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SAP introduction, evolution, modules, and basic implemetation management

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  • Hi Orlando.

    Great presentation. I am considering a career in SAP so any information now is really useful.

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    Good presentation to newuser. I have a similar presentation to make beginning of July, can I use yr material to make such presentation. If you are OK with it please send me a copy to
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    Presentation is very helpful, i am new to SAP. please can you share me copy @

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  1. 1. SAP - "System, Applications and Products in Data Processing" New Technologies for Business Innovation Orlando Moreno 408.656.2498 Time to Change New Thoughts on Supporting Business Change Fast and Flexibly
  2. 2. Introduction Organizations need to create new processes, products, and services faster than the competition – but not by putting their mission-critical procedures and management capabilities at stake. They must assess and manage risk across their existing and new extended business network. Winning teams cultivate relationships by improving communication and collaboration with suppliers, customers, and other partners and moving from adversarial, low-collaboration models to cooperative, mutually beneficial arrangements. 408.656.2498 2
  3. 3. Executive Summary New Technology Changes the Game In difficult economic times, facing unprecedented pressure to cut costs, companies need to adopt new technologies to accelerate processes and help managers win with greater flexibility and new methods. To succeed in ever-changing market conditions, enterprises must manage and navigate an information network of business partners. They have long focused IT efforts on automating internal processes to save money. Now they need to rethink how technology can support and transform the way decisions are made and business is conducted within and across their boundaries. 408.656.2498 3
  4. 4. The SAP Proposition SAP software is renowned for helping companies achieve the key strategic aspects of a best-run business. With SAP Business Suite applications and SAP Business Objects solutions, SAP is applying that leadership in business software to meet new demands and enabling companies to leverage existing SAP ERP applications. With SAP software, companies can balance traditional IT transactions and cutting-edge business technology interactions. With the software, businesses can mediate the differences of business technology and information technology – connecting (yet creating a buffer between) the front office and back office and providing the necessary security of data and processes. 408.656.2498 4
  5. 5. Evolution SAP's products focus on Enterprise Resource Planning (ERP). The company's main product is SAP ERP. The current version is SAP ERP 6.0 and is part of the SAP Business Suite. Its previous name was called R/3. The "R" of SAP R/3 stood for realtime, as in 1992 - even though it is not a realtime solution. The number 3 related to the 3-tier architecture: database, application server and client (SAPgui). Launched in 1979, R/2, which ran on a Mainframe architecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1, launched in 1973 408.656.2498 5
  6. 6. Old Module concept In the past when people were discussing SAP, the conversation very quickly boiled down to modules, SAP FI Module - where FI means Financial Accounting – essentially this SAP module delivers your regulatory ‘books of record’, including General ledger; Book close; Tax; Accounts receivable; Accounts payable; Asset Management (SAP AM); Consolidation; Special ledgers SAP CO Module - The CO stands for Controlling – basically the SAP Module which allows you to manage your internal cost/management accounting, including Cost elements; Cost centres; Profit centres; Internal orders; Activity based costing; Product costing 408.656.2498 6
  7. 7. Old Module concept SAP PS Module - and PS is Project Systems – this SAP Module is where you can manage your projects, large and small, including Make to order; Plant shut downs (as a project); Third party billing (on the back of a project) SAP HR Module - ah yes, the HR is for Human Resources ... people are the important part of this SAP module, including Employment history; Payroll; Training; Career management; Succession planning SAP PM Module - where Plant Maintenance is the PM – this SAP module is where you maintain your equipment (e.g. a machine, an oil rig, an aircraft etc), including Labour; Material; Down time and outages 408.656.2498 7
  8. 8. Old Module concept SAP MM Module - one of the most important SAP Modules where MM is Materials Management - underpins the supply chain, including Requisitions; Purchase orders; Goods receipts; Accounts payable; Inventory management; BOM’s; Master raw materials, finished goods etc SAP QM Module - and QM stands for Quality Management in this SAP module – improve the quality of your goods, including Planning; Execution; Inspections; Certificates SAP PP Module - one of the really big SAP modules is Production Planning – manages your production process, including Capacity planning; Master production scheduling; Material requirements planning; Shop floor 408.656.2498 8
  9. 9. Old Module concept SAP SD Module - another one of the large SAP modules is Sales and Distribution – from order to delivery, including RFQ; Sales orders; Pricing; Picking (and other warehouse processes); Packing; Shipping SAP BW Module - where BW stands for Business (Data) Warehouse which includes the following main functions: Data extraction from source systems; Some technical and functional transformation of the data; Storage of the data in what are called Infoproviders; Reporting (which uses Infoproviders) SAP ABAP - is not really a module - it stands for Advanced Business Application Programming and this is the is the structured programming language for custom development including reports. 408.656.2498 9
  10. 10. New concept SAP now are moving away from describing their system as a set of SAP Modules, and now are using the term ‘solutions’, which is much better, as follows: •Financials •Human Resources •Customer Relationship Management •Supplier Relationship Management •Product Lifecycle Management •Supply Chain Management •Business Intelligence 408.656.2498 10
  11. 11. Products SAP ERP is one of five enterprise applications in SAP's Business Suite. The other four applications are: customer relationship management (CRM) - helps companies acquire and retain customers, gain marketing and customer insight product lifecycle management (PLM) - helps manufacturers with product-related information supply chain management (SCM) - helps companies with the process of resourcing its manufacturing and service processes supplier relationship management (SRM) - enables companies to procure from suppliers 408.656.2498 11
  12. 12. SAP Implementation SAP Implementation is the whole of processes that defines a complete method to implement the Enterprise Resource Planning SAP ERP software in an organization. The SAP implementation method described in this entry is a generic method and not a specific implementation method as such. It is based on best practices and case studies from various literature sources and presents a collection of processes and products that make up a complete implementation method to allow any organization to plan and execute the implementation of SAP software. 408.656.2498 12
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  14. 14. SAP Implementation Project preparation The project preparation phase, depicted below, focuses at two main activities, i.e. to make a setup for the TSO and to define a solution vision. These activities allow an organization to put in on the right track towards implementation. 408.656.2498 14
  15. 15. SAP Implementation Project preparation Design and initially staff the SAP TSO The first major step of the project preparation phase is to design and initially staff an SAP technical support organization (TSO), which is the organization that is charged with addressing, designing, implementing and supporting the SAP solution. 408.656.2498 15
  16. 16. SAP Implementation Project preparation  Craft solution vision The second project preparation job is to define a so-called solution vision, i.e. a vision of the future-state of the SAP solution, where it is important to address both business and financial requirements (budgets). The main focus within the vision should be on the company’s core business and how the SAP solution will better enable that core business to be successful. Next to that, the shortcomings of the current systems should be described and short but clear requirements should be provided regarding availability (uptime), security, manageability and scalability of the SAP system. 408.656.2498 16
  17. 17. SAP Implementation Sizing and blueprinting The next phase is often referred to as the sizing and blueprinting phase and forms the main chunk of the implementation process. The phase is illustrated below. 408.656.2498 17
  18. 18. SAP Implementation Sizing and blueprinting  Perform cost of ownership analysis Perform a COST OF OWNERSHIP ANALYSIS to determine how to get the best business solution for the least money i.e. to determine where and when the costs are incurred within the context of the SAP solution stack. 408.656.2498 18
  19. 19. SAP Implementation Sizing and blueprinting Identify high availability and disaster recovery requirements Determine all HIGH AVAILABILITY and DISASTER RECOVERY REQUIREMENTS, to plan what to do with later downtime of the SAP system Engage SAP solution stack vendors Select the best SAP hardware and software technology partners for all layers and components of the SAP SOLUTION STACK, based on a side-by-side sizing comparison 408.656.2498 19
  20. 20. SAP Implementation Sizing and blueprinting Simplified SAP solution stack Staff TSO Staff the bulk of the TSO, i.e. fill the positions that directly support the near-term objectives of the implementation, which are to develop and begin installation/ implementation of the SAP data center. 408.656.2498 20
  21. 21. SAP Implementation Sizing and blueprinting Execute training Train the various members of the SAP TSO, like data center specialists, high availability specialist and network specialists and train the end-users to give all the required SAP knowledge and skills  Setup SAP DATA CENTER Build a new SAP DATA CENTER facility or transform the current data center into a foundation capable of supporting the SAP SOLUTION STACK 408.656.2498 21
  22. 22. SAP Implementation Sizing and blueprinting Perform installations Install the (My)SAP components and technological foundations like a web application server or enterprise portal.  Round out support for SAP Identify and staff the remaining TSO roles, e.g. roles that relate to help desk work and other such support providing work. 408.656.2498 22
  23. 23. SAP Implementation SAP functional development The next phase is the functional development phase, where it is all about change management and testing. This phase is depicted below. 408.656.2498 23
  24. 24. SAP Implementation SAP functional development  Address Change Management Develop a planned approach to the changes in the organization. The objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the changes related to the SAP implementation.  Address SAP systems and operations management Create a foundation for the SAP systems management and SAP computer operations, by creating a SAP OPERATIONS MANUAL and by evaluating SAP management applications. 408.656.2498 24
  25. 25. SAP Implementation SAP functional development  Perform functional, integration and regression tests Test the SAP business processes, by executing functional tests to ensure that business processes work, integration tests to ensure that the organization’s business processes work together with other business processes and regression tests to prove that a specific set of data and processes yield consistent and repeatable results. Important types of testing are:  Functional testing: to test using functional use cases, i.e. a set of conditions or variables under which a tester will determine if a certain business process works  Integration testing  Regression testing 408.656.2498 25
  26. 26. SAP Implementation Final Preparation The last phase before going live can be referred to as the final preparation phase and is depicted below 408.656.2498 26
  27. 27. SAP Implementation Final Preparation  Perform systems and stress tests Plan, script, execute and monitor SAP STRESS TESTS, to see if the expectations of the end users, defined in service level agreements, will be met.  Prepare for cutover Plan, prepare and execute the CUTOVER, by creating a CUTOVER PLAN that describes all cutover tasks that have to be performed before the actual go-live 408.656.2498 27
  28. 28. SAP Implementation Go Live  Turn on the SAP system for the end-users 408.656.2498 28
  29. 29. Questions Orlando Moreno 408.656.2498 408.656.2498 29