Introduction to ERP and Navigation in SAP Author: Domicián Máté 1 Table of Contents Introduction ............................................................................................................................................. 4 What is an Enterprise Resource Planning System ................................................................................... 5 What is ERP?....................................................................................................................................... 5 Evolution of ERP................................................................................................................................. 5 ERP Characteristics ............................................................................................................................. 7 Major Reasons for Adopting ERP ....................................................................................................... 8 ERPs and productivity relationship ................................................................................................... 10 Exercises ............................................................................................................................................ 11 Solutions ............................................................................................................................................ 12 Introduction to SAP ............................................................................................................................... 13 Brief History of SAP ......................................................................................................................... 13 SAP R/3 System’s Architecture ........................................................................................................ 14 The R/3 System’s Modules ............................................................................................................... 15 The hidden costs of introduction ....................................................................................................... 18 Exercises ............................................................................................................................................ 18 Solutions ............................................................................................................................................ 19 Navigation in SAP R/3 .......................................................................................................................... 20 Log on SAP ....................................................................................................................................... 20 SAP Easy Access Menu .................................................................................................................... 23 The Menu Bar .................................................................................................................................... 28 Business Workplace .......................................................................................................................... 39 Distribution lists ................................................................................................................................ 44 Workflow functions ........................................................................................................................... 46 User Maintenance .............................................................................................................................. 48 Job Scheduling .................................................................................................................................. 52 Exercises ............................................................................................................................................ 53 Solutions ............................................................................................................................................ 56 An overview of GBI (Global Bike Inc.) ................................................................................................ 58 Company History .............................................................................................................................. 58 Corporate Overview .......................................................................................................................... 59 Product, Manufacturing and IT Strategy ........................................................................................... 60 Distribution and Partner Network ..................................................................................................... 61 Working at GBI ................................................................................................................................. 62 2 How to Use GBI Mobile Application ................................................................................................ 65 Exercises ............................................................................................................................................ 66 References ............................................................................................................................................. 69 3 Introduction This material was written with the intention to explain the main characteristics of the Enter- prise Resource Planning systems (ERPs), how these systems work in theory and how to navi- gate in SAP Easy Access Menu in practice. The illustration of SAP R/3 systems is prepared for students at universities of applied sciences with no previous experience; however, any students who are interested in ERPs are welcome. This material is recommended both at clas- ses and for autodidactic study as well. After having completed the course, students will be able to understand the advantages of adopting ERP systems and they will be able to navigate through the SAP User Interface to work on business processes and case studies on their own. Furthermore, this material is meant to serve as a reference for occasional users of SAP R/3 systems. The following typographic conventions are also used: This information is displayed by the instructor Procedures Exercises Warning or caution Solutions Discussion 4 What is an Enterprise Resource Planning System What is ERP? An Enterprise Resource Planning (ERP) System is a fully integrated Business Manage- ment System covering the functional areas of an enterprise, such as Accounting, Finance, Human Resources, Logistics, Production etc. (Anderson, 2011). The word Integration is the key element for ERP implementation. An ERP system is an at- tempt to integrate all functions across a company to a single computer system that can serve all specific needs of users: It organizes and integrates operation processes and information flows etc. to make the optimum use of resources such as people, material, money, machine etc. It may also integrate key customers and suppliers as part of the enterprise’s opera- tion. It provides integrated database and custom-designed report systems. It adopts a set of “best practices” for carrying out all business processes. Enterprise Resource Planning systems ensure: a database, an application, and a user interface for the entire enterprise, where the system rules manufacturing, distribution, finance, sales etc. Evolution of ERP In the growing business environment, the following factors motivate industry to develop ERPs (Hetyei, 2009): aggressive cost-cutting initiatives, the need to analyze costs/revenues on a product or customer basis, flexibility to respond to the changing business requirements, the demand of the management for more information needed for decision making, looking for new solutions in the business world. 5 Information systems have traditionally been placed in two broad categories (see Table I.): Operations Support Systems (1950s-): OSSs process data which are generated during business activities in order to provide internal users (business owners and employees) and external users (buyers and distributors) with a big amount of information. Furthermore, OSSs support day-to-day operations and the lower level management functions. a) Transaction Processing Systems (TPS): record and process data which derive during the daily course of business. TPSs serve as the database of higher systems during the supervision of everyday business activities (settling invoices, paying salaries and placing orders). b) Process Control Systems (PCS): control, monitor and capture ongoing physical processes, and make routine decisions, real time adjustment to a process. c) Enterprise Collaboration Systems (ECS): support team and enterprise collabora- tion and communication. Collect, process, store, and transmit data and information in the form of electronic office communication. Management Support Systems (1960s-): MSSs are designed to provide accurate, timely and relevant information needed by managers for effective decision making. Thus, MMSs support the decision-making needs of strategic (top), tactical (middle) and operating (supervisory) management. a) Management Information Systems (MIS, 1960s-): provide information for the managerial end-users to support their day-to-day decision making needs. b) Decision Support Systems (DSS, 1970s-): are interactive, computer-based infor- mation systems that use decision and specialized databases to assist (un)structured decision-making processes. c) Executive Information