ERP is an integrated software solution that connects all departments of a company. It increases efficiency by sharing information in real-time across functional areas like finance, operations, and sales. ERP replaces isolated "islands of information" with a single database and common processes. Implementing ERP allows companies to streamline operations, reduce costs, satisfy customers, and gain a competitive advantage. SAP R/3 is a leading ERP software that offers comprehensive functionality covering various business functions on a single database.

1. What is ERP? facilitates company-wide integrated information systems, covering all functional areas performs core Corporate activities and increases customer service augmenting Corporate Image ERP is a solution, which Enterprise Resource Planning

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. The Current Scenario Islands of Information Difficult to get timely & accurate information Heterogeneous Hardware & Software platforms & practices Poor connectivity between different organizational locations Sticking with obsolete technology Resist to change Lack of proven man-power to develop integrated software Enterprise Resource Planning

4. Information Islands B

5. Why ERP? For Management – to know what is happening in the company One solution for better Management For cycle time reduction To achieve cost control & low working capital To marry latest technologies To shun the geographical gaps To satisfy the customers with high expectations To be Competitive & for survival Enterprise Resource Planning

6. Evolution of ERP 1960’s: Inventory Control Systems 1970’s: MRP: Material Requirement Planning 1980’s: MRPII: MRP & Distribution 1990’s: MRPII  ERP with introduction of other business functions  CRM’s Today: Web Enabled ERP – Connecting ERP Externally

7. What is SAP R/3? SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier) German Based Company 3 rd Largest Independent Software Vendor in the World SAP: ERP Market Leader 21 Industry Vertical Solutions 80% Fortune 500 Companies Use SAP 66% Market share in India Over 18,500 Customers 76000 installations in 120+ Countries, +2500 installations in India Over 12 million users

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. SAP R/3 Technology SAP R/3 is Client Server 3 Tier Presentation Application Database Relatively hardware and database independent SAP R/3 offers comprehensive suite of integrated applications meeting the needs of most business best practice process design ability to configure to industry sector unique business requirements

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. What is 3-Tiered? 3 Functional Areas Presentation workstations Application Logic small boxes Data Management large box

12. Database Server Application Servers HR Internet FI Presentation Servers

13. R/3 Middleware: Interfaces to Systems Software Database Operating System Presentation R/3 DB Inter- face OS Interface Pres Inter- face

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

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

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

19. Feb 2003 Nov 03-April04 Current Position (SAP Roll Out for Expansion Project)

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

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

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

23. SAP R/3 – Materials Management Material Special stock Batch Vendor/one-time customer Purchasing info record Service specifications Texts Mail Communication Classification Documents Conditions BASIC DATA Purchasing information system Vendor evaluation Purchase requisition PURCHASING MRP Direct requisition Release procedures RFQ/Quotation Material/service Price comparisons Price comparison list Purchasing Purchase orders Outline agreements Scheduling agreements Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins Check and post Price update 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

28. Benefits of SAP Seamless integration across functions and locations Efficient co-ordination of demand, supply and production Addresses all businesses environments – MTO, MTS,ATO etc. Built in best business practices Covers Multi-Country, Multi-Company, Multi-Plant and Multi-Language implementation Country versions to address local requirements – Legal, statutory etc. Better control and monitoring of business e.g. authorisations, reports Centralised control over de-centralised multi-location operations Handles Mutiple - valuation schemes, accounting system, operating system, RDBMS

29. Thanks….