ENTERPRISE RESOURCE PLANNING

MBA (EVE)

Zulfiqar Ali Shaikh

 Enterprise Resource Planning
COURSE OBJECTIVE

AUTOMATION OF AN ORGANIZATION
Software Programs used by Organizations to Integrate and
Coordinate Information in every area of the Business that
help Organizations manage company-wide Business
Processes, using a common Database and shared
Management Reporting Tools.

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 TYPES OF ENTERPRISE
• FORMAL ORGANIZATION
• Sole Traders
• Partnerships
• Private Limited Companies (Ltd)
• Public Limited Companies (plc)
• Public Corporations
• Not--for-
Not for-Profit Organizations
• INFORMAL ORGANIZATIONS
– Persons working in any organization
– Social Media Groups
– Club Members
– Students of Same Class, etc
HISTORY / EVOLUTION OF INFORMATION SYSTEMS &
EMERGENCE OF ERP SOFTWARE
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ZULFIQAR A. SHAIKH
HISTORY / EVOLUTIONOF INFORMATION SYSTEMS
& EMERGENCEOF ERP SOFTWARE
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 EVOLUTION OF INFORMATION SYSTEM
• HISTORY/ COMPUTER SYSTEMS
– An Abacus is considered as 1st Computer because it uses Counters
to store a number, which can then be manipulated.

• First Electromechanical Computers were built in the early 1940s, they

used Punched Cards or Punched Tape for their Program Input.
• In the early days of most Computer Operations were restricted to
Calculations only
• The Programs that drove them had to Communicate directly with
Elements of the Computer (Registers, Memory)
• Early programming language involved a series of codes
• Programs written in very Basic Instruction sets, called Assembly
Languages
• The Interpreter used to translate these Programs into the Machine
Instruction Code
 EVOLUTION OF INFORMATION SYSTEM
• HISTORY/ COMPUTER SYSTEMS
– FIRST ELECTRICAL DIGITAL COMPUTER (ENIAC)
• Developed by Presper Eckert Jr., John William Mauchly,
Mauchly, and
their associates at the Moore School of Electrical Engineering
at the University of Pennsylvania, USA

ENIAC (Electronic Numerical Integrator And Computer)

 EVOLUTION OF INFORMATION SYSTEM
HISTORY/ COMPUTER SYSTEMS
• 1950 1st Commercially Built Computer ERA 1101
• 1952 The Univac 1 is the first commercial computer to attract
widespread public attention
• 1953 Transistorized Computers Invented
• 1956 Direct Keyboard Input Introduced
• 1958 The SAGE System, The first large-scale
computer communications network
• 1960 Mini Frame Computers Introduced
• 1964 CDC
CDC--6600, Super Computer Introduced
• 1965 DECs PDP-
PDP-8, Portable Computers Introduced
• 1965 IBM/360 System Launched
• 1973 Personal Computer Invented (Intel 8008 based)
• 1975 Laser Printer Introduced at Xerox PARC
• 1978 DEC VAX Introduced
• 1982 Commodore-
Commodore-64 Introduced, Home Computer
• 1984 IBM PC-
PC-5150 Introduced with Intel 8088 Processor
EVOLUTION OF INFORMATION SYSTEM
HISTORY/ COMPUTER SYSTEMS
• 1951 Assembly Language
• 1957 Fortran
• 1958 Lisp
• 1959 COBOL
• 1962 SNOBOL
• 1963 CPL
• 1964 BASIC
• 1967 BCPL
• 1969 B
• 1970 PASCAL
• 1972 C
• 1978 SQL
• 1980 C++
• 1983 ADA
• 1984 FoxPro
• 1986 Objective C
• 1987 Perl
EVOLUTION OF INFORMATION SYSTEM

• HISTORY/ COMPUTER SYSTEMS

– 1991 Python, 1991 Visual Basic
– 1995 Java, Delphi, Java Script,
PHP, Ruby
– 2001 C#
– 2003 Groovy, Scala
– 2010 Rust
– 2011 Dart, Kotlin
– 2014 Swift
 EVOLUTION OF INFORMATION SYSTEM
Information Storage / Output Devices
 EVOLUTION OF INFORMATION SYSTEM
Types of Information System
• Transaction Processing Systems (TPS)
• Management Information Systems (MIS)
• Decision--Support Systems (DSS)
Decision
• Executive Support Systems (ESS)

ESS

DSS

MIS
TPS

Information System Pyramid

 EVOLUTION OF INFORMATION SYSTEM
Management Information System
• Information System for Management (MIS)
• System consisting of Hardware and Software gathers
Data from Multiple Online Systems, Analyzes the
Information, and Reports to aid in Management
Decision-making.
 Answer Please…

468
• CLOCK =9
• CALCULATOR =1+2+2+4=9
• BULB = 18+18+15=51
• 1- Glow Line =3
• BDMAS RULE(/ X + - )
• 9+9(18X3+18X3+15X3)
• 51x9 = 459+9 = 468
 EVOLUTION OF INFORMATION SYSTEM
• In the 1980s
1980s PCs gained popularity in business
• Information was being stored on individual PCs
• No easy way to share the Information Electronically
Electronically..
• Users needed a way to share fairly expensive Peripheral Equipment
(Printers and hard Drives)
• By the mid-
mid-1980
1980s,
s, telecommunications developments allowed users
to share data and peripherals on local networks (PCs connected within
Single Physical Location)
• This Central Computer–
Computer–Local Computer arrangement is now called a
Client--Server Architecture
Client Architecture..
• Servers (Central Computers) became more powerful and less
expensive and provided Scalability
– The capacity of a piece of equipment can be increased by adding new hardware
(Memory, HDD, etc)
• The ability to add Servers also makes the Network Scalable
• Thus extending the Life of the Hardware Investment
 EVOLUTION OF INFORMATION SYSTEM
Information
• Collection of Data organized to form Knowledge or Facts about
any Subject
Information System
• Collect, Process, Store and Distribution of Information &
Knowledge on Digital Platform for Decision Making
• Networks of Hardware and Software that Organizations and
People use to Collect, Filter, Process, Store and also Distribute
Data for making Better Decisions
• Components of Information System
– Hardware
– Software
– Communications.
– Databases and data warehouses.
– Human resources and procedures
 EVOLUTION OF INFORMATION SYSTEM
• By the mid-
mid-1980s,
1980s, the DBMS (Data Base Management System) required to
manage the development of complex ERP software existed
• By the end of the 1980s,
1980s, much of the hardware and software needed to
support the development of ERP systems was in place
place;;
– Fast Computers, Networked Access, and advanced Database Technology
• Now, understanding and acceptance from the business community for the
development of ERP software is required
• Many Organizations did not yet recognize the benefits of Integrated
Information Systems nor were they willing to commit the Resources to develop
ERP System
• The hard economic times of the late 1980s and early 1990s caused many
Organizations to downsize and Reorganize to become competitive
– Avoid a time-consuming and unwieldy paper trail while negotiating with client
– Manufacturing Dept. needs Accurate, Timely Information about actual and
projected Sales Order from Marketing/ Sales Dept. to Schedule factory Production
– Optimum utilization of Production & Warehouse facilities by timely Shipment
– It requires Integrated and efficient Information Systems
 EVOLUTION OF INFORMATION SYSTEM
These Reorganizations were one stimulus for ERP System
Development

• Information and material flows in a functional

business model
Top Management

Finance & Accounts

INFORMATION FLOW

Manufacturing
Marketing

Logistics
Sales

Material & Product Flow

 EVOLUTION OF INFORMATION SYSTEM

Information and Material Flows in a Process Business Model

Top Management
Finance & Accounts

Marketing & Sales

Customers
Logistics
Suppliers

Procurement Manufacturing

INFORMATION FLOW
Storage &
Supplies Conversions
Shipping
Material & Product Flow
 EVOLUTION OF INFORMATION SYSTEM
• All Companies developing Computer Software faced the same
basic business problems, and each developed unique, but
similar, solutions for their needs in Payroll Processing,
Accounting, Materials Management, and other Functional
Areas of Business.
• There was a need to develop a Standard Software Product
that could be configured to meet the needs of each Company.
• For that data available in Real Time, and Users to work on a
Computer Screen rather than with voluminous Printed output
• April 1, 1972
1972,, SAP was founded
• Plattner, Hopp, and Wellenreuther established the company
after leaving IBM
 EVOLUTION OF INFORMATION SYSTEM
• SAP was the first Company to develop Software for ERP Systems
• SAP’s 1st contract, with ICI, to develop the follow-on Materials
and Logistics Management System (Order Processing already
developed while in IBM)
• They acquired their first Computer in 1980
• In 1987, at ICI, the SAP founders developed their first SOFTWARE
Package, variously called System R, System RF (for Real-Time
Financial Accounting) and R/1
• In 1982, SAP released its R/2 Mainframe ERP Software Package.
• By 1988, SAP had established subsidiaries in numerous foreign
countries, launched a joint venture with consulting company
Arthur Andersen, and sold its 1,000th system. SAP also became
SAP AG, a publicly traded company
 EVOLUTION OF INFORMATION SYSTEM
• in 1992., SAP R/ R/3
3, developed in an Open System Architecture,
was released, allowed R/3 to run on a variety of Computer
Platforms, including UNIX and Windows NT
• In the late 1990s, Y2K, problem motivated many Companies to
move to ERP Systems
• Pay Programmers millions of dollars to correct the Y2K problem
in their old, already outdated software—or
• Invest in an ERP System that would not only solve the Y2K
problem, but potentially provide better Management of their
Business Processes
• Thus, the Y2K problem led to a dramatic increase in business for
ERP Vendors in the late 1990s
• PeopleSoft offering Software for Human Resources and Payroll
Accounting, and it achieved considerable success
 EVOLUTION OF INFORMATION SYSTEM

• Oracle, and in 1986 released the CLIENT-

CLIENT-SERVER Oracle
Relational Database
• in 1988 released Oracle Financials, a set of Financial
Applications
• Oracle Financials was the foundation for Oracle’s ERP
product
• The latest versions of ERP Systems by SAP, Oracle and other
Companies allow all Business Areas to access the same
Database, eliminating Redundant Data and Communications
lags
• ERP System allows data to be entered once, and then used
throughout the Organization
THANK YOU FOR NOW
EVOLUTION OF INFORMATION SYSTEM
ERP System Modules
• Manufacturing Management:
– MRP, R&D, Work Centers, Scheduling
• Financial Management:
– Accounting, Cost Control, Analysis, Expense Management
• Customer/Product Management :
– Sales Order, Pricing System, Field Service, Quality Control
• Human Resource Management:
– Recruiting, Benefits, Payroll, Training
• Supply Chain Management:
– Forecasting, Purchasing, Distribution, Inventor
• Corporate Service Management:
– Travel, Facilities, Legal Services, Incentives