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

Current Information Flow HRS Housing iGreentreeDARwin - AdvisingDDollars/ID CardEffort ReportingHyperion ERA - ResearchDocument ImagingKronos TimekeepingOWLnet Leave Collection SIMS Advising Reporting OWLinkCherry & WhiteFMS on the WebTUCoursesEmployee Self Service Position Control Org Hierarchy Key: homegrown vendor TUportalElectronic Workflow FMSISIS

Extreme Makeover: Integrated Environment Banner Integrated System Housing DARwin - Advising Document ImagingKronos TimekeepingR25 Room Assignment iGreentreeDDollars/ID CardEffort Reporting ERA - Research Hyperion

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 EAI System Solve? 6-5

What Problem Does an ERP System Solve? 6-6

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-7

TUmarketplace – Vendor Specials 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 8

Negotiated Vendors 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 9

Campus Services 8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 10

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 11 5 information silos Where do we need to get information from if we need to know if we can fill an order for 1,000 bikes by next week? Value Chain Activities

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 12 1 central database Where do we need to get information from if we need to know if we can fill an order for 1,000 bikes by next week? *****

Where did ERP systems come from? Grew out of manufacturing software – MRP – Manage inventory, production & labor – MRPII – adds in: Financial tracking of manufacturing processes Ability to schedule capacities Other drivers too – Y2K – Sarbanes-Oxley (SOX) Business affect Systems, Systems affect Business Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-13

What Are the Modules of an ERP System? – SCM – P2P, O2C, inventory management, supplier management – Manufacturing – scheduling, capacity planning, quality control, BOM – CRM – sales prospecting, customer management, marketing, customer support, call center support – Human Resources – payroll, time and attendance, HR management, commission calculations, benefits admin – Accounting – GL, AR, AP, cash management, fixed-asset accounting Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-14

What Are the Elements of an ERP System? Five Components of an ERP System – Software – Hardware – Data – Procedures – People What about systems like SAP Business ByDesign? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-15

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 6-16

What Are the Elements of an ERP System? Hardware – ERP Hardware Dilemma – What is Needed? People – Users – Analysts – Consultants – IT Support What skills contribute to success? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-17

8/22/2011 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 18

What Are the Elements of an ERP System? Inherent Business Processes in ERP – System specified business processes – Process blueprints – Is it better to change the software to conform to existing business processes or better to change business processes to match software? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-19

What Are the Benefits of an ERP System? Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-20 Purchasing Spot Trends Example? Data Quality

What Problem Does an ERP System Solve? kgSA9ba68 kgSA9ba68 Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-21

What Are the Benefits of an ERP System? Example Measures of the Benefits of ERP Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-22

ERP Implementations Are Costly Total Cost Breakdown (1)Total Cost also includes cost savings from mainframe eliminations. * Implementation includes training, external services and 100 person years of internal backfill.

What Are the Challenges of Implementing an ERP System? Sample Implementation Decisions Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-24

What Are the Challenges of Implementing an ERP System? People Issues – “All of our Problems Wear Shoes”. The system works – not technical. Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-25

What Types of Organizations Use ERP? Figure 6-13 ERP by Industry Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-26 ERP by Industry Type ERP by Organization Size International ERP Difference in Scale – Not Character Integration!

Who Are the Major ERP Vendors? ERP Vendor Market Share Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-27

Who Are the Major ERP Vendors? ERP Products Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-28

What Makes SAP Different from Other ERP Systems? SAP Modules Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-29

What Makes SAP Different from Other ERP Systems? SAP Inputs and Outputs - Procurement Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-30

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 6-31

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-32