Chapter 6 Supporting Processes with ERP Systems Copyright 2015 Pearson Education, Inc. 6-1
Learning Objectives Q1. What problem does an ERP system solve? Q2. What are the elements of an ERP system? Q3. What are the benefits of an ERP system? Q4. What are the challenges of implementing an ERP system? Copyright 2015 Pearson Education, Inc. 6-2
Learning Objectives Q5. What types of organizations use ERP? Q6. Who are the major ERP vendors? Q7. What makes SAP different from other ERP products? Copyright 2015 Pearson Education, Inc. 6-3
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) Copyright 2015 Pearson Education, Inc. 6-4
EAI What Problem Does an ERP System Solve? Connects information silos via a new layer of software Enables existing applications to communicate and share data Provides integrated data Copyright 2015 Pearson Education, Inc. 6-5
EAI What Problem Does an ERP System Solve? Leverages existing systems, leaving departmental information systems as is, but providing an integration layer over the top Enables a gradual move to ERP Copyright 2015 Pearson Education, Inc. 6-6
What Problem Does an ERP System Solve? EAI Copyright 2015 Pearson Education, Inc. 6-7
What Problem Does an ERP System Solve? ERP Characteristics Consolidation of data for real-time sharing of data Integrated processes Copyright 2015 Pearson Education, Inc. 6-8
What Problem Does an ERP Before and After ERP System Solve? Copyright 2015 Pearson Education, Inc. 6-9
What Are the Elements of an ERP System? Manufacturing Software MRP MRPII Copyright 2015 Pearson Education, Inc. 6-10
What Are the Elements of an ERP System? ERP includes applications that integrate the processes for the following functions: SCM Manufacturing CRM Human Resources Accounting Copyright 2015 Pearson Education, Inc. 6-11
What Are the Elements of an ERP System? Five Components of an ERP System Software Hardware Data Procedures People Copyright 2015 Pearson Education, Inc. 6-12
What Are the Elements of an ERP System? ERP Software Configuration ERP Data Transactional Data Master Data Organizational Data Copyright 2015 Pearson Education, Inc. 6-13
What Are the Elements of an ERP System? Hardware Cloud implications Procedures People Users Systems Analysts Consultants Copyright 2015 Pearson Education, Inc. 6-14
What Are the Elements of an ERP System? Inherent Business Processes in ERP System specified business processes Process blueprints Copyright 2015 Pearson Education, Inc. 6-15
What Are the Benefits of an ERP System? Benefits Copyright 2015 Pearson Education, Inc. 6-16
What Are the Challenges of Implementing an ERP System? Decision-Making Challenges Details People Challenges Changes ERP Upgrades Copyright 2015 Pearson Education, Inc. 6-17
What Are the Challenges of Implementing an ERP System? Decision-Making Challenges Copyright 2015 Pearson Education, Inc. 6-18
What Are the Challenges of Implementing an ERP System? People Challenges Copyright 2015 Pearson Education, Inc. 6-19
What Are the Challenges of Implementing an ERP System? ERP Upgrades Copyright 2015 Pearson Education, Inc. 6-20
What Types of Organizations Use ERP? ERP by Industry Type ERP by Organization Size International Firms and ERP Copyright 2015 Pearson Education, Inc. 6-21
What Types of Organizations Use ERP? Copyright 2015 Pearson Education, Inc. 6-22
Who Are the Major ERP Vendors? ERP Products Copyright 2015 Pearson Education, Inc. 6-23
What Makes SAP Different from Other ERP Products? SAP Modules SAP Inputs and Outputs SAP Software SAP Business Suite Copyright 2015 Pearson Education, Inc. 6-24
What Makes SAP Different from Other ERP Products? SAP Modules Copyright 2015 Pearson Education, Inc. 6-25
What Makes SAP Different from Other ERP Products? SAP Inputs and Outputs Copyright 2015 Pearson Education, Inc. 6-26
What Makes SAP Different from Other ERP Products? SAP Business Suite SAP ERP SAP CRM SAP SRM SAP SCM SAP NetWeaver Copyright 2015 Pearson Education, Inc. 6-27
What Makes SAP Different from Other ERP Products? SAP Modules SAP Inputs and Outputs SAP Software SAP Business Suite Copyright 2015 Pearson Education, Inc. 6-28
Ethics Guide ERP Estimation Todd s ethical/unethical actions? Copyright 2015 Pearson Education, Inc. 6-29
Conclusion Q1. What problem does an ERP system solve? Q2. What are the elements of an ERP system? Q3. What are the benefits of an ERP system? Q4. What are the challenges of implementing an ERP system? Copyright 2015 Pearson Education, Inc. 6-30
Conclusion Q5. What types of organizations use ERP? Q6. Who are the major ERP vendors? Q7. What makes SAP different from other ERP products? Copyright 2015 Pearson Education, Inc. 6-31
All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright 2015 Pearson Education, Inc. 6-32