Fundamentals of ERP/SAP

Ming Wang
SAP Faculty Coordinator Department of Information Systems California State University, Los Angels
March 15, 2012 1

What Is Enterprise Resource Planning?

Enterprise Resource Planning = ERP Integrate many business functions into one seamless application Applications systems that run on top of a RDBMS Replace of legacy systems in organizations The integration of all computing in an organization: all major business processes are encompassed and standardized and all data is usable by all functional areas of the business
March 15, 2012 2

Characteristics of ERP
Integrate and automate all business processes Reduce interprocessing time (transactions occur one time at the source) Maintain complete audit trail of all transactions Utilize one common database Perform automatic internal conversions (e.g., foreign currency, taxes, legal rules for payroll, product pricing) Improve customer service Involve users in the entire functional cycle

March 15, 2012

Advantages of ERP
Fully Integrated Business Functions that Support Business Processes Helps develop understanding of business processes by tracking information thru the process Standardized Systems Development Life Cycle Move Toward Business Process Re-engineering Centers Re-engineering Around the Software Directly Links to External Systems

March 15, 2012

March 15, 2012

Industrial trends and technology update

Information technology is being transformed from the segmented applications towards the integrated enterprisewide systems. ERP systems in their new role as business operating systems for e-commerce, virtual companies, value chain analysis, supply chain management, strategic enterprise management, customer relation management to attract, retain, and serve customers The need to implement ERP software packages in this globalizing digital economy world
March 15, 2012 6

Impact of ERP on Students

Student must understand how to use a wide variety of information to make decisions Students must understand the impact of their decisions not only on their area of responsibility but to the rest of the company Understanding ERP is no longer a luxury, its a necessity in todays business world Students need gain practical ERP experience in the academic environment students must be technically sophisticated when they graduate

technology like ERP supports a business --- its not programming Students with an ERP background are more marketable
March 15, 2012 7

Benefit to Students
Start their careers with a businessprocess-oriented mindset. More than their peers, they come to the job with a keen understanding how companies operate. Better job opportunities and higher salaries because their ERP knowledge and skills.
March 15, 2012 8

What is the Academic Role in This?

Show Students How Best Business Practices Operate in a REAL Environment Use SAP to Demonstrate Concepts and Processes Provide Students With High Demand Market Skills More Closely Knit the Business Curriculum Together Keep Faculty Current on Emerging Technologies
March 15, 2012 9

Benefits to Faculty
ERP is currently one of the major IS research areas. Having ERP will help faculty in the area for their research and publication. The ERP vendors provide funding to faculty members for academic research. These opportunities are funded by such entities as Corporate Research, ERP Labs, and ERP sectors and units. ERP vendors fund curriculum projects to provide faculty with curriculum materials with ERP Curriculum Development Grants/Awards.
March 15, 2012 10

Industrial Collaboration
ERP /SAP is heavily used locally in Southern California. Enhancement of ERP /SAP in IS curriculum will certainly open job opportunities for our students. More than three hundred enterprises utilize ERP /SAP in Southern California. To join Southern California ERP /SAP User Group To establish industrial partnership and seek opportunities for student job placement, internships and external funding to support future ERP /SAP related activities for our department.
11

March 15, 2012

2. What is SAP?
SAP is an example of an ERP System Evolution SAP
SAPs Client Server version (Distributes process and presentation) Based on R/2 (Mainframe version centralization of data and process) R/3 4.7: This is the current version mySAP ERP2005 (ECC6.0): This is the new version
March 15, 2012 12

mySAP Business Suite

SAP Strategic Enterprise Management (SAP SEM) SAP Business Information Warehouse (SAP BW) mySAP Customer Relationship Management (mySAP CRM) mySAP Supply Chain Management (mySAP SCM) mySAP Supplier Relationship Management (mySAP SRM)

More information about the mySAP Business Suite is available at .www.sap.com/solutions

March 15, 2012 13

SAP - 30 Years in the Business of Business

14 Million+ Users - 100,600+ Installations - 120 + Countries - 29,800+ Customers - 1,500+ Partners 26 Industry Solutions - 35,000+ Employees (December 2005) SAP is the recognized leader in providing collaborative business solutions for all types of industries and for every major market. SAP is the world's largest ERP software company and the world's third-largest independent software supplier overall. Founded in 1972, headquartered in Walldorf, Germany
March 15, 2012 14

mySAP Business Suite (traditional)

Financial accounting / asset accounting

Cash management Funds management Investment management Controlling Enterprise controlling Project system Materials management Plant maintenance Sales and distribution Production planning Basis with database interface Personnel administration and payroll Personnel planning and development Solution Manager for systems administration
March 15, 2012

15

SAP Solutions for Companies of All Sizes

Large Company Medium Company / Subsidiary Small Company / Subsidiary

Seamless Communication thanks to Exchange Infrastructure Same look and feel mySAP.com The E-Business platform full industry functionality for all requirements mySAP All-In-One Technically designed for smaller companies easy to install & maintain extensive functionality SAP Business One Installed and running in a day. All necessary functionality

March 15, 2012

16

Global and Local Customers - A Selection

March 15, 2012

17

SAP R/3 Benefits

Integration Flexibility Worldwide usage Real-time processing Open system
18

March 15, 2012

SAP R/3 Structure

Application Modules Basis System Interfaces

March 15, 2012

19

Application Modules
Financials: Financial Accounting (FI) Controlling (CO) Asset Management (AM) Project Systems (PS) Common Systems: Workflow (WF) Industry Solutions (IS)
March 15, 2012 20

Application Modules (cont.)

Human Resources (HR) Logistics: Plant Maintenance (PM) Quality Management (QM) Production Planning (PP) Materials Management (MM) Sales and Distribution (SD) Service Management (SM)
March 15, 2012 21

mySAP Solutions in the Classroom

mySAP.com
Enterprise Portal mySAP Enterprise Portals SRM mySAP SRM HR mySAP HR FIN mySAP Financials CRM mySAP CRM PLM mySAP PLM SCM mySAP SCM BI mySAP BI

SAP R/3 - Enterprise

EBP ESS SEM ISA CF APO BW

Exchange mySAP Exchanges

March 15, 2012

22

mySAP Supply Chain Management mySAP SCM

Gives companies integrated supply chain planning and execution Cross-company supply chain coordination through adaptive supply chain networks Allows a company to react quickly to customer requests, changing markets, and replenishment bottlenecks Utilizes state-of-the-art optimization and control technology

March 15, 2012

23

mySAP Business Intelligence

mySAP BI Analytical and reporting foundation for ALL mySAP components including SCM Provides a web-enabled integrated view of information from SAP or legacy systems Pre-Integrated with mySAP SCM and all other SAP components Standard Business Content delivered with BI Leverages existing R/3 resources and installation End-to-End data warehousing solution
March 15, 2012 24

SCM and BI are Fully Integrated SAP R/3 into ERP Backend
SAP R/3 is SAPs ERP solution mySAP SCM and mySAP BI are fully integrated into SAP R/3, enabling real-time sharing of information Increased enterprise efficiency and higher productivity through optimized, integrated business processes Comprehensive functionality in all enterprise business Faster responsiveness through-out an organization via real-time information and reporting Technology platform, suitable for mission-critical applications
March 15, 2012 25

Logistics and Supply Chain Management

Through the use of enterprise software we can introduce and demonstrate many logistical concepts in the business curriculum purchasing process MRP production planning quality management returned materials order fulfillment
March 15, 2012 26

EXAMPLE: The Procurement Process

The inbound logistics part of the supply chain Basic Activities Purchase Requisition RFQ Purchase Order Follow-up and Expediting Receiving and Inspection Invoice Verification Accounts Payable Management Reports
March 15, 2012 27

Business Concept Demonstration

Impact of receiving goods Inventory show inventory movements between inventory categories Financial show financial responsibility point Invoice processing Single Multiple Evaluated receipt settlement Payment processing Scheduling Automatic Options
28

March 15, 2012