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IBM Global Services
ERP / SAP Overview | Dec-2008 © 2005 IBM Corporation
ERP / SAP Overview
IBM Global Services
© 2005 IBM Corporation
2 Dec-2008ERP / SAP Overview |
Objectives
 The participants will be able to:
 Recognize the evolution of ERP solutions.
 Appraise the concept, benefit and use of ERP solution.
 Define the SAP R/3 Overview.
 Identify the different SAP R/3 Functional modules/areas.
 Distinguish the components of SAP R/3.
 Evolution of SAP Architecture to ERP6
 Judge the use of ABAP programming language.
IBM Global Services
© 2005 IBM Corporation
3 Dec-2008ERP / SAP Overview |
Enterprise Resource Planning
ERP Overview
IBM Global Services
© 2005 IBM Corporation
4 Dec-2008ERP / SAP Overview |
Enterprise Resource Planning
... synchronization of Company functions...
Manufacturing
Purchase
Sales
Finance
IBM Global Services
© 2005 IBM Corporation
5 Dec-2008ERP / SAP Overview |
Enterprise Resource Planning
… and extended to the complete value chain...
Tier II Component
Supplier
Vehicle OEM
Tier I Component
Manufacturer
IBM Global Services
© 2005 IBM Corporation
6 Dec-2008ERP / SAP Overview |
Enterprise Resource Planning
Administrative
registration
Processes monitoring &
feedback
Decision support and
analysis
... delivering administrative and decision support with...
IBM Global Services
© 2005 IBM Corporation
7 Dec-2008ERP / SAP Overview |
What is an ERP solution...?
…Integrated across the primary and support processes
MarketingManufacturing
Materials
Distribution
Finance
Engineering Sales
Human Resources
Planning
and
Execution
IBM Global Services
© 2005 IBM Corporation
8 Dec-2008ERP / SAP Overview |
The ERP application
 An integrated suite of business applications, which..
 Closely links, monitors, and controls primary enterprise resources like manpower,
machine, material, methods, market and money.
 Enables corporates to readily change their processes to adapt to the ever changing
business scenario.
 Provides expertise in industry specific business processes.
 Entails
 Parameterization / Configuration
 Designing & Customization
 Testing and Implementation
 Training
IBM Global Services
© 2005 IBM Corporation
9 Dec-2008ERP / SAP Overview |
Why clients buy ERP?
 Corporate Initiatives
 Strategic initiatives
 A requisite capability in a competitive global business
 Operational initiative
 A foundation for performance and cost improvement
via integration
 Organizational initiative
 To initiate a major organizational change within the company
 Technology
 IT is making the transition from a supporting operational entity to becoming a strategic
competitive tool.
 Because others are buying it !!!
IBM Global Services
© 2005 IBM Corporation
10 Dec-2008ERP / SAP Overview |
Recent business trends favoring ERP growth
 Business Process Reengineering ( BPR )
 Most large companies are attempting to cut in-house development costs, improve
customer service, and speed products to market by reorganizing their existing
business processes.
 Software Pricing
 Licensing and pricing of mainframe based packaged applications are tied to the size of
mainframe system on which the applications run, but now customers are now
demanding user-based licensing options and major corporate applications like SAP
provide this instead of the conventional platform-based pricing technique.
IBM Global Services
© 2005 IBM Corporation
11 Dec-2008ERP / SAP Overview |
Recent business trends favoring ERP growth
 Globalization
 As businesses are becoming more global in scope, people are demanding packaged
corporate applications that are available in a variety of languages with support for
multiple currencies.
 Integration
 As more and more companies are going for BPR, there is increase in demand for
integrated solution e.g.. different applications sharing a common database and thus
enabling data definitions and business rules to be applied across an entire
organization with the facility of doing modifications at one location only.
IBM Global Services
© 2005 IBM Corporation
12 Dec-2008ERP / SAP Overview |
Business process benefits clients expect from an ERP project
 Global process/ Product management
 Integrated Supply Chain Management
 Leverage purchasing and vendor management
 Order cycle time/ customer service improvement
 Inventory reductions
 Reduced information systems costs on an ongoing basis
 Improved business management through worldwide integration and information
Logistics and Distribution Sales & Customer Service
Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer
Logistics
IBM Global Services
© 2005 IBM Corporation
13 Dec-2008ERP / SAP Overview |
Major ERP vendors
 SAP R/3
 Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier,
but are subsets of Oracle now )
 Peoplesoft
 JD Edwards
 Baan
IBM Global Services
© 2005 IBM Corporation
14 Dec-2008ERP / SAP Overview |
What results can be expected from an “ERP culture”?
 Reduced working capital requirements
 Improved customer service
 Improved direct labor productivity
 Reduced purchase costs
 Reduced obsolescence
 Reduced overtime
 Having the figures to make decisions
 Having accountability throughout the organization
 Improved quality of life
ERPERP
IBM Global Services
© 2005 IBM Corporation
15 Dec-2008ERP / SAP Overview |
SAP R/3 Overview
Systems Applications and Products in Data Processing
IBM Global Services
© 2005 IBM Corporation
16 Dec-2008ERP / SAP Overview |
SAP AG – At a Glance
 Founded in Germany in 1972
 Market Leader in Industrial Enterprise Application (IEA)
 About 56% market share in the ERP market.
 Employs more than 38,400 people in more than 50 countries.
 As the world's third-largest independent software provider, SAP delivers
business solutions to more than 36,200 customers in more than 120 countries
around the world.
 Strength lies in its high degree of integration, mainly for large, global corporate
enterprises
 Significant presence in Global Fortune 500 companies
IBM Global Services
© 2005 IBM Corporation
17 Dec-2008ERP / SAP Overview |
SAP R/1 , R/2
 The R/1 system
 Developed for ICI Chemical
 Released 1972
 Focused on Sales & Distribution and Materials Management
 Discontinued after release of R/2
R/2
Basis System
 The R/2 system
 Reorganized as leading mainframe software for large multinational
corporations
 No sales effort planned – reactive only
 4,300 copies worldwide in 1993
 Mainframe-based to replace user legacy software;
co-existence and migration strategy underway for R/2 and R/3
 Keeping in mind its multinational customers, SAP designs SAP
R/2 to handle different languages and currencies.
Note: "R" stands for real-time data processing.
IBM Global Services
© 2005 IBM Corporation
18 Dec-2008ERP / SAP Overview |
SAP R/3 : 3 Tier Architecture
Those SAP R/3 software components that
specialize in the management , storage and
retrieval of data form the Database Layer
The Database Layer
Those SAP R/3 software components that
specialize in processing business
applications form the Application Layer.
The Application Layer
Those SAP R/3 software components that
specialize in interacting with end-users
form the Presentation Layer.
The Presentation Layer
IBM Global Services
© 2005 IBM Corporation
19 Dec-2008ERP / SAP Overview |
SAP R/3 : 3 Tier Architecture
Database servers:
Specialized systems
with fast and large
hard drives.
Application servers:
Specialized systems
multiple CPUs and
vast amounts of RAM.
Presentation servers:
Systems capable of
providing a graphical
interface.
Presentation Layer
components
Application Layer
components
Database Layer
components
reside in: reside in: reside in:
IBM Global Services
© 2005 IBM Corporation
20 Dec-2008ERP / SAP Overview |
SAP R/3 : 3 Tier Architecture
The Database Layer
components are installed on
high-end database server.
The Application Layer
components are installed
across one or more high-
end servers.
Presentation Layer components are installed across many PCs
IBM Global Services
© 2005 IBM Corporation
21 Dec-2008ERP / SAP Overview |
SAP R/3 Overview
Sales &
Distribution
SD
MM
PP
QM
PM
HR
FI
CO
TR
PS
WF
IS
Materials
Mgmt.
Product
Planning
Quality
Mgmt.
Plant Mainte-
nance
Human
Resources
Financial
Accounting
Controlling
Treasury
Project
System
Workflow
Industry
Solutions
Client/Server
ABAP/4
R/3
IBM Global Services
© 2005 IBM Corporation
22 Dec-2008ERP / SAP Overview |
Integration
PP
MM
FI
CO
SD
FI
Which modules are
involved?
Planned
Requirement
MRP
Requirement on
component
level
Purchase
Order
Goods
Receipt
Invoice
Verification
Accounts
Payable
Planned
Order
Production
Order
Production
completed
Order
Settlement
Customer
Order
Shipping
Invoicing
Account
Receivable
IBM Global Services
© 2005 IBM Corporation
23 Dec-2008ERP / SAP Overview |
Integration
S
U
P
P
L
I
E
R
C
U
S
T
O
M
E
R
S A P R / 3S A P R / 3
Procurement Production Distribution
Finance and Accounting
MMMM PPPP SDSD
FIFI COCO
All business processes throughout the supply chain are executed in
one system sharing all information
Workflow
IBM Global Services
© 2005 IBM Corporation
24 Dec-2008ERP / SAP Overview |
mySAP Technology
IBM Global Services
© 2005 IBM Corporation
25 Dec-2008ERP / SAP Overview |
SAP NetWeaver
Existing Systems
IBM Global Services
© 2005 IBM Corporation
26 Dec-2008ERP / SAP Overview |
Evolution of SAP Architecture
SAP ERP 6.0
SAP NetWeaver™ 7.0SAP NetWeaver™ 7.0
CompositeApplicationFramework
APPLICATION PLATFORM (7.00)
LifeCycleMgmt
Composite ApplicationsComposite Applications
PEOPLE INTEGRATION
Multi Channel Access
Portal Collaboration
INFORMATION INTEGRATION
Master Data Mgmt
Bus. Intelligence Knowledge Mgmt
PROCESS INTEGRATION
Business
Process Mgmt
ABAP
DB and OS Abstraction
Strategic Enterprise ManagementStrategic Enterprise Management
Self-ServicesSelf-Services
Internet SalesInternet Sales
Switch FrameworkSwitch Framework
Supplier Relationship ManagementSupplier Relationship Management
Enterprise Extensions Industry Extensions
SAP ECC Core (6.0)SAP ECC Core (6.0)
EhP 1 EhP 2
ITS
Integration
Broker
J2EE
and more …and more …
IBM Global Services
© 2005 IBM Corporation
27 Dec-2008ERP / SAP Overview |
Enhancement Packages
SAP NetWeaver
SAP ERP 6.0
Enhancement Packages
What Are Enhancement Packages?
 Optionally installed and activated software innovations for SAP ERP 6.0
 Software innovations include; UI simplifications, functional enhancements, industry
specific capabilities and enterprise services
 Cumulative in nature; current enhancement packages contain all contents of earlier
packages
 Enhancement packages are not support packages
IBM Global Services
© 2005 IBM Corporation
28 Dec-2008ERP / SAP Overview |
Improved Software Lifecycle
Installation of new functionality separated from activation via Switch Framework
Content of enhancement packages
• From a functional view each SAP enhancement package contains several
“Business Functions”.
• From a technical view each SAP enhancement package contains new
versions of existing software components, grouped by a “technical usage”.
Selective Installation
• Install the parts that are required for the selected Business Function.
 If installed:
• No UI or process change until a business function is activated via Switch Framework
• Less Adjustment effort due to selective update of software components
• No implications on the underlying NetWeaver platform, in addition enhancement
packages contain most current Support Package Stack
Selective Activation
• Activate the business functions you need.
 If activated:
• End-user training is limited to the activated business function(s)
• Testing is simplified with templates, provided for every business function
Support
Packages
Enhancement
Packages
IBM Global Services
© 2005 IBM Corporation
29 Dec-2008ERP / SAP Overview |
SAP R/3 : Components
ABAP
Programs
Configuration
Organization Structure
Key Data Elements
Functionality Configurations
Application
Master Data
Transaction Data
IBM Global Services
© 2005 IBM Corporation
30 Dec-2008ERP / SAP Overview |
What is Customization ?
 Customization
 The adaptation of application software to customer-specific needs is
accomplished in two ways :
 Coding
 Programming customer-specific code that replaces or complements
components of the application
 Configuration
 Rendering the application appropriate to a specific customer by specifying
data on which the application operates
IBM Global Services
© 2005 IBM Corporation
31 Dec-2008ERP / SAP Overview |
ABAP Programming
 SAP R/3 applications are written in the ABAP (Advanced Business
Application Programming) programming language, and run within the
application layer of the R/3 System.
 ABAP programs communicate with the database management system of the
central relational database (RDBMS), and with the graphical user interface
(SAP GUI) at presentation level.
IBM Global Services
© 2005 IBM Corporation
32 Dec-2008ERP / SAP Overview |
SAP R/3 scope
Why do we need ABAP Development ?
IBM Global Services
© 2005 IBM Corporation
33 Dec-2008ERP / SAP Overview |
SAP Solution
SAP R/3 scope
Specific company
requirements
IBM Global Services
© 2005 IBM Corporation
34 Dec-2008ERP / SAP Overview |
SAP Solution
SAP R/3 scope
Specific company
requirements
Non SAP
applications
New Functionality
Development
IBM Global Services
© 2005 IBM Corporation
35 Dec-2008ERP / SAP Overview |
Summary
 Materials Requirement Planning (MRP-I) began as a technique for developing enterprise-
wide business solutions by providing automated tools for forecasting demands and
planning according to the forecast.
 ERP is an integrated suite of Applications to meet corporate needs.
 Some major ERP vendors are : SAP R/3, Oracle, Baan
 SAP AG was founded in Germany in 1972 and it is a Market Leader in Industrial Enterprise
Application (IEA).
 SAP NetWeaver is a vision, or paradigm, of total integration of :
 People
 Information
 Business Processes
 Applications
 SAP has a 3 tier architecture comprising of the Presentation layer, Application layer and the
Database layer.
 The SAP solution is divided in different areas or Functional Modules like SD, MM, PP, QM,
PM, FI, CO etc. which are reorganized under services in mySAP Business Suite.
 R/3 applications are written in the ABAP programming language, and run within the
application layer of the R/3 System.
IBM Global Services
© 2005 IBM Corporation
36 Dec-2008ERP / SAP Overview |
Questions
 What is MRP ?
 What is ERP ?
 When was SAP AG founded ?
 What are the 3 layers of the SAP R/3 ?
 What is SAP Netweaver ?
 What are the different functional modules of SAP ?
 What programming language is used for SAP applications ?
 Why do we need ABAP developments ?

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Chapter 01 erp sap overview erp6

  • 1. IBM Global Services ERP / SAP Overview | Dec-2008 © 2005 IBM Corporation ERP / SAP Overview
  • 2. IBM Global Services © 2005 IBM Corporation 2 Dec-2008ERP / SAP Overview | Objectives  The participants will be able to:  Recognize the evolution of ERP solutions.  Appraise the concept, benefit and use of ERP solution.  Define the SAP R/3 Overview.  Identify the different SAP R/3 Functional modules/areas.  Distinguish the components of SAP R/3.  Evolution of SAP Architecture to ERP6  Judge the use of ABAP programming language.
  • 3. IBM Global Services © 2005 IBM Corporation 3 Dec-2008ERP / SAP Overview | Enterprise Resource Planning ERP Overview
  • 4. IBM Global Services © 2005 IBM Corporation 4 Dec-2008ERP / SAP Overview | Enterprise Resource Planning ... synchronization of Company functions... Manufacturing Purchase Sales Finance
  • 5. IBM Global Services © 2005 IBM Corporation 5 Dec-2008ERP / SAP Overview | Enterprise Resource Planning … and extended to the complete value chain... Tier II Component Supplier Vehicle OEM Tier I Component Manufacturer
  • 6. IBM Global Services © 2005 IBM Corporation 6 Dec-2008ERP / SAP Overview | Enterprise Resource Planning Administrative registration Processes monitoring & feedback Decision support and analysis ... delivering administrative and decision support with...
  • 7. IBM Global Services © 2005 IBM Corporation 7 Dec-2008ERP / SAP Overview | What is an ERP solution...? …Integrated across the primary and support processes MarketingManufacturing Materials Distribution Finance Engineering Sales Human Resources Planning and Execution
  • 8. IBM Global Services © 2005 IBM Corporation 8 Dec-2008ERP / SAP Overview | The ERP application  An integrated suite of business applications, which..  Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.  Enables corporates to readily change their processes to adapt to the ever changing business scenario.  Provides expertise in industry specific business processes.  Entails  Parameterization / Configuration  Designing & Customization  Testing and Implementation  Training
  • 9. IBM Global Services © 2005 IBM Corporation 9 Dec-2008ERP / SAP Overview | Why clients buy ERP?  Corporate Initiatives  Strategic initiatives  A requisite capability in a competitive global business  Operational initiative  A foundation for performance and cost improvement via integration  Organizational initiative  To initiate a major organizational change within the company  Technology  IT is making the transition from a supporting operational entity to becoming a strategic competitive tool.  Because others are buying it !!!
  • 10. IBM Global Services © 2005 IBM Corporation 10 Dec-2008ERP / SAP Overview | Recent business trends favoring ERP growth  Business Process Reengineering ( BPR )  Most large companies are attempting to cut in-house development costs, improve customer service, and speed products to market by reorganizing their existing business processes.  Software Pricing  Licensing and pricing of mainframe based packaged applications are tied to the size of mainframe system on which the applications run, but now customers are now demanding user-based licensing options and major corporate applications like SAP provide this instead of the conventional platform-based pricing technique.
  • 11. IBM Global Services © 2005 IBM Corporation 11 Dec-2008ERP / SAP Overview | Recent business trends favoring ERP growth  Globalization  As businesses are becoming more global in scope, people are demanding packaged corporate applications that are available in a variety of languages with support for multiple currencies.  Integration  As more and more companies are going for BPR, there is increase in demand for integrated solution e.g.. different applications sharing a common database and thus enabling data definitions and business rules to be applied across an entire organization with the facility of doing modifications at one location only.
  • 12. IBM Global Services © 2005 IBM Corporation 12 Dec-2008ERP / SAP Overview | Business process benefits clients expect from an ERP project  Global process/ Product management  Integrated Supply Chain Management  Leverage purchasing and vendor management  Order cycle time/ customer service improvement  Inventory reductions  Reduced information systems costs on an ongoing basis  Improved business management through worldwide integration and information Logistics and Distribution Sales & Customer Service Vendors Inbound Manufacturing Transportation Distribution Delivery Customer Consumer Logistics
  • 13. IBM Global Services © 2005 IBM Corporation 13 Dec-2008ERP / SAP Overview | Major ERP vendors  SAP R/3  Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier, but are subsets of Oracle now )  Peoplesoft  JD Edwards  Baan
  • 14. IBM Global Services © 2005 IBM Corporation 14 Dec-2008ERP / SAP Overview | What results can be expected from an “ERP culture”?  Reduced working capital requirements  Improved customer service  Improved direct labor productivity  Reduced purchase costs  Reduced obsolescence  Reduced overtime  Having the figures to make decisions  Having accountability throughout the organization  Improved quality of life ERPERP
  • 15. IBM Global Services © 2005 IBM Corporation 15 Dec-2008ERP / SAP Overview | SAP R/3 Overview Systems Applications and Products in Data Processing
  • 16. IBM Global Services © 2005 IBM Corporation 16 Dec-2008ERP / SAP Overview | SAP AG – At a Glance  Founded in Germany in 1972  Market Leader in Industrial Enterprise Application (IEA)  About 56% market share in the ERP market.  Employs more than 38,400 people in more than 50 countries.  As the world's third-largest independent software provider, SAP delivers business solutions to more than 36,200 customers in more than 120 countries around the world.  Strength lies in its high degree of integration, mainly for large, global corporate enterprises  Significant presence in Global Fortune 500 companies
  • 17. IBM Global Services © 2005 IBM Corporation 17 Dec-2008ERP / SAP Overview | SAP R/1 , R/2  The R/1 system  Developed for ICI Chemical  Released 1972  Focused on Sales & Distribution and Materials Management  Discontinued after release of R/2 R/2 Basis System  The R/2 system  Reorganized as leading mainframe software for large multinational corporations  No sales effort planned – reactive only  4,300 copies worldwide in 1993  Mainframe-based to replace user legacy software; co-existence and migration strategy underway for R/2 and R/3  Keeping in mind its multinational customers, SAP designs SAP R/2 to handle different languages and currencies. Note: "R" stands for real-time data processing.
  • 18. IBM Global Services © 2005 IBM Corporation 18 Dec-2008ERP / SAP Overview | SAP R/3 : 3 Tier Architecture Those SAP R/3 software components that specialize in the management , storage and retrieval of data form the Database Layer The Database Layer Those SAP R/3 software components that specialize in processing business applications form the Application Layer. The Application Layer Those SAP R/3 software components that specialize in interacting with end-users form the Presentation Layer. The Presentation Layer
  • 19. IBM Global Services © 2005 IBM Corporation 19 Dec-2008ERP / SAP Overview | SAP R/3 : 3 Tier Architecture Database servers: Specialized systems with fast and large hard drives. Application servers: Specialized systems multiple CPUs and vast amounts of RAM. Presentation servers: Systems capable of providing a graphical interface. Presentation Layer components Application Layer components Database Layer components reside in: reside in: reside in:
  • 20. IBM Global Services © 2005 IBM Corporation 20 Dec-2008ERP / SAP Overview | SAP R/3 : 3 Tier Architecture The Database Layer components are installed on high-end database server. The Application Layer components are installed across one or more high- end servers. Presentation Layer components are installed across many PCs
  • 21. IBM Global Services © 2005 IBM Corporation 21 Dec-2008ERP / SAP Overview | SAP R/3 Overview Sales & Distribution SD MM PP QM PM HR FI CO TR PS WF IS Materials Mgmt. Product Planning Quality Mgmt. Plant Mainte- nance Human Resources Financial Accounting Controlling Treasury Project System Workflow Industry Solutions Client/Server ABAP/4 R/3
  • 22. IBM Global Services © 2005 IBM Corporation 22 Dec-2008ERP / SAP Overview | Integration PP MM FI CO SD FI Which modules are involved? Planned Requirement MRP Requirement on component level Purchase Order Goods Receipt Invoice Verification Accounts Payable Planned Order Production Order Production completed Order Settlement Customer Order Shipping Invoicing Account Receivable
  • 23. IBM Global Services © 2005 IBM Corporation 23 Dec-2008ERP / SAP Overview | Integration S U P P L I E R C U S T O M E R S A P R / 3S A P R / 3 Procurement Production Distribution Finance and Accounting MMMM PPPP SDSD FIFI COCO All business processes throughout the supply chain are executed in one system sharing all information Workflow
  • 24. IBM Global Services © 2005 IBM Corporation 24 Dec-2008ERP / SAP Overview | mySAP Technology
  • 25. IBM Global Services © 2005 IBM Corporation 25 Dec-2008ERP / SAP Overview | SAP NetWeaver Existing Systems
  • 26. IBM Global Services © 2005 IBM Corporation 26 Dec-2008ERP / SAP Overview | Evolution of SAP Architecture SAP ERP 6.0 SAP NetWeaver™ 7.0SAP NetWeaver™ 7.0 CompositeApplicationFramework APPLICATION PLATFORM (7.00) LifeCycleMgmt Composite ApplicationsComposite Applications PEOPLE INTEGRATION Multi Channel Access Portal Collaboration INFORMATION INTEGRATION Master Data Mgmt Bus. Intelligence Knowledge Mgmt PROCESS INTEGRATION Business Process Mgmt ABAP DB and OS Abstraction Strategic Enterprise ManagementStrategic Enterprise Management Self-ServicesSelf-Services Internet SalesInternet Sales Switch FrameworkSwitch Framework Supplier Relationship ManagementSupplier Relationship Management Enterprise Extensions Industry Extensions SAP ECC Core (6.0)SAP ECC Core (6.0) EhP 1 EhP 2 ITS Integration Broker J2EE and more …and more …
  • 27. IBM Global Services © 2005 IBM Corporation 27 Dec-2008ERP / SAP Overview | Enhancement Packages SAP NetWeaver SAP ERP 6.0 Enhancement Packages What Are Enhancement Packages?  Optionally installed and activated software innovations for SAP ERP 6.0  Software innovations include; UI simplifications, functional enhancements, industry specific capabilities and enterprise services  Cumulative in nature; current enhancement packages contain all contents of earlier packages  Enhancement packages are not support packages
  • 28. IBM Global Services © 2005 IBM Corporation 28 Dec-2008ERP / SAP Overview | Improved Software Lifecycle Installation of new functionality separated from activation via Switch Framework Content of enhancement packages • From a functional view each SAP enhancement package contains several “Business Functions”. • From a technical view each SAP enhancement package contains new versions of existing software components, grouped by a “technical usage”. Selective Installation • Install the parts that are required for the selected Business Function.  If installed: • No UI or process change until a business function is activated via Switch Framework • Less Adjustment effort due to selective update of software components • No implications on the underlying NetWeaver platform, in addition enhancement packages contain most current Support Package Stack Selective Activation • Activate the business functions you need.  If activated: • End-user training is limited to the activated business function(s) • Testing is simplified with templates, provided for every business function Support Packages Enhancement Packages
  • 29. IBM Global Services © 2005 IBM Corporation 29 Dec-2008ERP / SAP Overview | SAP R/3 : Components ABAP Programs Configuration Organization Structure Key Data Elements Functionality Configurations Application Master Data Transaction Data
  • 30. IBM Global Services © 2005 IBM Corporation 30 Dec-2008ERP / SAP Overview | What is Customization ?  Customization  The adaptation of application software to customer-specific needs is accomplished in two ways :  Coding  Programming customer-specific code that replaces or complements components of the application  Configuration  Rendering the application appropriate to a specific customer by specifying data on which the application operates
  • 31. IBM Global Services © 2005 IBM Corporation 31 Dec-2008ERP / SAP Overview | ABAP Programming  SAP R/3 applications are written in the ABAP (Advanced Business Application Programming) programming language, and run within the application layer of the R/3 System.  ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAP GUI) at presentation level.
  • 32. IBM Global Services © 2005 IBM Corporation 32 Dec-2008ERP / SAP Overview | SAP R/3 scope Why do we need ABAP Development ?
  • 33. IBM Global Services © 2005 IBM Corporation 33 Dec-2008ERP / SAP Overview | SAP Solution SAP R/3 scope Specific company requirements
  • 34. IBM Global Services © 2005 IBM Corporation 34 Dec-2008ERP / SAP Overview | SAP Solution SAP R/3 scope Specific company requirements Non SAP applications New Functionality Development
  • 35. IBM Global Services © 2005 IBM Corporation 35 Dec-2008ERP / SAP Overview | Summary  Materials Requirement Planning (MRP-I) began as a technique for developing enterprise- wide business solutions by providing automated tools for forecasting demands and planning according to the forecast.  ERP is an integrated suite of Applications to meet corporate needs.  Some major ERP vendors are : SAP R/3, Oracle, Baan  SAP AG was founded in Germany in 1972 and it is a Market Leader in Industrial Enterprise Application (IEA).  SAP NetWeaver is a vision, or paradigm, of total integration of :  People  Information  Business Processes  Applications  SAP has a 3 tier architecture comprising of the Presentation layer, Application layer and the Database layer.  The SAP solution is divided in different areas or Functional Modules like SD, MM, PP, QM, PM, FI, CO etc. which are reorganized under services in mySAP Business Suite.  R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System.
  • 36. IBM Global Services © 2005 IBM Corporation 36 Dec-2008ERP / SAP Overview | Questions  What is MRP ?  What is ERP ?  When was SAP AG founded ?  What are the 3 layers of the SAP R/3 ?  What is SAP Netweaver ?  What are the different functional modules of SAP ?  What programming language is used for SAP applications ?  Why do we need ABAP developments ?

Editor's Notes

  1. The evolution of ERP solutions Materials Requirement Planning (MRP-I) began as a technique for developing enterprise-wide business solutions by providing automated tools for forecasting demands and planning according to the forecast
  2. An integrated suite of business applications, which.. Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money Enables corporate firms to readily change their processes to adapt to the ever changing business scenario Provides expertise in industry specific business processes
  3. So, ERP is …. An integrated suite of Applications to meet corporate needs Entails Parameterization Designing & Customization Implementation Training Expertise in industry specific business processes
  4. ERP - What It Is ERP is not just a software…but a complete business solution integrated across the entire value chain which creates an information infrastructure for efficient planning and effective execution.
  5. ERP - What It’s Not …… ERP facilitates the decision making but does not decide. ERP provides comprehensive information to optimize but does not optimize dynamically. It automates and integrates transactions but does not target the cycle time.
  6. ERP will impact Communication and information domain Leadership and authority Company policies Jobs and rewards Company structure and culture Skills and knowledge of employees Information is available online generally to a much broader audience ERP can alter how work gets done and thus how people work together ERP alters the level of decision-making authority ERP can alter organizational structure
  7. Recipe for a successful ERP application Comprehensive functionality Integration among modules and functions Best Business Practices Global support
  8. In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther -- launch a company called Systems, Applications, and Products in Data Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing. SAP is now the recognized leader in providing collaborative business solutions for all types of industries and for every major market. Serving more than 36,200 customers worldwide, SAP is the world's largest business software company and the world's third-largest independent software provider overall. Today, SAP employs more than 38,400 people in more than 50 countries.
  9. In 1990s SAP R/3 was released. With SAP R/3, SAP ushers in a new generation of enterprise software -- from mainframe computing (client-server architecture) to the three-tier architecture of database, application, and user interface.
  10. Heterogeneous Platforms
  11. SAP was earlier divided into different Functional modules like Materials Management (MM), Sales & Distribution (SD), FI (Financial Accounting), CO (Controlling), HR (Human Resources), PP (Product Planning), PM (Plant Maintenance), PS (Project Systems) etc. But, with the introduction of mySAP Business Suite, SAP is now organized into a service-based architecture, which has the following: mySAP Customer Relationship Management mySAP ERP mySAP Product Lifecycle Management mySAP Supply Chain Management mySAP Supplier Relationship Management
  12. All business processes throughout the supply chain are INTEGRATED & executed on a common system sharing all information Scalability Modular Model innumerable business processes Industry best practices Can be customized IS- Plug-in
  13. With the Internet, the user becomes the focus of software applications. SAP develops mySAP Workplace and paves the way for the idea of an enterprise portal and role-specific access to information. As mentioned earlier, with the introduction of mySAP Business Suite, SAP is now organized into a service-based architecture, which has the following: mySAP Customer Relationship Management (CRM) mySAP ERP mySAP Product Lifecycle Management (PLM) mySAP Supply Chain Management (SCM) mySAP Supplier Relationship Management (SRM) mySAP ERP addresses the core business software requirements of the most demanding midsize and large organizations -- in all industries and sectors. mySAP ERP includes four individual solutions that support key areas of Enterprise Resource Planning: mySAP ERP Human Capital Management (HCM) -- Maximize workforce potential. mySAP ERP Financials -- Turn finance into a strategic business partner. mySAP ERP Operations -- Free up resources; budget for innovation. mySAP ERP Corporate Services -- Streamline business processes and costs.
  14. SAP has since broadened the integration vision of mySAP Technology into a blueprint they call the Enterprise Services Architecture (ESA). SAP NetWeaver is a comprehensive integration and application platform”, mySAP Technology is now renamed SAP NetWeaver™; NetWeaver delivers the ESA blueprint. SAP NetWeaver is a vision, or paradigm, of total integration of : People Information Business Processes Applications SAP has a team of over 2000 developers in a single organization, working on NetWeaver.
  15. Quick Facts about SAP ERP6.0: Launched in June 2006 Built on SAP NetWeaver 7.0 Approximately 7000 systems (12/2007) Platform upon which SAP will deliver future software innovations Software innovation delivered via “SAP enhancement packages”
  16. Because configuration is captured in data, as opposed to code, it survives software upgrades and other changes.
  17. R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System. ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAPGUI) at presentation level.
  18. ABAP programs are objects of the R/3 Repository. Like all other Repository objects, you maintain them using an ABAP Workbench Tool. To open ABAP programs directly from the tool ABAP Editor, select the menu path Tools -> ABAP Workbench ->Development -> User Interface -> ABAP Editor from the SAP menu of SAP Easy Access (or start Transaction SE38). If you want to change a program using this method, you must already know its name and environment. This procedure is only suited for maintaining or creating relatively simple or short programs, which have few or no additional components. It is better to access ABAP programs through Tools -> ABAP Workbench -> Overview -> Object Navigator from the SAP menu of SAP Easy Access (or start Transaction SE80).