Introduction to ERP What is ERP

Enterprise Resource Planning –

Is a business management software system that integrates core business functions within the supply chain of an organization including areas such as financials and human resources

2 ERP structure

3 ERP

• Integrated view of core business transactions

• Real-time

• All transactions captured in a central database

• Track business resources—cash, raw materials and production capacity

• Provides the status of business commitments such as customer orders, purchase orders to vendors, payables and receivables and payroll

• Facilitates information flow between all business functions such as Sales & Purchasing, Purchasing & Manufacturing, and Accounting

• Manages connections to outside stakeholders

4 Evolution of ERP

ERP is a part of an evolutionary process that began with material requirements planning (MRP). MRP is a computer- based, time-phased system for planning and controlling the production and inventory function of a firm-from the purchase of materials to the shipment of finished goods

5 Evolution of ERP

6 Evolution of ERP

• ERP Systems have only been in common use since the 1990s

• ERP is an evolving technology

• Initially function covered only MRP – a generic function across all industries

• Evolved into industry specific solutions towards end of millennium

• Additional capabilities are being adding to core ERP applications. Some of them include  Customer relationship Management (CRM)  Supply chain management  Strategic Enterprise management (SEM)

7 Challenges, Pros and Cons of ERP

Challenges – Change management – a challenge. – Human Resources POV - Limited technical capabilities. – Investment(cost of implementation) and ROI (time to quantify ROI) Pros – No standalone silos within an organization – Greater transparency and accountability – Freely available information for management reporting and decision making

Cons – High setup cost – Data consistency(Garbage In/Garbage Out) – People dependent

8 Different ERP solution available

• SAP

• Baan

• Oracle

• JD Edwards

• PeopleSoft

• MFG/PRO

• NAVISION

9 Definition of SAP

• SAP stands for Systems, Applications and Products in data Processing

• Founded in 1972 in Wienheim, Germany by five former IBM engineers, and now headquartered at , Germany

• Founders are – Dietmar Hopp – Hans-Werner Hector – Hasso Plattner – –

10 Definition of SAP

• SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business management

• It is a system that provides users with a soft real-time business application

• It contains a user interface and is considered extremely flexible

11 SAP as an ERP

• SAP is the world's largest ERP software company and the world's fourth-largest independent software supplier

• As of 2010, SAP has more than 140,000 installations worldwide, over 25 industry-specific business solutions and more than 75,000 customers in 120 countries

Top 10 Software Firms - 2013 # Company ERP Market Share - 2013 1 Microsoft 2 Oracle 23% 35% SAP 3 SAP 14% Oracle 4 Symantec 28% Microsoft 5 CA Technologies Tier II 6 Adobe 7 Intuit

13 Available industry solutions

• Example of the industry-specific ERP solutions offered by SAP

Aerospace and defense High-tech Mining Higher education and Automotive Oil and gas research Banking Hospitality services Pharmaceuticals Chemicals Industrial machinery and Postal services Consumer products components Professional services Defense and security Insurance Public sector Engineering, construction, Life sciences Railway services and operations Logistics service providers Retail Financial service Media Telecommunications providers Healthcare Mill products Utilities

14 SAP – success stories

• Apparel and Footwear

• Automotive

• High Tech

• FMCG

15 Three tier architecture of SAP

16 Commonly used modules

19 SAP Hana

20 SAP Fiori Apps

21 Different roles in SAP

SAP • Role of a Developer in SAP • ABAP Programming Language Technical • Core language used by SAP

•Playing the task of mapping the business processed in SAP SAP •The roles are differentiated based on modules • Sales & Distribution Functional • Materials Management • Finance & Controlling • Production & Planning

22 Embraced view of SAP Organization Structure

Operating Concern Strategic Oriented

Controlling Area Management/Cost Accounting

Company Code Company Code Statutory Reporting

Sales Org Sales Operations

Plant Logistics Operations Storage Location

24 Thank You

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