1. ERP / SAP Overview
ERP / SAP Overview |
Dec-2008

2. 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.
ERP / SAP Overview |
Dec-2008

3. Enterprise Resource Planning
ERP Overview
Enterprise Resource Planning
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
ERP / SAP Overview |
Dec-2008

4. Enterprise Resource Planning
... synchronization of Company functions...
Purchase
Manufacturing
Finance
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
Sales
ERP / SAP Overview |
Dec-2008

5. Enterprise Resource Planning
… and extended to the complete value chain...
Tier I Component
Manufacturer
Vehicle OEM
Tier II Component
Supplier
ERP / SAP Overview |
Dec-2008

6. Enterprise Resource Planning
... delivering administrative and decision support with...
Decision support and analysis
Processes monitoring & feedback
Administrative registration
So, ERP is ….
An integrated suite of Applications to meet corporate needs
Entails
Parameterization
Designing & Customization
Implementation
Training
Expertise in industry specific business processes
ERP / SAP Overview |
Dec-2008

7. Planning and Execution
What is an ERP solution...?
…Integrated across the primary and support processes
Distribution
Manufacturing
Marketing
Planning and Execution
Materials
Finance
Engineering
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.
Sales
Human Resources
ERP / SAP Overview |
Dec-2008

8. 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
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.
ERP / SAP Overview |
Dec-2008

9. Why clients buy ERP? Corporate Initiatives Technology
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 !!!
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
ERP / SAP Overview |
Dec-2008

10. 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.
ERP / SAP Overview |
Dec-2008

11. 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.
ERP / SAP Overview |
Dec-2008

12. 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
ERP / SAP Overview |
Dec-2008

13. 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
Recipe for a successful ERP application
Comprehensive functionality
Integration among modules and functions
Best Business Practices
Global support
ERP / SAP Overview |
Dec-2008

14. 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
ERP
ERP / SAP Overview |
Dec-2008

15. Systems Applications and Products in Data Processing
SAP R/3 Overview
Systems Applications and Products in Data Processing
ERP / SAP Overview |
Dec-2008

16. 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
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.
ERP / SAP Overview |
Dec-2008

17. SAP R/1 , R/2 The R/1 system The R/2 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.
ERP / SAP Overview |
Dec-2008

18. 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
specialize in processing business
applications form the Application Layer.
The Application Layer
specialize in interacting with end-users
form the Presentation Layer.
The Presentation Layer
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.
ERP / SAP Overview |
Dec-2008

19. SAP R/3 : 3 Tier Architecture
Presentation Layer
components
Application Layer
components
Database Layer
components
reside in:
reside in:
reside in:
Presentation servers:
Systems capable of
providing a graphical
interface.
Application servers:
Specialized systems
multiple CPUs and
vast amounts of RAM.
Database servers:
Specialized systems
with fast and large
hard drives.
Heterogeneous Platforms
ERP / SAP Overview |
Dec-2008

20. SAP R/3 : 3 Tier Architecture
Presentation Layer components are installed across many PCs
The Application Layer
components are installed
across one or more high-
end servers.
The Database Layer
components are installed on
high-end database server.
ERP / SAP Overview |
Dec-2008

21. SAP R/3 Overview R/3 Client/Server ABAP/4 SD FI Sales & Distribution
Financial
Accounting MM CO
Materials
Mgmt.
Controlling PP
R/3 TR
Product
Planning
Treasury
Client/Server
ABAP/4 QM PS
Quality
Mgmt.
Project
System PM WF
Plant Mainte-
nance
Workflow HR IS
Human
Resources
Industry
Solutions
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
ERP / SAP Overview |
Dec-2008

22. Integration PP SD MM FI CO FI Planned Requirement Customer MRP Order
Requirement on component level
Planned
Shipping
Order
Purchase
Production
Order
Invoicing
Order
Goods
Account
Receipt
Receivable
Production
completed
Invoice FI
Verification CO FI
Order
Settlement
Accounts
Which modules are involved?
Payable
ERP / SAP Overview |
Dec-2008

23. Finance and Accounting
Integration
S U P P L I E R
C U S T O M E R
S A P R / 3
Procurement
Production
Distribution
Finance and Accounting MM PP SD FI CO
All business processes throughout the supply chain are executed in one system sharing all information
Workflow
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
ERP / SAP Overview |
Dec-2008

24. mySAP Technology
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.
ERP / SAP Overview |
Dec-2008

25. SAP NetWeaver Existing Systems
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.
Existing Systems
ERP / SAP Overview |
Dec-2008

26. Evolution of SAP Architecture
SAP ERP 6.0
SAP NetWeaver™ 7.0
Composite Application Framework
APPLICATION PLATFORM (7.00)
Life Cycle Mgmt
Composite 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 Management
Self-Services
Internet Sales
Switch Framework
Supplier Relationship Management
Enterprise Extensions
Industry Extensions
SAP ECC Core (6.0)
EhP 1
EhP 2
ITS
Integration Broker
J2EE
and more …
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”
ERP / SAP Overview |
Dec-2008

27. Enhancement Packages Enhancement Packages SAP ERP 6.0 SAP NetWeaver
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
ERP / SAP Overview |
Dec-2008

28. 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
Enhancement Packages
Support Packages
ERP / SAP Overview |
Dec-2008

29. SAP R/3 : Components Master Data Application Transaction Data ABAP
Programs
Organization Structure
Configuration
Key Data Elements
Functionality Configurations
ERP / SAP Overview |
Dec-2008

30. What is Customization ? Customization Coding Configuration
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
Because configuration is captured in data, as opposed to code, it survives software upgrades and other changes.
ERP / SAP Overview |
Dec-2008

31. 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.
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.
ERP / SAP Overview |
Dec-2008

32. Why do we need ABAP Development ?
SAP R/3 scope
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).
ERP / SAP Overview |
Dec-2008

33. SAP Solution Specific company requirements SAP R/3 scope
ERP / SAP Overview |
Dec-2008

34. SAP Solution Specific company requirements SAP R/3 scope
New Functionality
Development
Non SAP
applications
ERP / SAP Overview |
Dec-2008

35. 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.
ERP / SAP Overview |
Dec-2008

36. 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 ?
ERP / SAP Overview |
Dec-2008