2. History of SAP
Systems Applications and Products in Data Processing
German : Systeme, Anwendungen, Produkte in der Datenverarbeitung
Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
Re named in 1977
Before 1977 : Systems Analysis and Program Development (German :
Systemanalyse und Programmentwicklung)
SAP is both the name of the Company as well as their ERP Product
SAP system comprises of a number of fully integrated modules, which
covers virtually every aspect of the business
Three systems developed : R/1, R/2, R/3
3. Development of SAP
Enterprise Resource Planning
Enterprise Resource Inter-Enterprise Collaborative
Planning Co-operation Business
Create
Strategic
Value
Total Efficiency and
Company Control
Value
Automation
80’s R/2 90’s R/3 Today mySAP ERP
Evolution of ERP
4. SAP Business Strategy:
New Maintenance Offerings
Architecture Planning
Custom Development
Consulting
System Integration
Operations Planning & Optimization
Hosting / Outsourcing
7. Benefits of mySAP ERP
SAP ERP delivers a comprehensive set of integrated, cross-
functional business processes. With SAP ERP, we can gain the
following benefits:
Improve alignment of strategies and operations
Improve productivity and insight
Reduce costs through increased flexibility
Support changing industry requirements
Reduce risk
Improve financial management and corporate governance
Optimize IT spending
Gain higher ROI faster
Retain top performers
Provide immediate access to enterprise information
11. 3 Tier Client / Server
Architecture
The SAP R/3 architecture is based on a 3-tier client/server
principle
Presentation Server
Application Server
Database Server
Dedicated Servers are linked by Communication Networks
Perform tasks without sacrificing data integration and
processes within the system, as a whole
14. Overview of Presentation &
Database Servers
The Presentation Server
GUI only
At workstation
Very light
Sends requests to application server
Obtains screens from application server and displays
The Database Server
Interface between application server and RDBMS
Also holds the vendor specific DB driver
15. SAP R/3 Conceptual Areas
SAP Conceptual Areas
Basis Area Development Area
Application Area (1. A developer’s
(The technical
(Initiate and execute workbench
administration of
SAP transactions) 2. Create & Test
the system)
ABAP/4 programs)
(Functional)
(Authorizations/Ids/etc)
(Technical)
16. Systems in R3
Transport Request
Development Quality Production
System System System
(DC) (QC) (IC)
Client
110
100 etc..
17. Clients in R/3
The Logon Client
3 digit number ( 000 to 999)
Helps maintain independent sets of data within the same R/3
system
Client mechanism and handling
19. R/3 Technology Environment
Hardware UNIX Systems Bull/Zenith Digital NCR
Bull IBM Compaq HP (Intel) Sequent IBM IBM
Digital SNI Data General IBM (Intel) SNI AS/400 S/390
HP SUN ...
Operating AIX Reliant
systems Digital UNIX UNIX (SINIX) Windows NT OS/40 OS/39
HP-UX SOLARIS 0 0
Databases ADABAS D ADABAS D
DB2 for AIX MS SQL Server DB2 for DB2 for
INFORMIX-OnLine INFORMIX-OnLine OS/400 OS/390
ORACLE ORACLE
Dialog Windows 3.1, Windows 95, Windows NT,
SAPGUI OSF/Motif *, OS/2 Presentation Manager (PM),
Macintosh *, Java
Languages
ABAP/4, C, C++, HTML, Java
20. Platforms and Databases
Operating
supported by Front Supported
Supported Supported
R/3
Systems Hardware ends Databases
AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX
SOLARIS HP-UX Digital HP OSF / Motif Informix – Online
Digital Unix Bull OS/2 Oracle 7.1
Macintosh ADABAS D
Windows NT AT&T Compaq Win 3.1 / 95 / NT Oracle 7.1
Bull / Zenith OSF / Motif SQL Server 6.0
HP (Intel) SNI OS/2 ADABAS D
IBM (Intel) Macintosh
Digital (Intel)
Data-General
OS/400 AS/400 Win 95 OS/2 DB2/400
22. SAP Modules
SD – Sales and Distribution FI – Financial Accounting
MM – Materials SD FI CO – Controlling
Management
PP – Production Planning MM CO AM – Asset Management
PP AM
SAP R/3
QM HR
QM – Quality HR – Human Resources
Management
PM WF
PM – Plant Maintenance WF – Workflow
WM – Warehouse WM PS
PS – Project System
Management
23. SAP R/3 Application Modules
1) Financial accounting (FI)
2) Controlling (CO)
3) Asset management (AM)
4) Materials management (MM)
5) Sales and Distribution (SD)
6) Production Planning (PP)
7) Quality management (QM)
8) Plant maintenance (PM) & Customer Service (CS)
9) Project system (PS)
10) Human resources (HR)
11) Workflow (WF)
24. Module Functionalities
MM PP
SD
Material Procurement BOM/Work Center/Routing
Inquiry processing
Inventory Management MRP
Sales Order Processing
Batch Management Capacity Evaluations
Delivery Processing
Goods inspection Production Orders
Billing
Invoice Verification QM in production
FI
CO
General Ledger
Cost Center Accounting
Accounts Payable
Product Costing
Accounts receivable
Order Contribution Analysis
Cash management
25. Module FI – Financial Accounting
• External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
• Key elements
• General ledger
• Accounts payable
• Accounts receivable
• Asset Management
• Accounting Information System
26. Financial Accounting
Bank Management
Foreign exchange of secureties
management and loans
Finance information Cash management
system and forecast
Accounts Accounts
payable receivable
Bank
accounts
Payables
Receivables
General Ledger
Extended General Ledger Credit
Invoice
verification management
Consolidation
27. Module CO – Controlling
• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting
• Product cost Planning
• Product Costing
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling
29. Module SD – Sales and Distribution
• Optimize tasks/activities in
• Sales
• Delivery
• Billing
• Key elements of the SD application module include :
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Warehouse management
• Billing
• Credit Management
• Sales Information system
30. Sales Order Process
(Order-to-Cash)
Sales Order Check
Entry Availability
Pick
Materials
Receipt of Pack
Customer Payment Materials
Invoice
Customer Post Goods
Issue
31. Module MM – Materials Management
• Supports
• Procurement
• Inventory
• Key elements
• Materials procurement (purchasing)
• Inventory management
• Invoice verification
• Material valuation
• Vendor evaluation
• External Services management
• Purchasing Information System (PurchIS)
• Inventory Controlling Information system
32. Procurement Process
(Procure-to-Pay)
Purchase
Purchase
Requisition
Order
Notify
Vendor
Payment
to Vendor
Vendor
Shipment
Invoice
Receipt
Goods
Receipt
33. MaterialsPURCHASING
BASIC DATA Management
Purchase requisition
SD Third-party
order
Material
Special stock MRP
Batch Direct requisition
Release procedures
PP Requirements
Purchasing information system
Vendor/one-time
customer RFQ/Quotation
Material/service PM Service/
Purchasing
Vendor evaluation
Price comparisons Spare Parts
info record Price comparison list Service /
Service Purchasing QM spare parts lot
Inspection
specifications Purchase orders
Outline agreements G/L accounts
Workflow Scheduling agreements FI Cash management
and forecast
Optical archive INVENTORY MANAGEMENT
Texts Goods receipt/issue AM Fixed assets
Transfer posting
Mail Quantities and values
Communication Physical inventory Cost center /
Storage bins CO
Classification Budget
Documents INVOICE VERIFICATION
Check and post PS Project
Conditions Price update
34. Production Planning
SD
PP
PS
SD
Sales and Operations Project
Planning Networks
Customers Demand management /
SD MPS PM
SD
Sales Material requirements Maintenance
Shipping planning Repairs
Billing Plant
maintenance
Detailed Schedeling and
Planning
Vendors MM
SD Capacity planning QM
SD
Purchasing Shop floor control Inbound Raw
Warehouse Costing Material
Invoice Information system
verification Finished Goods
FI CO HR
Financial Cost Human
accounting accounting resources
35. Module QM – Quality Management
• Supports
• Quality planning
• Inspection
• Control for manufacturing
• Costing
• Procurement
• Key elements
• Quality planning
• Quality during procurement, production, distribution
• Quality Management Information - Quality inspection
• Information System (QMIS)
36. Module PS – Project System & HR – Human Resource
• PS – Project Systems
• Support planning, control, & monitoring of long term highly complex projects
with defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
• Network Management
• Activity monitoring, Material Planning, Milestones, Capacities Scheduling
• Project Management Information System
• HR – Human Resource
• Key elements
• Recruitment
• Payroll & Time management
• Travel Expense accounting & Benefits
• Workforce planning & Training administration
• Organization management
37. mySAP Industry Solutions (Some
SAP for Aerospace & Defense
Examples) SAP for Healthcare
SAP for Media
SAP for Public Sector
SAP for Automotive
SAP for High Tech
SAP for Mill Products
SAP for Retail
SAP for Banking
SAP for Higher Education &
SAP for Mining Research
SAP for Chemicals SAP for Service Providers
SAP for Oil & Gas SAP for Industrial Machinery &
SAP for Consumer Products Components
SAP for Pharmaceuticals SAP for Telecommunications
SAP for Engineering, SAP for Insurance
Construction & Operations SAP for Utilities
SAP for Professional Services
39. Evolution of SAP products
Solutions
mySAP CRM mySAP
mySAP SCM Business
mySAP HR Suite
mySAP ERP mySAP PLM
………..
R/3
Enterprise
R/3 SAP NetWeaver
Web AS
•Easing Upgrade Plans & Providing Transition Options
•Bringing benefits of SAP Netweaver into installed base
•New Customers have more entry options & receive world –class ERP
40. Evolution of SAP products
my SAP
my SAP
SAP R/3 Business
Solutions
Suite
42. my SAP Business Suite
mySAP PLM mySAP SCM
mySAP
mySAP mySAP Financials
SRM CRM
mySAP HR
Corporate Services
Operations
SAP NetWeaver
Application Platform ( Web As)
People Integration (Portal)
Information Integration( BI,MDM)
Process Integration (XI)
47. Where does a CRM solution fit ?
Who Marketing Sales Service Executives
What Service
Use a CRM Engage
Solution to
complete
the Cycle
Fulfill
Transact
Workplace
Which way Internet Mobile Telephony
How Operational Analytical Collaborative
58. SAP NetWeaver
The integration and application platform for lower
TCO
Unifies and aligns people,
information and business
processes
Integrates across technologies
and organizational boundaries
A safe choice with full .NET and
J2EE interoperability
The Business foundation for
SAP and partners
Powers business-ready solutions
that reduce custom integration
It’s Enterprise Services
Architecture increases business
process flexibility
61. Ways to Implement:
There are two main implementation approaches:
Roll Out: inclusion of subsequent releases and/or
locations in separate systems.
Roll In: inclusion of subsequent releases and/or locations
in same systems.
Both focus on implementation at one location or one area
of functionality, followed by subsequent implementation
of other sites and/or functional areas
The alternative to Roll Out and Roll In is Big Bang
Generally only considered for small (<200)
implementations
64. mySAP Business Suite Pricing Model:
Functionality / Price Named User fees
Developer
(4 categories)
? Up to E5700 Professional Limited Prof.
E3800 E1600
Employee
(mobile E800)
E400
Software Engine fees: (e.g Purchase Order/ Sales Order
Industry Solutions based on industry metrics)