By:

Kharabela Parida

History of SAP

Systems Applications and Products in Data Processing German : Systeme, Anwendungen, Produkte Datenverarbeitung

in

der

Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira Re named in 1977 Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) SAP is both the name of the Company as well as their ERP Product SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business Three systems developed : R/1, R/2, R/3

[email protected]

Development of Enter prise Resource Planning SAP

Enterprise Resource Planning

Inter-Enterprise Co-operation

Collaborative Business

Create Strategic Value Total Company Value Automation Efficiency and Control

80s R/2

90s R/3

Today mySAP ERP

Evolution of ERP
[email protected]

SAP Business Strategy:

New Maintenance Offerings Architecture Planning Custom Development Consulting System Integration Operations Planning & Optimization Hosting / Outsourcing

[email protected]

SAP Business Strategy:

SAP Direct Vertical Sales Resellers Business One Centers Sales/Service Partners

[email protected]

For Over 30 Years, SAP Has Been Driving ERP and They Continue to Do So
ERP Rapid Adoption
Companies start to adopt ERP on a massive scale

mySAP ERP
E-Business is now seen as an extension of ERP, not a replacement. SAP is leading the new industry standard for collaborative business applications.

SAP Invents Real-Time ERP

SAP defines and establishes a new approach to Integrated Standard Business Software.

ERP = The Business Software Industry

The approach that SAP established becomes industry standard. New competitors enter the market.

Dot.com Hype: ERP = Old E-Business = New

Trends seemed to indicate that ERP was an out-offashion model

70s

80s

90s

00s

Evolution of SAP

[email protected]

Benefits of mySAP ERP

SAP ERP delivers a comprehensive set of integrated, cross-functional business processes. With SAP ERP, we can gain the following benefits: Improve alignment of strategies and operations Improve productivity and insight Reduce costs through increased flexibility Support changing industry requirements Reduce risk Improve financial management and corporate governance Optimize IT spending Gain higher ROI faster Retain top performers Provide immediate access to enterprise information
[email protected]

[email protected]

[email protected]

10

3 Tier Client / Server Architecture

The SAP R/3 architecture is based on a 3-tier

client/server principle
Presentation Server Application Server Database Server

Dedicated Servers are linked by Communication

Networks
Perform tasks without sacrificing data integration and

processes within the system, as a whole

[email protected]

12

SAP R/3 System Architecture

[email protected]

13

SAP integration architecture

[email protected]

14

Overview of Presentation & Database Servers

The Presentation Server

GUI only At workstation Very light Sends requests to application server Obtains screens from application server and displays

The Database Server

Interface between application server and

RDBMS Also holds the vendor specific DB driver

[email protected]

15

SAP R/3 Conceptual Areas

SAP Conceptual Areas

Application Area
(Initiate and execute SAP transactions) (Functional)

Basis Area
(The technical administration of the system) (Authorizations/Ids/etc)

Development Area
(1. A developers workbench 2. Create & Test ABAP/4 programs) (Technical)

[email protected]

16

Systems in R3
Transport Request

Development System (DC)

Quality System (QC)

Production System (IC)

Client 110 100 etc..

[email protected]

17

Clients in R/3
The Logon Client
3 digit number ( 000 to 999) Helps maintain independent sets of data within the

same R/3 system

Client mechanism and handling

[email protected]

18

Clients in R/3

[email protected]

19

R/3 Technology Environment

Hardware
UNIX Systems Bull IBM Digital SNI HP SUN Bull/Zenith Compaq Data General ... Digital NCR HP (Intel) Sequent IBM (Intel) SNI IBM AS/400 IBM S/390

Operating AIX Reliant systems Digital UNIX UNIX (SINIX)

HP-UX SOLARIS

Windows NT ADABAS D MS SQL Server INFORMIX-OnLine ORACLE

OS/40 0 DB2 for OS/400

OS/39 0 DB2 for OS/390

Databases

ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE

Dialog SAPGUI Languages

Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java ABAP/4, C, C++, HTML, Java

[email protected]

20

Platforms and Databases Operatingsupported by R/3 Supported Supported Supported

Systems AIX SINIX SOLARIS HPUX Digital Unix Windows NT Hardware Front ends Databases IBM SNI SUN Win 3.1/ 95 / DB2 for AIX NT Digital HP Bull OSF / Motif OS/2 Macintosh Informix Online Oracle 7.1 ADABAS D

AT&T Win 3.1 / 95 / Oracle 7.1 Compaq NT SQL Server Bull / Zenith OSF / Motif 6.0 HP (Intel) OS/2 ADABAS D SNI Macintosh IBM (Intel) Digital [email protected]

21

SAP Modules
SD Sales and Distribution MM Materials Management PP Production Planning FI Financial Accounting

SD MM PP

FI CO AM

CO Controlling AM Asset Management

SAP R/3
QM Quality Management

QM PM WM PS WF

HR

HR Human Resources WF Workflow

PM Plant Maintenance WM Warehouse Management

PS Project System

[email protected]

23

SAP R/3 Application Modules

1) Financial accounting (FI) 2) Controlling (CO) 3) Asset management (AM) 4) Materials management (MM) 5) Sales and Distribution (SD) 6) Production Planning (PP) 7) Quality management (QM) 8) Plant maintenance (PM) & Customer Service (CS) 9) Project system (PS) 10) Human resources (HR) 11) Workflow (WF)
[email protected]

24

Module Functionalities

MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification

PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production

SD Inquiry processing Sales Order Processing Delivery Processing Billing

FI General Ledger Accounts Payable Accounts receivable Cash management

CO Cost Center Accounting Product Costing Order Contribution Analysis

[email protected]

25

Module FI Financial Accounting

External reporting of
General ledger Accounts receivable/payable Sub-ledger accounts

Key elements
General ledger Accounts payable Accounts receivable Asset Management Accounting Information System

[email protected]

26

Financial Accounting
Foreign exchange management Finance information system Bank Management of secureties and loans

Cash management and forecast

Accounts payable
Payables

Bank accounts Receivables

Accounts receivable

General Ledger
Invoice verification Extended General Ledger
Consolidation

Credit management

[email protected]

27

Module CO Controlling
Represents the flow of cost and revenue Instrument for organizational decisions Key elements of the CO application module include :
Cost center accounting Product cost Planning Product Costing Profitability analysis Profit center accounting Activity based costing Enterprise controlling

[email protected]

28

Sales and Distribution Processing

MATERIALS MANAGEMENT
29

[email protected]

Module SD Sales and Distribution

Optimize tasks/activities in
Sales Delivery Billing

Key elements of the SD application module include :

Pre-sales support Inquiry processing Quotation processing Sales order processing Delivery processing Warehouse management Billing Credit Management Sales Information system
[email protected]

30

Sales Order Process

(Order-to-Cash) Check Availability Pick Materials Sales Order Entry

Receipt of Customer Payment Invoice Customer

Pack Materials

Post Goods Issue

[email protected]

31

Module MM Materials Management

Supports
Procurement Inventory

Key elements
Materials procurement (purchasing) Inventory management Invoice verification Material valuation Vendor evaluation External Services management Purchasing Information System (PurchIS) Inventory Controlling Information system

[email protected]

32

Procurement Process
(Procure-to-Pay) Purchase Requisition

Purchase Order Notify Vendor

Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt

[email protected]

33

BASIC DATA

Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive Texts Mail Communication Classification Documents Conditions

RFQ/Quotation

Purchasing information system Vendor evaluation

Material Special stock Batch

PURCHASING Materials Management SD

Purchase requisition

MRP Direct requisition Release procedures

Third-party order Requirements

PP PM

Material/service Price comparisons Price comparison list Purchase orders Outline agreements Scheduling agreements

Purchasing

Service/ Spare Parts Service / Inspection QM spare parts lot G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project

FI AM CO PS

INVENTORY MANAGEMENT

Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins

INVOICE VERIFICATION

Check and post Price update

[email protected]

34

Production Planning
SD PP Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system Project Networks PS SD

Customers
Sales Shipping Billing

SD

PM SD Maintenance Repairs Plant maintenance QM SD Inbound Raw Material Finished Goods

Vendors

MM SD Purchasing Warehouse Invoice verification

FI

Financial accounting

CO

Cost accounting

HR

Human resources
35

[email protected]

Module QM Quality Management

Supports
Quality planning Inspection Control for manufacturing Costing Procurement

Key elements
Quality planning Quality during procurement, production, distribution Quality Management Information - Quality inspection Information System (QMIS)

[email protected]

36

Module PS Project System & HR Human Resource

PS Project Systems
Support planning, control, & monitoring of long term highly complex projects with defined goals Project WBS Plan Budget & Monitor Network Management Activity monitoring, Material Planning, Milestones, Capacities Scheduling Project Management Information System

Key elements

HR Human Resource
Key elements Recruitment Payroll & Time management Travel Expense accounting & Benefits Workforce planning & Training administration Organization management
[email protected]

37

mySAP Aerospace & Defense Industry Solutions (Some SAP for SAP for Healthcare Examples) SAP for Media
SAP for Automotive SAP for Mill Products SAP for Banking SAP for Mining SAP for Chemicals SAP for Oil & Gas SAP for Consumer Products SAP for Pharmaceuticals SAP for Engineering,

SAP for Public Sector SAP for High Tech SAP for Retail SAP for Higher Education &

Construction & Operations

Research SAP for Service Providers SAP for Industrial Machinery & Components SAP for Telecommunications
SAP for Insurance SAP for Utilities

SAP for Professional Services

[email protected]

38

Evolution of SAP products

mySAP ERP R/3 Enterprise

Web AS

Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ..

mySAP Business Suite

R/3

SAP NetWeaver

Easing Upgrade Plans & Providing Transition Options Bringing benefits of SAP Netweaver into installed base New Customers have more entry options & receive world class ERP

[email protected]

40

Evolution of SAP products

SAP R/3

my SAP Solutions

my SAP Business Suite

[email protected]

41

mySAP Solutions
mySAP PLM mySAP SCM

mySAP Financials
mySAP CRM

mySAP HR Corporate Services Operations

mySAP SRM

Adaptive Business Solutions

SAP R/3
[email protected]

42

my SAP Business Suite

mySAP PLM mySAP SCM

mySAP mySAP SRM

mySAP Financials mySAP HR Corporate Services Operations

Application Platform ( Web As) People Integration (Portal) Information Integration( BI,MDM) Process Integration (XI)

CRM

SAP NetWeaver

[email protected]

43

mySAP Solutions & Netweaver

mySAP CRM mySAP SRM mySAP SCM mySAP PLM SAP Netweaver
44

[email protected]

CRM Solution Map

[email protected]

46

CRM Holistic view

[email protected]

47

Where does a CRM solution fit ?

Who What
Marketing Sales Service
Use a CRM Solution to complete the Cycle

Service

Executives

Engage

Fulfill Transact

Workplace Which way How

Internet Mobile Telephony

Operational

Analytical

Collaborative

[email protected]

48

SRM Vision

[email protected]

50

[email protected]

51

[email protected]

52

[email protected]

53

A Roadmap for Web Services

[email protected]

55

Services are changing SAPs Product portfolio

[email protected]

56

From Basis to WAS

[email protected]

57

[email protected]

58

SAP NetWeaver
Unifies and aligns people, information and business processes

The integration and application platform for lower TCO Integrates across technologies and organizational boundaries

A safe choice with full .NET and J2EE interoperability

The Business foundation for SAP and partners

Powers business-ready solutions that reduce custom integration Its Enterprise Services Architecture increases business process flexibility

[email protected]

59

implementation

[email protected]

60

[email protected]

61

Ways to Implement: There are two main implementation approaches: Roll Out: inclusion of subsequent releases and/or locations in separate systems. Roll In: inclusion of subsequent releases and/or locations in same systems. Both focus on implementation at one location or one area of functionality, followed by subsequent implementation of other sites and/or functional areas The alternative to Roll Out and Roll In is Big Bang Generally only considered for small (<200) implementations
[email protected]

62

[email protected]

63

Cost of SAP deployment

[email protected]

64

mySAP Business Suite Pricing Model:

Functionality / Price
Developer ? Up to E5700 Professional E3800

Named User fees (4 categories)

Limited Prof. E1600 (mobile E800)

Employee E400

Software Engine fees: (e.g Purchase Order/ Sales Order Industry Solutions based on industry metrics)

mySAP CRM

mySAP SCM

mySAP SRM

mySAP PLM

mySAP ERP

mySAP FIN

mySAP HR

[email protected]

65