ERP stands for Enterprise Resource Planning. An ERP system integrates all data and processes of an organization into a unified system using a single database. Major ERP systems include SAP, Oracle, and Microsoft. SAP is currently the largest ERP vendor with 43% of the market. ERP systems are made up of different modules that manage key business functions like finance, supply chain, manufacturing, and human resources. Common career paths in SAP include functional consulting, technical consulting, and administration.
1. WHAT IS ERP ?WHAT IS ERP ?
ERP stands for Enterprise Resource Planning.ERP stands for Enterprise Resource Planning.
Enterprise Resource Planning systems integrate all data andEnterprise Resource Planning systems integrate all data and
processes of an organization into unified system.processes of an organization into unified system.
The key feature of an ERP system is it uses a single or unifiedThe key feature of an ERP system is it uses a single or unified
database to store data for the various system modules.database to store data for the various system modules.
Various Modules which comes under ERP are listed below:Various Modules which comes under ERP are listed below:
1.1. ManufacturingManufacturing
2.2. Supply ChainSupply Chain
3.3. FinancialsFinancials
4.4. CRMCRM
5.5. Human ResourcesHuman Resources
6.6. Warehouse managementWarehouse management
2. DIFFERENT TYPES OF ERPDIFFERENT TYPES OF ERP
SAPSAP
BAANBAAN
JD EdwardsJD Edwards
OracleOracle
SiebelSiebel
PeopleSoftPeopleSoft
Among all the ERP’s most of the companies implemented or trying toAmong all the ERP’s most of the companies implemented or trying to
implement SAP because of number of advantages over other ERPimplement SAP because of number of advantages over other ERP
packages.packages.
3. ERP Software Will Grow to $29 Billion in 2006ERP Software Will Grow to $29 Billion in 2006
Enterprise resource planning (ERP) applications market grew to $25.4B inEnterprise resource planning (ERP) applications market grew to $25.4B in
2005, and will reach $29B in 2006, according to2005, and will reach $29B in 2006, according to AMR ResearchAMR Research. Over the. Over the
next five years, the market will grow at an average of CAGR of 10%. Thenext five years, the market will grow at an average of CAGR of 10%. The
top two vendors, SAP and Oracle, now represent 65% of new license sales.top two vendors, SAP and Oracle, now represent 65% of new license sales.
4. SAP – Market Leader in ERPSAP – Market Leader in ERP
SAP continues to be the biggest player in the market with an estimated 43% ofSAP continues to be the biggest player in the market with an estimated 43% of
market share, or about $12.5 billion in revenue in 2006.market share, or about $12.5 billion in revenue in 2006.
Oracle was second with 23% market share, or $6.7 billionOracle was second with 23% market share, or $6.7 billion
Next in line was Sage Group with 6% market share, followed by Microsoft atNext in line was Sage Group with 6% market share, followed by Microsoft at
4% and SSA Global at 3%.4% and SSA Global at 3%.
SSA Global was acquired in July by Atlanta-based Infor Global Solutions. AMRSSA Global was acquired in July by Atlanta-based Infor Global Solutions. AMR
did not provide a market share estimate for Infor, which has been activelydid not provide a market share estimate for Infor, which has been actively
acquiring companies in the ERP arena.acquiring companies in the ERP arena.
5. WHAT IS SAP ?WHAT IS SAP ?
SAP stands for Systems Applications and Products in data processing.SAP stands for Systems Applications and Products in data processing.
SAP is the third largest software company in the world. It ranks afterSAP is the third largest software company in the world. It ranks after
Microsoft & IBMMicrosoft & IBM
SAP Head quarters are in Walldorf, Germany. SAP was founded in 1972 bySAP Head quarters are in Walldorf, Germany. SAP was founded in 1972 by
five former IBM engineers.five former IBM engineers.
SAP released SAP R/2 version initially. The architecture of R/2 system isSAP released SAP R/2 version initially. The architecture of R/2 system is
Mainframe architecture.Mainframe architecture.
Later SAP R/3 is released which is different from R/2 architecture. R standsLater SAP R/3 is released which is different from R/2 architecture. R stands
for Real time. 3 stands for 3 tier architecture.for Real time. 3 stands for 3 tier architecture.
There are over 100,800 installations at more than 33,200 companies. SAPThere are over 100,800 installations at more than 33,200 companies. SAP
products are used by 12 million people in more than 120 countries.products are used by 12 million people in more than 120 countries.
6. Various career paths in SAP ?Various career paths in SAP ?
SAP FunctionalSAP TechnicalSAP Administration
•SAP Administration
consultants are
responsible for installing
and maintaining
SAP servers.
•Consultants should know
SAP BASIS.
•SAP Technical
consultants are
responsible for
developing
programs by using
ABAP
programming
language.
•Consultants
design technical
specifications by
analyzing and
understanding the
functional
specifications.
•SAP Functional consultants are
responsible for configuring the SAP
system and end user interaction to
collect business requirements.
•Consultants design
functional specifications.
•There are various Functional
modules in SAP. They are -
SAP SD - Sales and Distribution
SAP MM - Materials Management
SAP FICO - Finance and Controlling
SAP PP - Production Planning
SAP WM - Warehouse
Management
SAP HR - Human Resource Etc.
SAP PM- Plant Maintenance
SAP CRM –Customer Relationship
7. Are You eligible for SAP ?Are You eligible for SAP ?
SAP FunctionalSAP TechnicalSAP Administration
•For the people who are in
networking and
Administration side, SAP
BASIS is very
suitable.
•One must learn SAP
BASIS
•Exposure to any
programming
language is
required.
•SAP is having its
own programming
language ABAP
( Advanced
Business
Application
Programming).
•Must learn SAP
ABAP
programming
language.
•Experience in any Domain. Here
Domain is Industry domains like
Sales and Distribution, Materials
Management and Finance etc.
•Must complete SAP training in
respective module