An overview for college students of why, and how, ERP is used. Confusing acronyms are presented, as well as how advantageous an ERP system is to a company.

1. DPR105: Tom Matys

2. Define an ERP system
How ERP makes companies better
Discuss software vendors
The components of an ERP system
What is ERP?
Why Use ERP?
Who makes ERP?
Click Mouse Reveal Next Phase
What are the
attributes of ERP?

3. Enterprise:
A unit of economic organization or activity.
Resource:
An ability to meet and handle a situation.
Planning:
The establishment of goals, policies, and
procedures for a social or economic unit.
Source: Merriam-Webster

4. 4
Production
Information?

5. ERP System:
….because it is a company-wide, cross-
functional, tool, that helps a business,
or a company, to
be successful
in its operations.

6. • A set of integrated
software modules for
supporting all of an
enterprise’s processes
in real-time.
• Sales, Production,
Logistics, Purchasing,
Accounting, and
Human Resources
share relevant
information with each
other as needed.

7. • Uses programs (modules)
are software to manage
info in every area of the
business.
• Uses common databases
and shared management
reporting tools.
• Uses integration to
streamline processes that
occur in real-time.

8. •It breaks down the walls and
barriers within a company.
Too, it removes the obstacles that
can be related to a differences in
geographical locations of external
resources. Internally and externally.

9. 0
2
4
6
Expected Sales
1st Quarter 2012
ERP’s information is very visible
and up to the second.
Examples: Inventory Mgmt.,
Financial Status, Hiring
Training, Customer Credit

10. Real-Time Processing

11. Transactions are
processed efficiently
and quickly

12. Enter Shipping
transaction
Relational Database
stores raw data
Data is
instantly
available
The time that it takes for
information to be
delivered within an
integrated system from
the resource to the
target is instant!

13. Promotes Customer Loyalty

14. I.e.. Consultant Fees,
Licensing, Training.
Change Management

15. Account &
Finance
A/F
Marketing & Sales
M/S
Human Resources
HR
Supply Chain Mgmt.
SCM

16. Account & Finance
A/F (business processes)
Marketing & Sales
M/S (business processes)
Human Resources
HR (business processes)
Supply Chain Mgmt.
SCM (business processes)

17. • Hardware
servers, fax machines, printers, communication networks, etc.
• People
Who work in M/S, SCM, FI, and HR
 Software (modules/programs/logic)
 Business Functions
 Business Processes
 Centralized Databases
 Information/Raw Data

18. SAP Modules are Packaged, Pre-Written, Programs (logic) that
execute in the background when transactions are performed.
• Production Planning (PP)
• Materials Management (MM
• Sales & Distribution (SD)
• Financial (FI)
• Controlling (CO)
• Human Resources (HR)

19. Modules execute the business processes and can overlap
business functionalities and promote integration.
1) A Customer Service Representative
works in the M/S functional area.
2) The Customer Rep creates a Sales Order
3) The transaction
initiates from the SD
Module, and runs in the
background
4) Other modules, like MM and FI, are called
accordingly if the transaction includes credit
checking, and/or allocating inventory.
Summary: When a user in a functional area
runs a transaction it could use one or many
modules to process the business transaction.

20. SAP FI Module- FI stands for Financial Accounting
SAP CO Module- CO stands for Controlling
SAP PS Module – and PS is Project Systems
SAP HR Module – HR stands for Human Resources
SAP PM Module – where Plant Maintenance is the PM
SAP MM Module – MM is Materials Management -
SAP QM Module - QM stands for Quality Management
SAP PP Module – PP is Production Planning
SAP SD Module – SD is Sales and Distribution
SAP BW Module – where BW stands for Business (Data) Warehouse
SAP EC Module – where EC stands for Enterprise Controlling
SAP TR Module – where TR stands for Treasury
SAP IM Module – where IM stands for Investment Management
SAP QM Module – where QM stands for Quality Management
SAP – IS where IS stands for Industries specific solution
SAP – Basis
SAP – ABAP
SAP – Cross Application Components
SAP – CRM where CRM stands for Customer Relationship Management
SAP – SCM where SCM stands for Supply Chain Management
SAP – PLM where PLM stands for Product Lifecycle Management
SAP – SRM where SRM stands for Supplier Relationship Management
SAP – CS where CS stands for Customer Service
SAP – SEM where SEM stands for STRATEGIC ENTERPRISE MANAGEMENT
SAP – RE where RE stands for Real Estate

22. MM
FI
PP
M/S
SCM
A/F
HR
SD
….two totally different tings
Functional Areas SAP Modules
CO
HCM

23. What are the attributes of an ERP System?
1. SAP 20.4%
2. Microsoft Dynamics 14.9%
3. Oracle eBusiness Suite 9.8%
4. Epicor Software Corporation7.9%
5. Infor Global Solutions4.1%
6. Oracle JD Edwards3.1%
7. Oracle PeopleSoft2.6%
8. IFS North America2.2%
9. Sage North America1.9%
10. Activant Solutions, Inc.1.4%

25. ERP, while expensive to implement, if done correctly has a
high Return of Investment (ROI) due to its ability to
connect and share information with all parts of a business.