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Introduction to Enterprise Computing
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CS4803/8803 ENC
(soon CS4365/6365)
Intro. Enterprise Computing
8B: Cisco Case Study and
SAP
Instructor: Calton Pu(unofficial) TA: Lenin Singaravelu
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Cisco Case Study
One of the best known ERP case studies
Success story used by vendors and B-schools
Leading network router company
Founded in 1984
1990: IPO
1993: Capitalization at 0.5B
1998: Capitalization at 100B
2000: Capitalization at 531B
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Background
Peter Solvik joins Cisco (Jan 1993)
Reorganization of the IT structure
IT worked/paid for client line organizations
Two-day failure in Jan 1994
Core application database corrupted
Urgent and important to change
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ERP Product Selection
Management team
Formed from IT and business units
Integration partner
KPMG (consulting, auditing)
Small number of choices
The vendor should be large enough
Oracle chosen in 75 days
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Board Approval
How much would it cost?
$15M budget for implementation
Largest single item approved by company
The legacy system crashed on the day of board
meeting
How long would it take?
Nine months to completion (stable by Q4)
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Larger Context
New IT infrastructure worldwide
Two year, $100M effort, ERP at core
Replaced all mainframes, minis, legacy systems
New standard platforms Servers all Unix, LAN all Windows NT, clients
all PCs (Toshiba and HP), Oracle database,
TCP/IP networking
Same OSs and applications worldwide
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ERP Project Timeline
June 2, 1994: project kickoff
July 31, 1994: process and designs complete
Sept 30, 1994: functional process approval
Dec 1, 1994: critical interfaces complete
Dec 22, 1994: pilot done, go/no-go decision
Jan 3, 1995: end user training begins
Jan 27, 1995: data conversion complete Jan 30, 1995: go live
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ERP Project Costs
Breakdown of implementation costs
$15M over 7 months
Software 16%
Hardware 32%
System integration 38%
Core team headcount 14%
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Customer Relationship
Web-enabled sales and customer service
Investment of $100M over 3 years to
implement Cisco.com
Jan 2001: 600K registered users
Answer questions, diagnose network problems,
provide solutions, expert advice
Direct sales: from 0% (July 1996) to $1.5B perquarter in 1998, to 92% of total (Jan 2001)
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Supply Chain
Single enterprise: integrating Cisco andsuppliers for real-time response
New Product: automated product data
information, simulating manufacturability Autotest: integrated testing by suppliers
Direct shipping: from supplier to customer
Dynamic replenishment: real-time supplychain management
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Cisco Market Position (1999)
High-end routers (backbone, edge)
$2B revenue, 88% market share
Mid-range routers (enterprise)
$1.4B revenue, 80% market share
Low-end routers
$1.8B revenue, 72% market share
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Oracle9i: Application Server
A single product supporting
E-business portals
Transactional applications
Web services
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Introduction to Enterprise Computing
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FinanceGeneral Ledger
Payables
Receivables
Cash Management
Assets
iPayment
Internet Expenses
iReceivables
Balanced Scorecard
Activity Based ManagementFinancial & Sales Analyzers
Credit Management
Property Manager
Advanced Collections
Treasury
Lease Management
Customers Online
Data Librarian
Customer Data Model
Financials Intelligence
Enterprise Planning & Budgeting
iAssets
Internal Controls Manager
Human ResourcesHuman Resources
Payroll
Self-Service HR
Training Administration
Advanced Benefits
Time & Labor
iLearning
iRecruitment
HR Intelligence
ProjectsProject Costing
Project Billing
Project Management
Project Collaboration
Project Resource Mgmt
Project Contracts
Project Intelligence
Marketing & SalesMarketing
Incentive Compensation
iStore
Trade Management
Partner Manager
Proposals
TeleSales
Advanced Pricing
Field Sales
Sales OfflineQuoting
Contracts for Sales
Interaction CenterAdvanced Inbound
Advanced Outbound
Scripting
eMail Center
Survey
Oracle ERP Functionality
New in R11i versus R11
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ProcurementPurchasing
PayablesiProcurement
Sourcing
iSupplier Portal
Procurement Contracts
ManufacturingDiscrete Manufacturing
- Project Manufacturing
- Flow Manufacturing
- Project Contracts
- Shop Floor Management
Process Manufacturing
LogisticsInventory Management
Mobile Supply Chain Apps
Warehouse Management
Transportation Execution
ServiceTeleService
Depot RepairField Service
- Spares Management
- Advanced Scheduler
- Mobile Field Service
iSupport
Service Contracts
Maintenance MgmtEnterprise Asset Mgmt
Property Manager
Product Lifecycle MgmtAdvanced Product Catalog
CADView-3D
Project Mgmt / Collab. Suite
Supply Chain IntelligenceSupply Chain Intelligence
Order ManagementOrder Management
ConfiguratoriStore
TeleSales
Receivables
Advanced Pricing
Quoting & Proposals
Trade Management
Release Management
Sales Contracts
Supply Chain PlanningMRP/Supply Chain Planning
Manufacturing Scheduling
Demand Planning
Advanced Supply Planning
Constraint OptimizationGlobal Order Promising
Inventory Optimization
Collaborative Planning
Transportation Planning
New in R11i versus R11
Oracle Other Products
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Discussion Topics
IT as commodities
Hardware certainly are commodities
Software being commoditized (e.g., ERP)
Impact of enterprise computingNew business models (e.g., Amazon, eBay)
Enterprise transformation (e.g., Cisco, Dell)
Virtual enterprises, outsourcing
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Introduction to Enterprise Computing
Slide Credits:
Rutgers Business School
Newark and New Brunswick
By Martin OReilly
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Agenda
What is an ERP?
What is SAP?
What is IDES?
SAP Basics & Navigation
SAP Exercises With IDES
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What Are The Benefits?
Cross-functional teaching tool
Access advanced software technology
Enhance marketability
Pursue research opportunities
Broaden outreach
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What is SAP R/3?
SAP is an ERP (Enterprise Resource
Planning) system
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What is an ERP?
Enterprise-wide system which integrates thebusiness functions and processes of anorganization
Integration of business functions into oneseamless application
Usually runs on a RDBMS
Replaces Countless Departmental andWorkgroup Information Systems
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What is an ERP?
Links business processes
Maintains audit trail
Utilizes a common informationsystem
Implementation normally involvesBPR: Business ProcessReengineering
Difficult to Implement Correctly RailroadTracks
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Evolution of ERP
1960s: Inventory Control Systems
1970s: MRP: Material RequirementPlanning
1980s: MRPII: MRP & Distribution
1990s: MRPII ERP with introductionof other business functionsCRMs
Today: Web Enabled ERP ConnectingERP Externally
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What is the State of the ERPMarket?
Weak Economy = Fewer Implementations
ERP Systems firmly entrenched in infrastructure
Implementing CRM, KM, SCM ERP
Applications
Linking ERPs to Web Web Services ASPs = possible new market segments
Enterprise Application Integration (EAI) Tools
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What is the State of the ERP
Market? Portals
Public Sector Growth laggards
Better ImplementationsExperience
Upgrades: of SAPs customers need toupgrade by 12/03
Roll Up Projects
Great PlainsMS Factor?
Current Buzz: ERP IINext: Web Services Integration
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What is SAP R/3?
SAP = Systems, Applications and Products inData Processing (R = real time, 3 = 3 tier)
German Based Company
3rd Largest Independent Software Vendor in the
World SAP: ERP Market Leader
80% Fortune 500 Companies Use SAP
Over 18,500 Customers in 120+ Countries
Over 12 million users
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What is SAP R/3?
Client/Server Technology
Highly Customizable
Based on Industry Specific BestPractices
Multi-lingual: International
Based on Open Standards
Integrated Applications System:Modular in design
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New Dimension Product
Business
Information
Warehouse
Strategic
Enterprise
Management
Supply
Chain
Optimizer
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SAP AG 1999
SAP
EnterpriseEnterprise
WarehousesWarehouses
DepartmentDepartment DivisionDivisionBusiness
Area
Business
Area
Client
CompanyCode
Plant
StorageLocations
SalesOrganization
Division
CompanyCompany SubsidiarySubsidiary
Sales
Organization
Sales
Organization
FactoryFactory
Enterprise Structure Terminology
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SAP AG 1999
Client
Plant 1000 Plant 1100 Plant 1200
Storage
Location
0002
. . .. . .
Company Code
3000
Company Code
3000Company Code
1000
Company Code
1000
Controlling Area2000
Controlling Area2000
Storage
Location
0001
Storage
Location
0003
Organizational Structures - Levels
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What is MySap.com or the
MySAP Business Suite?
Hosted E-Business Platform Solution
Hosted is + & -
Link Organization to Supply Chain
Link Organization to Consumers
Exchange
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The mySAP.com E-Business
Platform
SAPMarkets*
mySAP Workplace
mySAP
CRMIndustrySolutions
mySAP
Financials
mySAP
HR
mySAP
E-ProcurementmySAP
BI
mySAP
SCM
mySAP
PLM
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mySAP.com Solutions
mySAP Insurance
mySAP Media
mySAP Mill Products
mySAP Mining
mySAP Oil & Gas
mySAP Pharmaceuticals
mySAP Public Sector
mySAP Retail
mySAP Service Providers
mySAP Telecommunications
mySAP Utilities
Industry Solutions mySAP Aerospace & Defense
mySAP Automotive
mySAP Banking
mySAP Chemicals
mySAP Consumer Products
mySAP Engineering &
Construction
mySAP Financial Service Provider
mySAP Healthcare
mySAP High Tech
mySAP Higher Education &
Research
Cross-Industry Solutions mySAP Workplace
mySAP CRM
mySAP SCM
mySAP Marketplace*
mySAP E-Procurement
mySAP BI
mySAP PLM
mySAP HR
mySAP Financials
mySAP Mobile Business
mySAP Hosted Solutions mySAP Services
Infrastructure and Services mySAP Technology
*mySAP Marketplace is delivered through MarketSet,
a joint solution from SAPMarkets & Commerce One.
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mySAP.com E-Business
Solutions
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Whats Next?
Co Chairman Hasso Plattner in his own
words.
http://www.sap.com/community/events/2003_0
2_05/index.asp
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What is IDES?
IDES = International Demonstrationand Evaluation System
IDES Basics Fictitious company using R/3
Customizing, master data, transaction data
Integrated, well-documented system environment
Simulation of business processes
IDES is a Standard R/3 System System R/3 (standard)
IDES data (customizing, master data,transaction data)
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IDES Guidelines
To reflect increasingly complex requirements ofmodern business
To design all organizational structures in apractical manner
To make each element of the core functionality ofthe R/3 System available in its most up-to-dateversion
To allow users with very little or no previous R/3knowledge to easily run core scenarios in the R/3System
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IDES-Asia
Tokyo / Japan
IDES Latin America
Mexico/ Mexico-C.
IDES Corporation
Manufacturing
IDES Europe
Frankfurt / Germany
Lisbon / Portugal
Paris / France
Barcelona / Spain
London / UK
New York / US
IDES North America
Toronto / Canada
IDES - The Business Group
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Complexity
Sturdiness
Industry
AssemblymanufacturingJIT
Make-to-orderproduction
SAP Automotive
Manufacturers / Suppliers processes
Massproduction
SAP Consumer Products
Selling food and non-food products
Processmanu-facturing
SAP Chemicals
Paints, coating and solvents production
SAP Pharmaceuticals
Production of tablets
Repetitivemanu-facturing
SAP High Tech & Electronics
PC assembly and customer services
SAP Engineering / Construction Elevator and Turbine production
Productionby lot size
Engineer-to-order
SAP Aerospace / Defense
Production / Maintenance of an aircraft
engine
IDES LOGISTICS
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IDES EuropeIDES North America
IDES Corporation
IDES Asia
National and international
charts of accounts (parallel)
Cost of sales accounting
Lisbon / Portugal
Paris / France
Barcelona / Spain
London / UK
Frankfurt / Germany
Consolidation
IDES - Financial Accounting
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Controlling Area
IDES North America
IDES Corporation
Controlling Area
IDES Mexico
Controlling Area
IDES Europe
Marginal costing
Activity-based costing
Lisbon / Portugal
Paris / France
Barcelona / Spain
London / UK
Frankfurt / Germany
Cost accounting for all
companies
IDES - Cost Accounting
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IDES Corporation
Retail
IDES North America
Los Angeles / US
Denver
Boulder
Colorado Springs
Tuscon
San Diego
San Francisco
Oakland
IDES Europe
Giessen / Germany
Mainz
Frankfurt
Darmstadt
IDES - The Business Group
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Productionby lot size
AssemblymanufacturingJIT
Make-to-orderproduction
Processmanu-facturing
Repetitivemanu-facturing
Massproduction
Engineer-to-order
Complexity
Sturdiness
Production Retail
Textiles
Food
IDES - Logistics
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IDES North America
New York / US
IDES Europe
Frankfurt / Germany
Dublin / Irland
IDES Corporation
Banking
IDES - The Business Group
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IDES - The Business Group
IDES Corporation
Service Provider
Philadelphia / US
IDES North America
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Process-oriented online help
Step-by-step documentationwith all relevant information
Functions in Detail brochure
IDES - Documentation
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Complete R/3 model
company
Complete integration
Internet scenarios
Process-oriented online
help
Basis for all R/3 training
IDES Summary
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SAP Access
Complete Application Form
Confirmation via email with platin.ini file
Access in RU Labs Newark and RBSCS
Levin Lab in NB
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University Alliance Home
Page
www.sap.rutgers.edu Student Resources:
SAP Library
SAP Functions in Detail
SAP ASAP
Introduction to SAP ppt
Introduction to SAP PDF Exercises
User Application Form
Lab Locations SAPGui
Additional Access
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Additional Access
Access via SAPGui for Java:
Install Java Plug-in or JRE
Install SAPGUI for Java
Copy platin.ini (sent with account confirmation
email) to specified directory
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Links
http://www.cio.com/forums/erp/ http://www.intelligententerprise.com/
http://www.sap.com/
http://www.oracle.com/
http://www.peoplesoft.com/
http://www.jdedwards.com/
http://www.baan.com/
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