

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Evolution of ERP

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ERP is a part of an evolutionary process that began withmaterial requirements planning (MRP). MRP is a computer-based, time-phased system for planning and controlling theproduction and inventory function of a firm-from the purchaseof materials to the shipment of finished goods

Evolution of ERP

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Evolution of ERP

• ERP Systems have only been in common use since the 1990s

• ERP is an evolving technology

• Initially function covered only MRP – a generic functionacross all industries

• Evolved into industry specific solutions towards end ofmillennium

• Additional capabilities are being adding to core ERPapplications. Some of them include

Customer relationship Management (CRM)

Supply chain management

Strategic Enterprise management (SEM)

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Challenges, Pros and Cons of ERP

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Challenges– Change management – a challenge.– Human Resources POV - Limited technical capabilities.– Investment(cost of implementation) and ROI (time to quantify

ROI)

Pros– No standalone silos within an organization– Greater transparency and accountability– Freely available information for management reporting and

decision making

Cons– High setup cost– Data consistency(Garbage In/Garbage Out)– People dependent

Different ERP solution available

• SAP

• Baan

• Oracle

• JD Edwards

• PeopleSoft

• MFG/PRO

• NAVISION

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Definition of SAP

• SAP stands for Systems, Applications and Products in dataProcessing

• Founded in 1972 in Wienheim, Germany by five former IBMengineers, and now headquartered at Walldorf, Germany

• Founders are

– Dietmar Hopp

– Hans-Werner Hector

– Hasso Plattner

– Klaus Tschira

– Claus Wellenreuther

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Definition of SAP

• SAP system comprises of a number of fully integratedmodules, which covers virtually every aspect of thebusiness management

• It is a system that provides users with a soft real-timebusiness application

• It contains a user interface and is considered extremelyflexible

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SAP as an ERP• SAP is the world's largest ERP software company and the

world's fourth-largest independent software supplier

• As of 2010, SAP has more than 140,000 installationsworldwide, over 25 industry-specific business solutions andmore than 75,000 customers in 120 countries

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# Company

1 Microsoft

2 Oracle

3 SAP

4 Symantec

5 CA Technologies

6 Adobe

7 Intuit

Top 10 Software Firms - 2013

35%

28%

14%

23%

ERP Market Share - 2013

SAP

Oracle

Microsoft

Tier II

• Example of the industry-specific ERP solutions offered bySAP

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Available industry solutions

Aerospace and defense High-tech Mining

AutomotiveHigher education and research

Oil and gas

Banking Hospitality services Pharmaceuticals

Chemicals Industrial machinery and Postal services

Consumer products components Professional services

Defense and security Insurance Public sector

Engineering, construction, Life sciences Railway services

and operations Logistics service providers Retail

Financial service providers

Media Telecommunications

Healthcare Mill products Utilities

SAP – success stories

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• Apparel and Footwear

• Automotive

• High Tech

• FMCG

Three tier architecture of SAP

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Commonly used modules

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SAP Hana

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SAP Fiori Apps

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Different roles in SAP

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• Role of a Developer in SAP

• ABAP Programming Language

• Core language used by SAP

SAP Technical

•Playing the task of mapping the businessprocessed in SAP

•The roles are differentiated based on modules• Sales & Distribution

•Materials Management

• Finance & Controlling

• Production & Planning

SAP Functional

Embraced view of SAP Organization Structure

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Operating Concern

Controlling Area

Company Code

Sales Org

Plant

Storage Location

Company Code

Strategic Oriented

Management/Cost Accounting

Statutory Reporting

Sales Operations

Logistics Operations

Thank You

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