Chapter 6 Supporting Processes with ERP Systems Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-1
Learning Objectives Q1. What problem does an ERP system solve? Q2. What are the elements of an ERP system? Q3. What are the benefits of an ERP system? Q4. What are the challenges of implementing an ERP system? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-2
Learning Objectives Q5. What types of organizations use ERP? Q6. Who are the major ERP vendors? Q7. What makes SAP different from other ERP systems? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-3
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 – Connects information silos via a new layer of software – Enables existing applications to communicate and share data – Provides integrated data Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-5
What Problem Does an ERP System Solve? EAI – Leverages existing systems, leaving departmental information systems as is, but providing an integration layer over the top – Enables a gradual move to ERP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-6
What Problem Does an ERP System Solve? EAI Figure 6-1 EAI Architecture Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-7
What Problem Does an ERP System Solve? ERP – Integrates data and supports processes across departmental areas – Uses a single database – Is a single information system Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-8
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 6-9
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 6-10
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 6-11
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 6-12
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 6-13
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 6-14
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 6-15
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 6-16
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 6-17
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 6-18
What Are the Challenges of Implementing an ERP System? Implementation Decisions – Details People Issues – Changes Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-19
What Types of Organizations Use ERP? ERP by Industry Type ERP by Organization Size International ERP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-20
What Types of Organizations Use ERP? Figure 6-13 ERP by Industry Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-21
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 6-22
Who Are the Major ERP Vendors? ERP Products Figure 6-15 Vendors and Company Size Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-23
What Makes SAP Different from Other ERP Systems? SAP Modules Figure 6-16 SAP Modules Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-24
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 6-25
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 6-26
What Makes SAP Different from Other ERP Systems? SAP Modules SAP Inputs and Outputs SAP Software – SAP Business Suite Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-27
Ethics Guide ERP Estimation – Todd’s ethical/unethical actions??? Implementation estimates Training estimates Savings estimates Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-28
Conclusion Q1. What problem does an ERP system solve? Q2. What are the elements of an ERP system? Q3. What are the benefits of an ERP system? Q4. What are the challenges of implementing an ERP system? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-29
Conclusion Q5. What types of organizations use ERP? Q6. Who are the major ERP vendors? Q7. What makes SAP different from other ERP systems? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-30
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-31