SAP Basics, SAP Modules, SAP History, SAP Architecture, Enterprize System, why Enterprize system required, Centralised enterprize system, Decentralised Enterprise system, R/3 Architecture, Database management system, Presentation server, Application server, RDBMS, Benefits of SAP, SAP S/4 HANA, System apllications products in Data processing Applications & Introduction
7. Classification of Enterprise System
Decentralized System:
Data is maintained locally at the individual departments
Departments do not have access to information or data from other
departments
Centralized System:
Data is maintained at a central location and is shared with various
Departments
Departments have access to information or data from other
Departments
8. Sales
Decentralized System
Inventory
FG/Raw
Productio
n
Planning
Product out of Stock – Plan for future use
No real time inventory information
(May loose Customer)
Raw material is available
as per the inventory
Raw material is
out of stock
Shop
Floor
Manpower short
Finance
No update regarding purchases
Payment dues to vendor
9. Decentralized System Cont...
Major Problems:
Numerous disparate information systems created individually over
time which are difficult to maintain
Integrating the data is time and money consuming
Inconsistencies and duplication of data
Lack of timely information leads to customer dissatisfaction, loss
of revenue and reputation
High Inventory, Material, and Human resource cost.
11. Centralized System Cont....
Key benefits:
It eliminates the duplication, discontinuity, and redundancy in data
Provides information across departments in real time
Better inventory & effective human resources management
Improves customer service
SAP Software is a centralized enterprise management system
12. SAP
SAP Software is a centralized enterprise management system
SAP stands for Systems Applications and Products in Data Processing
Since it is an acronym, it is pronounced as individual letters (S-A-P)
Software solutions for managing business operations & relationships
Consists of fully integrated modules, which covers virtually every aspect of
business management.
Competitive products of SAP Software in the market are Oracle, Microsoft
Dynamics, etc.
13. History of SAP
Founded in 1972 by five ex IBM employees (Listed below) in Weinheim,
Germany:
Dietmar Hopp.
Klaus Tschira
Hans-Werner Hector
Hasso Plattner
Claus Wellenreuther.
Primarily known as System Analysis and Program Development till 1976.
Firstly used at German branch of Imperial Chemical Industries in
Östringen.
1977: Outside Germany - Two companies in Austria decided to
implement SAP software.
1996: SAP introduced its joint Internet strategy with Microsoft.
1996: SAP India began its operations with headquarters in Bangalore.
16. SAP – Basic Architecture
Cont..
ID Name Organization
118257 Kamal Joshi AL India
111111 Abc xyx AL India
Row-based storage sequence:
118257, Kamal Joshi, AL India; 111111, Abc xyz, AL India;
Column-based storage sequence:
118257, 111111; Kamal Joshi, Abc xyz; AL India, AL India;
R/3, ECC & S/4 HANA:
SAP ECC - Successor version of R/3 also follows same architecture as R/3.
ECC stands for ERP Central Component
Both systems – SAP R/3 and SAP ECC – were only offered as an on-
premises solution, i.e. as an installation on a separate server with
clients.
SAP S/4 HANA - An on-premises or a cloud solution
SAP S/4 HANA – Pricing difference. (According to resource usage not no.
of users)
Database (storage sequence) is based on columns instead of rows
(Example as below)