SAP

Human Capital Management

VIJAY
 What is SAP?
Systems
Applications
Products
◦ Standard ERP Software for real time Data
processing
What is ERP?
Enterprise
◦ Resource
 Planning
 What is an Enterprise?
An Enterprise is a huge organization with huge
resources.

Does this definition stand right now?

 What are the Resources?
An Enterprise has the following resources:

 Money (Finance Dept.)

 Men (Human Resources Dept.)
 Materials (Purchasing Dept. and stores)
 Machines (Production Dept.)
 Marketing (Sales and Distribution Dept.)
 Methods (pervade all the other resources)
 What do we plan
and
why do we need to Plan?
Planning is done for resources. Planning entails the
optimal utilization of resources so that the following are
achieved:
Productivity
(relates to Men and Machines)
Effectiveness
(relates to Methods employed)
Efficiency
(relates to Men, Methods and Machines)

The Result is the Profitability of the Enterprise.

Enterprise Architecture - Benefits
Eliminates the duplication, discontinuity and
redundancy in data
Increases the return on investment made on IT
implementations
Delivers quality information designed for the
Enterprise as a whole
Faster and cheaper
Delivers quality information to produce a quality
enterprise
Satisfying Partners/Customers
Reducing required manpower
HISTORY
Who? Founders : Ex-IBM Employees
As? Founded as Systemanalyse und Programmentwicklung
(System Analysis and Program Development)
When? On April 1, 1972
Where? In Mannheim, Germany
 Brains behind SAP

• Dietmar Hopp
• Hans-Werner Hector
• Hasso Plattner
• Klaus Tschira
• Claus Wellenreuther
 Why?
• Reason 1 : As Client after client are
developing the same, or very similar,
computer programs
• Reason 2 : So that data is processed
interactively in real-time, and the computer
screen should be the focal point of data
processing
Rivals of SAP in ERP

Why do the rivals of SAP stand far behind SAP?

 SAP success story

• Market share : Nearly 60%.

• End users : More than one million
end users around the world work
with the R/3 system.
• World’s third-largest independent
software vendor.
 Events in SAP history
In the fifth year of operations, SAP took a new
name Systeme Anwendungen Produkte in der
Datenverarbeitung
(Systems, Applications, Products in Data
Processing”)
SAP moved its offices and headquarters to
Walldorf in 1977.
SAP went public as SAP AG on Nov 4, 1988.

First customer for SAP

German ICI subsidiary in Ostringen
 Architecture
SAP R/1 in 1973
SAP R/2 in 1979
SAP R/3 in 1992
“R”
stands for
real-time data processing
 Architecture of R/1 System

Interfaces developed in application

programs itself.
File systems were used.
Client/server concept inexistent.

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 Architecture of R/2 System

Main-frame version
Uses DBMS for the first time
Interface programming within
Application programming.
Data stored in Database.
 SAP R/2
How is it different?
It attains the high level of stability of
the previous generation of programs.
It handles different languages and
currencies.
Architecture of R/3 System
Client/Server concept introduced
Uses RDBMS for data storage
Interface programming separated from
Application programming.
Maintains more than 2 servers at different
tiers.
Presentation Layer, or client, interfaces with the
user.
Application Layer houses all the business specific
logic.
Database Layer records and stores all the
information about the system, including
transactional and configuration data.
 SAP R/3
How is it different?

Client-server concept
Uniform appearance of graphical interfaces
Consistent use of relational databases
Ability to run on computers from different
vendors
Facts about
SAP R/3

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SAP R/3 was officially launched on 6 July,
1992.
It is a client-server version of software.
It is manageable on multiple platforms and
operating systems, such as Windows or
UNIX .
It embraced the object-oriented concept
of “business objects”

30
It is the Largest European software vendor.
SAP AG became the company’s official
name after the 2005 annual general
meeting.
It ranks after Microsoft, Google, Apple,
and IBM in terms of Market Capitalization.
 While its original products are typically used by
Fortune 500 companies, SAP is now also actively
targeting small and Medium sized Enterprises
(SME) with its SAP Business One and SAP
All-in-One.

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 According to SAP officials, there are over
100,600 SAP installations serving more than 38,000
companies in more than 120 countries, which
are used by more than 12 million people.

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 SAP provided selected standardized processes,
which were termed best-practice solutions of
processes.

The implementation of SAP software commonly

required the expertise of knowledgeable external
consultants, who are familiar with the best
practices.

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 SAP Industry Solution
SAP Mill SAP Finance

SAP Engineering & Construction SAP High Tech & Electronics

SAP Consumer Products

SAP Oil & Gas
Business
Information
Ware- SAP Transportation
SAP Utilities house

Sales SAP Public Sector

Force
SAP Health Care ... Auto-
mation

SAP Telecomm.
SAP Automotive
R/3
R/3
SAP Chemicals
SAP Media Advanced
Planner &
Optimizer
B2B
Procurement SAP Pharmaceuticals

SAP Aerospace & Defense SAP Retail

SAP Service Providers SAP Banking

36
 SAP R/3 System
Integrated turnkey
solutions SD FI Integrated Real-
Sales & Financial
Financial
Accounting
Time
Distribution Accounting
MM CO
Materials
Materials Controlling
Mgmt.
PP
Production
Production
TR
Open
Systems
Planning
Planning
R/3 Treasury.
Multi-national
Multi-currency
QM Client / Server PS
Quality
Quality Project
Client/Server Manage-ment
PM
ABAP System

Architecture Plant Main-tenance

WF
Workflow
HR IS
Human
Human Industry
Resources Solutions

Industry-Solutions
Enterprise Data
Model Internet / Intranet
Other major product offerings include

•Advanced Planner and Optimizer(APO)

• Business Information Warehouse(BW)
• Customer Relationship Management(CRM)
• Supply Chain Management(SCM)
• Supplier Relationship Management(SRM)
• Human Resources Management System(HRMS)
• Product Lifecycle Management(PLM)
• Exchange Infrastructure(XI)
• Enterprise Portal(EP)
• SAP Knowledge Warehouse(KW)
 SAP R/3 functionality is structured using
its own proprietary language called ABAP
(Advanced Business Application
Programming).

ABAP or ABAP/4 is a fourth generation

language (4GL), geared toward the
creation of simple, yet powerful programs.
 SAP has several layers.

The Basis System (BC) includes the ABAP

Programming language, and is the heart (i.e. the
base) of operations and should not be visible to
higher level or managerial users.

The Heart of the system (from the manager’s

viewpoint) are the application modules.
 Common mySAP.com Technology
SEM APO BBP Plug-Ins IBU Add-On

classic R/3"

Central
BW CRM Applications HR
with/without HR

ABAP etc. (Cross-Application)

SAP BASIS (Basis)

A common Basis for all mySAP. com Products

SAP Basis

Applications,
Customer such as FI/CO
Programs

SAP Basis
System Software
 SAP R/3 Conceptual Areas
SAP Conceptual Areas

Development Area
Basis Area
Application Area (1. A developer’s
(The technical
(Initiate and execute workbench
administration of
SAP transactions) 2. Create & Test
the system)
ABAP/4 programs)
(Functional)
(Authorizations/Ids/etc)
(Technical)
 mySAP? mySAP.com?

mySAP links e-commerce solutions to

existing ERP applications, using state-
of-the-art Web technology.

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 System Landscape

SAND

TEST CUST QTST TRNG PROD

Development Quality Assurance Production

Transport Transport
group group
Logging on to SAP System

Logon pad with

different systems
Adding to favorites

Steps to add transaction to favorites

Step I: Select the transaction you want to add to
favorites
Step II: Right click on the transaction you want to
add to favorites
Step III: Select Add to favorites.
Working in Several Sessions
Session
Session 22

Session 1 Session
Session 33

Cost center
Cost acctg. Session 6
Valid from

Descriptions

Name Exec.Board

Description Executive Board cost center Session 4

Long text X

Session 5

 SAP AG
The Icon Bar in the R/3 System

Enter Execute

Save Find

Back Sort

Exit Print

Cancel Change  Display

Help ? Page

 SAP AG
User Profiles
 Own data: allows you to
Information systems Tools System
change your address,  Create
? 
   
session
defaults, and parameters
   

End session
Hold data User profile
 Address: enables you to Set data Services
set your communication Delete data Utilities
information Application values List
Own data Object services
 Defaults: allows you to Own spool requests
Favorite maint. Own jobs
specify your preferred
Short message
printer and date and Status...
number formats Log off

 Parameters: allows you to

set default values in
frequently used fields
R

 SAP AG
Getting Help with the R/3 System

SAP R/3

Office Logistic Accounting Human resources Information systems Tools System Help
Extended help
?
? R/3 library
Dynamic menu
Find...
Glossary
Release notes
Getting Started
Settings...
Help on help

 SAP AG
SAP HTML Help Files
SAP Help - R/3 Library

Hide Back Forward Home Print Options

Contents Index Search
R/3 Library
BC - Basis
R/3 Library
CA - Cross Application
FI - Financial Accounting
HR - Human Resources
LO - Logistics
Information

 SAP AG
The most difficult part of SAP R/3
is its implementation.
Simply because SAP R/3 is never
used the same way in any two
places.
Defining the Points on the ASAP Roadmap

•Initial Project Planning

•Project •Project Management
Procedures •Organizational Change Management •Production Support
•Training •Training •Ongoing KPI
•Project Kickoff •Baseline Configuration and Confirmation Management
•Technical Requirements •System Management •Project End
Planning •Final Configuration and Confirmation
•Quality Check •Develop Programs, Interfaces etc.
•Final Integration Test
•Quality Check

Project
Preparation Final
Preparation Go Live &
Business Realization Support
Blueprint •Project Management
•End User Training
•Project Management •System Management
•Organizational Change Management •System Tests
•Develop System Environment •Detailed Project Planning
•Training •Cutover
•Business Organizational Structure •Quality Check
•Business Process Definition
•User Roles and Authorization
 SAP AG 2002 •Quality Check
Documents of an ASAP Project

1 2 3 4 5
Project
Charter Q&Adb Master Lists Cutover
System
Substructures: Microsoft Excel Plan
Performance
Project Spreadsheets for
Review
Business Strategy Development, Organization, Volume
Plan Organization Test
Business Processes and
General Settings Authorizations
Master Data Stress
Scope
Business Process Test
Cross Application Technical
Project Development BPP Progr.
Operations
Team Develp.
Config. Manual
Org. Plan EU
Testing Training
Stand. & Business Material
Plan
Proced. Blueprint
Conduct
Microsoft Word Unit testing
Documents Test scenario End User
Integration Training

 SAP AG 2002