Course Introduction. Class Content

Course Introduction

Class Content

ERP Overview SAP Introduction

SAP Overview / Product offerings SAP Technologies / SAP Netweaver SAP Implementation / Deployment SAP Operations

SAP ERP HCM / Financials ERP Career Opportunities

ERP Overview

SAP Overview

What is ERP?

There is no single definition to apply, and there is no a fixed

boundary of ERP functions as well.

Let’s give a try:

The term ERP originally implied systems designed to plan the use of

enterprise-wide resources. Although the ERP originated in the

manufacturing environment, today's use of the term ERP systems has much broader scope. ERP systems typically attempt to cover all basic functions of an organization, regardless of the organization's business or charter.

To be considered an ERP system, a software package must provide

the function of at least two systems. For example, a software

package that provides both payroll and accounting functions could technically be considered an ERP software package.

IT World before ERP Era

Prior to the concept ERP systems, departments within an organization For example, the human resources (HR) department, the payroll department, and the financials department would have their own computer systems.

The HR computer system (often called HRMS or HRIS) would typically contain information on the department, reporting structure, and personal details of employees.

The payroll department would typically calculate and store paycheck information.

The financials department would typically store financial transactions for the organization.

Each system would have to rely on a set of common data to communicate with each other.

For the HRIS to send salary information to the payroll system, an employee number would need to be assigned and remain static between the two

systems to accurately identify an employee.

This provided complications. For instance, a person could not be paid in the payroll system without an employee number.

IT World in ERP Era

ERP software, among other things, combined the data of formerly

separate applications.

This made the worry of keeping numbers in synchronization across multiple systems disappear.

It standardized and reduced the number of software specialties required within larger organizations.

Let’s give one more try. What is ERP?

Enterprise resource planning software, or ERP, doesn’t live up to its acronym. Forget about planning—it doesn’t do much of that—and forget about resource, a throwaway term. But remember the

enterprise part.

This is ERP’s true ambition. It attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs.

ERP Software Modules

Ideally, ERP delivers a single database that contains all data for the software modules, which “would” include:

Manufacturing

Engineering, Bills of Material, Scheduling, Capacity, Workflow Management, Quality Control, Cost Management, Manufacturing Process, Manufacturing Projects,

Manufacturing Flow

Supply Chain Management

Inventory, Order Entry, Purchasing, Product Configurator, Supply Chain Planning, Supplier Scheduling, Inspection of goods, Claim Processing, Commission Calculation

Financials

General Ledger, Cash Management, Accounts Payable, Accounts Receivable, Fixed Assets

Projects

Costing, Billing, Time and Expense, Activity Management

Human Resources

Human Resources, Payroll, Training, Time & Attendance, Rostering, Benefits

Customer Relationship Management

Sales and Marketing, Commissions, Service, Customer Contact and Call Center support

Data Warehouse

Advantages of ERP Systems

There are many advantages of implementing an EPR system; here

are a few of them:

A totally integrated system

The ability to streamline different processes and workflows

The ability to easily share data across various departments in an organization

Improved efficiency and productivity levels Better tracking and forecasting

Lower costs

Disadvantages of ERP

While advantages usually outweigh disadvantages for most

organizations implementing an ERP system, here are some of the

most common obstacles experienced:

Usually many obstacles can be prevented if adequate investment is made and adequate training is involved, however, success does depend on skills and the experience of the workforce to quickly adapt to the new system.

Customization in many situations is limited. The chosen ERP system is to rigid.

The need to reengineer business processes.

ERP systems can be cost prohibitive to install and run. Too expensive.

Technical support can be poor.

ERP may be too rigid for specific organizations that are either new or want to move in a new direction in the near future.

Integration is Key to ERP

Integration is an extremely important part to ERP.

ERP main goal is to integrate data and processes from all areas of an organization and unify it for easy access and work flow.

ERP usually accomplish integration by creating one single database that employs multiple software modules providing different areas of an

organization with various business functions.

Although the ideal configuration would be one ERP system for an entire organization, many larger organizations usually create and ERP system and then build upon the system and external interface for other stand alone systems which might be more powerful and perform better in fulfilling an organizations needs. Usually this type of configuration can be time consuming and does require lots of labor hours.

Best Breed Approach vs. One Software Vendor Approach

(Example)

ERP Market Share

In 2007, The worldwide market share of core enterprise applications vendors, which account for approximately U.S. $36.7 billion in software and software-related service revenues, SAP still has 28.4%of market share.

This course will use SAP products as a backbone to illustrate what are ERP solutions and the latest trends.

Course Policy

ERP Overview

SAP Overview

About SAP

Headquartered in Walldorf, Germany, SAP is the world's largest business software company – with more than 42,750 employees at sales and

development locations in more than 50 countries worldwide. With global development approach, it focuses on distributing

development across the world in strategically important markets. A

global network of SAP Labs spanning Bulgaria, Canada, China, Germany, France, Hungary, India, Israel, and the United States, enables SAP to

operate locally, yet organize globally.

As the global technology research unit of SAP, SAP Research

significantly contributes to SAP's product portfolio and extends SAP's leading position by identifying and shaping emerging IT trends through applied research and corporate venturing. SAP Research has highly skilled teams in 11 research centers worldwide.

To ensure SAP's position as a technology leader, SAP Ventures invests in emerging entrepreneurial companies that are advancing exciting new technologies. SAP Ventures operates independently from the overall SAP strategy to discover and pursue opportunities for financial return. At the same time, the organization brings substantial benefits to its portfolio companies and SAP by facilitating interaction between innovative young companies and the SAP ecosystem.

Example of SAP Labs

SAP Labs U.S.:

Driving Innovation, Achieving Results

Headquartered in Palo Alto, California, SAP Labs U.S. is the first SAP Lab established outside of Germany. The mission of SAP Labs U.S. is to leverage the many valuable assets within Silicon Valley and the expansive U.S. market in order to drive innovation, strategic partnering, and field support/customer success. Over the past ten years, SAP Labs U.S. has grown dramatically from 25 to more than 1,500 people.

SAP Labs at Work

SAP Labs U.S. also maintains strategic relationships with organizations such as Stanford University, Carnegie Mellon, MIT, Rutgers, Software Developer's Forum, Stanford Global Supply Chain Management Forum, Intel Corporation, Microsoft, and more.

SAP Labs' Successes

SAP Labs U.S. has contributed to major technical and product successes for SAP, such as the SAP NetWeaver platform and enterprise service-oriented architecture (enterprise SOA), SAP xApps composite applications, and SAP solutions for radio

SAP Palo Alto Campus

SAP History

The 1970s: A Real-Time Vision

In 1972, five former IBM employees – Dietmar Hopp, Hans-Werner

Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther –

launch a company called

Systems Applications and Products in

Data Processing

in Mannheim, Germany. Their vision: to develop

standard application software for real-time business processing.

One year later, the first

financial accounting software

is complete,

forming the basis for the continuous development of other

software components in what later came to be known as the "R/1

system." "

R

" stands for

real-time data processing

.

By the end of the decade, intensive examination of SAP's IBM

SAP History

The 1980s: Rapid Growth

SAP moves into the company's first building on Max-Planck-Strasse in an

industrial park in Walldorf, near Heidelberg. Our software development area and its 50 terminals are all now under one roof. Fifty of the 100 largest German

industrial firms are already SAP customers.

The SAP R/2 system attains the high level of stability of the previous generation of programs. Keeping in mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies. With this and other innovations in SAP R/2, SAP sees rapid growth.

By the middle of the decade, SAP founds its first sales organization outside Germany, in Austria. The company makes its first appearance at the CeBIT

computer fair in Hanover, Germany. Revenues reach DM 100 million (around $52 million), earlier than expected.

In August 1988, SAP GmbH becomes SAP AG. Starting on November 4, 1.2 million shares are listed on the Frankfurt and Stuttgart stock exchanges.

Germany's renowned business journal, manager magazine, names SAP its

Company of the Year – a distinction we would receive twice more in the next few years.

With the founding of subsidiaries in Denmark, Sweden, Italy, and the United States, SAP's international expansion takes a leap forward.

SAP History

The 1990s: A New Approach to Software and Solutions

SAP R/3 is unleashed on the market. The client-server concept, uniform

appearance of graphical interfaces, consistent use of relational databases, and the

ability to run on computers from different vendors meets with overwhelming

approval. With SAP R/3, SAP ushers in a new generation of enterprise software –

from mainframe computing to the three-tier architecture of database, application, and user interface. To this day, the client-server architecture is the standard in business software.

In the twentieth year, SAP business outside Germany exceeds 50 percent of total sales for the first time.

By 1996, the company has earned 1,089 new SAP R/3 customers. At the end of the year, SAP R/3 has been installed in more than 9,000 systems worldwide.

SAP celebrates its twenty-fifth anniversary in 1997 and now employs

approximately 12,900 people. We continue to strengthen our industry focus and build more and more industry-specific solutions.

As the end of the decade, SAP announces the mySAP.com strategy, heralding the beginning of a new direction for the company and SAP product portfolio.

mySAP.com links e-commerce solutions to existing ERP applications, using state-of-the-art Web technology.

SAP History

The 2000s: Innovation for the New Millennium

With the Internet, the user becomes the focus of software

applications. SAP develops SAP Workplace and paves the way for

the idea of an

enterprise portal and role-specific access

to

information.

Currently, more than 12 million users work each day with SAP

solutions. There are now

121,000 installations

worldwide, more

than

1,500 SAP partners

, over 25 industry-specific business

solutions, and more than

43,400 customers in 120 countries

. SAP

is

the world's third-largest independent software vendor

.

Today, with

enterprise services-oriented

architecture and the

underlying integration and application platform, SAP NetWeaver,

SAP is providing our customers with solutions for end-to-end

business processes. With SAP NetWeaver, your company can

integrate people, information, and processes within the company

and beyond

.

ERP Evolution

SAP history reveals the history and trend of ERP in general

From not real-time to real-time data processing

From single to multi languages and currencies support From mainframe computing to client-server computing The needs of industry-specific solutions

From back-office applications extending to e-commerce solutions with web technology

Enablement of role-specific information access

Form module-oriented to solution-oriented positioning

SAP ERP

SAP ERP includes four individual solutions that support key

areas of enterprise resource planning:

SAP ERP Human Capital Management

SAP ERP Financials

SAP ERP Operations

SAP ERP

Solution

M

Course Policy

ERP Overview

SAP Overview

A Real World ERP Project Example

(with an industry-specific flavor)

Company Background

XYZ, Inc. is a manufacturer of innovative transportation solutions ranging from regional aircraft and business jets to rail transportation equipment, systems and services. It has two segments: Aerospace designs and manufactures aviation products, and is a provider of related services for the business, regional and specialized aircraft market.

Project ABC initiative to Optimize

Spare Part Management

Project ABC is to provide a full spectrum of spare part support to 28 XYZ

product lines including Regional and Business jets as well as new Aircraft

programs entering into service.

28 Product Lines with 5,000+

Aircrafts (As of Dec 2006)

6 Challenger Product lines With 803 Aircrafts

With 178 Aircrafts

12 Learjet Product lines With 2,269 Aircrafts

4 CRJ Product lines With 1,307 Aircrafts

4 DASH Product lines With 711 Aircrafts 3 Global Express Product lines

What Is Special Here

Special Points and Decision Factor:

Supersession

Internal vs. external repair Repair or Buy

Goal of Project ABC (Spare Part Optimization):

Delivering the right part to the right place at the right time, and at the right price

Providing an amazing customer experience

Focused on optimizing

availability, delivery, and value

Focused on optimizing

Class Content

Class Content

ERP Overview / SAP Introduction

SAP Overview / Products / Technologies SAP Implementation

SAP ERP HCM / Financials / Operations SAP Deployment

Beyond Classical ERP ERP Career Opportunities