Sap Overview

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
kharabelaparida@gmail.com
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
SAP Business Strategy:

New Maintenance Offerings Architecture Planning Custom Development Consulting System Integration Operations Planning & Optimization Hosting / Outsourcing
SAP Business Strategy:
SAP Direct Vertical Sales Resellers Business One Centers Sales/Service Partners
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
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
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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

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SAP R/3 System Architecture
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SAP integration architecture
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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

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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)
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Systems in R3
Transport Request
Development System (DC)
Quality System (QC)
Production System (IC)
Client 110 100 etc..
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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
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Clients in R/3
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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
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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 kharabelaparida@gmail.com
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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
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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)
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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
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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
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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
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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
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Sales and Distribution Processing

MATERIALS MANAGEMENT
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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
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Sales Order Process

(Order-to-Cash) Check Availability Pick Materials Sales Order Entry
Receipt of Customer Payment Invoice Customer
Pack Materials
Post Goods Issue

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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
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Procurement Process
(Procure-to-Pay) Purchase Requisition
Purchase Order Notify Vendor
Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt

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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
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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
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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)
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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
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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
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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
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Evolution of SAP products
SAP R/3
my SAP Solutions
my SAP Business Suite
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mySAP Solutions
mySAP PLM mySAP SCM
mySAP Financials
mySAP CRM
mySAP HR Corporate Services Operations
mySAP SRM
Adaptive Business Solutions
SAP R/3
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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
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mySAP Solutions & Netweaver

mySAP CRM mySAP SRM mySAP SCM mySAP PLM SAP Netweaver
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CRM Solution Map
46
CRM Holistic view
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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
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SRM Vision
50
51
52
53
A Roadmap for Web Services
55
Services are changing SAPs Product portfolio
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From Basis to WAS
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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
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implementation
60
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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
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Cost of SAP deployment
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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
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Sap Overview

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Development of Enter prise Resource Planning SAP

Today mySAP ERP

SAP Business Strategy:

SAP Business Strategy:

SAP Invents Real-Time ERP

ERP = The Business Software Industry

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

Benefits of mySAP ERP

3 Tier Client / Server Architecture

Dedicated Servers are linked by Communication

processes within the system, as a whole

SAP R/3 System Architecture

SAP integration architecture

Overview of Presentation & Database Servers

The Database Server

RDBMS Also holds the vendor specific DB driver

SAP R/3 Conceptual Areas

Development System (DC)

Quality System (QC)

Production System (IC)

Client 110 100 etc..

same R/3 system

Client mechanism and handling

R/3 Technology Environment

Operating AIX Reliant systems Digital UNIX UNIX (SINIX)

Windows NT ADABAS D MS SQL Server INFORMIX-OnLine ORACLE

OS/40 0 DB2 for OS/400

OS/39 0 DB2 for OS/390

ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE

Dialog SAPGUI Languages

Platforms and Databases Operatingsupported by R/3 Supported Supported Supported

CO Controlling AM Asset Management

HR Human Resources WF Workflow

PM Plant Maintenance WM Warehouse Management

SAP R/3 Application Modules

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

Module FI Financial Accounting

Cash management and forecast

Bank accounts Receivables

Sales and Distribution Processing

Module SD Sales and Distribution

Key elements of the SD application module include :

Sales Order Process

Receipt of Customer Payment Invoice Customer

Post Goods Issue

Module MM Materials Management

Purchase Order Notify Vendor

Payment to Vendor Invoice Receipt Vendor Shipment Goods Receipt

Purchasing information system Vendor evaluation

Material Special stock Batch

PURCHASING Materials Management SD

MRP Direct requisition Release procedures

Third-party order Requirements

Check and post Price update

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

MM SD Purchasing Warehouse Invoice verification

Module QM Quality Management

Module PS Project System & HR Human Resource

Construction & Operations