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Introduction to SAP

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What is it?

An enterprise wide system is an off-the-shelf package that provides an integrated suite of applications which provide transaction processing and management information systems for the common core of business processes found in accounting, human resource management, manufacturing and sales and distribution.

Also called an Enterprise Resource Planning System

(ERP)

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Competitors in EWS Bahn

from financial to EWS ORACLE

ORACLE Financials PeopleSoft

from HR to EWS Mincom

from mining and MMRP to EWS SAP from manufacturing to EWS

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SYSTEMS APPLICATION and PRODUCTS in Data Processing

R/3 Real Time 3 Tier Architecture

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SAP was founded in 1972 by five people: Wellenreuther, Hopp, Hector, Plattner and Tchira.

Wellenreuther , while working at IBM , developed a financial accounting package running in batch for an IBM customer – Naturin. SAP bought rights from Naturin and started to design and implement the real-time finance system as a standard package based on Wellenreuther ’s experience in the application. They sold the first copy of the standard system to ICI.

Simultaneously, they developed a Materials management system as a bespoke software for ICI by reserving all property rights.

HISTORY OF SAP

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SAP Company Overview

Commenced 1972 in Germany by 5 ex IBM who acquired the rights to a financial and materials management system for ICI

Now ~8000 staff 3000 programmers in DE 5th largest independent

software firm revenues of over $1 Billion growth of 10-20% pa

depending on country R/2 & R/3 ~7000 installations (over

500,000 users) R&D budget of

approximately $500M

A Brief Examination of SAP R/3

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BASISABAP/4

FI

CO

AMQM

PM

HR

PP

MM

SD

PS

WF

IS

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Key Modules

Financial Management Financial (FI) Cost Accounting (CO) Treasury Management

(TR) Project Management (PS) Asset Management (AS)

Support Applications Human Resource (HR)

Manufacturing Applications/Logistics

Production Planning (PP) Quality Management (QM) Plant Maintenance (PM) Materials Management

(MM) Sales and Distribution

(SD)

Industry Solutions (IS) Work Flow (WF)

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Financial Management

FI Modules General Ledger (FI-GL)

Accounts Receivable (FI-AR)

Accounts Payable (FI-AP)

Legal Consolidation (FI-LC)

Accounting Information Systems

Treasury (TR) Cash Management Funds Management Treasury Management

Cost Accounting (CO) Cost Centre Accounting Cost Distribution Activity Based

Accounting Product Cost Accounting Profitability Analysis

Supports Automatic management and external reportingof all financial transactions in the system.

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More Financial Management Modules Project Management

Define Project Set Project Definition Determine Work Breakdown Structure Develop Project Networks Project Cost Planning Capacity Requirement Planning

Control Project Maintain Project Documentation Project Budget Control

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Logistics The management

of assets Asset

Management Plant Management

Design and control of production Production

Planning Quality

Management Sales and

Distribution

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Asset Management Asset Management

Control Fixed Assets Maintenance and Repair of Assets Purchase and Sale of Assets Asset Accounting

depreciation asset replacement

Investment Management

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Plant Maintenance Management

Maintenance Orders Resource Management Maintenance History Usage History Maintenance as Customer Service

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Production Planning Sales and

Operations Planning

Master Planning Materials

Requirements Planning

Capacity Requirements Planning

Production Orders Product Costing Process Industry

Modules

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Sales and Distribution Sales Support

SD-CAS Sales

SD-SLS Shipping

SD-SHP Billing

SD-BIL

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Materials Management Material Requirement Planning Purchasing Inventory Management Invoice Verification Warehouse Management

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Support Systems Human Resource

Management time management personnel

planning and development

workforce planning

travel expenses

Work Flow models sequence

of a business process to ensure that the appropriate steps are carried out

at the right moment

by the right peopleMust be tuned to localrules and conditionsDeveloped for Australia byFERNTREE

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R/3 is Integrated Common Database Common Data Dictionary Application Update flows to all

related systems One point of data entry Consistent data Elimination of redundant data

Consistent User Interface

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R/3 is Flexible Can be customised to meet

own business practices best business practices

Allows interfaces to other systems Allows for own report and screen

generation Runs on multiple hardware and database

platforms Can be tailored

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R/3 Supports the Business

Complete business solution across all business functions

Has solutions to most critical business processes (over 1000)

Provides an enterprise wide solution support global business and accounting processes standardised business processes using best

practice models supports multiple business structures and

multiple business units

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R/3 Reveals the Business

Implementation requires statement of business rules CLEAR MODEL OF BUSINESS PROCESS

Work Flow Opportunity to streamline decision

making Opportunity for business process

reengineering

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Prod

A Function view of the Business

HR Sales Acct

Sales Staff

Prod Staff

Acctg Staff

Assign Staff

Order Entry

Order Ship

Order Receipt

Order Parts

Order Schedule

Order Make

PayStaff

PayParts

InvoiceOrder

ReceiptOrder

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Prod

A Process view of the Business

Customer Service

Financial Reporting

HR Sales Acct

Product Development

Order Processing

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Implication for R/3 implementation Requires process view Requires answers to questions of

work flow at least Positions the firm to undertake BPR

(Business Process Re-engineering) or major modification to R/3

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SAP R/3 - Summary

Is a comprehensive suite of integrated applications meeting the needs of most enterprises in the common business processes.

Covers financial management logistics human resource management

Supports best practice through work flow analysis

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BASIS

FI

CO

AMQM

PM

HR

PP

MM

SD

PS

WF

IS

The Technology of SAP R/3

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Varieties R/2 is mainframe system R/3 is client server system R/3 may be two or three tiered

client server 3 tier is recommended

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R/3 Architecture

Hardware

Systems Software

R/3 Middleware

BASIS

R/3 Applications

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R/3 Middleware Client server Uses underlying relational

databases ORACLE SQL Server Ingress Sybase

Its Graphical User Interface SAP GUI

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System Platforms

Languages

DialogSAPGUI

Databases

OperatingSystems

HardwareUNIX BOXES IBM AS 400INTELDEC ALPHA

UNIX: Most Variants

Windows NT OS400

ADABAS, DB2 for AIX

InformixDB2/400ORACLE

MS SQLServer

Win 3.1, Win 95, Win NT, OSF Motif, Presentation Manager, MacIntosh

Win ‘95OS/2

ABAP/4, C, C++

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What is 3-Tiered?

3 Functional Areas Presentation

workstations Application Logic

small boxes Data

Management large box

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Database Server

Application Servers

HR

Inte

rnet

FI

Presentation Servers

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Varieties of Client ServerName Presentation Application Database

Centralised System

2 Tier System

3 Tier System

NOTE: a truly distributed system may distribute the database; the processing of an application or processing of presentation calculations

Mainframe with terminals

Mainframe with intelligent terminals

Mainframe or MiniHigh End Workstation

PC or NC

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R/3 Middleware: Interfaces to Systems Software

Database

OperatingSystem

Presentation

R/3DB

Inter-face

OS Interface

PresInter-face

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Summary SAP R/3 is

Client Server 3 Tier

Presentation Application Database

Relatively hardware and database independent

SAP R/3 offers comprehensive suite

of integrated applications meeting the needs of most business

best practice process design

ability to configure to industry sector unique business

requirements

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How do you come in? Modify R/3 to suit organization’s

business processes Modify R/3 to meet organization mid-

way Even if the entire business practice is

adopted: new reports/transactions modify reports/transactions aggregation of functions

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After SAP installed , Analysts experienced in Business Process Re-engineering (BPR) , who are also configuration experts, customize the modules to meet the Corporation's need, or help the corporation change it's business practices to achieve the most efficiency out of SAP.

This configuration does not usually involve programmers, but is instead done by Business Analysts. When the configuration process is nearing completion, the programmers ( Called ABAPers - specialists in ABAP/4) are brought in to extend any part of SAP that can not be configured to meet the needs of the corporation.

Where you fit in!

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When you login to a SAP serverthe following screen appears

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Enter the user name & password

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This is the screen you work !

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Questions & Answers