Term

Paper

E NTERPRISE RESOURCE
PLANNING

SUBMITTED TO: SUBMITTED BY:

Respected ANKUR
SINGH
Gargi mam RE3801A29
 CAP 401

CONTENTS
1. Reviewing the SAP Corporation
 Introducing SAP
 What is SAP
 The Goals
 History
 SAP’s markets

2. Interacting with the SAP systems

 Exploring the Interface between System and User
 Interpreting the Document Principle

3. Exploring R/3 Architecture

 Reviewing Basic Principles
 Client/server Multi-tier Architecture
 Client/server Communications
4. Introducing R/3 Software Architecture
 Method and means to implement SAP
 System identification
 SAP R/3 Software Architecture
5. SAP Security and Control
6. Online Service System
 Introducing the Online Service System
 Exploring R/3 Online Services
  Benefits of Online Service System
 Using the SAP EarlyWatch System
 Monitoring
7. Using the SAP R/3 Information Database
8. Conclusion
9. Bibliography

1. REVIEWING THE SAP CORPORATION

 INTRODUCTION

Today, it's not enough to just access a vast quantity of

information. You've got to be able to take that information and
do something productive with it.

People need information from business applications,

databases, email, shared documents, and the Internet. So
you need a solution like mySAP Enterprise Portals that
takes advantage of unification technology -- bringing
together every piece of critical information and delivering it
to your users. And once it's there, your people can swing
into action, making better decisions, collaborating, and
increasing business speed and efficiency.

My SAP Enterprise Portals, which was formerly known as

mySAP Workplace, delivers the promise of true e-business
by unifying every business process in the corporate
ecosystem for strategic advantage and profitability.
SAP was founded in 1972 and has grown to become the
world’s fifth largest software company. It is the name
of the company as well as the computer system or what we
call software. The SAP software is written in ABAP/4, SAP’s
fourth-generation Advanced Business Programming
Language. This is the system that consists of a number of
fully integrated modules that cover virtually every aspect of
business management.

Information Technology is now at the very core of major

organizations around the world, and its importance is
beyond question. Market forces and customer expectations
continually pressure organizations to improve the
performance of their systems. While many software
companies have looked at areas of business and have
developments systems to support those areas, SAP has
looked toward the whole business. It offers a unique system
that supports nearly all areas of business on a global scale.

Being a German company, SAP still operates all

over the world, with 28 subsidiaries and affiliates and six
partner companies maintaining offices in 40 countries. It
operates in the major continents like America, Europe,
Asia, Australia, Africa and Middle East.

 What is SAP?
 SAP’s name is derived from Systems,
Applications, and Products in Data Processing.

 The Goals

SAP has defined its corporate goals as the

following:
 Customer satisfaction
 Profitability
 Growth
 Employee satisfaction

 HISTORY

Five people founded SAP in 1972: Herbert

Wellenreuther, Dietmar Hopp, Haas-Werner Hector,
Hasso Plattner, and Klaus Tschira. Initially working for
IBM, Wellenreuther developed a financial accounting
package for its customer. But SAP bought the rights from
the customer and started to design and implement the real-
time finance system as a standard package based on his
experience. Further they developed Materials
Management Systems. This was later converted to a
Standard Package.
 SAP’s Market

SAP markets its products all over the world

almost every industry imaginable, as well as government
and educational institutions and hospitals. Some of the
industries served by SAP:

 Automotive
 Building and heavy construction
 Building materials, clay and glass
 Chemicals
 Clothing and textiles
 Communications services and media
 Consulting and software
 Consumer packaged goods-food and nonfood
 Education institutions and research
 Electronic/optic and communications equipment
 Financial services, banks, and insurance
 Furniture
 Government, public administration, and utility
services
 Healthcare and hospitals
 Industrial and commercial machinery
 Museums and associations
 Oil and gas
 Pharmaceuticals
 Primary metal, metal products, and steel
 Raw materials, mining, and agriculture
  Retail and wholesale
 Ship, aerospace, and train construction
 Storage, distribution, and shipping
 Transportation services and tourism
 Utilities
 Wood and paper

2. INTERACTING WITH THE SAP SYSTEMS

 EXPLORING THE INTERFACE BETWEEN SYSTEM

AND USER
 The user interface of the SAP system presents
users with attractive and informative displays and enables
them to perform tasks easily and intuitively. It also allows
users to streamline repetitive tasks if those tasks cannot be
automated altogether.

A user is a person who has permission to use the

system and an identification code that tells the system
which password to expect for that authorized user.

The system supervisor to give the user

permission to user certain functions establishes a user
profile. For example: a user who has learned only to enter
purchase orders is not allowed to send them off to suppliers
without supervisor authorization.

Using tables in SAP applications has enabled the

customizations without affecting SAP’s reliability and
integrity.

The transaction concept has also been used in

SAP systems. This helps in business transaction while
receiving and delivering of the consignments.

 INTERPRETING THE DOCUMENT PRINCIPLE

Posting of any account doesn’t succeed unless

debit equals credit. The entries for such a posting are not
valid unless it passes the validation tests applied.
 Successful posting to an account as a result of
the transaction is regarded by SAP as a self-contained and
coherent unit of data.

The unit is defined as an SAP document because

evidence of this posting event and details of the transaction
can be displayed in a standard document format. An SAP
document is a data object and must obey the rules of SAP
objects.

A data object is a cluster of data items recorded

as fields. Each field is allowed a maximum size and type of
content according to the defined data domain specification
assigned to it.

3. EXPLORING R/3 ARCHITECTURE

 REVIEWING BASIC PRINCIPLES

SAP system is a BASIS system to which

application can be added. Each application has several
components that can be installed as required.

The standard business functions of the SAP R/3

system can execute the full range of business system
processes used in almost every type of business enterprise.

 MULTI-TIER CLIENT/SERVER ARCHITECTURE

 The R/3 system operates by using the
client/server principle applied across several levels. It is
highly modular, and the principle is applied primarily
through software so that the modes of interaction between
the various clients and servers can be controlled.

This multi-tier client/server architecture supports

the open system principles. Open System Principles allows
the interplay and portability of applications, data, and user
interfaces by adhering to international standards for these
elements. The work of IEEE is the basis of open system.
The international open interface systems embodied in the
R/3 system are TCP/IP, RPC, SQL, and OLE/DDE.

Other than UNIX, the R/3 system can run over the
operating systems like MPE/iX, OpenVMS, OS/400, and
Windows NT. Also portable with databases like IBM (DB2),
Informix, Oracle, Software AG, Sybase.
  CLIENT/SERVER COMMUNICATIONS

The architecture of R/3 allows various

protocols for communication between the elements of
the configuration. TCP/IP and open system Interface
(OSI) are examples.

4. INTRODUCING R/3 SOFTWARE ARCHITECTURE

 METHOD AND MEANS TO IMPLEMENT SAP

The extensive range of SAP standard software

modules allows any model of business flow to be
engineered. The precise details of each customized
installation are set up as the application programs are
installed, configured, and customized. There are three
directions of development in the range of SAP products.

• Changes in the way companies do business are tracked

and sometimes anticipated by SAP – improved software
modules, such as R/3 workflow and control over it from
the interest of enable electronic commerce with
business partners and potential customers.
• SAP R/3 is made available in pre-configured forms
specifically designed for rapid implementation in a
particular type of industry.
• Software systems are provided as tools to support the
process of changing businesses to increase profitability
by using computing and communications technologies.

 SAP R/3 APPLICATIONS

An SAP R/3 application or module is a set of

programs designed for a specific type of business data
processing. Each application is fully integrated with R/3
BASIS. This allows each application to communicate with
any other application

 SYSTEM IDENTIFICATION

SAP R/2 is a system for mainframes. The

SAP R/3 system for open system architecture allows
medium-size companies and affiliates of corporations to take
 advantage of the highly integrated SAP software. It applies
the client/server concept across multiple levels.

 SAP R/3 SOFTWARE ARCHITECTURE

ADVANTAGES

SAP architecture embraces a complete

infrastructure of information processing. The SAP R/3
system is based on a system of layers, each operating in a
client/server manner with interfaces necessary for R/2 and
non-SAP systems. The SAP R/3 system is extremely portable
across operating systems, databases, and presentation
systems. Synchronous and asynchronous compiling
between applications is supported. The following are the
advantages of SAP R/3 software architecture.

• Scalability in response to demand

The multi-tier architecture based on the

client/server paradigm allows fresh equipment to be installed
at any level and to follow the load profiles and the requirement
for additional processing created by adding applications.

• Portable software

Software usually remains in use longer than

hardware. SAP software is exceptionally portable across
hardware and operating systems, and across database
systems.
 • Interoperability with PC applications

Object linking and embedding (OLE) interfaces

are provided, and remote function call (RFC) procedures allow
the SAP systems to integrate both the data and the functions
of the SAP R/3 system with those of PC applications and data
sources.

• Simple customizing without programming

Not only are the SAP systems readily adjustable

to fit exactly into the business requirement, but they come
with customizing tools to ensure that this adaptation is carried
out as easily and as accurately as possible without broaching
the protected standard business software functions, which
remain intact and efficiently integrated with the rest of the SAP
systems.

5. SAP SECURITY AND CONTROL

 General Security Guidelines

In general terms, there is essentially nothing
special about the management of access security in an SAP
 environment. Various security systems are available for the
evaluation of information systems security like –

• Security policy
• Security organization
• Assets classification and control
• Personnel security
• Physical and environmental security
• Computer and network management
• System access control
• System development and maintenance
• Business continuity planning
• Compliance

6. ONLINE SERVICE SYSTEM

 Introducing the Online Service System

During the implementation of the R/3 system, the
OSS – Online Service System is used to solve problems found
in a test system before they get to production. After the
production system is live, the usual purpose of the OSS is to
solve an existing problem thought to be a bug in the software,
for which there is a known SAP solution. If you do have any
areas of uncertainty, the components of the OSS – Online
Service System are available in your installation to help you
identify the reason and to see how to clear up the difficulty.
There is also a remote connection to the OSS library of error
notes organized so that you can search for a question that
corresponds to your query. When the system is clear about
this, it offers some solution proposals. And as a fallback
position, the Online Service System facilitates a direct
communications link to the SAP service team will solve one’s
problem.

N O T E:- The full OSS - Online Service System can be

installed at a client site in the form of the Customer
Competence Center, which specializes in solving the SAP R/3
system problems of a particular company.

 Exploring R/3 Online Services

The main elements of the online services
follow:-
• SAP OSS – Online Service System.
• Customer Competence Center with own OSS updated
from the SAP OSS.
• Local SAP Help Desk.
• SAP R/3 Help Desk
• EarlyWatch
• Remote consulting
• Hot news and Upgrade Services
• SAP Error Notes database
• Online Error Correction
• Upgrade Support on Weekends

 Benefits of Online Service System

The full ranges of the OSS – Online Service
System and the SAP Remote Services software and
communications equipment have a comprehensive and
powerful support system. This characteristics feature lets you
assistance and has an automatic fault-location service up to a
consulting visit, with information provided selectively and
automatically at every level.

The lists of benefits of this system are as follows:

-

 Continuous problem processing worldwide

 Immediate first-level customer service
 Direct access to the error notes database
 Problem prevention
 Review of the progress and history of a problem solution
process
 Access to SAP staff and SAP partners
 Communication with other SAP R/3 users
 Latest information on SAP R/3 products

 Using the SAP EarlyWatch System

The EarlyWatch system provides a proactive
method of monitoring customer SAP R/3 systems by
conducting regular analyses. Teams of experts at SAP carry
out remote diagnosis of customer SAP R/3 installations
worldwide.

 Monitoring
The following elements can fall within the scope
of EarlyWatch remote diagnosis:
• Network components
 • Operating system
• Database
• SAP applications and configurations

7. USING THE SAP R/3 INFORMATION

DATABASE
The SAP R/3 information database provides you
with the latest information about SAP R/3 products and
releases. In particular, the database carries the following
types of data:
• SAP R/3 development strategy and product planning
• System development and delivery dates
• Duration of the maintenance period of new releases
• SAP R/3 services and certified SAP partners
• Training course enrollment calendar
• Available documents and publications in other media
• Technical information concerning remote connections
and network products

 Important Accessing Information Resources

• Service Guidelines. Descriptions of the SAP R/3
services
• Product Guidelines. Marketing information and
brochures.
• Documentation. Includes SAP R/3 handbooks,
upgrade and installation instructions, and release
information.
• Presentations. Include the SAP visual CD-ROM
programs.
8. CONCLUSION

The SAP organization has always had a policy of

continuous business development. The driving forces are the
need to keep up with the marketplace in product and
requirement details and also the need to meet the evolving
legal obligations placed on companies. With the increasing
revenues and global consolidations, control, security and
reliability are paramount, and SAP doesn’t disappoint.

A good understanding of how SAP modules

integrate with each other should give you the ability to
maximize the benefits from its implementation. Success is
based as much on your knowledge of the business and what
you are trying to achieve as it is on understanding the system.
REFERENCE SITES

http://www. mysap.com/

http://www.sap.com/

http://www.mysap.com/history.html

http://www.mysap customer relationship

management/

REFERENCE BOOK

Using SAP R/3 (Third Edition)

-- By ASAP World Consultancy
&
Jonathan Blain