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ERP Systems
ERP Systems
ERP Systems
Agenda
What is an ERP System?
Why implement an ERP system?
Key characteristics of ERP system?
Architecture of ERP system?
How should ERP systems be implemented?
What results can be expected from ERP
systems?
Hidden cost and Risks associated with ERP
systems?
History and evolution of ERPs?
Components of ERPs?
What is an ERP System
definitions
Simplistic Definition
ERP - Enterprise Resource Planning
Detailed Definition
Purchase
Manufacturing Finance
Sales
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Historical system
architectures
Historically, companies created “islands of
Business
Marketin Sales eCommerc OSS HR
Applicati g e
ons
Application
Application
Application
X
3 Tier
Database
Application
Application
Browser
Java
Application Server
Browser
Why implement an ERP
System?
To support business goals
Integrated, on-line, secure, self-
service processes for business
Eliminate costly
mainframe/fragmented
technologies
Improved Integration of Systems and
Processes
Lower Costs
Empower Employees
Enable Partners, Customers and Suppliers
How should we implement ERP
systems
and technology!!
How should we implement ERP
Systems?
People
According to Project Structure
(hierarchies)
Should be aligned to processes
Process
Adapt your processes to those of the
ERP.
Technology
Hardware
Software
Integrated Systems
How ERP becomes part of your
system
Process
1. Definition and Analysis
Effectiveness assessment
Business and Technical Direction
recommendations
Technology
Technology is an enabler, not the driver (it is
there to assist the organization to achieve
business goals)
It is a means to an end, not the end
W h a t re su lts ca n b e e xp e cte d fro m
a n “ E R P cu ltu re ” ?
§Reduced working capital requirements
§Improved customer service
§Improved direct labor productivity
§Reduced purchase costs
§Reduced overtime
§Having the figures to make decisions
§Having accountability throughout the organization ERP
§Improved quality of life
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SAP AG – At a Glance
§Founded in Germany in 1972
§Strength lies in its high degree of integration, mainly for large, global corporate
enterprises
§Significant presence in Global Fortune 500 companies
–
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SAP R/1 , R/2
§The R/1 system
§Developed for ICI Chemical
§Released 1972
§Focused on Sales & Distribution and Materials Management
§Discontinued after release of R/2
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SAP R/3 : 3 Tier Architecture
The Presentation Layer
Those SAP R/3 software components that
specialize in interacting with end-users
form the Presentation Layer.
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SAP R/3 : 3 Tier Architecture
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SAP R/3 : 3 Tier Architecture
Presentation Layer components are installed across many PCs
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Organizational Structure in SAP R/3
Production Planning Financial Accounting
Compa
Plant ny
Code
Purchasi
Sales ng
Area Organizat
ion
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BAAN ERP MODULE
•Roll-out support
•ERP Assessment and •Requirement Study •Enhancements to
Health-check •Design & Development Customizations
•Product Selection •Integration •Product support
•System Performance •Integrate Legacy systems •System Administration
Tuning to OA
•System/Application
•Upgrade Assessment •Develop Custom APIs •Tuning and patching
FINANCIALS
MANUFACTURING SCM
•General ledger
•Inventory •Procurement
•Assets
•Bill of materials •Manufacturing
•Cash management
•Work in progress •Order management
•Payables / receivables
•Engineering •Product lifecycle management
•Financial analyzer
•Mrp •Supply Chain Execution & Planning
•Enterprise planning &
•Cost •Logistics
budgeting
A WATERFALL & ITERATIVE APPROACH OF JD EDWARDS
PEOPLESOFT ERP ARCHITECTURE
Conclusion
ERP systems provide a mechanism for
implementing systems where a high degree
of integration between applications is
required
The Business Case or Value Proposition for
implementation must be outlined
To successfully implemen,t a proper mix of
people, processes and technology should be
maintained
THANK YOU………!!!!
MORE YOU ASK , MORE YOU LEARN….!!!
Something to think
about…
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respect for others guides our manners