SAPSAPHuman Capital ManagementHuman Capital Management

What is SAP?What is SAP?SystemsApplicationsProducts ◦ Standard ERP Software for real time Data

processing

What is ERP?What is ERP?

Enterprise ◦Resource Planning

What is an Enterprise?What is an Enterprise?

An Enterprise is a huge organization with huge An Enterprise is a huge organization with huge resources.resources.

Does this definition stand right now?Does this definition stand right now?

What are the Resources?What are the Resources?An Enterprise has the following resources:

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

What do we plan What do we plan and and

why do we need to Plan?why do we need to Plan?Planning is done for resources. Planning entails the optimal Planning is done for resources. Planning entails the optimal utilization of resources so that the following are achieved:utilization of resources so that the following are achieved:

ProductivityProductivity (relates to Men and Machines)(relates to Men and Machines)

EffectivenessEffectiveness (relates to Methods employed)(relates to Methods employed)

EfficiencyEfficiency (relates to Men, Methods and Machines)(relates to Men, Methods and Machines)

The Result is the Profitability of the Enterprise.

Enterprise Architecture - BenefitsEnterprise 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 cheaperDelivers quality information to produce a

quality enterpriseSatisfying Partners/CustomersReducing required manpower

HISTORYHISTORY

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

(System Analysis and Program Development)(System Analysis and Program Development)

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

Brains behind SAPBrains behind SAP

• Dietmar HoppDietmar Hopp• Hans-Werner HectorHans-Werner Hector• Hasso PlattnerHasso Plattner• Klaus TschiraKlaus Tschira• Claus WellenreutherClaus Wellenreuther

Why?Why?

• Reason 1 :Reason 1 : As Client after client are developing the same, or very similar, computer programs• Reason 2 :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 ERPRivals of SAP in ERP

Why do the rivals of SAP stand far behind SAP?

SAP success storySAP success story

• Market share : Nearly 60%.Market share : Nearly 60%.• End users : More than one million End users : More than one million

end users around the world work end users around the world work with the R/3 system.with the R/3 system.

• World’s third-largest independent World’s third-largest independent software vendor.software vendor.

Events in SAP historyEvents in SAP historyIn the fifth year of operations, SAP took a new name Systeme Anwendungen Produkte in der Systeme Anwendungen Produkte in der

DatenverarbeitungDatenverarbeitung (Systems, Applications, Products in Data (Systems, Applications, Products in Data

Processing”)Processing”)SAP moved its offices and headquarters to

Walldorf in 1977.SAP went public as SAP AG on Nov 4, 1988.

First customer for SAPFirst customer for SAPGerman ICI subsidiary in OstringenGerman ICI subsidiary in Ostringen

SAP R/1 SAP R/1 inin 19731973SAP R/2 SAP R/2 inin 19791979SAP R/3 SAP R/3 inin 19921992

““R” R” stands for stands for

real-time data processingreal-time data processing

ArchitectureArchitecture

17

Architecture of R/1 SystemArchitecture of R/1 System

Interfaces developed in application Interfaces developed in application programs itself.programs itself.

File systems were used.File systems were used.Client/server concept inexistent.Client/server concept inexistent.

Architecture of R/2 SystemArchitecture of R/2 System

Main-frame versionMain-frame versionUses DBMS for the first timeUses DBMS for the first timeInterface programming within Interface programming within

Application programming.Application programming.Data stored in Database.

SAP R/2SAP R/2How is it different?How is it different?

It attains the high level of stability of It attains the high level of stability of the previous generation of programs.the previous generation of programs.

It handles different languages and It handles different languages and currencies.currencies.

Architecture of R/3 SystemArchitecture of R/3 System

Client/Server concept introducedClient/Server concept introducedUses RDBMS for data storageUses RDBMS for data storage

Interface programming separated from Interface programming separated from Application programming.Application programming.

Maintains more than 2 servers at different tiers.

Presentation LayerPresentation Layer, or client, interfaces with the , or client, interfaces with the user.user.

Application Layer Application Layer houses all the business specific houses all the business specific logic.logic.

Database Layer Database Layer records and stores all the records and stores all the information about the system, including information about the system, including

transactional and configuration data.transactional and configuration data.

SAP R/3SAP R/3How is it different?How is it different?

Client-server conceptClient-server conceptUniform appearance of graphical interfacesUniform appearance of graphical interfaces

Consistent use of relational databasesConsistent use of relational databasesAbility to run on computers from different Ability to run on computers from different

vendorsvendors

29

Facts about Facts about SAP R/3SAP R/3

30

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”

It is the Largest European software vendor. SAP AG became the company’s official

name after the 2005 annual general meeting.

It ranks after Microsoft, Google, Apple, and IBM in terms of Market Capitalization.

32

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.

33

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.

34

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.

SAP High Tech & Electronics

SAP Consumer Products

SAP Transportation

SAP Public Sector

SAP Telecomm.

SAP Chemicals

SAP Pharmaceuticals

SAP Retail

SAP Banking

SAP Industry SolutionSAP Industry Solution

SAP Engineering & Construction

SAP Oil & Gas

SAP Utilities

SAP Health Care

SAP Automotive

SAP Media

SAP Aerospace & Defense

SAP Service Providers

...

BusinessInformation

Ware-house

SalesForceAuto-

mation

B2BProcurement

AdvancedPlanner &Optimizer

R/3R/3

SAP FinanceSAP Mill

36

R/3Client / Server

ABAP

FIFinancial

Accounting

COControlling

TRTreasury.

PSProjectSystem

SDSales &

DistributionMM

MaterialsMgmt.PP

ProductionPlanning

QMQuality

Manage-ment PM

Plant Main-tenance HR

HumanResources

WFWorkflow

ISIndustry

Solutions

Integrated turnkey solutions

Open Systems

Client/Server Architecture

Enterprise Data Model

Integrated Real-Time

Multi-national Multi-currency

Industry-Solutions

Internet / Intranet

SAP R/3 SystemSAP R/3 System

Other major product offerings includeOther 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 SAP R/3 functionality is structured using its own proprietary language called own proprietary language called ABAP ABAP

(Advanced Business Application (Advanced Business Application Programming).Programming).

ABAP or ABAP/4 ABAP or ABAP/4 is a fourth generation is a fourth generation

language (4GL), geared toward the language (4GL), geared toward the creation of simple, yet powerful programs.creation of simple, yet powerful programs.

SAP has several layers.SAP has several layers.

The The Basis System (BC) Basis System (BC) includes the ABAP includes the ABAP Programming language, and is the heart (i.e. the Programming language, and is the heart (i.e. the base) of operations and should not be visible to base) of operations and should not be visible to

higher level or managerial users.higher level or managerial users.

The Heart of the system (from the manager’s The Heart of the system (from the manager’s viewpoint) are the viewpoint) are the application modulesapplication modules..

SAP BASIS (Basis)

ABAP etc. (Cross-Application)

HRCentral

Applicationswith/without HR

Plug-Ins IBU Add-On

CRMBW

SEM APO BBP

classic R/3"

A common Basis for all mySAP. com Products

Common mySAP.com TechnologyCommon mySAP.com Technology

CustomerPrograms

Applic a tio ns ,s uch a s FI/CO

SAP BasisSAP BasisSAP BasisSystem Software

SAP BasisSAP Basis

SAP R/3 Conceptual AreasSAP R/3 Conceptual AreasSAP Conceptual Areas

Application Area(Initiate and execute

SAP transactions)

(Functional)

Basis Area(The technical

administration of the system)

(Authorizations/Ids/etc)

Development Area(1. A developer’s

workbench2. Create & Test

ABAP/4 programs)

(Technical)

44

mySAP? mySAP.com?mySAP? mySAP.com?

mySAP links e-commerce solutions to mySAP links e-commerce solutions to existing ERP applications, using state-existing ERP applications, using state-

of-the-art Web technology.of-the-art Web technology.

System LandscapeSystem Landscape

ProductionDevelopment Quality Assurance

Transport group

Transport group

PRODQTST TRNGTEST CUST

SAND

Logging on to SAP SystemLogging on to SAP System

Logon pad with different systems

Adding to favorites Adding to favorites

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

SAP AG

R

Working in Several Sessions

Session 4

Session 3Session 3

Session 2Session 2

Cost center

Cost acctg.

Valid from

Name

Description

Long text

Descriptions

Exec.Board

Executive Board cost center

X

Session 6

Session 5

Session 1

SAP AG

R

The Icon Bar in the R/3 System

Enter

Save

Back

Exit

Cancel

Help

Execute

Find

Sort

Print

Change ↔ Display

Page??

SAP AG

R

User Profiles

Own data: allows you tochange your address,defaults, and parameters

Address: enables you toset your communicationinformation

Defaults: allows you tospecify your preferredprinter and date andnumber formats

Parameters: allows you toset default values infrequently used fields

Information systems Tools System

?? Create session

End session

User profile

Services

Utilities

List

Object services

Own spool requests

Own jobs

Short message

Status...

Log off

Hold data

Set data

Delete data

Application values

Own data

Favorite maint.

SAP AG

SAP AG

R

Getting Help with the R/3 System

Accounting Human resourcesLogisticOffice

SAP R/3

??Dynamic menu

Information systems Tools System Help

Extended helpR/3 library Find...

Glossary Release notesGetting Started

Settings...

Help on help

SAP AG

R

SAP HTML Help Files

Contents SearchIndex

R/3 Library

SAP Help - R/3 Library

Hide Back Forward Home Print Options

BC - Basis

FI - Financial AccountingHR - Human ResourcesLO - LogisticsInformation

CA - Cross Application

R/3 Library

The most difficult part of SAP R/3 The most difficult part of SAP R/3 is its is its implementationimplementation. .

Simply because SAP R/3 is never Simply because SAP R/3 is never used the same way in any two used the same way in any two

places.places.

SAP AG 2002

Defining the Points on the ASAP Roadmap

ProjectPreparation

Business

Blueprint

Realization

FinalPreparation Go Live &

Support

•Initial Project Planning•ProjectProcedures•Training•Project Kickoff•Technical Requirements Planning•Quality Check

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

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

•Production Support•Ongoing KPI Management

•Project End

SAP AG 2002

Master ListsMicrosoft Excel Spreadsheets for Development, Organization, Business Processes and Authorizations

Project Charter

BPP

Documents of an ASAP Project

Q&Adb

Substructures:

Business StrategyOrganizationGeneral SettingsMaster DataBusiness ProcessCross ApplicationDevelopment

Business Blueprint

ProjectPlan

Scope

Config. Plan

TestingPlan

Unit testingTest scenarioIntegration

4321 5

Cutover Plan

VolumeTest

Stress Test

ConductEnd UserTraining

SystemPerformance

Review

ProjectTeamOrg.

Stand. &Proced.

Technical Operations

Manual

Progr.Develp.

EUTrainingMaterial

Microsoft Word Documents

11/19/14 67

INTRODUCTION TO SAP:Overview of the SAP R/3 System

& Getting Started with R/3

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◦ Usually are applications systems that run on

top of a RDBMS◦ Replace 100s of legacy systems in

organizations who use an ERP

What Is Enterprise Resource Planning?

Strategic Information

Managerial Information

Transaction Information

Sales &Marketing

Manufacturing

HR

Accounting& Finance

Procurement

Decision Support

Executive IS

One Integrated Information System

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

Characteristics of ERPs

11/19/14 71

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 re-engineering

Center re-engineering around the software

Directly link to external systems

Advantages of ERPs, in General

11/19/14 72

What Is SAP R/3?

SAP is an example of an ERP System SAP R/3◦ SAP’s 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

Worldwide Organized in 4 Operating Regions

* Through Partners

Asia PacificAsia Pacific

Australia

Japan

Hong Kong

China

India

Korea

Singapore

Malaysia

New Zealand

Thailand

Philippines

Indonesia

Middle East*

Africa / Middle EastAfrica / Middle East

Israel*

Turkey*

South Africa

Switzerland

SlovakRepublic

EuropeEurope

Belgium

Denmark

Germany

France

Greece*

Italy

Netherlands

Austria

Portugal

Russia

Sweden

Spain

CzechRepublic

Hungary*

Poland

Norway

U.K.

AmericaAmerica

U.S.A.

Mexico

Argentina

Brazil

Chile

Venezuela

Colombia

FinlandCanada

Romania

Croatia

R/3 Integrated Products

03

OpenOpenSystemSystem

Designed Designed for all for all

types oftypes ofbusinessbusiness

IndustrySmultinationalolutions

R/3R/3Client / ServerClient / Server

FIFIFinancialFinancial

Acctg.Acctg.

COCOControllingControlling

AMAMAssetAssetMgmtMgmt

PSPSProjectProjectSystemSystem

WFWFWorkflowWorkflow

MMMMMaterials Materials

MgmtMgmt

HRHRHumanHuman

ResourcesResources

SDSDSalesSales

PPPPProductionProductionPlanningPlanning

QMQMQuality Quality MgmtMgmt

PMPMPlantPlantMaint.Maint.

Integrated Integrated

SolutionSolution

Client/ServerClient/ServerArchitectureArchitecture

ComprehensiveComprehensiveFunctionalityFunctionality

ISISIndustryIndustry

SolutionsSolutions

Graphical UserGraphical UserInterfaceInterface

Multinational

Over 12,000 installations around the world

11/19/14 76

Highly Integrated Application SoftwareClient/Server TechnologyBased on Best Business PracticesBased on Open Standards

Various RDBMS: Oracle, Informix, etc.

TCP/IP (standard communication protocol)

UNIX, Windows NT, OS/400, etc. OLE, RPC’s, Open Interfaces

Summary: What is SAP R/3?

11/19/14 77

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 History

Adopted by Most Large Corporations (80% of Fortune 500)

Why is R/3 so Important?

11/19/14 78

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: transactions, managerial, decision support or executive

Fully customizable

Main Features of R/3

11/19/14 79

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..◦ Fully Integrated Data Model

(Non-redundant Data)◦ Application Processing (I.e.

Middleware) is Totally Scaleable

What Does It Involve?

11/19/14 80

◦ 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, Windows/NT, Apple MAC, UNIX (X-Windows)

◦ 75,000,000 Lines of Source Code◦Over 7,000 Separate Relations

(over 10,000 logical tables, nearly 8000 physical tables)

What Does It Involve?

11/19/14 81

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,

High-Tech Firms◦ Impressive process and data

documentation◦ Supported by ALL Major

Hardware Vendors

Introduction to SAP R/3

11/19/14 82

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

organizations◦ SAP rolls out new versions

every 6 months

Introduction to SAP R/3

11/19/14 83

An SAP Installation Is a Serious Undertaking

Usually a Large Business Will Re-engineer Its Business Processes at the Same Time (OR First)

Different Approaches◦ Big Bang - Convert All Systems

at Once◦ Phased Conversion - Gradual

Migration◦ Pilot Approach (Big Bang or

Phased, but One Business Area Only)

How Is It Done?

11/19/14 84

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

Most Large SAP Installations Take 2 to 3 Years to Complete

How Is It Done?

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

1 2 3 4 5 6

Project Prep.

Business Blueprint

Simu-lation

Vali-dation

Final Prep.

Go Live&

Support

Start Here

Realize Business Benefits

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