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Slide SIF222 2 Introduction To Enterprise System

This document provides an introduction to enterprise systems. It discusses the evolution and benefits of these complex, powerful information systems. It explains the client-server architecture and layers of SAP ERP systems. It also differentiates the types of organizational data, master data, and transactional data within enterprise systems and how these data are used to support business processes. Finally, it outlines various reporting options to analyze enterprise data.
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0% found this document useful (0 votes)
23 views

Slide SIF222 2 Introduction To Enterprise System

This document provides an introduction to enterprise systems. It discusses the evolution and benefits of these complex, powerful information systems. It explains the client-server architecture and layers of SAP ERP systems. It also differentiates the types of organizational data, master data, and transactional data within enterprise systems and how these data are used to support business processes. Finally, it outlines various reporting options to analyze enterprise data.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Introduction to Enterprise

System
Learning Objectives

Discuss the evolution and key business


benefits of enterprise systems
Explain the role of enterprise systems in
supporting business processes
Differentiate the different categories of
data within SAP ERP
Understand the major options for
reporting

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Enterprise System

Complex and powerful information


systems
SAP Enterprise Resource Planning (ERP)
system is the world’s most popular

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Architecture of Enterprise System

Client-server
Server-oriented

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Three Layers of the Client-server Architecture

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Client-server

Internet uses a three-tier architecture


Advantages:
 Reduced costs
 Scalability
Scalability refers to the ability of software
and hardware to support a greater
number of users over time

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Service-oriented Architecture

 Web services
 Used to expose ES (and other system) functionality
 Standard interface – input and output
 Composite applications
 Connect multiple applications via Web services
(including mashups or composite applications)
 Build new capabilities without changing the underlying
applications
 Main advantages:
 Standardization is easy
 Lower costs & complexity of integration
 Reuse
 Flexibility

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Enterprise Systems Application Suite

 Collection of inter-company systems and intra-


company ERP system is called an application
suite
 Enterprise Resource Planning (ERP)
 Supply Chain Management (SCM) and Supplier
Relationship Management (SRM) – production
planning, transportation, logistics, quotation,
contracts
 Product Lifecycle Management (PLM) – research,
design, and product management
 Customer Relationship Management (CRM) –
marketing, sales, service

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The ES Architecture Suite

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Data in an Enterprise System

Organizational data (levels, elements)


Master data
Transaction data
 Associated with process steps

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Organizational Data/Level/Element

Defines the structure of the enterprise in


terms of legal or business purposes.
Examples include:
 Legal entities, plants, storage areas, sales
organizations, profit centers, subsidiaries,
factories, warehouses
Client, Company, and Plant
Data rarely changes (static data)

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Organizational Level - Client

Highest organizational level


Represents the enterprise; comprised of
many companies

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Organizational Level – Company Code

Central organizational element in financial


accounting
 Books are maintained at this level for legal
reporting
Identifies legal entities in an enterprise
(Client)
Legally independent from other companies
in the enterprise
Client can have multiple company codes
Company code must belong to only one
client

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Organizational Level - Plant

Performs multiple functions


Used by many processes
Represents factory, warehouse, office,
distribution center, etc.
Following functions are typically
performed:
 Products/services are created
 Materials are stored and used for distribution
 Production planning is carried out
 Service or maintenance is performed

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Organizational Data

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Master Data

Long-term data that typically represent


entities associated with various processes?
 Customer
 Vendor
 Material
Typically include
 General data (across company codes)
 Financial data (CC specific)
 Area-specific data (Sales, Purchasing, Plant)

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Material Master

Material master data is used in numerous


processes
 Procurement – who and how much
 Fulfillment – product availability and shipping
conditions
 Production
 Material planning
 Asset management
 Project systems
 Lifecycle data management

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Material Master [2]

 Materials data may be grouped into views


relevant to one or more processes
 Basic data (materials number, description,
weight) are relevant to almost all processes
 Data are grouped based on
 Process
 Material type
 Organization element
 Material type can impact screens,
department/function data to be maintained,
material numbers, appropriate procurement, and
general ledger accounts
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Material Master Data

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Material Types

Raw materials (ROH)


 Purchased, not sold, used in production
 Purchasing- and production-related views
 No sales-related view
Semi-finished goods (HALB)
 Produced using other materials (ROH, HALB)
 Used in the production of other materials
(HALB,FERT)
 Not purchased or sold

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Material Types [2]

Finished goods (FERT)


 Produced using other materials (ROH, HALB)
 Sold to customers
Trading goods (HAWA)
 Purchased and resold without additional
processing
Numerous other types

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Material Groups

Materials with similar characteristics


For example, materials used in production
or in sales
In retail, we may have categories such as
footwear, clothing, beverages
Materials are grouped so that they can be
managed collectively (e.g., planning)

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Organizational Level

Same material can be used differently by


different organizational levels
 Different company codes
• HALB in one, FERT in another
 Different plants
• Only exports or imports in specified plants, not all
 Different sales-related organizational
elements
• Wholesale vs. retail

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Transaction Data

 Data generated during execution of process steps


 Requires
 Organizational data
 Master data
 Situational data
Who, what, when and where…..
 Example: Sales order creation
 Organizational elements: Client, Company Code,
Sales Area
 Master Data: Customer, Material
 Situational data: Date, Time, Person

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Transaction Data [2]

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Documents

Record of transactions
 Transaction documents
• Requisition, purchase order, invoice, delivery
document, etc.
 FI documents
• Record the impact on financial accounting
 CO documents
• Record the impact on management accounting
 Material documents
• Record the impact on material status (value,
location)

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Reporting

 Transactional system (OLTP) vs. informational


system (OLAP)
 OLTP (transactional)
• Detailed, transactional data
 Data warehouse
• Data aggregation and reduction using
– Qualitative reduction by aggregating by time period
– Quantitative reduction by selecting key figures (KPI)
– In ERP: Information structures
– In BW: Infocubes, info providers, etc.
 OLAP (informational)
• Various analysis tools
• In ERP: Information systems (OLAP lite)
• In BW: Various reporting tools

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Reporting Options within SAP ERP

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Components of Information Structures

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References

 E.F.Monk and B.J. Wagner. Concepts in


Enterprise Resource Planning, 4th edition. Course
Technology, 2013
 Magal and Word. Integrated Business Processes
with ERP Systems. Wiley, 2012
 Sumner, Mary. Enterprise Resource Planning.
Prentice Hall, 2005.
 Teaching Materials from SAP University Alliances

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