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Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

(2)

Outline

Enterprise Systems

Types of Enterprises Systems

Types of Data in ES

Super Skateboard Builders, Inc.

(3)

Enterprise Systems

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

Three stages of evolution

Stage 1: Stand-alone Mainframe Systems

Stage 2: Client-Server Architecture

(4)

The New Stack

Process Is the Next Platform

Application

Punch Card or Terminal

(10’s of users)

Application OS

PC or Internet

(1000’s of users)

Application OS

Application OS

Any Device

(Millions of users)

OS Applications

OS

OS OS

OS Applications

(5)

3-tier Client Architecture

(6)

Types of Enterprise Systems

The ES Application Suite

Enterprise Resource Planning (ERP)

Supply Chain Management (SCM)

Supplier Relationship Management (SRM)

Product Lifecycle Management (PLM)

Other classifications

(7)

The application suite

(8)

SAP ERP Solution Map

End-User Service Delivery

Analytics Financial Analytics Operations Analytics Workforce Analytics Financials Financial Supply Chain Management Treasury Financial Accounting Management

Accounting Corporate Governance Human Capital

Management Talent Management Workforce Process Management Workforce Deployment Procurement and Logistics

Execution Procurement

Inventory and Warehouse Management

Inbound and Outbound

Logistics Transportation Management Product Development and

Manufacturing Production Planning Manufacturing Execution Product Development Life-Cycle Data Management Sales and Service Sales Order Management Aftermarket Sales and Service Professional-Service Delivery

Corporate Services Real Estate Management Enterprise Asset Management

Project and Portfolio Management

Travel Management

Environment, Health, and Safety Compliance Mgmt.

Quality Management

Global Trade Services

(9)

SAP Supply Chain Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

SA

P Ne

tWe

aver

Demand & Supply Planning

Demand Planning &

Forecasting Safety Stock Planning

Supply Network

Planning Distribution Planning Service Parts Planning Procurement Strategic Sourcing Purchase Order Processing Invoicing

Manufacturing Production Planning & Detailed Scheduling

Manufacturing Visibility & Execution &

Collaboration MRP based Detailed Scheduling Warehousing Inbound Processing & Receipt Confirmation Outbound Processing Cross Docking Warehousing & Storage Physical Inventory

Order Fulfillment Sales Order Processing Billing Service Parts Order Fulfillment

Transportation Freight Management Planning & Dispatching Rating & Billing & Settlement

Driver & Asset

Management Network Collaboration Real World Awareness Supply Chain Event Management Auto ID / RFID and Sensor Integration

Supply Chain Visibility Strategic Supply Chain Design Supply Chain Analytics Supply Chain Risk Management Sales & Operations Planning Supply Network

Collaboration Supplier Collaboration Customer Collaboration Outsourced Manufacturing Supply Chain

Management with Duet Demand Planning in MS Excel

(10)

SAP Supplier Relationship Management

SA

P Ne

tWe

aver

Purchasing Governance Global Spend Analysis Category Management Compliance Management

Sourcing Central Sourcing Hub RFx / Auctioning Bid Evaluation & Awarding

Contract Management Legal Contract Repository Contract Authoring Contract Negotiation Contract Execution Contract Monitoring Collaborative

Procurement Self-Service Procurement Services Procurement

Direct / Plan-Driven

Procurement Catalog Content Management Supplier Collaboration Web-based Supplier Interaction Direct Document Exchange Supplier Network

Supply Base Management Supplier Identification & Onboarding Supplier Development & Performance

Management Supplier Portfolio Management

(11)

SAP Product Lifecycle Management

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

SA

P Ne

tWe

aver

Product Management Product Strategy and Planning

Product Portfolio

Management Innovation Management

Requirements Management

Market Launch Management Product Development and

Collaboration

Engineering, R&D Collaboration

Supplier Collaboration

Manufacturing Collaboration

Service and Maintenance Collaboration

Product Quality Management

Product Change Management Product Data Management Product Master and

Structure Management

Specification and Recipe Management

Service and Maintenance Structure Management

Visualization and Publications

Configuration Management PLM Foundation Product Compliance Product Intelligence Product Costing Tool and Workgroup

Integration

Project and Resource Management

Document Management

(12)

SAP Customer Relationship Management

Marketing Marketing Resource Management Segmentation & List Management Campaign Management Real-Time Offer Management Lead Management

Sales Sales Planning & Forecasting Sales Performance Management

Territory Management

Accounts & Contacts

Opportunity Management

Quotation & Order Management

Pricing & Contracts

Incentive & Commission Management

Time & Travel

Service Service Order Management Service Contract Management Complaints & Returns In-House Repair Case Management Installed Base Management Warranty Management Resource Planning

(13)

Other classifications of ERP systems

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

Best of Breed

Niche

(14)

Types of Data in ES

Organizational Data

Master Data

(15)

Organizational Data

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

Defines the organizational structure of the enterprise

Includes definitions of:

Companies (subsidiaries, etc.)

Divisions based on, product or geographical hierarchy

Sales organizations

Purchasing organizations

Physical facilities: plants, warehouses, distribution centers

HR organization

Functional areas, reporting relationships

(16)

Company

European Union

Sales Operations

Wholesale

Division

Retail Division

North American

Sales Operations

Wholesale

Division

Retail Division

Internet Sales

Global

Manufacturing

Operations

China Plant

South America

Plant

(17)

Master Data

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

Define key entities in an organization

Customers

Basic information: name, address, contact information

Financial information: payment terms, methods

Sales information: delivery terms

Vendors / suppliers

Similar information as customer

Products

Basic data: description, weight, color

Purchasing data

Sales data

(18)

Master Data

Employees

Basic data

Personal data: dependents

Payroll data

Tax data

(19)

Transaction Data

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

Data that is the consequence of day-to-day transaction

Who, what, when, where, how, how much

Sales

Customer, products, quantities, dates and times, location

(shipping, delivery), sales person

Purchase

Vendor, products, quantities, dates and times, location

(delivery), sales person, requester

Production

(20)

Review Questions

Describe the differences among the three generations of

enterprise systems

mainframe architecture, client-server

architecture, and service oriented architecture

Explain the functions of the different systems in an

application suite. How are they related?

What are the roles of organizational data, master data, and

(21)

Super Skateboard Builders, Inc.

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

History

Product Line

Customers

Vendors

Plant Layout

Employees

(22)

History

Founded in 1997 by John “Z

-

boy”

Boeve

Used small trust from his maternal grandmother for

Buy the necessary shop & office equipment

Lease a small building for operation

(23)

SSB, Inc. - Plant Layout

(24)

Product line

Trading goods

Deluxe / Standard / Entry-level skateboards

Helmets

T-shirts

(25)

SSB, Inc. - Product List

(26)
(27)

SSB, Inc. - Vendor List

(28)

Employees

Purchasing

Accounting

John &

Maria

Plant

manager

Warehouse

(29)

SSB, Inc. - Organizational Chart

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

John Z. Boeve

(President)

Catherine

VanderBos

(Plant Manager)

Charles Skivers

(Shop Floor)

Mark McKendry

(Shop Floor)

Patrick Stevens

(Sales Manager)

(Accountant)

Shana Smith

David Bloomberg

(Warehouse

Manager)

Tom Jones

(Warehouse)

Martha Seward

(Purchasing

Manager)

Maria Rivera

(30)

Information System

Before

Three stand-alone (not networked) computers, each

of which ran the same popular office suite

Problem:

Not integrated with each other

Wrong order decisions because of the wrong

version of the inventory file

excess inventory

Difficulty to translate the spreadsheets and

accounting databases into accounting software

After

(31)

SAP Overview

Magal and Word ! Essentials of Business Processes and Information Systems | © 2009

(32)

Review Questions

What functional areas are included in SSB’s organizational

structure? Is this a common organizational structure? Draw

the organizational structure of a small or medium-sized

company that you are familiar with

Describe the key problems SSB faced with its use of

technology to manage its operations before it implemented

an enterprise system. How can the ES improve

SSB’s

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