INFS3040

Enterprise Systems

Week 1

4 modules out of 10 modules of SAP

Accounts, sales and distribution, procurement, production

Group assignment based on integrated case study in textbook

1.1. Concepts of function, process and integration

What is a business function? Functions eg sales, marketing, accounting, procurement
Each function determines structure within organisation

Most IS are functional

4 main functions
Marketing and sales
Supply chain management
Accounting and finance
Human Resources

Each function exchanges data with other functions

ERPs integrate information they get rid of functional databases
Non-integrated functional systems – silo, very focussed and specialised

Functional vs business process view

Business processes integrate functional areas
Business process view promotes efficiency and competitiveness
Business processes require information sharing between functional areas, they are
crossfunctional
ERP software provides this capability by using a single common database

1.2. What is enterprise system or ERP?

Evolution and historical development of enterprise systems

 Why did people not use the business process view before? It is a recent
development because it required complex hardware, expensive investment in
information technology
 Today hardware is cheaper, faster communications
 Client service technology and relational databases
 These technologies made it easier to make this happen

Benefits and limitations of ES
Enterprise systems are packaged business software system, not off the shelf. Allows a
company to automate and integrate the majority of its business processes to share
common data and practices across the entire enterprise. The data is in a single place,
but can be shared simultaneously by several other functions.
The benefit is that everybody sees the same information
The only thing that is different, the user views of the information may be different

People following common best practice, enforce some sort of information

management discipline

Evolution from Manufacturing Resource Planning Systems to Enterprise Resource

Planning Systems

ES package es automate and integrate by combining them into single integrated

software application
Based on open client/server platforms
Process centric approach

1.3. Case study

1. Explain why the old, non-integrated functional system created problems for
the company. Be specific.
The old non integrated functional system created problems for the company
because there was a lot of manual work involved, eg manual matching of purchase
orders.
Departments also didn’t have access to information, and had to ask IT to generate
reports
Hard to scale non integrated system with expansion

2. The new system cost several million dollars. Why, in your opinion, was it
necessary to install it?
It was necessary to install the software because there needed to be a central
database where all information can be stored and accessed by the right people, to
ensure that people have all the information they require to make good decisions.

To remain competitive, many retailers have moved to internet electronic data

interchange, invoices and receipts can be electronically sent out. Lower cost from less
human resource as well as less paperwork. Also quicker to process.
Week 2
Characteristics of enterprise systems
Commercial software packages vs customisation

Matching off the shelf package to needs

How do you match the fit between the software and the business?

Change the software if your processes are very good, customise it. But if you make
substantial changes to the software, you cannot get the updates or support.

Organisation has to look at the risk of what they are doing when they are trying to
find a fit between the software and the processes.

Customisation
You are changing with the basic code and changing things in the software
Configuration is what the vendors are actually offering, not customisation.

You will never find an ideal fully integrated system

A lot of companies have tried to get their own integrated system, mainframe based,
but have failed. Usually easier to get a commercial system.

Nowadays, most large companies already have the ERP systems, so the target is
shifting to small to medium enterprises. They can’t afford to spend as much money, so
they are forced to precustomise some of the features to reduce some of the costs. Eg
now they don’t have to customise as much so SMEs don’t have to spend as long to
configure it, don’t have to get consultants in for as long. Component based processes.
Large processes like sales have say 23 integrated steps. However, if a SME only has
10 steps and will never use the 23 steps, they are breaking down the module into
building blocks, so people can just specify what parts they want.

Best practices
- If they are best practice today, will they be best practice tomorrow?
- Whose best practice is it? Need this sort of information.
- It will not be best practice forever. That is one of the benefits of large ERPs,
will reap the benefits of redesign
- Integration
- Horizontal integration (integration across the business processes accounts and
sales, HR)
- Vertical (between different levels of the organisation, how the senior manager
can see what is happening at a small warehouse)
- Achieving integration depends on configuring the system and documenting
configuring decisions and their rationale. Level of integration depends on
configuration

Characteristics of ES
Automation of transactions
Day to day transactions, tight link between organisation structures, business
processes, business roles, IS and IT

Process orientation – shifting the focus from functional to processes

Organisational impacts – decentralisation of controls, improved quality of decision
making, delayering

Advantages Disadvantages
Improved understanding across users, Less flexibility because everything is so
everything is tightly integrated tightly integrated. If we make a change,
everything else has to change.

Greater accuracy – data integration
Data is up to date across he organisation,
only 1 point of input, can easily make
people accountable for mistakes.
Better methods mean more efficiency
Because you have a more consistent way
of doing things, better control
Expected lower costs from more efficient
system
Harder to correct – because you are only
making one person responsible, if that
person makes a mistake, it is harder to
correct because there are so many links..
If you make a change, have to go
everywhere else and ensure that the
change has updated
Less freedom and creativity – No
opportunity for people to make
significant improvements to processes
Dynamic needs, training typically
underbudgeted, hidden implementation
costs
Risks
Financial costs – ES is an expensive and risky venture
Putting a lot of money in
Technically challenging
Software selection
approaches
Modelling and SW config
tools
Reference models for
particular industry
segments (SAP has 26
industry segments). Have
to find out which industry
you fit in, and it is not
always the best fit
Integration strategies – how
do you integrate the
system with the old legacy
systems? Most companies
like to have their own
reporting systems
Project champions
Risks
Managerial issues Integration
ERPs are managerially May push towards
challenging generic standard
Multiple parties processes
Project management Sacrifice competitive
advantage
Responsibility for the
integrity of the data is
diffused to lowest
operating level. How
do you make sure
people at the operating
level will put in the
right information?
Reduced separation of
duties due to
empowerment and
elimination of
traditional control
activities
Week 3
Understanding of business processes and business documents in sales and
distribution, accounting, human resources and production/supply chain management
functions

Discuss the role of integrated information systems in supporting/facilitating effective

managerial

Marketing/Sales & Distribution Function

Function Role Data created Benefits of an ERP system
Marketing/Sales What products to produce Recording sales Efficient use of transaction data and also
& Distribution How much of each product to Creating customer bills (invoices) consistent data across the organisation
produce Allocating credit to customers
How the products are to the Two types of processes: 1 controls
promoted and advertised Integrated with CRM, financial operations (sales forecasts, advertising
How the products should be accounting, materials channels, helps maintain competitive
distributed management, HR, quality pricing) and managerial control processes
What price should be charged for the management, controlling (more strategic and tactical in nature, how
products do we allocated budget?)
Product, promotion, place, price
Configuration of ERP systems reflects
management desires of how transactions
should be recorded and later used for
decision making.

Avoids unprofitable pricing by limiting

selling price discounts

Cycle of related functions, from taking

orders to delivery and collections. Links
with various other things.

Accounting Financial accounting Balance sheet Two processes, operational and

Managerial accounting Income statement management control
Tax accounting
Linked with accounts receivable, Accounting is tightly integrated with sales,
inventory, customers, accounts production and purchasing functions,
payable, general ledger necessary for managerial decision making

Facilities sound credit management decision

activity based costing, will pick up all

activities associated with something and
cost it, the ERP would facilitate the minute
detail recording of each individual activity

eg in purchasing goods, in an integrated

system, purchasing goods is just one thing
that occurs simultaneously at one point in
time. If it is not integrated, you would have
to increase inventory in materials
management and increase the value of the
inventory in the accounting system.

Accounting processes – operational

Daily transactions
General ledger, fixed asset, sales order,
accounts receivable, AP, inventory control,
purchase order, payroll

Accounting processes- Management control

Support decision making on how to allocate
resources to maximise profitability and cut
costs
 General Ledger
A company’s accounts are kept in the
general ledger
Input to the general ledger occurs
simultaneously with the business
transactions

Manufacturing Create production plan Operational level processes

Systems Acquire raw materials Purchasing, receiving, quality control,
Schedule inventory management

Management control processes – MRP, JIT,

capacity planning, production scheduling
and product design (if it is make to order)

Production Information system depends on

the kind of production

ERPs can support data collection, material

management, BOM (building of materials)
systems, inventory management systems,
cost accounting systems

Forecasting module allows us to translate

sales into number of units to be sold
 Demand management – eg Dell has
different specials week after week to match
what items they have in excess in the
warehouse. By that same reason, retailers
have catalogue specials to try and manage
demand. But that doesn’t always work
because retailers suck.

Human Resources Attracting HR management

Hiring Benefits administration
Rewarding Payroll
Terminating employees Time and labour management
Employee/manager self service
Also termed as human capital
management

Traditionally have relied on stand

alone systems, specialised system for
applicant tracking, compensation,
benefits, attendance, no link to
financial systems
Chapter 4:
Reduction of inventory
Reducing the number of direct linkages between systems
Standardisation
Provide best practices
Better customer relationship management
Help consolidate an acquired business, helped with merger
Allows for flexibility of volume of requests
Less technology = less training needs to be provided
Increases the lifetime value of a customer by 2 and a half times by allowing them an
extra channel to shop through

Chapter 5
1. Define each of the “in-technologies and systems”
Open Database Connectivity – software method for using DBMS

2. What is their relationship to the success of ERP

In technologies help ERPS advance

E commerce and ebusiness –

Chapter 6
1. What manufacturing data is used by the managerial accounting module within
ERP?

Product cost information

Budgeted materials management costs
Expected total costs of direct materials
Activity cost drivers

Material movement information

Costing information

3. How is this information used to control costs, to maximise productivity, and to

streamline operations

Activity based costing

Activity based budgeting
Can organise costs and budgeting to a minute scale that was not possible before
Week 4
SAP
Different application modules
FI/CO (financial accounting and controlling)
SD (sales and distribution)
MM (materials management)
HCM (human resources)

Adapt software to processes with minimal modifications. Off the shelf package, might
buy particular software adapted to fit the industry. Have different industry reference
models, then configure the software.

R04 – CC3 (ECC)

Focus on procure to pay and order to cash processes

User US-017
Password: 4YJ~Q&FW

Data types
Master data – data that is relatively stable, semi permanent data, eg materials,
customers, vendors, employees. It still can be changed, but the changes will be
tracked. Eg an employee changing departments, or being promoted.

Transaction data – data that is relatively temporary, stored at various stages of a

business process.

Configuration data – at the time of setting up the system. Logic behind the particular
configuration, so it is easy to change

Enter transaction code here in the command field, but there are 16000+ transaction
codes

Eg either 3000 or /miro or nmiro = new miro

Using /n before the code = enter a new one

Can have multiple screens of SAP

Different views of SAP
Management view
User view
Implementation view
Software developer view

Technical view

Database
DBMS
Kernel and basis services (web application server) – runs applications, user and
process administration, database access, communication with other R/3 and non SAP
applications

Red - accounting
Blue sales and distribution
Green – manufacturing
Configuration – making selections within SAP without modifying the underlying
code.

Customisation – changing the code using programming

Pricing procedure determination – how do you want the system to compute the price?
Do you want it to take the original price to add tax, then add profit?

Define availability check – how do you want the system to check the availability

Document types – define what type of documents you want o create

Week 5
Company code I an independent accounting entity. An organisation may have
different independent accounting entities.

The company code might have different tax structures, currency,

We are using company code 3000

General ledger is the collection of all general ledger accounts used by a company code

Set up different companies for taxation purposes, but also set up a group code to help
you consolidate the data

Business areas are used for internal purposes, every business area can be used by
every company codes.

IDES – International Demonstration and Education System

Company codes eg IDES North America, IDES Europe

Areas of operation – machinery, plant construction, automotive

Business areas: automotive, external services, corporate other

Sales and distribution

 Group Code

Company Code Company Code

Select views

Non-stock material: items that are not part of normal procurement materials and only
happen once, eg furniture

Materials Management
Materials master data
Logistics >Materials Master > material master

Vendor management:
Materials management / purchasing/master data/change vendor: initial screen
Purchasing organisational units

Sales and Distribution

Make Quotation
Sales Order
Delivery
WMS transfer (Wwarehouse Management System)
GD Goods issue deliveyr
Invoice
Accounting document (customers> incoming payment)

Sales>create sales order> returns

Returns with reference to the previous order (will copy information, enter quantity
and enter reason)

After the return, we need to do the reverse deliveyr, item has come into the
warehouse, but can’t combine it with other stock
Shipping > create single document with reference to sales order
It will sometimes pick up the return order number

Goods issue posting (changing> Outbound delivery> Press goods receipt button will
adjust all the accounting documents)

Give a credit note (sales>billing> create> billing type (credit for returns), enter billing
date and
Purchasing
Create a purchase requisition
Adopt the requisition (Create a purchase order)
Goods Receipt (Inventory Management>goods recept >for purchase order >PO
number known)
MIRO Enter invoice
Post Outgoing Payments (Accounting > Financial Accounting > Vendors> Outgoing
Payment > Post)

Sales
Create a sales order (Sales>order>create)
Create a single delivery document> shipping outbound delivery (Shipping>create
outbound delivery with order reference)
Picking (Picking > create transfer order > create – shows up as WMS transfer)
Post goods issue (Change >outbound delivery> post of goods issue button)
Create a billing document (billing>create an invoice> create an invoice and an
accounting document)
Get the payment (Accounting>customers>Incoming payments)

If returns are required

Sales>sales>order>create order type returns
Enter order number and copy the details, change the quantity, enter reason.

On getting the return

Shipping>outbound delivery>create>single document with reference to order
reference

Change outbound delivery > Post goods receipt

Create a credit note (billing>create billing document>credit for returns)

Create customer
Create material
Create purchase order
Then put the goods receipt, notes
Sell the goods
Goods issue
Create invoice
Post payments
Then maybe a return
Week 8: configuration
3 Options

Process follows software: configuration (configuration to suit internal organisational

elements in terms of what processes they want implemented – Software follows
process. Configuration is compatible with new updates issued by the vendor)
Software follows processes: customisation. If you want to keep your existing
processes, you have to open the black box and make changes to the code
(Customisation). Then the vendor would not be able to support it, and it will
be hard to make updates. If they want to use the new version, then they would
have to reimplement and recode the changes.

1. Organisational adaptation (use the best practices of the software

2. Tailor ERP package to suit your needs
3. Live with differences

ES customisation
Consider extent of changes to business processes and extent of change to ERP
package, will influence the potential failure rate

Customisation
-Configuration: setting parameters eg for the Pepsi company organisational structure,
how many plants, 4 sales organisations, 3 control areas etc, identify the organisational
features that are relevant to the organisation and configurating that into the system
-Modification: changing the code
-Tailoring: Combination of both configuration and modification

Typology of tailoring
Configuration: setting parameters eg A company code is an accounting entity, so all
the accounting data can be consolidated. If it is geographic, will be set to all the
country requirements and legislative neds

Bolt ons: implementation of third party packages eg in retail, pallets come in and then
empty pallets are returned. To handle pallet management, there are additional bolt on
software available. Some industries and particular supply chains have requirements to
use RFID, so must be forced to have this additional bolt on. Unique industry packages

Screen marks: creating a new screen mask for input and output of data. Eg some data
fields might not be relevant for you, so you can mask these fields so the user will
never see it. We don’t need all 40 fields, we can just have what we require.

Extended reporting: programming of extended data output and reporting options, can
go there and design your own report and make it a permanent feature. Incorporate that
as an option in your menu.
Workflow programming: Creating non-standard workflows. Linking tasks to a
particular workflow. Eg certain people might not have authority to release an invoice,
so program the workflow so they won’t be able to do that

User exits: programming of additional software code in an open interface. Won’t have
some of the interface points. Eg Sales and distribution and the inventory management
system, there are several subsystems you might not want to buy them but keep it open
as an interface so you can create your own interfacing components to them

ES programming: creating additional software using language of the vendor without

changing source code. Each program has a programming language prescribed by the
software

Interface development: interfaces to legacy systems or third party products. To bridge

between different programs. SAP have made this easy. Can sell different business
interfaces. Eg can have Siebel, Oracle database integrated. Most large vendors are
able to do this.

Package code modification – changing the source code ranging from smaller changes
to changes to whole models. Depends on the size of the company and whether there is
a good business case made for this.

Configuring SAP R/3

Several sets of data

Sandbox – to try configurations without disturbing fellow project members
Training of users
Development of the production systems

6000 tables in SAP

There are tools to install, copy, transport, reset, delete and ccompare things in SAP

Tools are un the tools menu eg ABAP workbench

Overview>Application hierarcy

Can make changes to the language

Change the layout to a document or screen (user interface)

The SAP system

Common architectural elements. These are the minimum requirements for each
organisation, and need to be defiled
- organisational elements (sales organisation, purchasing organisation,
distribution channel)
- control elements (order types, material types, account groups) eg account
groups are defined when you create a new customer, material types on new
materials,
 These are controls because they define what happens to the order or material,
controls the process flows.
- master data (customers, vendors, materials, prices, discounts)
- Documents (sales order, purchase order, quotation, delivery, invoice, credit
memo, return)
- Reports (eg open orders, customer balance)

At the central level, there are also things like countries, currencies, unit of
measurement, number ranges that are available to any of the modules. Each company
code would have a different currency.

Client independent functions – eg calendars, systems maintenance, workflow, ABAP

development. Eg BHP shifted their entire HR application to Singapore outsourcing it
in a centralised place so it is client independent function.

Tables and data types

2 different types of tables
1. Application data table (data): master data, transaction data
- Entered by the user or generated by the system
- Document ties together all data of transaction; each transaction is unique and gets a
unique number
- Application data is protected by controls I in the configuration eg certain
configuration can have customer must be a number within a certain range, others
might accept alphanumeric

2. Configuration tables (meta data): how the data in the application table is organised

Configurable elements
1. Central functions
2. Organisational elements
3. Control elements
4. data validation
5. System control

Data Validation
- eg order reasons, billing black, terms of payment

System control
- maintained by system admin
-

Assignment account password

Client 300 Server CC3

Group USPR-08
Password: 4E99547M

User: US-017
V92(5(8$
Changed

Week 9:SAP
SAP Solutions
SAP for different industries
For the last few years, SAP provide SAP packaged solutions eg financial insights for
xxx industry because previously people couldn’t buy specific modules and
functionalities. A bit cheaper because only focusing on one aspect of enterprise
system.
mySAP Business Suite: SAP is only the transaction centre. mySAP use information to
derive intelligence, cross industry solution. Incorporates all these additional
functionalities formerly offered by add on programs, eg master data, analytics, human
resources

SAP has stopped selling it as one large software, but divided it into several
subcomonents that are relatively easy to attach and detach

85% of top 500 companies already have some sort of ERP system, 50% of those are
SAP. There is no potential for them to expand unless they start expanding into SMEs.
New challenges because SMEs cannot spend a few million on software,
implementation and training. In the current structure, no way they will be able to sell
this product so consequenctly they came up with SAP for SMEs, more preconfigured
systems, requires minimal configuration from SMEs. Also facilitated easy
modularisation so SMEs can buy specific components.
mySAP all-in one for SMEs, not too many options to configure, has everything all in
one.
SAP Business One (a different software solution acquired by SAP that had a different
market)

Move towards Service oriented architecture

mySAP ERP
SAP R/2: mainframe architecture
SAP R/3: Client server architecture – how efficient are the processes going to be
performed, minimising risks, control
mySAP ERP – enterprise services architecture – provides efficiency and control but
also adds strategic value by incorporating some flexibility in your business processes.

ECC: Enterprise Central Component

Can have incremental approach to acquiring more modules

SAP ECC framework:

- core as stable as possible
- SAP Netweaver application server integrated with BW

mySAP ERP
Integrates well with other solutions on SCM, SRM, CRM and PLM. Flexible so
customers can choose the combination of solutions that meets their requirements best.
SAP Best Practices
- especially in the SAP for SME
- prepackaged ready to use solutions for SME
- clear methodology and clear documentation

Components focus: can buy specific components within modules. Eg sales has
campaign management, salesforce automation, order management. SAP Have broken
this down and begin selling the particular components eg campaign management.

Business trends into future

Changes to business environment
Increasing importance of ES

Internet: cheaper, access services from somewhere else, web services

Consolidations
Oracle – People soft = JD Edwards
SSA Global – Baan
Epicor – Scala
Lawson – Intentia

Smaller components add more flexibility

Flexibility is a key issue in MySAP

Challenges
There will be gaps between what the software can offer
ERP environments re costly to maintain, need good user support helpdesk, good
backend, good computer systems
Multiple vendors, multiple installations.
Sales and procurement
Comparision between SAP and other SERP
Number of modules and types they fofer
Internet solution
Flexibility
Range of package
Expertise
Package collaboration : can you collaborate with others packages

Organiosationa strcture

Need to have procure, sales and distribution before we start customising

Client: 300 mention tha the client is a commercial organisational unit, the client forms
a corporate group. Mention that the Client is Bandon Group

Controlling area
- smallest organisational unit, which is a complete self contained set of accounts
- eg things organised into countries or areas
- company code is an independent accounting unit
- just have to code 1 company code in assignment

business areas
unit in an enterprise, grouping product and market companinatinos
eg optical business area (3000)
protector supply (3100)
protector technoloigies (3200)

Profit centre and cost centr

Provide cost centre and profit centre information organisational unit within a
ctronlling area that represents a defined location of cost occurance
Distinguished by area of responsibility
Seg sales optical (4000)
Services (4300)
Client (client)

Chart of accounts Chart of accounts

Australia NZ Asia Pacific Europe (cost centres)

Australia C100 NZ Hong Kong Company Codes

Optical group 3000
Protector supply 3100

Sales area

Sales area is a combination of sales organisation, distribution channel and division

Sales organisation

Stores in each region can be set as one sales organisation

Eg NSW 6000
QLD 6100

Distirbution channel
Means through which sales materials reach the customer
Are only 2 digits
Eg retail trade 60
Online store 61
Supermaerket 62

Division
A division is a product group that can eb defined for a wide ranging spectrum of
products. A division also represents a product line
Eg
Cross division 00 (use 00 because that is already in the system)
Softlen 90
Freshlook 91
Frequency 92
Focus 93
Acuvue 94

Plant
Where stocks of material are kept. Are manufacturing facilities as well as warehouse
distribution centres
Eg
Sydney P001
Brisbane P002
Melbourne P003

Storage location
Organisational unit that allows the differentiation of material stocks within a plant
Eg
Storage location 0001

Warehouse
Physical location within a plant that has inventory,. Several storage locations within a
plant can refer to the same warehouse number.

Plant Sydney plant Brisbane plant Melbourne

Storage location 001 storage loation 0002

Warehouse

Shipping point
Fixed locat6ion that carries out shipping activities
Defined in the SD organisational master data setup
Top level of the or in shipping

\
Client 300
Company code C### C017
Plant eg Sydney P###
Purchasing organisation PO##
Sales organisation SO##
Distirbution channel ##
Sales office S###

\
Week 11: interface of ES
Process modelling and improvement: Model the entire process and then incorporate
information
Process modelling or data modelling

Make a judgement as to which improvement will be the best, what will be the best
process

Eg if finding out how do you transfer calls to ambulance services. Several process
steps, information needs to be continiously monitored. Need to figure out what criteria
is in place. Simulate the environment, make changes to see what will happen and look
at the changes and impacts, risks.

Process information tools is separate. Once you have a good process, how do you
transfer that information into an ERP?

Supply Chain Management (SCM)

Integrated planning and control of flow of goods, services, money and information in
the supply chain
How to optimise the supply chain
SCM will tell you how do you optimise the supply chain, whereas the ERP will tell
you where the stock is moving from here to there, it will merely execute the system,
does not provide any intelligence to how to oprimise the system, will not let you know
whether you need to do it or whether you shouldn’t need to do something.

Also SCM information sharing between enterprises, eg manufacturers and customers,

linking into POS systems. Eg POS system tells SCm that 100 units of Tim Tams have
been sold, so the SCM can know that they need to make more.

Issues to be addressed in integrating supply chains

Strategy, process, organisation, technology

SCM Evolution to eSupply Chains

Supply chain facilitates real time updates across chain

ERP bas a backend system,

RFID
Way of tracking items
Small tag with a microprocessor and antenna, does not require line of sight
Radio frequency ID
With NetWeaver, SAP can link RFID with both SAP and non SAP Systems
Being investigated for retailers eg Coles

Electronic commerce at ES
C2B: Web browser
B2B: larger volumes of transactions, require speed, accuracy and confidentiality of
information, need BAPIS (Business application programming interfaces) eg XML to
communicate between different entitites. Need to have a separate BAPI for
eprocurement, Kanban, bank data transfers, vendor managed inventory
B2E: (Business to employee): intranet, eg email, requisitions,

Business intelligence and ES

Data from ES and others, can not pull; out some information with ERP
Ned other software eg Cognos, Hyperion, IQ, are business intelligence tools.
SAP’s BI

In the last 2 years, mySAP offers business intelligence, but previously SAP did not
offer this

Data warehouse:
 A repository of data and facts that makes operational data
 Facilitate the process of making use of the masses of transaction data by
classifying data around subjects meaningful to the org

 Complexity of the information, need tools to be able to store this information

and be able to use it.

Data marts
 created with subset of data warehouse information, focusing on information
needed by a specific set of users

EAI – Bolt ons and ES

 Enterprise application integration
 Third party tools
 Specialist applications
 Requires ERP to be open, which was not possible in the past
 ERP has now made it possible and easier for bolt on applications

 Eg bolt ons include demand planning, order tracking, online collaboration

EAI – Middleware and ERP

Removes the ned for application programming interfaces (APIS) to access
external applications
 Can acquire data through different means eg barcode, RFID, wireless
 Enabling enging that ties applications together

Knowledge management in ES context

 KM requires human interaction
 Facilitate changes
 ES are put in place, but 90% of companies have ES but a lot of issues with
getting skill sets in the right place
 KM changes quickly

 Types of Knowledge in ES
 Business knowledge
 Technical knowledge
 Product knowledge (understanding of the software, enterprise system specific
programming language
 Company specific knowledge – what is the logic behind the org, how do you
assign people to the structure, why did you decide where the plant was,

Security and ERP

 Physical security can be easily controlled, but the moment you open it up to a
network,, you open it up to a whole new world of risks and security threats.

 There are a lot of different control mechanisms that can be integrated in ERPS

Developments of ES in early 2000s

 OLTP in the past
 Now OLAP through its business intelligence tools. Need information captured
from different dimensions, do some sort of analysis and provide this
information in a concise form for managers
 Web enabled systems
 Technology is more stable now, can offer it at a lower price, for mid range
manufacturing and SME orgs
 Content rich interaction

 SAP Netweaver
Netweaver technology allows vendor applications to share data and supports
business transactions over the internet
  mySAP = enterprise portal, can access all work from one portal eg email. |
Mobile infrastructure -
 Business intelligence – datawarehousing and mining tools. Can work with any
DBMS and operating system
 Master data management – before that, to get data consistency each company
would have a look at their data in a different sense because each company
code within a large client environment had the product defined in different
means even if it is the same product. Before there was no data consistency,
increases the paperwork. Can be improved using a master data management
 Exchange infrastructure – Allows different applications to share data. Eg
Hyperion data, oracle DBMS, SAP ERP and Siebel CRM. Want the info to be
transferred, SAP Netweaver offers an infrastructure to make the transfer of
data between these fairly easy.

More flexible, modular service oriented components

Be able to dynamically change process to suit the individual customer requirements
Service oriented architecutre

Procurement

Create material
Create customer
Create vendor
Purchase order
Purchase requisition
Goods receipt (clock item ok on checkbox and delivery note, record material
document number)
Enter incoming invoice (MIRO)
Release the block (further processing, release blocked invoices, press release button
on the top)
Accoutning/financial accounting/vendors/document entry/outgoing payment or down
payment. Enter the amount, and bank account number, the vendor account number
Outgoing you don’t pay instantly, might want to pay fortnightly. Down payment you
pay instantly.

Selling
Create sales order
Create outbound delivery
Create picking
Post goods issue button on create outbound delivery change
Create billing (select billing type: invoice f1, billing date)

For the exam

Understand SAP structure, organisational structure
What is a company code, is it necessary, what modules are essential
Week 13
Org structure