SAP An Introduction


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Its an introduction about SAP.

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  • 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'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.
  • SAP An Introduction

    1. 1. What is ERP? <ul><li>facilitates company-wide integrated </li></ul><ul><li>information systems, covering all </li></ul><ul><li>functional areas </li></ul><ul><li>performs core Corporate activities and </li></ul><ul><li>increases customer service augmenting </li></ul><ul><li>Corporate Image </li></ul>ERP is a solution, which Enterprise Resource Planning
    2. 2. ERP - Definition “ Software solution that addresses the Enterprise needs, taking a process view of the overall organization to meet the goals, by tightly integrating all functions and under a common software platform” Enterprise Resource Planning
    3. 3. The Current Scenario <ul><li>Islands of Information </li></ul><ul><li>Difficult to get timely & accurate information </li></ul><ul><li>Heterogeneous Hardware & Software </li></ul><ul><li>platforms & practices </li></ul><ul><li>Poor connectivity between different </li></ul><ul><li>organizational locations </li></ul><ul><li>Sticking with obsolete technology </li></ul><ul><li>Resist to change </li></ul><ul><li>Lack of proven man-power to develop </li></ul><ul><li>integrated software </li></ul>Enterprise Resource Planning
    4. 4. Information Islands B
    5. 5. Why ERP? <ul><li>For Management – to know what is happening </li></ul><ul><li>in the company </li></ul><ul><li>One solution for better Management </li></ul><ul><li>For cycle time reduction </li></ul><ul><li>To achieve cost control & low working capital </li></ul><ul><li>To marry latest technologies </li></ul><ul><li>To shun the geographical gaps </li></ul><ul><li>To satisfy the customers with high expectations </li></ul><ul><li>To be Competitive & for survival </li></ul>Enterprise Resource Planning
    6. 6. 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  CRM’s </li></ul><ul><li>Today: Web Enabled ERP – Connecting ERP Externally </li></ul>
    7. 7. What is SAP R/3? <ul><li>SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier) </li></ul><ul><li>German Based Company </li></ul><ul><li>3 rd Largest Independent Software Vendor in the World </li></ul><ul><li>SAP: ERP Market Leader </li></ul><ul><li>21 Industry Vertical Solutions </li></ul><ul><li>80% Fortune 500 Companies Use SAP </li></ul><ul><li>66% Market share in India </li></ul><ul><li>Over 18,500 Customers 76000 installations in 120+ Countries, +2500 installations in India </li></ul><ul><li>Over 12 million users </li></ul>
    8. 8. SAP R/3 – Why ? 1 Long-term vendor viability 2 Integration 3 Best Business Practices 4 Flexible Scaleable 6 Lowest Cost of Ownership 7 Industry Specific Functionality in IS 8 Accelerated Implementation 9 Secured Future with Proven Software 5 Simple and User Friendly
    9. 9. SAP R/3 Technology <ul><li>SAP R/3 is </li></ul><ul><ul><li>Client Server </li></ul></ul><ul><ul><ul><li>3 Tier </li></ul></ul></ul><ul><ul><ul><ul><li>Presentation </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Application </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Database </li></ul></ul></ul></ul><ul><ul><li>Relatively hardware and database independent </li></ul></ul><ul><li>SAP R/3 offers </li></ul><ul><ul><li>comprehensive suite of integrated applications meeting the needs of most business </li></ul></ul><ul><ul><li>best practice process design </li></ul></ul><ul><ul><li>ability to configure to </li></ul></ul><ul><ul><ul><li>industry sector </li></ul></ul></ul><ul><ul><ul><li>unique business requirements </li></ul></ul></ul>
    10. 10. Varieties of Client Server Name Presentation Application Database Centralised System 2 Tier System 3 Tier System NOTE: a truly distributed system may distribute the database; the processing of an application or processing of presentation calculations Mainframe with terminals Mainframe with intelligent terminals Mainframe or Mini High End Workstation PC or NC
    11. 11. What is 3-Tiered? <ul><li>3 Functional Areas </li></ul><ul><ul><li>Presentation </li></ul></ul><ul><ul><ul><li>workstations </li></ul></ul></ul><ul><ul><li>Application Logic </li></ul></ul><ul><ul><ul><li>small boxes </li></ul></ul></ul><ul><ul><li>Data Management </li></ul></ul><ul><ul><ul><li>large box </li></ul></ul></ul>
    12. 12. Database Server Application Servers HR Internet FI Presentation Servers
    13. 13. R/3 Middleware: Interfaces to Systems Software Database Operating System Presentation R/3 DB Inter- face OS Interface Pres Inter- face
    14. 14. SAP R/3 – The Solution R/3 Client / Server ABAP/4 FI Financial Accounting CO Controlling AM Fixed Assets Mgmt. PS Project System WF Workflow MM Materials Mgmt. HR Human Resources SD Sales & Distribution PP Production Planning QM Quality Manage-ment PM Plant Main-tenance SM Service Manage- ment EC Enterprise Controlling India Version Integrated turnkey solutions Open systems Client / server architecture Enterprise data model Industry- neutral Multi- national Comprehensive functionality Basis
    15. 17.  SAP AG Business Process Overview Production Production order order Delivery Delivery Invoicing Invoicing Shop floor Shop floor control control Logistics Controlling Logistics Controlling Sales Sales , , Production Production , , Purch Purch ., ., Warehouse Warehouse Man. Man. MRP MRP order Sales Sales order order SOP SOP MPS MPS Planned Planned order order Financial Controlling Financial Controlling Cost Controlling Cost Controlling Goods Goods receipt receipt Production Production Sales Sales Kunden - auftrag Purchasing Purchasing Customer Customer payment payment Stock Stock change change Presales Activity Vendor Vendor selection selection Purchase Purchase requisition requisition Purchase Purchase order order Invoice Invoice verification verification Vendor Vendor payment payment Human Human Resources Resources
    16. 18.  SAP AG Integrated Technical Architecture Operating System Operating System Hardware Hardware R/3 SD MM PP QA PM HR FI CO AM PS WF IS
    17. 19. Feb 2003 Nov 03-April04 Current Position (SAP Roll Out for Expansion Project)
    18. 20.  SAP AG Cost Accounting Financial Accounting/ Sales Inventory Management Business Company Code 1000 Client - 009 HZL Organizational Units 3000 Distribution Channel 10 – Domestic 20 – Export 30 – Stock Transfer . . . Controlling Area 1000 Production/ Distribution Sales Organization 1000 2000 Storage Location FG01 Storage Location 0002 Storage Location 0003 Enterprise Organizational Structures - Business Functions
    19. 21. SAP R/3 – Finance  SAP AG PURCHASING INVENTORY MANAGE. SALES Accounts receivable accounting FI-AR Accounts payable accounting FI-AP General Ledger Profit & Loss Balance Sheet Asset accounting FI-AA HUMAN RESOURCES Profit center Product costs Financial statement Overhead costs Treasury Management
    20. 22. SAP R/3 – Costing Cost elements Cost centers Calc. Control l ing area Profit Center Cost object Profitability segments Orders Projects Processes CO- PA Billing doc. CO- PA Revenue elements Calc . EC- PCA . . . Asset portfolio CO- CCA CO- CCA CO- ABC CO- OPA CO- ABC CO- PC AA Labour Material Confirm- ation Ext. procurmt FI HR Equity AM PM PP MM SD
    21. 23. SAP R/3 – Materials Management <ul><li>Material Special stock Batch </li></ul><ul><li>Vendor/one-time customer </li></ul><ul><li>Purchasing info record </li></ul><ul><li>Service specifications </li></ul><ul><li>Texts Mail Communication </li></ul><ul><li>Classification </li></ul><ul><li>Documents </li></ul><ul><li>Conditions </li></ul>BASIC DATA Purchasing information system Vendor evaluation <ul><li>Purchase requisition </li></ul>PURCHASING <ul><li>MRP </li></ul><ul><li>Direct requisition </li></ul><ul><li>Release procedures </li></ul><ul><li>RFQ/Quotation </li></ul><ul><li>Material/service </li></ul><ul><li>Price comparisons </li></ul><ul><li>Price comparison list </li></ul><ul><li>Purchasing </li></ul><ul><li>Purchase orders </li></ul><ul><li>Outline agreements </li></ul><ul><li>Scheduling agreements </li></ul><ul><li>Goods receipt/issue </li></ul><ul><li>Transfer posting </li></ul><ul><li>Quantities and values </li></ul><ul><li>Physical inventory </li></ul><ul><li>Storage bins </li></ul><ul><li>Check and post </li></ul><ul><li>Price update </li></ul>INVENTORY MANAGEMENT INVOICE VERIFICATION SD PP PM QM FI AM CO PS Third-party order Requirements Service / spare parts Inspection lot G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project
    22. 28. Benefits of SAP <ul><li>Seamless integration across functions and locations </li></ul><ul><li>Efficient co-ordination of demand, supply and production </li></ul><ul><li>Addresses all businesses environments – MTO, MTS,ATO etc. </li></ul><ul><li>Built in best business practices </li></ul><ul><li>Covers Multi-Country, Multi-Company, Multi-Plant and Multi-Language implementation </li></ul><ul><li>Country versions to address local requirements – Legal, statutory etc. </li></ul><ul><li>Better control and monitoring of business e.g. authorisations, reports </li></ul><ul><li>Centralised control over de-centralised multi-location operations </li></ul><ul><li>Handles Mutiple - valuation schemes, accounting system, operating system, RDBMS </li></ul>
    23. 29. <ul><li>Thanks…. </li></ul>