Course Introduction. Class Content

Transcription

1 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

2 ERP Overview SAP Overview A Real World ERP Project Example

3 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.

4 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. ** Isolated Information islands across an enterprise **

5 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.

6 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 and various Self-Service interfaces for Customers, Suppliers, and Employees

7 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 Improved customer service

8 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.

9 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)

10 ERP Vendors

11 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 softwarerelated 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.

12 Course Policy ERP Overview SAP Overview A Real World ERP Project Example

13 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.

14 SAP Worldwide Office

15 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 frequency identification (RFID).

16 SAP Palo Alto Campus 3408 Hillview 3410 Hillview (D) 3421 Hillview 3412 Hillview (Q2 08) 3420 Hillview Deer Creek

17 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 database and dialog control system leads to the birth of SAP R/2.

18 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.

19 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 stateof-the-art Web technology.

20 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.

21 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 Looking Forward Services-Oriented Architecture (SOA)!

22 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 Corporate Services

23 Solution Map SAP ERP

24 Course Policy ERP Overview SAP Overview A Real World ERP Project Example

25 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. Revenues in 2006 $15 Billion.

26 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. 3 Global Express Product lines With 178 Aircrafts 6 Challenger Product lines With 803 Aircrafts 4 CRJ Product lines With 1,307 Aircrafts 12 Learjet Product lines With 2,269 Aircrafts 28 Product Lines with 5,000+ Aircrafts (As of Dec 2006) 4 DASH Product lines With 711 Aircrafts

27 Fleet Distribution

28 Spare Part Distribution Structure

29 Rotables Management Process

30 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 on optimizing availability, delivery, and and value

31 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