SAP The Worlds best Run companies Run SAP An overview of the worlds leading ERP System

History of SAP
Systems Applications and Products in Data Processing Genman: systeme, Anwendungen, Produkte in der Datenverarbeitung Founded in 1972 by wellenreuther, Hopp, Hoctor, Plattner and Tchira Re named in 1977 Before 1977 Systems analysis and program development 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 Trades on NYSE:SAP

What is SAP? (the software)

Enterprise Resource Planning Software Quote-to-cash(Revenue cycle) Req-to-Check(Expenditure cycle) Plan-to-Produce(MRP) Finance and Controlling Massive accounting package Tool kit Series of modules Bought and customized to your business

Who uses sap?

The worlds best run companies: 80% of fortune 500% Coke Conagra Caterpillar Exxon mobile Chevron Marathon oil Copper industries Nike General electric Baker hughes Enron

Sap Erp and data flow

Manufacturing most popular Growth out of MRP 9 basic modules Interconnected and independent

Data types Master data Vendor master Customer master Material master Transactional data Sales orders Payments Meta data

Other SAP options

Other modules , components, and grids CRM BI/BM Treasury Real Estate Energy products SAP Business one AFS Apparel Footwear Solution Industry specific module Governance, Risk and compliance

Management Decisions
Data driven analysis What are important pieces of information for a material? SAP material master 20 different views Average 20 fields per view Several views change by plant Real time accounting information Accounts Receivable Accounts payable

Management Decisions
Profitability What is profitable? Who is profitable? Where are we profitable? Dude, wheres my cash? Inventory- which materials Accounts receivable- which customers Accounts payable which vendors Others prepaids, accrued payroll, other expenses

Management Decisions NO More

No longer decisions! When to pay What to buy When to buy What to make When to make it What to count (inventory stock take) Who to hire (always MBA Students)

Management decision changes

Removal of rote/ routine decisions Changes the types of decisions From how much of product X To should we sell product X Flattens the organization Creates new opportunities How many analysts does it take

Cost of implementing SAP

What does it cost? Hardware Software Bioware Cultural changes Different organization Change management Process changes Where to start?

Cost of SAP deployment

SAP