Chapter 2 – Enterprise SystemsLearning ObjectivesEnterprise SystemsIntegrate Business FunctionalityERP Systems VendorsSlide 6Third-Party ModulesThird-Party Modules, Cont’d.Slide 9Enterprise Systems Value ChainValue Chain and Value SystemThe Value of Systems IntegrationInefficient Customer ServiceSlide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Solution to Inefficient Customer ServiceData Maintenance: Create Customer RecordBusiness Event Data Processing: Enter Customer OrderUsing Stored Data for Decision MakingMajor ERP ModulesMajor ERP Modules, Cont’d.Slide 28Slide 29Slide 30Order-to-CashSlide 32Slide 33Slide 34Slide 35Slide 36SD Menu Options in SAPSD Audit Trail for Completion of Steps in the Sales ProcessPurchase-to-PaySlide 40Slide 41Slide 42Slide 43MM Menu Options in the SAP SystemAudit Trail for Completion of Steps in the SAP Purchase ProcessChapter 2 – Enterprise SystemsAccounting Information Systems 8eUlric J. Gelinas and Richard Dull© 2010 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom useLearning Objectives•Describe enterprise systems.•Describe enterprise resources planning (ERP) systems.•Explain the organization value chain.•Describe the relationship of the organization value chain and an enterprise system.•Illustrate the value of systems integration.•Describe how an enterprise system supports major business event processes.•Enumerate the pros and cons of implementing enterprise systems.23Enterprise Systems•Integrates business processes and information from entire enterprise.•Helps coordinate the operation of business functions. •ERP systems are software packages that can be used for the core systems necessary to support enterprise systems.4Integrate Business FunctionalityWhen purchasing equipment the ERP will:•Provide an electronic order form.•Apply business rules.•Route the order for approvals.•Send the order to a buyer.•Connect to the vendor.•Use data to receive goods, project funding requirements, compare to budget, and analyze vendor performance.5ERP Systems Vendors6mySAP BusinessSuite7Third-Party Modules•Customer Relationship Management (CRM) - builds and maintains customer related data.•Customer Self-Service (CSS) - allows customers to complete tasks without assistance.•Sales Force Automation (SFA) - automates sales tasks such as order processing and tracking.8Third-Party Modules, Cont’d.•Supply Chain Management (SCM) - plans and executes demand planning, inventory acquisition, manufacturing, distributing and selling.•Product Lifecycle Management (PLM) - manages product data from design through disposal of product.•Supplier Relationship Management (SRM) -manages the interactions with organizations that supply the goods and services to an enterprise; includes procurement and contract management.9SAP NetWeaver10Enterprise Systems Value Chain•Enterprise systems facilitate value chain management.•The value chain is the system of activities that transform inputs into outputs valued by the customer.•The goal of an organization is to add the greatest value at the lowest cost thus increasing competitive advantage.11Value Chain and Value System12The Value of Systems Integration•Coordination of activities in the value chain. •Performs this coordination by sharing data across business processes.•The following slides describe what life would be like without integrated systems and how enterprise systems solve some of the problems.13Inefficient Customer Service1. Check to see if the customer is in good standing – i.e. has good credit.14Inefficient Customer Service2. Find out if the item in stock and ready for delivery. Tell the customer when she will receivethe item. This date is known as “available to promise” or ATP.15Inefficient Customer Service3. If item is not on the shelf, review production schedule and add the time required to pick, pack, and ship. This does not, however, tell if the item had already been allocated to another customer.16Inefficient Customer Service4. If the item must be scheduled for manufacturing, when can it be scheduled and how long will the process take? It depends on the availability of the production line and personnel, as well as therequired raw materials.17Inefficient Customer Service5. May require contacting the vendors that supply these materials to determine when they can promise delivery.18Inefficient Customer Service6. What price will be charged to this customer for this order? This price may be found on a static price list. However, the marketing department may determine prices dynamically.19Inefficient Customer Service7.Need to know if the amount of the order falls within the customer’s credit limit. Without direct access to the open AR data, need to call accounting to approve this order.Inefficient Customer Service208. If policy is not to turn down an order for insufficient credit without checking with the credit department the credit department must be called.21Inefficient Customer Service•Do you think that Sally wants to keep the customer on the phone throughout this process? •Would you consider this to be good customer service?22Solution to Inefficient Customer Service•Enterprise system establishes ATP (available to promise) by checking warehouses and scheduled manufacturing.•Database automatically determines price and creditworthiness.23Data Maintenance: Create Customer Record24Business Event Data Processing:Enter Customer Order25Using Stored Data for Decision Making26Major ERP ModulesSales and Distribution (SD)•Records customer orders•Shipping •Billing•Connections to •Materials management module (MM)•Financial accounting module (FI)•Controlling module (CO)27Major ERP Modules, Cont’d.Materials Management (MM)•Acquisition and management of goods from vendors•Purchase order preparation•Receiving•Recording invoice•Interacts with •Sales and distribution module (SD)•Financial accounting module (FI)•Controlling module (C00)28Major ERP Modules, Cont’d.Financial Accounting (FI)•Plays a central role in the SAP system.•Incorporates data from other modules into general ledger accounts and financial statements.•Business events from other modules are incorporated into the general ledger accounts and