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SAP ERP OVERVIEW


by
M S RAVI PRAKASH
1
2

WELCOME TO THE
WORLD OF
SAP R/3

2
Enterprise Resources Planning
Where a transaction takes place.

Where customers get the satisfaction.

Where the resources are available for
the peoples needs.

- 1960s: Inventory Control
- 1970s: Material Requirement Planning (MRP)
- 1980s: Manufacturing Resources Planning (MRP-II)
- 1990s: Enterprise Resource Planning (ERP)


Money

Men

Machines

Materials
Proper Planning and Optimization of the valuable
resources make enterprise run into profits.
A Software Solution that addresses the
ENTERPRISE NEEDS taking the PROCESS VIEW
of an organization to meet the ORGANIZATIONAL
GOALS tightly INTEGRATING all functions of an
enterprise.
Definition for ERP
Need for ERP
Integration of Business Processes
Online information at the corporate office
Standardization of systems across Locations
Reduce cash to cash cycle times
Faster Consolidation at Head office for statutory
reporting
Problems Tackled by ERP Systems
Material Shortages
Productivity Enhancements
Customer Service
Cash Management
Inventory Problems
Quality Problems



SAP
BAAN
Oracle APPS
People Soft
JD Edwards
Marshall
Etc..
SAP
Baan
People soft
Oracle apps
JD Edwards
Etc
SAP & Competitors
SAP R/3 had competition with Software giants
like Oracle Corp, People Soft & Bann.

Oracle with its E-biz suit packed to excel with
142 modules.

People Soft with its extra ordinary performance
in HR has stormed the market.

But finally failed to gain the confidence of Big
Enterprises.

Result is SAP Has become giant in ERP.
Few SAP Customers
IBM
COMPAQ
Hewlett Packard
AMD
Boeing
Mercedez
Toyota
Lucent
Hitachi
Nike



TATAs
Dr.Reddys Labs
Ranbaxy
L& T
Reliance Industries
Glaxo
Mahindra & Mahindra
Hero Honda
Growel
Colgate Palmolive
Consulting Companies
Price Water House Coopers.
KPMG.
Siemens.
Delloitte.
Accenture.
Cap Gemini.
IntelliGroup
TCS.

SAP R/3
What is all about
Systems Applications &
Products in Data Processing
SAP & Modules
SAP Package is strategically divided into
2 main areas.
Functional & Technical.
People with domain experience can work
on functional modules.
2 Technical modules are ABAP/4 & Basis.
Cross Applications are used for ALE
Purpose.


In Functional area we have around 64 modules all
are enabled for web reporting via Web Application
Server.

Functional
Technical
T F
SAP AG in 2002 revenues: 7.4 billion

60,100 installations
19,300 companies run SAP
Providing 23 Industry Solutions
28,654 SAP employees (March 2003)
12 million users in 120+ countries team with us to
Integrate their business processes
Extend their competitive capabilities
Get a better return on information at a lower total cost of
ownership
More than 1,500 partners


THE SAP COMPANY
SAP Milestones over 30 years
The SAP R/3 Architecture
SAP R/3 works on Three Tier
Architecture

User Terminal Application Server Database Server
Data Creation
Modification
Retrieval
Managing
User
Requests
Data Storage
The SAP World
R/3
Client / Server
FI
Financial
Accounting
CO
Controlling
AM
Fixed Assets
Mgmt.
PS
Project
System
WF
Workflow
IS
Industry
Solutions
MM
Materials
Mgmt.
HR
Human
Resources
SD
Sales &
Distribution
PP
Production
Planning
QM
Quality
Manage-ment
PM
Plant Main-tenance
The Presentation Layer
collects user input and
creates process requests.
The Application Layer
uses the application logic of
SAP programs to collect and
process the process requests.
The Database Layer
stores and retrieves all data.
Communication
3-Tier Client/Server Architecture
SAP R/3 Customer Installations by Industry
SAP ENGINEERING &
CONSTRUCTION 10.5%
SAP HIGH TECH &
ELECTRONICS 11.3%
SAP CHEMICALS 9.5%
SAP CONSUMER
PRODUCTS 10.3%

Consulting & Professional Services 6.0%
SAP RETAIL 6.3%
SAP PHARMA -
CEUTICALS 3.4%
SAP PUBLIC SECTOR 3.4%
SAP OIL & GAS 3.2%
Metal, Paper & Wood
Products 2.8%
Services 3.1%
SAP HEALTHCARE 2.3%
SAP BANKING 2.0%
SAP MEDIA 2.3%
Others 11.5%
SAP UTILITIES 3.9%
SAP AUTOMOTIVE 4.8%
SAP TELECOM-
MUNICATIONS 3.4%
Worldwide
Industry Solutions
Aerospace and Defense
Apparel and Footwear
Automotive
Chemicals
Consumer Products
Trade Promotion Management
Key Account Management
Distributor Reseller Management
Financial Services
Banking
Insurances
Collections and Disbursement
Incentives & Commission
Management
Claims Management
Asset & Liabilities Management
Financial Service Provider

Healthcare
High Tech
Media
Oil&Gas
Pharmaceuticals
Public Sector
Real Estate
Retail
Agency Business
Category Management
Store Management
Service Providers
Telco

SAP - characteristics
Highly Integrated solution covering entire business
processes
Technically capable of utilizing the network
infrastructure
Open system to ensure freedom to choose
Provides multiple ways of configuring business processes
Solutions in areas where currently no systems
Workflow enabled business processes
Enables to exploit the power of Intranet and Internet

Common SAP objectives
Cost Control & increased profitability
Increased productivity of all resources man, material
& money
Process Standardization
Transparency in operations, resulting in better
communication
Shift from post-mortem scenario to predictive scenario

Results of Integration
Focus on Business Processes
Elimination of Redundant Data (Common Constant
Data)
Easier Corporate Consolidation
Better Managerial Control
Elimination of Interfaces
Faster reaction to changing structures
Success factors for SAP
implementation
Top Management Commitment & communication
down-the-line
Empowerment
Change management
Training
Compliance to methodology
SAP IMPLEMENTATION - PHASES
Project Planning
Business Process Study & Analysis
Installation
Training
Business Requirement mapping
Configuration
Modifications / Interfaces
Data Conversion
Documentation
Testing
Go-Live
Post production support

Implementation Methodology

SALES AND DISTRIBUTION

GENERAL SETTINGS
COUNTRY
CURRENCY
TIME ZONE
CALENDER
UNITS OF MEASURE
BASE SALE DELIVERY
FACTORY
VENDOR
CUSTOMER
ORGANIZATION STRUCTURE

COMPANY
COMPANY-CODE PLANT
SHPNG PT
P.ORGN
P.GRP
SALES ORGN
DIS CHNL
DIVISION
SALES OFF
SALES GRP
SALES ORGN+DIST CHNL
EMP
EMP
CNTRL AREA
CREDIT CNTRL AREA
SALES
AREA
MASTER DATA
Organizational Master
Customer Master Record
Material Master Record
CMIR
Condition Master

SALES CYCLE
INQUIRY

QUOTATION

ORDER

DELIVERY
PGI

BILLLING

REL TO ACCOUNTS

INVENTORY
ACCOUNTS
CONTRACTS
SCHEDULING
AGREEMNETS
BASIC FUNCTIONS
Condition Technique for Pricing
Condition Tables
Access Sequence
Condition Type
Pricing Procedure
Pricing Procedure Determination
Condition Records
Pricing: Condition Exclusion
Free Goods Determination
BASIC FUCNTIONS
Partner Determination
Out Put Determination
Material Determination
Product Proposal
Item Proposal
Incompletion Procedure
Availability Check
Credit Management
Number Ranges
SHIPPING
Delivery Document Types
Schedule Category
Schedule Line category Determination
Shipping point Determination
Storage Location Determination

BILLING
Billing Documents
Billing Plans(Periodic,Milestone)
Cancellation of Invoices
Invoice lists

SPECIAL FUNCTIONALITIES
Third Party Order
Individual Purchase Order
Consignment Sales


Special Topics
REBATE PROCESSING
VARIANT CONFIGURATION
TRANSFER ORDER
INTEGRATION
DATA TRANFER TECHNIQUE
REPORTS

ADDITIONALS
DAY TO DAY NOTES(SOFT COPY)
PRESENTATIONS
EVALUATIONS
DISCUSSIONS

THANK YOU

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