Professional Documents
Culture Documents
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
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