Systems, Applications, and Products in Data Processing - Assignment Example

DRAFT #1 I WILL SUBMIT MORE TONIGHT SAP Systems, Applications and Products in Data Processing 1. INTRODUCTION **later to submit 2. SAP - SYTEMS, APPLICATIONS and PRODUCTS in DATA PROCESSING 2.1 ERP and SAP Before, business processes are typically made up of multiple or different systems that are trying to communicate with each other in various platforms and languages. ERP or Enterprise Resource Planner software was a product of a concept in the 1970s that aims to provide computerised solutions for integrating and automating business processes across companies’ back offices, such as the financial, logistics, or human resources departments (Hernandez et al. 2005, p.2). In other words, ERP is the process of in which organisational functions and processes are integrated together to achieve a number of benefits (Lau 2004, p.127). The objective is to incorporate the entire organisation under “one information technology roof” (Sedgley & Jackiw 2001, p.5) and enable companies to see cost reduction and better efficiency in the ways they operate and deal with their customers, business partners, banks, etc (Hernandez et al. 2005, p.2). Since then many ERP solutions became available in the market and being utilised to incorporate management statistics with financial data to get a timely and complete picture of the organisation’s performance (Sedgely & Jackiw 2001, p.5). A single point of data entry in the ERP concept decreases data redundancy and labour cost significantly (Lau 2004, p.127). For instance, the centralisation of information leads to better coordination and communication, and provides managers with accurate and timely information to make well-informed business decisions. According to Sankar & Rau (2006, p.7), the most important benefit of an ERP systems is the potential for integration as it can help create a more disciplined organisation structure, reduce cycle times, and business processes cost . SAP is an ERP software product that seamlessly integrates the various functions in a business enterprise that includes sales, procurement, and production (Williams 2008, p.705). SAP was founded in Waldorf, Germany in 1972 and since then underwent constant change, adapting, and striving to offer better business solutions to the market. After more almost 40 years, over 25 industries and more than 34 thousand companies are utilising the technology (Williams 2008, p. 706). SAP main product runs on different platforms and applications including production planning and human resources in one system (Artiges p.1073). 2.2 SAP Technology SAP was originally written in its own proprietary language ABAP/4 or Advanced Business Application Programming which is similar to COBOL. Contrary to some belief, SAP is not a database but a system that can be developed to suit particular customer requirements (Artiges 2004, p.1073). The most popular SAP products are enterprise applications R/2, which is for mainframe environments, and R/3 for open client-server systems (Wingate 2000, p.398). However, in both systems, the customer can decide to install the whole package or install the core system only and add one or more functional components (Moser 1999, p.25). R/3 or real-time three-tier system (Madu & Kuei 2005, p.79) has more than 70 software modules including financial accounting, sales and distribution, human resources, and computer-integrated manufacturing (Moser 1999, p.26). SAP also delivers a host of reporting tools and functionalities such as Supplier Relationship Management (SRM), Strategic Enterprise Management (SEM), Catalog Content Management, Compliance Management for SOA, Supply Chain Management (SCM), Product Lifecycle Management, and Customer Relationship Management (CRM) (Jones & Burger 2009, p.3). With the use of a third party middleware, SAP R/3 backend system can be linked to front office applications such as CRM and because SAP supports front office functionality it can deal with customer service and order tracking (Madu & Kuei 2005, p.80). Similarly, SAP SCM is industry-independent as it cater customer in various industries such as consumer products, high tech, mill products, chemicals and life science, industrial machinery, automotive, oil and gas, and even banking (Knolmayer 2008, et al. p.76). 2.3 Commercial Applications ERPs are commercial software packages that makes on-line/real-time information available thought the functional areas of an organisation. Baan, PeopleSoft, Oracle, and SAP are major players in the commercial ERP software industry. SAP has proven itself as a flexible and powerful tool for the Rubbermaid Commercial Products LLC of Virginia, U.S. CCT Tech of Hongkong, one of the world’s major cordless phone manufacturer select MySAP Business Suite for its in-house ERP. The Allied Irish Banks PLC in Dublin Ireland use SAP BusinessObjects Profitability and Cost Management to improve their efficiency, enhance customer service, and gain better understanding of end-to-end process costs across branches. The Fulton County School System also use SAP to eliminate heavy reliance on paper processes, redundant and inefficient administrative processes, improve personnel administration, procurement, payroll, and financial and inventory management (SAP Global 2009, p.1). **more here 2.4 Cost Effectiveness “Automation can reduce the scope of the effort and make day-to-day enforcement of business rules easier and more cost effective” (Roland 2008, p.12). ERP projects are typically justified in terms of cost effectiveness and business benefits (Shanks et al. 2003, p.2005). For instance, a corporate-wide SAP project on a pharmaceutical manufacturer was justified for operational excellence since it can cut cost on core transactions-processing system such order and inventory management. In addition, SAP saves on operational systems, enhanced reliability of customer service, and guaranteed timely delivery and follow-up (Shanks et al. 2003, p.2005). **more here 2.5 Advantages and Disadvantages The introduction of SAP into an enterprise according to Khan (2002, p.88) typically results in the retirement of legacy systems. For this reason a lot of time and effort is required and in order to accommodate the specific needs of the company, numerous customisations are needed. Although some works may be simple, others can be significantly complex particularly when imitating the retiring legacy system. Moreover, works involve typically requires special attention and testing when upgrading SAP. In one survey conducted by U.S. based consulting group on the Australian ERP marketplace, only 33 percent of ERP implementation were reported successful (International Resources Management Association 2001, p.95). According to IRMA, this result was based on success on value creation, cost-effectiveness, and tangible financial impact. In addition, the report also noted that Australian enterprises have struggled with the large-scale change necessary in ERP. When Weston Foods implemented SAP in 1999, its management noticed the need to change their organisation culture in order to implement SAP effectively. When SAP provides enterprise portal, this means a company would have a central point of access to information and software functions. The advantage of this portal is that it can combine data from warehouse, personnel, and other departments. Since the layout is uniform and only requires a single sign-on to access multiple application systems, users are able to drag and relate functions such as delivery order from the SCM programme to CRM which then presents extensive context-sensitive data on the particular customer. In other words, an SAP portal can make it convenient for an enterprise to combine the best offers (Mertens & Sinzig 2005, p.76). 3. Conclusion 4. Bibliography SAP Global. 2009. Industries. Available at http://www.sap.com/industries /index.epx Read More