SAP

Human Capital Management

VIJAY

What is SAP?
Systems Applications Products

Standard ERP Software for real time Data processing

What is ERP?
Enterprise

Resource Planning

What is an Enterprise?
An Enterprise is a huge organization with huge resources.

Does this definition stand right now?

What are the Resources?

An Enterprise has the following resources: Money (Finance Dept.) Men (Human Resources Dept.) Materials (Purchasing Dept. and stores) Machines (Production Dept.) Marketing (Sales and Distribution Dept.) Methods (pervade all the other resources)

What do we plan and why do we need to Plan?

Planning is done for resources. Planning entails the optimal utilization of resources so that the following are achieved:
Productivity (relates to Men and Machines) Effectiveness

(relates to Methods employed)

Efficiency (relates to Men, Methods and Machines)

The Result is the Profitability of the Enterprise.

Enterprise Architecture - Benefits

Eliminates the duplication, discontinuity and redundancy in data Increases the return on investment made on IT implementations Delivers quality information designed for the Enterprise as a whole Faster and cheaper Delivers quality information to produce a quality enterprise Satisfying Partners/Customers Reducing required manpower

HISTORY

Who? Founders : Ex-IBM Employees As? Founded as Systemanalyse und Programmentwic

(System Analysis and Program Development)

When? On April 1, 1972 Where? In Mannheim, Germany

Brains behind SAP

Dietmar Hopp Hans-Werner Hector Hasso Plattner Klaus Tschira Claus Wellenreuther

Why?
Reason 1 : As Client after client are developing the same, or very similar, computer programs Reason 2 : So that data is processed interactively in real-time, and the computer screen should be the focal point of data processing

Rivals of SAP in ERP

Why do the rivals of SAP stand far behind SAP?

SAP success story

Market share : Nearly 60%. End users : More than one million end users around the world work with the R/3 system. Worlds third-largest independent software vendor.

Events in SAP history

In the fifth year of operations, SAP took a new name Systeme Anwendungen Produkte in der Datenverarbeitung (Systems, Applications, Products in Data Processing) SAP moved its offices and headquarters to Walldorf in 1977. SAP went public as SAP AG on Nov 4, 1988.

First customer for SAP German ICI subsidiary in Ostringen

Architecture
SAP R/1 in 1973 SAP R/2 in 1979 SAP R/3 in 1992 R stands for real-time data processing

Architecture of R/1 System

Interfaces developed in application programs itself. File systems were used. Client/server concept inexistent.
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Architecture of R/2 System Main-frame version Uses DBMS for the first time Interface programming within Application programming. Data stored in Database.

SAP R/2
How is it different? It attains the high level of stability of the previous generation of programs. It handles different languages and currencies.

Architecture of R/3 System

Client/Server concept introduced Uses RDBMS for data storage Interface programming separated from Application programming. Maintains more than 2 servers at different tiers.

Presentation Layer, or client, interfaces with the user.

Application Layer houses all the business specific logic. Database Layer records and stores all the information about the system, including transactional and configuration data.

SAP R/3
How is it different? Client-server concept Uniform appearance of graphical interfaces Consistent use of relational databases Ability to run on computers from different vendors

Facts about SAP R/3

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SAP R/3 was officially launched on 6 July, 1992. It is a client-server version of software. It is manageable on multiple platforms and operating systems, such as Windows or UNIX . It embraced the object-oriented concept of business objects

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It is the Largest European software vendor. SAP AG became the companys official name after the 2005 annual general meeting. It ranks after Microsoft, Google, Apple, and IBM in terms of Market Capitalization.

While its original products are typically used by Fortune 500 companies, SAP is now also actively targeting small and Medium sized Enterprises (SME) with its SAP Business One and SAP All-in-One.

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According to SAP officials, there are over 100,600 SAP installations serving more than 38,000 companies in more than 120 countries, which are used by more than 12 million people.

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SAP provided selected standardized processes, which were termed best-practice solutions of processes. The implementation of SAP software commonly required the expertise of knowledgeable external consultants, who are familiar with the best practices.
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SAP Industry Solution

SAP Mill SAP Finance

SAP Engineering & Construction SAP Oil & Gas

SAP High Tech & Electronics SAP Consumer Products

Business Information Warehouse

SAP Transportation
Sales Force Automation

SAP Utilities
SAP Health Care SAP Automotive SAP Media SAP Aerospace & Defense
Advanced Planner & Optimizer ...

SAP Public Sector

R/3
B2B Procurement

SAP Telecomm.
SAP Chemicals SAP Pharmaceuticals

SAP Retail
SAP Banking

SAP Service Providers

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SAP R/3 System

Integrated turnkey solutions
MM PP
Materials Mgmt. Production Planning

SD
Sales & Distribution

FI
Financial Accounting

Integrated RealTime

CO
Controlling

Open Systems Client/Server Architecture

R/3
PM

TR
Treasury.

Multi-national Multi-currency

QM
Quality Management

Client / Server ABAP

HR IS
Industry Solutions Human Resources

PS
Project System

Plant Maintenance

WF
Workflow

Industry-Solutions Enterprise Model Data Internet / Intranet

Other major product offerings include

Advanced Planner and Optimizer(APO) Business Information Warehouse(BW) Customer Relationship Management(CRM) Supply Chain Management(SCM) Supplier Relationship Management(SRM) Human Resources Management System(HRMS) Product Lifecycle Management(PLM) Exchange Infrastructure(XI) Enterprise Portal(EP) SAP Knowledge Warehouse(KW)

SAP R/3 functionality is structured using its own proprietary language called ABAP (Advanced Business Application Programming). ABAP or ABAP/4 is a fourth generation language (4GL), geared toward the creation of simple, yet powerful programs.

SAP has several layers.

The Basis System (BC) includes the ABAP Programming language, and is the heart (i.e. the base) of operations and should not be visible to higher level or managerial users. The Heart of the system (from the managers viewpoint) are the application modules.

Common mySAP.com Technology

SEM APO BBP Plug-Ins IBU Add-On
classic R/3"

BW

CRM

Central Applications with/without HR

HR

ABAP etc. (Cross-Application)

SAP BASIS (Basis)

A common Basis for all mySAP. com Products

SAP Basis
Customer Programs Applications, such as FI/CO

SAP Basis
System Software

SAP R/3 Conceptual Areas

SAP Conceptual Areas

Application Area
(Initiate and execute SAP transactions) (Functional)

Basis Area
(The technical administration of the system)

Development Area
(1. A developers workbench 2. Create & Test ABAP/4 programs) (Technical)

(Authorizations/Ids/etc)

mySAP? mySAP.com? mySAP links e-commerce solutions to existing ERP applications, using state-of-the-art Web technology.
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System Landscape

SAND

TEST

CUST

QTST

TRNG

PROD

Development

Quality Assurance

Production

Transport group

Transport group

Logging on to SAP System

Logon pad with different systems

Adding to favorites

Steps to add transaction to favorites Step I: Select the transaction you want to add to favorites Step II: Right click on the transaction you want to add to favorites Step III: Select Add to favorites.

Working in Several Sessions

Session Session 2 2

Session 1

Session Session 3 3
Cost center Cost acctg. Valid from Descriptions Name Description Long text
Exec.Board Executive Board cost center X

Session 6

Session 4

Session 5
R

SAP AG

The Icon Bar in the R/3 System

Enter Save Back Exit Cancel Help Execute Find Sort Print Change Display

Page

SAP AG

User Profiles
Own data: allows you to change your address, defaults, and parameters Address: enables you to set your communication information Defaults: allows you to specify your preferred printer and date and number formats Parameters: allows you to set default values in frequently used fields
R

Information systems
?

Tools

System

Create session

Hold data Set data Delete data Application values Own data Favorite maint.

End session User profile Services Utilities List Object services Own spool requests Own jobs Short message Status... Log off

SAP AG

SAP HTML Help Files

SAP Help - R/3 Library
Hide Back Forward Home Print Options

Contents Index Search R/3 Library

BC - Basis CA - Cross Application FI - Financial Accounting HR - Human Resources LO - Logistics Information

R/3 Library

SAP AG

The most difficult part of SAP R/3 is its implementation. Simply because SAP R/3 is never used the same way in any two places.

Defining the Points on the ASAP Roadmap

Initial Project Planning Project Procedures Training Project Kickoff Technical Requirements Planning Quality Check

Project Management Organizational Change Management Training Baseline Configuration and Confirmation System Management Final Configuration and Confirmation Develop Programs, Interfaces etc. Final Integration Test Quality Check

Production Support Ongoing KPI Management Project End

Project Preparation Business Realization Blueprint

Project Management Organizational Change Management Develop System Environment Training Business Organizational Structure Business Process Definition User Roles and Authorization Quality Check

Final Preparation Go Live & Support

Project Management End User Training System Management System Tests Detailed Project Planning Cutover Quality Check

SAP AG 2002

Documents of an ASAP Project

1
Project Charter Project Plan Scope Project Team Org. Stand. & Proced.

2
Q&Adb
Substructures: Business Strategy Organization General Settings Master Data Business Process Cross Application Development

3
Master Lists
Microsoft Excel Spreadsheets for Development, Organization, Business Processes and Authorizations

4
Cutover Plan Volume Test Stress Test Technical Operations Manual

5
System Performance Review

BPP Config. Plan

Progr. Develp. EU Training Material

Business Blueprint
Microsoft Word Documents

Testing Plan
Unit testing Test scenario Integration

Conduct End User Training

SAP AG 2002

INTRODUCTION TO SAP: Overview of the SAP R/3 System & Getting Started with R/3

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What Is Enterprise Resource Planning?

The integration of all computing within an organization such that:

all major business processes are encompassed and standardized and all data is usable by all functional areas of the business
Enterprise Resource Planning = ERP Integrate many business functions into one seamless application

What Is Enterprise Resource Planning?

Executive IS Strategic Information Decision Support Managerial Information

Sales & Marketing

HR

Procurement Accounting & Finance Transaction Information

Manufacturing

One Integrated Information System

Characteristics of ERPs

Link all business processes automatically Reduce interprocessing time (transactions occur one time at the source) Maintain complete audit trail of all transactions Use one common database (e.g., Oracle, Sybase, DB2) Perform automatic internal conversions (e.g., foreign currency, taxes, legal rules for payroll) Improve customer service by putting data at the fingertips of any employee Involve users in the entire functional cycle Unify backup, recovery procedures and other system administration tasks Secure the system from disaster and unauthorized use

Advantages of ERPs, in General

Provide fully integrated business functions or modules that support business processes Help develop understanding of business processes by tracking information through the process Standardize systems development life cycle Move toward business process reengineering
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What Is SAP R/3?

SAP is an example of an ERP System SAP R/3

SAPs Client Server version (Distributes process and presentation) Based on R/2 (Mainframe version centralization of data and process) R/3 4.6: New release distributes data, process, and presentation, and is Web enabled
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Worldwide Organized in 4 Operating Regions

Europe
Austria Norway Poland Portugal Romania Russia

America
Argentina Brazil Canada Chile Colombia Mexico U.S.A. Venezuela

Belgium Croatia Czech Republic Denmark

Asia Pacific
Australia China Hong Kong India Indonesia Japan Korea Malaysia New Zealand Philippines Singapore Thailand

Finland
France Germany Greece* Hungary* Italy Netherlands

Slovak Republic Spain

Sweden Switzerland U.K.

Africa / Middle East

Israel* Turkey* South Africa

Middle East*

* Through Partners

R/3 Integrated Products

Client/Server Architecture
FI
Financial Acctg.

Comprehensive Functionality

Integrated Solution
PP

SD
Sales

MM
Materials Mgmt Production Planning

CO
Controlling

Graphical User Interface

AM

R/3
Client / Server
WF HR IS
Industry Solutions

Asset Mgmt

Open System

QM
Quality Mgmt

PS
Project System Workflow

Multinational

PM
Plant Maint. Human Resources

Designed for all types of business

Over 12,000 installations Industry around the world

Smultinationalolutions

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Summary: What is SAP R/3?

Highly Integrated Application Software Client/Server Technology Based on Best Business Practices Based on Open Standards
Various RDBMS: Oracle, Informix, etc. TCP/IP (standard communication protocol)
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Why is R/3 so Important?

Forces a Consolidation of Diverse IS Systems Total Change in Doing Business Redesign Business Process Around the Information System Main Vehicle for Re-engineering Business Processes using Best Practices ERPs are described by Some as the Second Major Revolution in Computer
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Main Features of R/3

ALL Business processes draw on same database Rules are configurable and drive data integrity Operates in many languages Translates currency automatically Documents workflow, business processes and the data in one set of models that are highly integrated Integrates several views of data:
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What Does It Involve?

What Does It Involve?

Fully Implemented Three Tier Client/Server Architecture Involves All of the Major Business Cycles: Procurement, Financial Accounting, Sales, Logistics, HR, Production Planning, Asset Mgmt..
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What Does It Involve?

Database Server Primarily Runs on UNIX, However NT Server is a Second Preferred Platform Applications Servers Run on UNIX & Windows/NT Presentation Servers Windows, Windows/95,
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Introduction to SAP R/3

Advantages of SAP

Covers Many Business Functions Strong Workflow Capabilities Can Handle Many Different Types of Complex Transactions - Data Entered One time, One Place, At the Source Implemented in Many Large,
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Introduction to SAP R/3

Disadvantages of SAP

Expensive Very Complex Demands Highly Trained Staff Lengthy Implementation Time Inter-modules functions least understood by business, but high on list of reasons to buy Creates internal conflict in
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How Is It Done?

An SAP Installation Is a Serious Undertaking Usually a Large Business Will Reengineer Its Business Processes at the Same Time (OR First) Different Approaches

Big Bang - Convert All Systems at Once Phased Conversion - Gradual Migration
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How Is It Done?

Things That Have to Be Done

Learn the SAP System Analyze the Current, As-Is Processes Determine What SAP Functionality You Need Install and Configure (customize) the SAP System Test the configuration
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Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation

1 Start Here Project Prep. Go Live & Support 2 3 4 5 6

Business SimuBlueprint lation

Validation

Final Prep.

Realize Business Benefits

Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation