ERP and Technology

LEARNING OUTCOMES

1. Describe the typical techniques of ERP management systems

2. Define the functions of the typical techniques

3. Describe steps and process of ERP Implementation

CORE AND EXTENDED ERP COMPONENTS

Core ERP component – traditional components included in most ERP systems and they primarily focus on internal operations

Extended ERP component – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

CORE AND EXTENDED ERP COMPONENTS

CORE ERP COMPONENTS

Three most common core ERP componentsAccounting and finance

Production and materials management

Human resource

Accounting and Finance ERP Components

Accounting and finance ERP component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

ERP VENDOR OVERVIEW

SAP boasts 20,000 installations and 10 million users worldwide

ERP solutions are growing because:ERP is a logical solution to the mess of incompatible

applications that had sprung up in most businesses

ERP addresses the need for global information sharing and reporting

ERP is used to avoid the pain and expense of fixing legacy systems

SAP User Interface

The SAP R/3 system presents a Windows interface with several of the familiar Windows functions for screen manipulation.

The apparent simplicity of the interface hides the power of the menus residing within the menu bar at the top of the screen. The initial screen shows a menu bar with the following selections

SAP User Interface

SAP User Interface

The first level sub menus are listed below

Office Workplace

Telephone Integration

Appointment Calendar

Room Reservations

Start Workflow

Business Documents.

SAP User Interface

Logistics Materials Management Sales/distribution Logistics Execution Production Production-process Plant Maintenance Customer Service Quality Management Logis. controlling Project Management Environment Health & Safety Central Functions

SAP User Interface

Accounting Financial Accounting

Treasury

Controlling

Enterprise Control

Investmt Mgt.

Project management

Real Estate

SAP User Interface

Human Resources Managers Desktop Personnel admin. Time management Payroll Training and Event Management Organizational Management Travel Information system

SAP User Interface

Information Systems Executive Information Systems

Logistics

Accounting

Human Resources

Project System

Ad Hoc Reports

General Report System

SAP User InterfaceTools

ABAP/4 Workbench Accelerated SAP Administration ALE Business Communication Business Documents Business Framework Business Workflow CCMS Web Development SAPScript Hypertext Find

Quote-to-Cash

Requisition-to-Pay

Customer relations

management

Partner Relations Management

Performance Analysis

Web Store

Client Server Architecture• Client Server is a computing model in which the

application processing load is distributed between a client computer and a server computer, which share information over a network.

• Typically the client is a PC running front end software that knows how to communicate with the server

• SAP : SAP gui ->R3->DB

Behind Client Server

Processing can be improved because client and server share processing loads. Client - server computing says that the client has

computing power that is not being used

Fundamental idea is to break apart an application into components that can run on different platforms.

Thin vs. Fat ClientsA thin client has most of the functionality with server

A fat client has most of the functionality with the client.

Three Tiered Architecture

Three Tiered Architecture is an information model with distinct pieces -- client, applications services and data sources -- that can be distributed across a network

Client Tier -- The user component displays information, processes, graphics, communications, keyboard input and local applications

Three Tiered Architecture

Applications Service Tier -- A set of sharable multitasking components that interact with clients and the data tier. It provides the controlled view of the underlying data sources.

Data Source Tier -- One or more sources of data such as mainframes, servers, databases, data warehouses, legacy applications etc.

Internet Computing Architecture

DatabasDatabasee

XApplicatioApplicatio

nn

ApplicatioApplicationn

ApplicatioApplicationn

ApplicatioApplicationn

ApplicatioApplicationn

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BrowserBrowser

BrowserBrowser

JavaJavaApplication Application

ServerServer

ApplicatioApplicationn

ApplicatioApplicationn

2 Tier

3 Tier

DataM anagem ent

ApplicationFunction

DataM anagem ent

DataM anagem ent

DataM anagem ent

DataM anagem ent

Presentation

ApplicationFunction

ApplicationFunction

ApplicationFunction

ApplicationFunction

ApplicationFunction

Presentation

PresentationPresentationPresentationPresentation

DataM anagem ent

Source: G artner G roup

Client/Server ConfigurationsDistributed

PresentationDistributedDatabase

Rem ote DataManagem ent

DistributedFunction

Rem otePresentation

Networks

• LANs, WANs, Intranets, Extranets• Bandwidth

– Network Transmission Capability

• Standards– TCP/IP

• Security– E.g., Encryption

Databases and Data Warehouses

Databases -- Numerous approaches including relational databases

Relational DB is a set of related files that reference each other

ERP are built on relational DBs and data source in three tier is typically relational

Data warehouse is a DB for decision making, not transaction processing

Customer # Customer ... Lastname

Salesperson # Last- ... name

Sales Order # Customer # Salesperson # ...

0001 0001 0001

0001 O’Leary 0001 Jones

Software

• ERP have been developed for different operating systems– UNIX, Windows Server, Linux, … MaC?

• Legacy Software– Informally … software that has been in the

company for a while. – Generally, developed in house

• In the same sense that personal computing software has moved toward a standard set of package options, corporate enterprise computing has also moved toward packages

• Package software is changing the nature of accounting, finance and IT departments– No longer a matter of programming from

scratch, instead need to understand processes

Package Software

Outsourcing VS In-House

• Big players– SAP (mySAP, R/3)– Oracle (Business Suite)– Baan– PeopleSoft

• “As Is” vs. “To Be”

Implementation Strategies

Process MappingGenerating process flows

using the reference models as input tailored

to project requirements

Activityschedule &Resp. chart

X - eXecutes the workD - takes (final) decisiond - takes decision with consultationP - manage progressT - provides tuition on the jobC - must be consulted I - must be informedA - available to Advice

Project

Period length:

Date issued: Approved by:

Target completion:

Period Milestone:

Companies / Departments / Functions / Group of employees

Arb.vol. M/D/W1 2 3 4 5 6 7 8 9 0 1 2 3 4 5 6 7

IO1 Project plan and Project Setup

IT1 Hardware & software installed

IO2 Company Informed

IT2 System/Appl. Mgt Initiated

IP1 Concept training Key Users done

IB2 Preliminary Bus. Model Acc.

IC1 High priority Cust. Specified

IO3 Organizational Model Approved

IP2 Adv. Key Users Training done

IT3 Data Conversion Plan Defined

IB3 Data Coding Schemes Defined

IO4 Internal Doc. Generated

IC2 Cust. Defined a/o Completed

II1 Ext. Interfaces Spec. Defined

IT4 System/Appl. Mgt Finalized

IB4 Final Bus. Solution Agreed

D

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Baan Target

Mapping/Piloting

System ImplementationCustomization and

optimization of software

Select Application SW

link software applications that fulfill business process

requirements

Sel

ecte

d B

usi

nes

s P

roce

sses

Inventory of COTS software

Selectedsoftware matching selectedprocesses

e.g.Supply ChainPersonnelFinanceE-CommerceManufacturingDistributionSales Force Auto.

Baseline SW for Implementation

Implementation Steps• Project Preparation – implementation

strategy, project team, system landscape, technical requirements, vendor selection

• Business Blueprint and Realization – technical design, development system, testing, production system installation

Source: Accelerated SAP (ASAP) Method

Implementation Steps

• Final Preparation – operational system, data transfer, testing, help desk

• Go Live and Support – process monitoring, operational help desk, definition long-term release strategy

Resources

Ir. Ekananta Manalif, MM, MKom Jurusan Sistem Informasi Universitas Bina

Nusantara

IRMC of National Defense UniversityDaniel E. O’Leary

University of Southern California

www.richardbyrom.com