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Enterprise Resource

Planning
Akshay Bhushan
Andrew Conley
Waqas Sheikh
ERP Outline
 Introduction
 ERP Solutions
 Benefits
 Disadvantages
 Functional Areas
 Leading Vendor Comparison
 Implementation
 Cisco Systems
 Technical Aspects of SAP
 ERP Market
 Future of ERP
 Video SaaS
Introduction
 Motivation behind ERP products
 ERP products are marketed as “ERP
Solutions” – multiple H/W and S/W
components
 Key component – central, unified DB
 Associated with very large implementation
projects
Introduction (cont’d)
 Focus is on integration of resources across the
enterprise
 Implemented by centralizing data and building
customized applications
 Are cross-functional & enterprise-wide
ERP Solutions - Benefits
 Integration of Services
 Efficiency
 Cost Reduction
 Less Personnel
 Accurate Data
 Long-term Benefits
ERP Solutions - Disadvantages
 Expensive
 Requires Business Process Changes
 Generally inflexible
ERP Solutions - Functional
Areas
 Manufacturing
 Projects
 Human Resources (HR) Management
 Financials
 Supply Chain Management (SCM)
 Customer Relationship Management (CRM)
ERP Solutions –
Leading Vendor Comparison
  SAP mySAP Oracle E-Business Suite Microsoft Dynamics
Manufacturing × × ×
Engineering × × ×
Bills of Materials × × ×
Scheduling × × ×
Capacity   × ×
Workflow Management × ×  
Quality Control × × ×
Cost Management × × ×
Manufacturing Process × × ×
Manufacturing Projects   × ×
Manufacturing Flow × ×  
Projects × × ×
Costing × × ×
Billing   × ×
Time & Expense × × ×
Activity Management ×    
HR Management × × ×
Payroll × × ×
Training ×    
Time & Attendance × × ×
Benefits × × ×
ERP Solutions –
Leading Vendor Comparison
  SAP Oracle Microsoft
  mySAP E-Business Suite Dynamics
Financials × × ×
General Ledger × × ×
Cash Management × × ×
Accounts Payable × × ×
Accounts Receivable × × ×
Fixed Assets   ×  
SCM × × ×
Inventory × × ×
Order Entry × × ×
Purchasing × × ×
SC Planning × ×  
Scheduling × × ×
CRM × × ×
Sales & Marketing × × ×
Service × × ×
Commissions ×    
Channel Management × × ×
Call Center Support   ×  
Implementation
 Typically large-scale, complex projects
 Involve significant business process changes
 May take few months to several years
 Mostly requires external consultants to
provide:
 Consulting
 Customization
 Maintenance & Support
Case Study
Cisco Systems
 Cost for implementation ~ $15m
 Length ~ 9 months
 Chosen Product: Oracle
 Integration Consultants: KPMG
Cisco Systems (cont’d)
 Selection
 Implementation
 Challenges
 Reward
Technical Aspects of SAP
Modes of Operation:
 SAP R/3 can be made to run on very different
configurations.
 In a central implementation, all the processing takes
place on a single computer, analogous to a
mainframe.
 In a two-layer implementation, servers are
specifically used for presentation and computation.
 SAP advocates the three-layer implementation.
Three-Layer SAP Configuration

 The three-layer configuration in SAP uses a client


or presentation layer, an application server layer and
a database layer.
 This mode of operation takes demand off of the
client and database and streamline business
processing.
Data Request Queries
SAP Application Relational
SAP Client
Server Database
Presentation Data
The SAP Client
 The SAP client is a thin-client; very little processing
takes place on the client-side.
 The purpose of the client is mainly for presentation of
data and input from the user.
 This allows for the separation of data from the client.
 This is useful for updates: Only the few SAP
application servers need to be updated rather than the
many clients.
The SAP Application Server
 The SAP application server is the go-between for the
SAP client and the database.
 Most of the processing is meant to take place on the
SAP application servers.
 The SAP application servers can be task specific, e.g.
presentation preparation, data analysis, etc.
 The SAP application servers process most of the
presentation data for the clients.
SAP Application Server
Operation
 SAP application servers can run on a variety
of operation systems.
 Data or processing requests from clients go to
the server with the least load.
 Application servers cache recently used data.
 Having a few application servers allows for
easier updates.
SAP Application Servers Use
ABAP/4
 The business processing on SAP application
servers is done in ABAP/4.
 “Advanced Business Application
Programming.”
 SAP applications exists as ABAP modules,
e.g. shipping, human resources or CRM.
 ABAP/4 runs on the ABAP virtual machine.
ABAP/4 Code
 DATA: BEGIN OF wa,
        connid   TYPE spfli-connid,
        cityfrom TYPE spfli-cityfrom,
        cityto   TYPE spfli-cityto,
      END OF wa.
 DATA c1 TYPE spfli-carrid VALUE 'LH'.
 EXEC SQL PERFORMING loop_output.
  SELECT connid, cityfrom, cityto
  INTO   :wa
  FROM   spfli
  WHERE  carrid = :c1
ENDEXEC.
 FORM loop_output.
  WRITE: / wa-connid, wa-cityfrom, wa-cityto.
ENDFORM.
SAP Database Connectivity
 SAP systems use a central relational database
for data storage.
 SAP employs different adapters for different
databases.
 Clients do not access the database, but go
through the SAP application servers.
SAP Database Connectivity (cont’d)
 Database access is encoded in database
specific ABAP modules in the SAP business
applications.
 ABAP Open SQL is used for all database
systems.
 ABAP Native SQL is used to take advantage
of non-standard SQL features.
Open SQL Native SQL
Database
SAP Application Adapter Module Relational
Server Database
Native SQL
Typical SAP Configuration
 The configuration for a company will depend
on the size of the company and its processing
needs.
 A large company will require application
servers dedicated to specific tasks.
ERP Market
 Segmentation
 Size
 Small to Midsize Businesses
 Large Businesses
 Industry Verticals
 Players
 Tier 1
 Oracle
 SAP
 Tier 2
 Microsoft
 Intentia
 Tier 3 - Misys, Cerner and more
ERP Verticals
ERP Market Trends
 Growth Rates: 4.8% CAGR
 Current Market: $16.67B
 Industry Activity
 Consolidation
 Service Oriented

Architecture
 Emerging Markets

 Industry Diversification
ERP Market Share
Future of ERP: Paradigm Shift?
 Current: Software License
 Ownership based – one time payment
 Product Support contracts
 Software hosted and run by buyer

 Future: SaaS – ‘Software as a Service’


 Web 2.0
 Service/user based – monthly payments
 Software hosted by provider
 Pros and cons
Future of ERP
 Oracle OnDemand
 SAP netSuite
 Salesforce.com
Future of ERP
Oracle SaaS Video

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