CS4803/8803 ENC  Introduction to SAP Guest Instructor: Li Xiong 10/12/2004
Slide Credits <ul><li>Rutgers Business School – Newark and New Brunswick,  By Martin O’Reilly </li></ul><ul><li>SAP Web ca...
Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li...
Motivation <ul><li>Integrated business system </li></ul><ul><li>Advanced software technology </li></ul><ul><li>Enhance mar...
Top ten IT skills to have for next few years   <ul><li>1. J2EE  </li></ul><ul><li>2. .Net  </li></ul><ul><li>3. C#  </li><...
What is SAP?  <ul><li>SAP is an ERP (Enterprise Resource Planning) system  </li></ul>SAP = ERP
Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li...
What is ERP? <ul><li>Enterprise-wide system which integrates the business functions and processes of an organization </li>...
Implementation of ERP? <ul><li>Usually runs on a RDBMS </li></ul><ul><li>Implementation normally involves   BPR:  Business...
Evolution of ERP <ul><li>1960’s:  Inventory Control Systems </li></ul><ul><li>1970’s:  MRP:  Material Requirement   Planni...
What is the State of the ERP Market? <ul><li>Weak Economy = Fewer Implementations  </li></ul><ul><li>ERP Systems firmly en...
ERP Vendors <ul><li>Baan </li></ul><ul><li>J.D. Edwards </li></ul><ul><li>Lawson Software </li></ul><ul><li>Oracle Applica...
SAP <ul><li>SAP = Systems, Applications and Products in Data Processing  </li></ul><ul><li>German Based Company  </li></ul...
Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li...
SAP ERP Solutions <ul><li>SAP R/3 (R=Real time, 3=3 tier) </li></ul><ul><ul><li>Client server architecture </li></ul></ul>...
SAP R/3 <ul><li>Client/Server Technology </li></ul><ul><li>Highly Customizable  </li></ul><ul><li>Based on Industry Specif...
New Dimension Products Business Information Warehouse Strategic Enterprise Management Supply Chain Optimizer
 
 
SAP R/3 Implementation <ul><li>ABAP (Advanced Business Application Programming) </li></ul><ul><li>BAPI (Business API) </li...
mySAP Business Suite
What is mySAP Business Suite? <ul><li>Hosted E-Business Platform Solution </li></ul><ul><li>Link Organization to  </li></u...
mySAP Business Suite Solutions <ul><li>mySAP  Insurance  </li></ul><ul><li>mySAP  Media  </li></ul><ul><li>mySAP  Mill Pro...
mySAP ERP
mySAP ERP
mySAP ERP Components <ul><li>SAP R/3 Enterprise / SAP ERP central component </li></ul><ul><li>SAP Business Information War...
Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li...
SAP Exchange Infrastructure (XI)
SAP Exchange Infrastructure - Functional Components <ul><li>Integration Server </li></ul><ul><ul><li>Integration Adapters ...
SAP Exchange Infrastructure - Internal Communication
SAP Exchange Infrastructure - External Communication
SAP Exchange Infrastructure - Integration Adapters <ul><li>RFC Adapter </li></ul><ul><li>IDoc Adapter </li></ul><ul><li>Pl...
Integration Adapters: RFC  Adapter
Integration Adapters - File/JDBC/JMS/SOAP Adapter
Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li...
What is IDES? <ul><li>IDES = I nternational Demonstration    and Evaluation System   </li></ul><ul><li>IDES Basics   </li>...
IDES - The Business Group IDES-Asia Tokyo / Japan IDES Latin America Mexico/ Mexico-C. IDES  Corporation Manufacturing IDE...
IDES LOGISTICS Complexity Sturdiness Industry Assembly manufacturing JIT Make-to-order production <ul><li>SAP Automotive <...
A Review <ul><li>ERP </li></ul><ul><li>BPR </li></ul><ul><li>MRP </li></ul><ul><li>CRM </li></ul><ul><li>SCM </li></ul><ul...
Links  <ul><li>http://www.cio.com/forums/erp/ </li></ul><ul><li>http://www.intelligententerprise.com/ </li></ul><ul><li>ht...
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  • SAP is a market leader in the ERP market. SAP is a powerful cross-functional teaching tool Because R/3 is a comprehensive, integrated business system with a proven track record in the real world, it is an excellent tool for teaching students how a business really works. Advanced software technology Sophisticated in both architecture and functionality, R/3 is the world&apos;s most advanced business enterprise software available today. Enhance marketability Experience with R/3 is prized by corporate recruiters. Students well-versed in the principles of management and the uses of R/3 are highly marketable to SAP, our customers, and partners.
  • This is not a scientific survey, but merely the opinions of a few agents that we asked. If you have a highly valued skill that isn&apos;t on here, don&apos;t worry, this is not definitive, but merely the opinions of a few agents.  I&apos;m sure if we&apos;d polled others the list might have been slightly different. Skills on the Up We polled a number of agents and other sources of information and came up with the following skills that are likely to be on the up over the next few years. Anyone with these skills is likely to be employed, at good rates, even taking into account offshore outsourcing and Fast Track Visa Workers. 1. J2EE 2. .Net 3. C# 4. Project Management 5. Oracle 8 and 9i 6. SAP 7. Business Analysis 8. VB.net 9. NT Novell 10. Java New Hot Skills The top three are definitely becoming very hot skills.  It&apos;s good to see Project Management up there. It is a much underrated skill.  Business Analysts are also less immune to offshore outsourcing, as they have to remain reasonably close to the business users. SAP continues to do well and is taking market share from its rivals. Siebel also gained an honourable mention. Oracle continues to be very strong, and is also expected to gain even more market share in the coming years. Honourable Mentions  Other skills that also received honourable mention for the future are some of those from before the downturn such as:- SQL Unix C++ VB Access ASP In fact SQL, Unix and C++ are still the most sought after skills currently, and anyone who has them should stand in good stead. Those where you might find it a bit of a struggle in the next few years are the skills from before the previous downturn like Cobol, CICS, DB2 etc. There is still quite a lively market for PL/I though. As I said at the start, this is not a definitive list, but we thought it would be worthwhile to pass on what agents believe to be the skills that they think they will be looking for more and more in the next few years. 
  • What is SAP? Well it is an ERP of course!! In the I.T. world we are in a state of acronym overload and here are two more acronyms for you. So if SAP is an ERP, what is an ERP? Li: SAP is the world&apos;s biggest provider of enterprise resource planning software, the back office applications that run everything from accounting to human resources and sales orders.
  • Enterprise resource planning as a term derives from material resource planning . Enterprise resource planning systems (ERP) are management information systems that integrate and automate many of the business practices associated with the operations or production aspects of a company. These typically include manufacturing , logistics , distribution , inventory , shipping , invoicing , and accounting . ( logistics experts manage how and when to move resources to the places they are needed. ) They are often called back office systems indicating that customers and the general public are not directly involved. This is contrasted with front office systems like customer relationship management systems that deal directly with the customer. The keyword in Enterprise Resource Planning is Enterprise. This is the ambitious goal of an ERP, to integrate an organization into one information system. That is a tall order, building a single software program that serves the needs of people in finance as well as it does the people in human resources and in the warehouse. Each of those departments typically has its own computer system, each optimized for the particular ways that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other.
  • Typically, an ERP system uses or is integrated with a relational database system. The deployment of an ERP system can involve considerable business process analysis, employee retraining, and new work procedures. Because of their wide scope of application within the firm, ERP software systems rely on some of the largest bodies of software ever written. Implementing such a complex and huge software system in a company usually involves an army of analysts , programmers , and users, and often comprises a multi-million dollar/yen/euro project in itself for bigger companies, especially transnationals . To implement ERP systems, companies often seek the help of an ERP vendor or of third-party consulting companies. Consulting in ERP involves two levels, namely business consulting and technical consulting. A business consultant studies an organisation&apos;s current business processes and matches them to the corresponding processes in the ERP system, thus &apos;configuring&apos; the ERP system to the organisation&apos;s needs. Technical consulting often involves programming. Most ERP vendors allow changing their software to suit the business needs of their customer.
  • Here you can see a general evolution of ERP systems. They started as customized and proprietary Inventory control systems in the 1960’s. In the 1970’s the focus shifted to Material Requirement Planning which provided raw materials and component management and procurement. In the 1980’s the model continued to grow by including distribution channel functions. In the 1990’s This model grew further into the fully defined business suites that we have come to know as Enterprise Resource Planning Systems. The development of these products was perpetuated by the desire to move programs off of customized mainframe programs, the development of new technologies, the decentralization of businesses, and the desire to implement BPR. CRM, which first gained prominence in the mid-1990s, was the logical progression of ERP, as it was designed to enhance a company&apos;s front-desk activities. Customer interaction entered a new era with the advent of call centers supported by CRM software, which allowed companies to direct marketing activities and build relationships with distinct groups of customers. CRM also promised to improve the profitability and effectiveness of the company by automating many processes, making better use of available staff and reducing overall costs. CRM offers a utopian answer to many challenges. With an integrated CRM solution, companies can detect changes in customer buying habits, understand their needs faster than the competition and respond to customer demands in double-quick time. Today, the model grows and ERP companies are trying to fully Internet Enable their products and redesign their products for the new business models. What was once internally focused is now externally focused.
  • In the 1990’s the key was internal integration and ERP implementations in the US were being rapidly completed. This has left the ERP as a standard in many mid-size and large organizations. Today the focus is on linking your internally focused applications to front-end web systems and B2B exchanges. In the same manner the CRM systems are also being linked accordingly. The ASP market was hot, but is now cooling considerably. In any case it is a model that will persist and will create the ability to have external companies host your ERP for you. This opens new markets for smaller organizations that do not have the IT staff or the knowledge necessary to manage their own ERP. Overall, the market has been in a state of decline for approximately two years. There are a number of factors which have caused this decline, but saturation is certainly one main factor. The latest market segment for ERP’s is the public sector which is now implementing these systems Finally, overall new implementations will continue to decline due to the fact that the new business models are externally focused. Therefore if you are building a system today you would probably use a best of breed solution to create your information system. However the ERP manufacturers certainly can rebound to address the needs of these users and create more flexible solutions to Internet enable their applications.
  • J.D. Edwards building accounting software for IBM . The company gradually added functions, its accounting software evolving to become a platform-independent ERP application that was in 1996 renamed OneWorld. In June 2003, the J.D. Edwards board agreed an offer under which PeopleSoft would acquire J.D. Edwards, and the takeover was completed in July. The agreement of this offer was followed by attempts from Oracle Corporation to take over the new enlarged PeopleSoft In 2003 , PeopleSoft performed a friendly merger with smaller rival J.D. Edwards software. Beginning in 2003 , PeopleSoft battled with Oracle over control of the PeopleSoft company. In June 2003 , Oracle made a $ 7 billion bid ($19.50/share) to take over PeopleSoft, in what many describe as a hostile corporate takeover attempt. In February 2004 , Oracle increased their bid to approximately $9.4 billion ($26/share), a 33 % increase; this offer was also rejected forthwith by PeopleSoft&apos;s board of directors. Later that month, the U.S. Department of Justice filed suit to block Oracle, on the grounds that the acquisition attempt would break anti-trust laws; however, in September 2004 , this suit was rejected by a U.S. Federal judge , who found that the Justice Department had not proven its anti-trust case.
  • SAP stands for Systems, Applications and Products in Data Processing. German. It was founded in 1972 in Walldorf, Germany. Over the years, it has grown and evolved to become the world premier provider of client/server business solutions for which it is so well known today. The SAP R/3 enterprise application suite for open client/server systems has established a new standards for providing business information management solutions. 
  • mySAP ERP is SAP’s next generation ERP solution to SAP R/3. SAP will stop developing SAP R/3, which has now been on market for 12 years. However, it will guarantee maintenance for R/3 (current version: SAP R/3 Enterprise) for a long while.
  • Here are some specifics on SAP
  • This is the standard model of SAP R/3 and here you can visibly see the modular design of the system. One organization may have one mix of modules and one organization may use a different mix. The sole purpose of an R/3 system is to provide a suite of tightly integrated, large-scale business applications.  The standard set of applications delivered with each R/3 system are the following:  PP (Production Planning)  MM (Materials Management)  SD (Sales and Distribution)  FI (Financial Accounting)  CO (Controlling)  AM (Fixed Assets Management)  PS (Project System)  WF (Workflow)  IS (Industry Solutions)  HR (Human Resources)  PM (Plant Maintenance)  QM (Quality Management)  These applications are called the functional areas, or application areas, or at times the functional modules of R/3. All of these terms are synonymous with each other.  Traditionally, businesses assemble a suite of data processing applications by evaluating individual products and buying these separate products from multiple software vendors. Interfaces are then needed between them. For example, the materials management system will need links to the sales and distribution and to the financial systems, and the workflow system will need a feed from the HR system. A significant amount of IS time and money is spent in the implementation and maintenance of these interfaces.  R/3 comes prepackaged with the core business applications needed by most large corporations. These applications coexist in one homogenous environment. They are designed from the ground up to run using a single database and one (very large) set of tables. Current production database sizes range from 12 gigabytes to near 3 terabytes. Around 8,000 database tables are shipped with the standard delivery R/3 product. 
  • 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. ABAP was developed in the 1980s from research which produced a whole series of fourth-generation languages which were application-specific and aimed at the high-level production of reports. It resembles COBOL in syntax. Interestingly, the original users of the ABAP programming language were supposed to be users, who could manipulate the data themselves, but the 4GL turned out to be too complex for ordinary users. It was found that the language needed programmers to manipulate it, as a high skill level was still required. As performance considerations lessened, the 4GL could become a central component of the SAP system. In 2003, SAP announced a change in development strategy so that future SAP development would happen simultenously in ABAP and Java . R/3 also offers a complete development environment where developers can either modify existing SAP code to modify existing functionality or develop their own functions, whether reports or complete transactional systems within the SAP framework.
  • mySAP business suite covers mySAP customer relationship management (CRM), mySAP supply chain management (mySAP SCM), mySAP product lifecycle management (PLM), and mySAP supplier relationship management (SRM).
  • We have the SAP NetWeaver on the bottom. Here just as a short explanation, SAP NetWeaver has different areas of, let me say, technology software. Because SAP NetWeaver is a little bit the same like the Business Suite. So, on the Business Suite side we bond with a lot of components from the application point of view. And SAP NetWeaver is also kind of suite combining technology components and technology content in that area. So, SAP NetWeaver, for example, offers you people integration, what we see with the portal. Furthermore, we have the information integration, which is our Business Warehouse system and more on that area of information warehousing. Then we have the process integration and the process integration is our exchange infrastructure. So, what we do on the portal side where we combine the users in the systems for the users in the portal. On the other hand, we have the exchange infrastructure where we integrate our systems from a technical standpoint in the backbone. Unifies and aligns people, information and business processes ¢ Integrates across technologies and organizational boundaries ¢ A safe choice with full .NET and J2EE interoperability The second level is the Corporate Services. The Corporate Services as well as the next level, Operation Management is a level that is more or less the traditional level of ERP. Corporate services: Controlling of most expensive corporate functions Effective management of travel costs and making expense reimbursement more effective management of real estate portfolio management of incentives and commissions to motivate your work force Operations Covers all the core processes of the logistics value chain from ”Procure to Pay‘ and ”Order to Cash‘ ¢ Streamlined, efficient and integrated end-to-end business processes ¢ Proven and stable out-of-the-box integration ¢ Flexible migration path into the extended collaborative mySAP solutions: CRM, PLM, SCM, SRM Then we have, for sure, human resources and financial. Now it is called Human Capital Management, HCM, instead of HR, but it‘s more or less the same target, human resources. Human Capital management Ensuring workforce behavior and output supports business goals ¢ Empowering line management to better manage their people, organizations, and business areas ¢ Identification, development, and retention of top talents ¢ Streamlined HCM planning &amp; management throughout the business and around the globe E-recruitment means you can bring your recruitment to the Internet. You could place pages on the Internet recruiting people for the company, for example. E learning, which is also something that is included in the solution in the area of HR. Financials Automation of the finance functions to keep the costs as low as possible ¢ Speeding up the preparation and processing of financial information to adequately react on changing market conditions ¢ Compliance with changes in corporate governance ¢ Making a smarter use of the free cash resources And finally, we have on top, the Analytics. Better understanding the company environment and the value drivers in the company ¢ Optimization and automation of planning on all management levels ¢ Analysis of internal and external factors ¢ Flexible consolidation of company results
  • give you a very high-level overview of the functional components of the SAP Exchange Infrastructure (SAP XI) to help you understand what they do. The graphic shows the components that make up the SAP Exchange Infrastructure as well as some business systems running applications that are integrated through the exchange. The business systems comprise SAP applications as well as 3rd party applications. The integration is achieved by exchanging XML based message objects through the Integration Server. To adopt different business systems the Integration Server does comprehensive routing and mapping using specific integration data out of the Integration Directory and Integration Repository as well as system specific data of the System Landscape Directory. 1.2 Integration Server (IS) The Integration Server is the central part of the SAP Exchange Infrastructure. It receives messages from the sender applications and then applies routing and mapping rules to these messages and finally sends them to the receiving application. Each SAP Web Application Server has the Integration Server Software built in but it is the specific configuration that activates its role as a central Integration Server. 1.3 Integration Adapters Integration Adapters are used to convert various protocols and data formats into the Integration Servers XML based message objects and vice versa. The Integration Server comes with some built in adapters but most adapters are additional components. 1.4 Runtime Workbench (RWB) The Runtime Workbench is used to test and monitor the individual components of the SAP Exchange Infrastructure. Furthermore, you can display the business systems that are defined in the system landscape. If these systems are based on SAP Web Application Server 6.20 or higher, you can also make security settings for communicating with the Integration Server. 1.5 Integration Builder Integration Repository (IR) The Integration Repository provides collaboration knowledge available at design time, for example, business scenarios, business processes, mappings, interfaces, and components. It is built in Java and follows Java 2 Enterprise Edition (J2EE) standards. The information in the Integration Repository is used by the Integration Directory, which adds configuration-specific information that is needed for execution. Integration Directory (ID) The Integration Directory contains detailed collaboration knowledge about the current system landscape around the SAP Integration Server. It is a description of routing relations, mapping relations, endpoint definitions, logon data and the specific system landscape. The Integration Directory details the information from the Integration Repository that is specific to the configuration. 1.6 System Landscape Directory (SLD) The System Landscape Directory is composed of the Component Repository and the Landscape Directory. The Component Repository includes a description of all SAP Components whereas the Landscape Directory includes a complete description of the actually installed SAP system landscape. 1.7 Integration Clients The Integration Repository and Directory require specific Java client software which is stored on the Integration Server and will be automatically installed on the client side using Java Web Start. This client software can be used during design time to develop new interfaces and mappings and to configure services, routings and mappings.
  • 1.2 Integration Server (IS) The Integration Server is the central part of the SAP Exchange Infrastructure. It receives messages from the sender applications and then applies routing and mapping rules to these messages and finally sends them to the receiving application. Each SAP Web Application Server has the Integration Server Software built in but it is the specific configuration that activates its role as a central Integration Server. 1.3 Integration Adapters Integration Adapters are used to convert various protocols and data formats into the Integration Servers XML based message objects and vice versa. The Integration Server comes with some built in adapters but most adapters are additional components. 1.4 Runtime Workbench (RWB) The Runtime Workbench is used to test and monitor the individual components of the SAP Exchange Infrastructure. Furthermore, you can display the business systems that are defined in the system landscape. If these systems are based on SAP Web Application Server 6.20 or higher, you can also make security settings for communicating with the Integration Server. 1.5 Integration Builder Integration Repository (IR) The Integration Repository provides collaboration knowledge available at design time, for example, business scenarios, business processes, mappings, interfaces, and components. It is built in Java and follows Java 2 Enterprise Edition (J2EE) standards. The information in the Integration Repository is used by the Integration Directory, which adds configuration-specific information that is needed for execution. Integration Directory (ID) The Integration Directory contains detailed collaboration knowledge about the current system landscape around the SAP Integration Server. It is a description of routing relations, mapping relations, endpoint definitions, logon data and the specific system landscape. The Integration Directory details the information from the Integration Repository that is specific to the configuration. © SAP AG 2002 7 SAP XI Technical Infrastructure 1.6 System Landscape Directory (SLD) The System Landscape Directory is composed of the Component Repository and the Landscape Directory. The Component Repository includes a description of all SAP Components whereas the Landscape Directory includes a complete description of the actually installed SAP system landscape. 1.7 Integration Clients The Integration Repository and Directory require specific Java client software which is stored on the Integration Server and will be automatically installed on the client side using Java Web Start. This client software can be used during design time to develop new interfaces and mappings and to configure services, routings and mappings.
  • The central part of the SAP Exchange Infrastructure is the Integration Server that receives message objects from the sending application and sends these message objects to the requested application. This message object transfer is run through different adapters to enable different kinds of applications to connect to the Integration Server using different protocols and data formats. All necessary data for logical and technical routing as well as mapping is provided to the Integration Server by the Integration Directory. All these data is persistently cached within the database of the Integration Server. That makes the Integration Server resilient against communication failure with the Integration Directory and ensures the &amp;quot;standalone&amp;quot; capability of this runtime critical component. Changes or updates of the routing or mapping configuration within the Integration Server require the connection with the Integration Directory. The Integration Directory itself uses data provided by the Integration Repository and the global System Landscape Directory. While the System Landscape Directory is operated using an Internet browser, specific client software is used to manage the Integration Repository and Directory.
  • This section explains how to connect the business systems (applications) with the SAP Exchange Infrastructure. The Integration Server provides various Integration Adapters supporting different kinds of protocols and data formats. The adapters convert the application specific message and data format into the Integration Server&apos;s internal XML based message format. The Integration Server then applies predefined routing and mapping rules on the incoming message objects to obtain the outgoing message. After determining the target application system the outgoing message object is then again passed through an adapter required to convert the message to the target systems message and data format. This enables different kinds of systems to connect to the Integration Server. The Integration Adapters are not necessary if the participating communication partners make use of the Proxy Runtime to generate the Integration Server&apos;s native XML based message format. Once connected to the Integration Server each system can exchange messages with all other systems that are known by the Integration Server.
  • IDoc Adapter IDoc interface technology is an SAP standard for sending documents back and forth between different R/3 systems or between an R/3 system and an external application. IDoc is useful for transferring large amounts of data in asynchronous mode. The IDoc interface technology is based on transactional RFC, which is a more reliable flavor of RFC in that it ensures that a certain transaction is called exactly once in the RFC server system. An IDoc is a data container that follows a certain SAP standard format. It contains a header and segments of data. SAP defines templates for various IDoc documents; for example, there is a definition for a purchase requisition IDoc. Plain HTTP Adapter The Plain HTTP Adapter is used by external (non SAP) systems to connect to the SAP Exchange Infrastructure using the native HTTP interface. This Adapter is part of the Integration Server and SAP Web Application Server.
  • Remote Function Calls The RFC Adapter is used by SAP components to connect to the SAP Exchange Infrastructure using SAP&apos;s RFC functions. The RFC adapter consists of an internal and external part. The internal part is included in the Integration Server and no separate installation is needed. The external part converts the RFC data structure into the XML based data structure needed by the integration server. It is implemented as a standalone Java application but installed automatically during installation of the SAP Exchange Infrastructure. Towards the sending application the RFC adapter is acting as a registered RFC server. Therefore the RFC adapter registers itself to the SAP gateway of all configured systems. On the other hand the RFC adapter is acting as a RFC client towards the receiving application and calls the receiver function module there.
  • File/JDBC/JMS/SOAP Adapter The File/JDBC/JMS adapter can be considered as a separate system that is contacted using a URL and HTTP protocol. The Integration Server uses a dedicated URL to address the File/JDBC/JMS adapter. This Adapter is normally located at the business systems side because of its specific data formats.
  • The International Demonstration and Education System (IDES) contains a fully-fledged model company that has been set up in an R/3 System. IDES is used principally in internal and external training courses, self-learning programs, and for presentations. It aims to prepare project team members and end users for using the R/3 System in practice. The IDES system provides an ideal learning environment: users get to work in a system that has been fully customized, and contains real-life master data and transaction data. the &amp;quot;Internet Demonstration and Evaluation System&amp;quot; in the R/3 System, represents a model company. It consists of an international group with subsidiaries in several countries. IDES contains application data for various business scenarios that can be run in the SAP System. The business processes in the IDES system are designed to reflect real-life business requirements, and have access to many realistic characteristics. IDES uses easy-to-follow business scenarios to show you the comprehensive functions of the R/3 System. The focal point of IDES, however, is not the functionality itself, but the business processes and their integration.
  • The IDES group comprises four subgroups. The European subgroup consists of five companies, North America has two. Latin America and Asia each consist of one company. Each of these companies has its own clearly defined business objectives within the consolidated group and is organized according to local business practices and legal requirements. Consolidation takes place across the financial areas. For example, the French subsidiary operates solely as a sales company, or in Mexico, we represent high-inflation methods and the material ledger. The American and German subsidiaries produce goods, as well as carrying out purchasing and sales activities. Accounting and Human Resources for each individual company have been adapted to meet the particular business objectives. Germany and the United States, for example, have been set up to use flexible standard costing, whereas the United Kingdom uses static standard costing based on full costs.  
  • IDES Logistics A variety of products are manufactured and sold using the different organizational units within the Logistics area. IDES provides all the resources required for production and assigns them to the corresponding products through bills of materials (BOMs) and routings. Each product or product group represents a particular production type. IDES contains fully-integrated business processes for the production or sale of the following products or product groups: Product Process Type Elevators Engineer-to-order Motorcycles Make-to-order production Cars Sales-order-based repetitive manufacturing Pumps Make-to-order production Personal computer Repetitive manufacturing Lighting products Mass production Paints / solvents Process industry, Chemicals Tablets Process industry, Pharmaceuticals Food / cosmetics Retail It demonstrates how the R/3 System is able to support practically all types of industries, from discrete production through to process industries, from engineering-to-order to repetitive manufacturing. However, IDES is not a sector-oriented model company. The individual processes are based on practice-oriented data for sectors such as Retailing or Banking. The IDES group manufactures products as diverse as elevators, motorcycles, and paints. You can use IDES to create your own prototypes for business processes. As soon as you are familiar with the SAP System business processes, you can adapt IDES to meet your own individual requirements. The IDES enterprise structure helps you create business scenarios that reflect your own working environment. You can then implement core business processes for your own company and analyze the various solutions. And IDES offers the additional advantage that you do not need to start from scratch each time. You can use existing IDES processes as a basis, then simply add organizational units and master data step by step until you have created your new, personalized business process.
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    1. 1. CS4803/8803 ENC Introduction to SAP Guest Instructor: Li Xiong 10/12/2004
    2. 2. Slide Credits <ul><li>Rutgers Business School – Newark and New Brunswick, By Martin O’Reilly </li></ul><ul><li>SAP Web cast and white papers </li></ul>
    3. 3. Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>IDES </li></ul>
    4. 4. Motivation <ul><li>Integrated business system </li></ul><ul><li>Advanced software technology </li></ul><ul><li>Enhance marketability </li></ul>
    5. 5. Top ten IT skills to have for next few years <ul><li>1. J2EE </li></ul><ul><li>2. .Net </li></ul><ul><li>3. C# </li></ul><ul><li>4. Project Management </li></ul><ul><li>5. Oracle </li></ul><ul><li>6. SAP </li></ul><ul><li>7. Business Analysis </li></ul><ul><li>8. VB.net </li></ul><ul><li>9. NT Novell </li></ul><ul><li>10. Java </li></ul>
    6. 6. What is SAP? <ul><li>SAP is an ERP (Enterprise Resource Planning) system </li></ul>SAP = ERP
    7. 7. Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>IDES </li></ul>
    8. 8. What is ERP? <ul><li>Enterprise-wide system which integrates the business functions and processes of an organization </li></ul><ul><li>Typically include: manufacturing, logistics, distribution, inventory, shipping, invoicing and accounting </li></ul><ul><li>Back Office Systems </li></ul><ul><li>Replaces Countless Departmental and Workgroup Information Systems </li></ul>
    9. 9. Implementation of ERP? <ul><li>Usually runs on a RDBMS </li></ul><ul><li>Implementation normally involves BPR: Business Process Reengineering </li></ul><ul><li>Consulting </li></ul><ul><ul><li>Business </li></ul></ul><ul><ul><li>Technical </li></ul></ul>
    10. 10. Evolution of ERP <ul><li>1960’s: Inventory Control Systems </li></ul><ul><li>1970’s: MRP: Material Requirement Planning </li></ul><ul><li>1980’s: MRPII: MRP & Distribution </li></ul><ul><li>1990’s: MRPII  ERP with introduction of other business functions </li></ul><ul><li>Today: Web Enabled ERP – Connecting ERP Externally </li></ul>
    11. 11. What is the State of the ERP Market? <ul><li>Weak Economy = Fewer Implementations </li></ul><ul><li>ERP Systems firmly entrenched in infrastructure </li></ul><ul><li>Implementing CRM, SCM ERP Applications </li></ul><ul><li>Trend: Linking ERP’s to Web – Web Services </li></ul><ul><li>ASP’s = possible new market segments </li></ul><ul><li>Enterprise Application Integration (EAI) Tools </li></ul>
    12. 12. ERP Vendors <ul><li>Baan </li></ul><ul><li>J.D. Edwards </li></ul><ul><li>Lawson Software </li></ul><ul><li>Oracle Applications </li></ul><ul><li>PeopleSoft </li></ul><ul><li>SAP </li></ul>
    13. 13. SAP <ul><li>SAP = Systems, Applications and Products in Data Processing </li></ul><ul><li>German Based Company </li></ul><ul><li>One of Largest Independent Software Vendor in the World </li></ul><ul><li>ERP Market Leader (SAP R/3 and mySAP ERP) </li></ul><ul><li>80% Fortune 500 Companies Use SAP </li></ul><ul><li>Over 18,500 Customers in 120+ Countries </li></ul><ul><li>Over 12 million users </li></ul>
    14. 14. Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>IDES </li></ul>
    15. 15. SAP ERP Solutions <ul><li>SAP R/3 (R=Real time, 3=3 tier) </li></ul><ul><ul><li>Client server architecture </li></ul></ul><ul><li>mySAP ERP </li></ul><ul><ul><li>Service oriented architecture </li></ul></ul>
    16. 16. SAP R/3 <ul><li>Client/Server Technology </li></ul><ul><li>Highly Customizable </li></ul><ul><li>Based on Industry Specific Best Practices </li></ul><ul><li>Multi-lingual: International </li></ul><ul><li>Based on Open Standards </li></ul><ul><li>Integrated Applications System: Modular in design </li></ul>
    17. 17. New Dimension Products Business Information Warehouse Strategic Enterprise Management Supply Chain Optimizer
    18. 20. SAP R/3 Implementation <ul><li>ABAP (Advanced Business Application Programming) </li></ul><ul><li>BAPI (Business API) </li></ul><ul><li>Development environment </li></ul>
    19. 21. mySAP Business Suite
    20. 22. What is mySAP Business Suite? <ul><li>Hosted E-Business Platform Solution </li></ul><ul><li>Link Organization to </li></ul><ul><ul><li>Supply Chain </li></ul></ul><ul><ul><li>Consumers </li></ul></ul><ul><ul><li>Partners </li></ul></ul><ul><li>Exchange </li></ul>
    21. 23. mySAP Business Suite Solutions <ul><li>mySAP Insurance </li></ul><ul><li>mySAP Media </li></ul><ul><li>mySAP Mill Products </li></ul><ul><li>mySAP Mining </li></ul><ul><li>mySAP Oil & Gas </li></ul><ul><li>mySAP Pharmaceuticals </li></ul><ul><li>mySAP Public Sector </li></ul><ul><li>mySAP Retail </li></ul><ul><li>mySAP Service Providers </li></ul><ul><li>mySAP Telecommunications </li></ul><ul><li>mySAP Utilities </li></ul><ul><li>Industry Solutions </li></ul><ul><li>mySAP Aerospace & Defense </li></ul><ul><li>mySAP Automotive </li></ul><ul><li>mySAP Banking </li></ul><ul><li>mySAP Chemicals </li></ul><ul><li>mySAP Consumer Products </li></ul><ul><li>mySAP Engineering & Construction </li></ul><ul><li>mySAP Financial Service Provider </li></ul><ul><li>mySAP Healthcare </li></ul><ul><li>mySAP High Tech </li></ul><ul><li>mySAP Higher Education & Research </li></ul><ul><li>Cross-Industry Solutions </li></ul><ul><li>mySAP Workplace </li></ul><ul><li>mySAP CRM </li></ul><ul><li>mySAP SCM </li></ul><ul><li>mySAP Marketplace* </li></ul><ul><li>mySAP E-Procurement </li></ul><ul><li>mySAP BI </li></ul><ul><li>mySAP PLM </li></ul><ul><li>mySAP HR </li></ul><ul><li>mySAP Financials </li></ul><ul><li>mySAP Mobile Business </li></ul><ul><li>mySAP Hosted Solutions </li></ul><ul><li>mySAP Services </li></ul><ul><li>Infrastructure and Services </li></ul><ul><li>mySAP Technology </li></ul>*mySAP Marketplace is delivered through MarketSet™, a joint solution from SAPMarkets & Commerce One.
    22. 24. mySAP ERP
    23. 25. mySAP ERP
    24. 26. mySAP ERP Components <ul><li>SAP R/3 Enterprise / SAP ERP central component </li></ul><ul><li>SAP Business Information Warehouse (as part of SAP NetWeaver) </li></ul><ul><li>SAP Enterprise Portal (as part of SAP NetWeaver) </li></ul><ul><li>SAP Exchange Infrastructure (as part of SAP NetWeaver) </li></ul><ul><li>SAP Supplier Relationship Management </li></ul><ul><li>SAP Strategic Enterprise Management </li></ul><ul><li>SAP E-Recruiting </li></ul><ul><li>SAP Learning Solution </li></ul><ul><li>SAP Financial Supply Chain Management </li></ul><ul><li>SAP Employee Self-Service and SAP Manager Self-Service </li></ul><ul><li>Collaborative Projects (cProjects) </li></ul><ul><li>SAP Internet Sales R/3 Edition (Web application component) </li></ul>
    25. 27. Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>IDES </li></ul>
    26. 28. SAP Exchange Infrastructure (XI)
    27. 29. SAP Exchange Infrastructure - Functional Components <ul><li>Integration Server </li></ul><ul><ul><li>Integration Adapters </li></ul></ul><ul><ul><li>Runtime workbench </li></ul></ul><ul><li>Integration Builder </li></ul><ul><ul><li>Integration Repository </li></ul></ul><ul><ul><li>Integration Directory </li></ul></ul><ul><li>Integration Clients </li></ul><ul><li>System Landscape Directory </li></ul>
    28. 30. SAP Exchange Infrastructure - Internal Communication
    29. 31. SAP Exchange Infrastructure - External Communication
    30. 32. SAP Exchange Infrastructure - Integration Adapters <ul><li>RFC Adapter </li></ul><ul><li>IDoc Adapter </li></ul><ul><li>Plain HTTP Adapter </li></ul><ul><li>File/JDBC/JMS/SOAP Adapter </li></ul>
    31. 33. Integration Adapters: RFC Adapter
    32. 34. Integration Adapters - File/JDBC/JMS/SOAP Adapter
    33. 35. Agenda <ul><li>ERP </li></ul><ul><li>SAP R/3 and mySAP ERP </li></ul><ul><li>SAP Exchange Infrastructure </li></ul><ul><li>IDES </li></ul>
    34. 36. What is IDES? <ul><li>IDES = I nternational Demonstration and Evaluation System </li></ul><ul><li>IDES Basics </li></ul><ul><ul><li>Fictitious company using R/3 </li></ul></ul><ul><ul><li>IDES data (customizing, master data, transaction data) </li></ul></ul><ul><ul><li>Simulation of business processes </li></ul></ul><ul><ul><li>Integrated, well-documented system environment </li></ul></ul>
    35. 37. IDES - The Business Group IDES-Asia Tokyo / Japan IDES Latin America Mexico/ Mexico-C. IDES Corporation Manufacturing IDES Europe Frankfurt / Germany Lisbon / Portugal Paris / France Barcelona / Spain London / UK New York / US IDES North America Toronto / Canada
    36. 38. IDES LOGISTICS Complexity Sturdiness Industry Assembly manufacturing JIT Make-to-order production <ul><li>SAP Automotive </li></ul><ul><ul><li>Manufacturers / Suppliers processes </li></ul></ul>Mass production <ul><li>SAP Consumer Products </li></ul><ul><ul><li>Selling food and non-food products </li></ul></ul>Process manu- facturing <ul><li>SAP Chemicals </li></ul><ul><ul><li>Paints, coating and solvents production </li></ul></ul><ul><li>SAP Pharmaceuticals </li></ul><ul><ul><li>Production of tablets </li></ul></ul>Repetitive manu- facturing <ul><li>SAP High Tech & Electronics </li></ul><ul><ul><li>PC assembly and customer services </li></ul></ul><ul><li>SAP Engineering / Construction </li></ul><ul><ul><li>Elevator and Turbine production </li></ul></ul>Production by lot size Engineer- to-order <ul><li>SAP Aerospace / Defense </li></ul><ul><ul><li>Production / Maintenance of an aircraft engine </li></ul></ul>
    37. 39. A Review <ul><li>ERP </li></ul><ul><li>BPR </li></ul><ul><li>MRP </li></ul><ul><li>CRM </li></ul><ul><li>SCM </li></ul><ul><li>SRM </li></ul><ul><li>PLM </li></ul><ul><li>HCM </li></ul><ul><li>BI </li></ul><ul><li>SAP </li></ul><ul><li>SAP R/3 </li></ul><ul><li>mySAP </li></ul><ul><li>ABAP </li></ul><ul><li>BAPI </li></ul><ul><li>SAP XI </li></ul><ul><li>RFC </li></ul><ul><li>IDES </li></ul>
    38. 40. Links <ul><li>http://www.cio.com/forums/erp/ </li></ul><ul><li>http://www.intelligententerprise.com/ </li></ul><ul><li>http://www.sap.com/ </li></ul><ul><li>http://www.oracle.com/ </li></ul><ul><li>http://www.peoplesoft.com/ </li></ul><ul><li>http://www.jdedwards.com/ </li></ul><ul><li>http://www.baan.com/ </li></ul>
    39. 41. Thank You

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