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Managerial Briefing 13

Enterprise Resource Planning Systems

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Enterprise Resource Planning Defined

R/3 System Components Reasons for Implementing R/3

OBJECTIVES

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Enterprise Resource Planning (ERP) Systems

Enterprise Resource Planning Systems is a computer system that integrates application programs in accounting, sales, manufacturing, and other functions in the firm

This integration is accomplished through a database shared by all the application programs

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SAP AG The largest European software company and the largest

ERP software company in the world with headquarters in Walldorf, Germany.

AG = Aktiengesellschaft = public company SAP was founded in 1972 as Systemanalyse und

Programmentwicklung by five former IBM engineers in Mannheim, Germany (Dietmar Hopp, Hasso Plattner, Klaus Tschira, Claus Wellenreuther and Hans-Werner Hector).

The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications And Products in Data Processing“)

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SAP AG

Main product: mySAP ERP Predecessor: SAP R/3 Before SAP R/3: SAP R/2 (only for

mainframe) R = real time data processing 3 = 3-tier architecture: database server,

application server and client/front end server (SAPgui)

GUI = Graphical User Interface

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SAP AG’S R/3

-Designed to operate in a three-tier client/server configuration

-Applications are fully integrated so that data are shared between all applications

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SAP R/3

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SAP ABAP ABAP = Programming language used by

SAP. It is a 4GL (fourth generation language)

ABAP = Allgemeiner Berichts aufbereitungs prozessor (Germany) = generic report preparation processor (English).

New English name = Advanced Business Application Programming.

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SAP Industry Solution`:Customization

Automotive Chemical Electronics Banking Etc.

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R/3 System Functional Components

R/3 SystemFunctional

ComponentsSales & Distribution Human Resources

Manufacturing & Logistics

Financial Accounting

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Financial Accounting

Financials

Controlling

Asset management

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Human Resources

Payroll Benefits administration Applicant data administration Personnel development planning Workforce planning Schedule & shift planning Time management Travel expense accounting

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Manufacturing & Logistics

Materials management

Plant maintenance

Quality management

Production planning & control

Project management system

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Sales and Distribution

Prospect & customer management Sales order management Configuration management Distribution Export controls Shipping and transportation management Billing, invoicing, and rebate processing

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Reasons for Implementing SAP R/3

Desire to standardize and improve processes

To improve the level of systems integration

To improve information quality