Systems Applications and Products in Data Processing
German : Systeme, Anwendungen, Produkte in der Datenverarbeitung
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
Development of SAP
Enterprise Resource Planning
Total Company Value Evolution of ERP Create Strategic Value Efficiency and Control Automation 80’s R/2 90’s R/3 Today mySAP ERP Inter-Enterprise Co-operation Enterprise Resource Planning Collaborative Business
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… 70s 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. ERP Rapid Adoption Companies start to adopt ERP on a massive scale Dot.com Hype: ERP = Old E-Business = New Trends seemed to indicate that ERP was an out-of-fashion model 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. 80s 90s 00s
Evolution of SAP
SAP R/3 Architecture
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
SAP R/3 System Architecture
SAP integration architecture
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
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 developer’s
workbench
2. Create & Test
ABAP/4 programs)
(Technical)
Systems in R3 Development System (DC) Quality System (QC) Production System (IC) Client 110 100 etc.. Transport Request
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
Clients in R/3
R/3 Technology Environment DB2 for OS/390 ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java ADABAS D MS SQL Server INFORMIX-OnLine ORACLE ABAP/4, C, C++, HTML, Java DB2 for OS/400 OS/390 AIX Digital UNIX HP-UX Reliant UNIX (SINIX) SOLARIS Windows NT OS/400 Hardware Bull/Zenith Compaq Data General ... NCR Sequent SNI Digital HP (Intel) IBM (Intel) Bull Digital HP IBM SNI SUN UNIX Systems IBM AS/400 Operating systems Dialog SAPGUI Languages Databases IBM S/390
Platforms and Databases supported by R/3 Operating Systems Supported Hardware Supported Front ends Supported Databases AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX SOLARIS HP-UX Digital HP OSF / Motif Informix – Online Digital Unix Bull OS/2 Macintosh Oracle 7.1 ADABAS D Windows NT AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh Oracle 7.1 SQL Server 6.0 ADABAS D OS/400 AS/400 Win 95 OS/2 DB2/400
SAP R/3 Modules
SAP Modules SAP R/3 FI WF PS PM WM PP MM SD HR AM CO QM PP – Production Planning WM – Warehouse Management PM – Plant Maintenance AM – Asset Management PS – Project System MM – Materials Management SD – Sales and Distribution QM – Quality Management WF – Workflow HR – Human Resources CO – Controlling FI – Financial Accounting
Financial accounting (FI)
Controlling (CO)
Asset management (AM)
Materials management (MM)
Sales and Distribution (SD)
Production Planning (PP)
Quality management (QM)
Plant maintenance (PM) & Customer Service (CS)
Project system (PS)
Human resources (HR)
Workflow (WF)
SAP R/3 Application Modules
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 Module Functionalities
External reporting of
General ledger
Accounts receivable/payable
Sub-ledger accounts
Key elements
General ledger
Accounts payable
Accounts receivable
Asset Management
Accounting Information System
Module FI – Financial Accounting
Financial Accounting Payables Receivables Bank accounts General Ledger Cash management and forecast Foreign exchange management Management of secureties and loans Finance information system Bank Invoice verification Credit management Consolidation Extended General Ledger Accounts payable Accounts receivable
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
Module CO – Controlling
Sales and Distribution Processing M A T E R I A L S M A N A G E M E N T
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
Module SD – Sales and Distribution
Sales Order Process (Order-to-Cash) Sales Order Entry Post Goods Issue Invoice Customer Pick Materials Receipt of Customer Payment Pack Materials Check Availability
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
Module MM – Materials Management
Procurement Process (Procure-to-Pay) Purchase Requisition Payment to Vendor Notify Vendor Vendor Shipment Invoice Receipt Goods Receipt Purchase Order
Materials Management Service / spare parts
Material Special stock Batch
Vendor/one-time customer
Purchasing info record
Service specifications
Workflow
Optical archive
Texts Mail Communication
Classification
Documents
Conditions
BASIC DATA Purchasing information system Vendor evaluation
Purchase requisition
PURCHASING
MRP
Direct requisition
Release procedures
RFQ/Quotation
Material/service
Price comparisons
Price comparison list
Purchasing
Purchase orders
Outline agreements
Scheduling agreements
Goods receipt/issue
Transfer posting
Quantities and values
Physical inventory
Storage bins
Check and post
Price update
INVENTORY MANAGEMENT INVOICE VERIFICATION SD PP PM QM FI AM CO PS Third-party order Requirements Inspection lot Fixed assets Cost center / Budget Project G/L accounts Cash management and forecast Service/ Spare Parts
Production Planning FI CO HR Cost accounting Financial accounting Human resources Project Networks Maintenance Repairs Plant maintenance Inbound Raw Material Finished Goods Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system Purchasing Warehouse Invoice verification Sales Shipping Billing Customers Vendors SD PP SD SD SD MM SD QM SD PM SD PS
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 )
Module QM – Quality Management
PS – Project Systems
Support planning, control, & monitoring of long term highly complex projects with defined goals
Key elements
Project WBS – Plan
Budget & Monitor
Network Management
Activity monitoring, Material Planning, Milestones, Capacities Scheduling
Project Management Information System
HR – Human Resource
Key elements
Recruitment
Payroll & Time management
Travel Expense accounting & Benefits
Workforce planning & Training administration
Organization management
Module PS – Project System & HR – Human Resource
mySAP Industry Solutions (Some Examples)
SAP for Aerospace & Defense
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, Construction & Operations
SAP for Professional Services
SAP for Healthcare
SAP for Public Sector
SAP for High Tech
SAP for Retail
SAP for Higher Education & Research
SAP for Service Providers
SAP for Industrial Machinery & Components
SAP for Telecommunications
SAP for Insurance
SAP for Utilities
SAP Product Overview
Evolution of SAP products R/3 R/3 Enterprise SAP NetWeaver mySAP ERP Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ……… .. mySAP Business Suite Web AS
my SAP Business Suite mySAP PLM mySAP SCM mySAP mySAP SRM CRM Operations Corporate Services mySAP HR mySAP Financials Application Platform ( Web As ) People Integration (Portal) Information Integration( BI,MDM ) Process Integration (XI) SAP NetWeaver
mySAP Solutions & Netweaver
mySAP CRM
mySAP SRM
mySAP SCM
mySAP PLM
SAP Netweaver
My SAP Customer Relationship Management (CRM)
CRM Solution Map
CRM – Holistic view
Where does a CRM solution fit ? Who Sales Service Marketing Executives What Service Transact Fulfill Engage Which way Internet Mobile Telephony How Operational Collaborative Analytical Workplace Use a CRM Solution to complete the Cycle
My SAP Supplier Relationship Management (SRM)
SRM Vision
SAP Netweaver
A Roadmap for Web Services
Services are changing SAP’s Product portfolio
From Basis to WAS
SAP NetWeaver The integration and application platform for lower TCO
Unifies and aligns people, information and business processes
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
It’s Enterprise Services Architecture increases business process flexibility
ERP implementation
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
Cost of SAP deployment
mySAP Business Suite Pricing Model:
mySAP CRM
mySAP SCM
mySAP ERP
mySAP FIN
mySAP HR
mySAP PLM
mySAP SRM
Software Engine fees: ( e.g Purchase Order/ Sales Order Industry Solutions based on industry metrics) Professional E3800 Limited Prof. E1600 (mobile E800) Employee E400 Functionality / Price Named User fees (4 categories ) Developer ? Up to E5700
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