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McGraw-Hill/Irwin
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