2. Contents
ERP
Why it need…?
Main steps in ERP project
Benefits
SAP
Why it need…?
R/3 system configuration
SAP Market Share
Sample Vendors
Areas of SAP
Modules
Benefits
4. ERP
ERP stands for “Enterprise Resource Planning”
ERP is a system that integrates all the functions
[
i.e., Planning, Manufacturing, Distribution, Shipp
ing & Accounting ] into a single system
The AIM of using ERP is planning with the
available resources of an enterprise to get the
maximum output with cost minimization.
5. Why it need…?
It creates Significant efficiencies across our
business.
Better customer relationship.
A more cost-effective supply chain.
Improved internal process & ultimately
increased profitability.
6. Main steps in ERP Project
Vendor Selection
Business Strategy Formation
Application Configuration
Testing & End User Acceptance
Training
Rollout
9. SAP
Don’t call it as ‘sap’ , call as ‘S A P’
Stands for System Application & Products in Data Processing
Original name of SAP was German: Systeme Anwendugen Produkte
SAP AG Founded in 1972 by Hasso Plattner, Klaus Tschira, Dietmar
Hopp, Hans-Werner Hector, Claus Wellenreuther
(Former IBM Employees)
Here AG means in German term Aktiengesellschaft meant for a
corporation which is limited by shares, i.e., owned by shareholders.
Before 1977, it stands for Systems Analysis & Program Development
SAP idea was to provide customers with the ability to interact with a
common corporate database for a comprehensive range of
application.
11. Why it need…..?
SAP is a platform independent. It can support various
database like different servers.
Oracle [Oak Ridge Automatic Computer and Logical Engine]
SQL [Structured Query Language]
SAP supports various operating systems.
SAP application, builds around their latest R/3 [Real time
Data Processing in 3-tier Sever Principle] system, provide the
capability to manage financial, asset & cost
accounting, production operation &
materials, personal, plans & achieved documents.
12. R/3 System Configurations
Central Systems 2-Tier Configuration 3-Tier Configuration Web-enabled
Presentation
Presentation
Internet
Transaction
Service/Web
Application
Service
Database,
Application,
Database and Database
Presentation
Application
15. Areas of SAP
There are two kinds of areas
o Functional Area
It represents the functional structure [such as public safety]
especially
in expenditures of an organization.
It describes the applications of funds.
o Technical Area
Here Technical consultants will implement the ideas of functional
consultants.
16. Modules in SAP
Functional Technical
o FI/CO [Financial & Controlling] o ABAP [Advance Business
o HR [Human Resource] Application Programming]
o PP [Production Planning] o BASIS [Business Application
o MM [Material Management] Software Integrated
o SD [Sales & Distribution] Solution]
o PM [Plant Maintenance]
o PS [Project System]
o QM [Quality Maintenance]
o BIW [Business Information
Warehousing]
18. Benefits
Improve productivity and insight
Reduce cost rates
Reduce risk
Optimize IT spending
Provide immediate access to enterprise
information
Enterprise :- Organization or Business oriented company.Resource :- Man, Money, Machines and materials etc.Planning :- Plans to maximum utilization of resources with cost minimization.Note:[ Planning is the attempt to create the future by building a path that leads to the future you desire. Forecasting is attempting to predict the future through empirical means. ]
ERP is an Integration of Business management practices & modern technology.2. The business system forming the primary transaction process across multiple business functions or business units.3. Todays largest vendors of ERP system is SAP AG, Oracle, Infor global solutions, Microsoft Dynamics, Industrial & Financial systems, Ramco systems.
Significant Efficiency : The integration between business process helps to develop communication & information distribution leading to increase in productivity, speed & performance.Customer Relationships : Todays competitive environment business need to hear “voice of customer” because of making effective forecasting, planning & scheduling. And it helps us to know about customer and their needs & satisfactions. According to their satisfactions we can deliver the design products & services Cost Effective Supply Chain : It helps to organizations that deliver the goods & services to the right place at right time in appropriate Quantity & at an acceptable cost.Internal Process : In our daily routine Our language improve the quality of internal communication. Like that, we have doubled our revenue by improving productivity and process efficiency, and if production rate increases means automatically profit also increased with the same number of staff.
Vendor Selection : Before staring the project the selecting the vendor is so important. Suppose if the problem is very discrete, then selection can be straight forward. Ordinary vendor is not possible to take this type of selections. Selecting vendors needs to cover below requirements. A] What business problem needs to solve…? B] Where is your business going to next & what s/w tools do you need to accomplish this…? C] Infrastructure & technical requirements D] What service can vendor provide in order to ensure success with the new system……….? 2. Business strategy formation :it isthe analysis and design of workflows and processes within an organizationThe fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical modern measures of performance, such as cost, quality, service, and speed.Application Configuration : It is planning to exist how to adjust custom developments, customizing & modifications and verification of security and authorization concept in upgraded system landscape. Main concept is apply the different systems to reach the ordinary people.Testing & end user acceptance : The test conducted to determine if the requirements of a specification. Ex: If we want to design one rod means, before that we test the material. Either it Mild steel or cast iron, its efficiency, factor of safety.. Like that we check the software either in our requirements or not……? Training : To identify the risk factors & describe the risk factors associated with ERP. The best people to train the final users are those who are going to maintain the system and operate the internal help desk. (The student always asks the teacher, and if the teacher is the consultant, he is not always going to be there.) How you meet this need depends on your knowledge-transfer philosophy and the general policy about consultants. As a rule, it is better that the internal people give the training, assisted by the consultants. Rollout : It is the Implementation process, it helps us to modernizing the ERP system to provide accurate accounting by simplifying the business operations, optimizing process
Improved Productivity and insight : Leverage self-services and analytics across your organization. Improve operational efficiency and productivity within and beyond your enterprise.Reduced transportation & logistics costs :Use enterprise services architecture to improve process standardization, efficiency, and adaptability. Extend transactions, information, and collaboration functions to a broad business community.Improve cash management :Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics. Increase profitability, improve financial control, and manage risk.Optimize IT spending:Integrate and optimize business processes. Eliminate high integration costs and the need to purchase third-party software. Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing.
SAP creates a common centralized database for all the applications running in an organization.
Oracle: It is the platform application to develop the cloud application [ 12C web design]SQL: 1. It created by Microsoft 2. Relational Database Server3. Its primary function is to store the data & retrieve data as requested by other software application.Operating system : IBM – AIX 5.2 & AIX 5.3 ( 64 bits ) HP - HP-UX 11.11 & HP-UX 11.23 ( 64 bits ) Microsoft – Windows 2000 professional ( 32 bits ) windows XP professional (32 bits ) windows server 2003 ( 32 & 64 bits )
R/3 system : Real Time Data Processing in 3-tier server applicationDatabase Application: The database server is a set of executable that accept database requests from the application server. These requests are passed on to the RDBMS (Relation Database Management System). The RDBMS sends the data back to the database server, which then passes the information back to the application server. The application server in turn passes that information to your ABAP/4 program and then you will get the required output on your presentation server. 2. Presentation Servers - The Presentation server is actually a SAPGUI ( SAP Graphical User Interface ). The interface accepts input from the user in the form of keystrokes, mouse clicks and function keys, sends these requests to the application server to be processed. The application server sends the results back to the SAPGUI which then formats the output display to the user. 3. Application Server – The application server is a set of executable that collectively interpret the ABAP/4 programs and manage the input and output for them. When an application server is started, these executable all start at the same time. When an application server is stopped, they all shut down together.
Analysis of Overall Market ShareJust like previous years, Tier I and Tier II vendors still dominate the market share of ERP implementation. The merge of Tier I and Tier II make up 64% of the implementations while Tier III and others only have 36% of the market. The market share of Tier I implementation remains the highest with 53% in total. However, all the vendors showed a drop in market share compared with 2010 Vendor Analysis report. The share of SAP decreases from 31% to 24%. Oracle is at 18% whereas it was 25% in 2010 report and Microsoft Dynamics decreases from 15% to 11%. It means the implementation of either Tier II or Tier III and Others increased around 18%.
The report focuses on data collected on ERP implementations of Tier I, Tier II and Tier III solutions, as you can see in the above table :
Reduce riskSolve complex business challenges today with SAP, your trusted partner for long-term growth, with 30 years of experience working with organizations of all sizes in more countries than any other vendor. Join SAP's world-class partner network, uniquely qualified to support the best business practices in more than 25 industries. Provide immediate access to enterprise information Give employees new ways to access the enterprise information required for their daily activities. Improve financial management Gain deep visibility into your organization with financial and management accounting functionality combined with business analytics.Increase profitability, improve financial control, and manage risk.Optimize IT spendingIntegrate and optimize business processes. Eliminate high integration costs and the need to purchase third-party software. Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing.
