Chapter 6 Supporting Processes with ERP Systems Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-1

What Problem Does an ERP System Solve? Information Silo Problem – Data isolated in separate information systems Solutions – Enterprise Application Integration (EAI) – Enterprise Resource Planning (ERP) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-4

What Problem Does an ERP System Solve? EAI Figure 6-1 EAI Architecture Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-5

What Problem Does an ERP System Solve? ERP Figure 6-2 Data Integration of Processes In Four Example Departments Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-6

Where did ERP systems come from? Grew out of manufacturing software – MRP – MRPII Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-7

What Are the Elements of an ERP System? ERP includes applications that integrate the processes for the following functions: – SCM – Manufacturing – CRM – Human Resources – Accounting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-8

What Are the Elements of an ERP System? Five Components of an ERP System – Software – Hardware – Data – Procedures – People Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-9

What Are the Elements of an ERP System? ERP Software – Configuration ERP Databases – Over 25,000 tables Procedures – Train the trainer (in-house training) Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-10

What Are the Elements of an ERP System? Hardware – ERP Hardware Dilemma People – Users – Analysts – Consultants Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-11

What Are the Elements of an ERP System? Inherent Business Processes in ERP – System specified business processes – Process blueprints Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-12

What Are the Benefits of an ERP System? Figure 6-9 Benefits of Using an ERP Solution Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-13

What Are the Benefits of an ERP System? Figure 6-10 Example Measures of the Benefits of ERP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-14

What Are the Challenges of Implementing an ERP System? Implementation Decisions Figure 6-11 A Sample of Configuration Decisions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-15

What Are the Challenges of Implementing an ERP System? People Issues Figure 6-12 People-Related Implementation Challenges Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-16

What Types of Organizations Use ERP? Figure 6-13 ERP by Industry Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-17 ERP by Industry Type ERP by Organization Size International ERP

Who Are the Major ERP Vendors? ERP Vendor Market Share Figure 6-14 Characteristics of Top Vendors Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-18

Who Are the Major ERP Vendors? ERP Products Figure 6-15 Vendors and Company Size Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-19

What Makes SAP Different from Other ERP Systems? SAP Modules Figure 6-16 SAP Modules Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-20

What Makes SAP Different from Other ERP Systems? SAP Inputs and Outputs Figure 6-17 Procurement Example Screen Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-21

What Makes SAP Different from Other ERP Systems? SAP Business Suite – SAP ERP – SAP CRM – SAP SRM – SAP SCM – SAP NetWeaver Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-22

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-23