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

Chapter 6

Supporting Processes with ERP Systems

Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall 6-1

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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)


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

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

5 information silosWhere 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?


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)


What Are the Elements 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



• Five Components of an ERP System– Software– Hardware– Data– Procedures– People

• What about systems like SAP Business ByDesign?



• ERP Software– Configuration

• ERP Databases– Over 25,000 tables

• Procedures– Train the trainer (in-house training)



• Hardware– ERP Hardware Dilemma

• People– Users– Analysts– Consultants



• 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?


What Are the Benefits of an ERP System?


How tough is managerial accounting?


Vs.

What Are the Benefits of an ERP System?

Example Measures of the Benefits of ERP


What Are the Challenges of Implementing an ERP System?

• Sample implementation Decisions


What Are the Challenges of Implementing an ERP System?

• People Issues


What Types of Organizations Use ERP?

Figure 6-13 ERP by Industry


•ERP by Industry Type•ERP by Organization Size•International ERP

Who Are the Major ERP Vendors?

• ERP Vendor Market Share


Who Are the Major ERP Vendors?

• ERP Products


What Makes SAP Different from Other ERP Systems?

• SAP Modules



• SAP Inputs and Outputs - Procurement



• SAP Business Suite– SAP ERP– SAP CRM– SAP SRM– SAP SCM– SAP NetWeaver


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

Documents

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inherent business processes

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