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INTRODUCTION TO SAP:

Overview of the SAP R/3 System

& Getting Started with R/3

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MINS 298C

SAP Implementation, Configuration & Use

Copyright 1996, 1997, 1998 - James R. Mensching, Gail Corbitt

Contents of this file are for the exclusive use of the special

MINS 298C class dealing with SAP software at CSU Chico

for the Spring 1998 semester. Any other use in either electronicor hardcopy form is prohibited without the express written

permission of the author. This material is confidential.

Do not share it with anyone not enrolled in the class.

Lecture #2

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Introduction to ERPs and SAP

Objectives

Define what SAP is within the Context of ERPs

Explain Why SAP, the Company, and R/3, the Product,

are Important

Explain What Implementing SAP R/3 Involves (How,

What and Who)

Define Our Role In This Process

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What Is Enterprise Resource Planning?

The integration of allcomputing within an organizationsuch that:

allmajor business processes are encompassed andstandardized and

alldata is usable byallfunctional 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

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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

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Link all business processes automatically Reduce interprocessing time (transactions occur one time at the

source)

Maintain complete audit trail of all transactions

Utilize one common database

Perform automatic internal conversions (e.g., foreign currency,taxes, legal rules for payroll)

Improve customer service by putting data at the fingertips of anyemployee

Involve users in the entire functional cycle

Unify backup, recovery procedures and other systemadministration tasks

Secure the system from disaster and unauthorized use


Characteristics of ERPs

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Overall ERP Market

Advanced Manufacturing Research, a Boston-based

research company states:

43 ERP Vendors

EWS Sales will exceed $10 Billion (1997)

27% will be Financial Module

Marketing Trend in ERP Software is towards mid-sized companies($50M-$500M in sales)

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Overall ERP Market

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Fully Integrated Business Functions or Modulesthat Support Business Processes

Helps develop understanding of business

processes by tracking information thru the

process

Standardized Systems Development Life Cycle

Move Toward Business Process Re-engineering

Centers Re-engineering Around the Software

Directly Links to External Systems


Advantages of ERPs

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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 4.0: New release (May 1998) distributes data, process, andpresentation

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Worldwide Organized in 4 Operating Regions

* Through Partners

Asia Pacific

Australia

Japan

HongKong

China

India

Korea

Singapore

Malaysia

NewZealand

Thailand

Philippines

Indonesia

Middle East*

Africa / Middle East

Israel*

Turkey*

South Africa

Switzerland

SlovakRepublic

Europe

Belgium

Denmark

Germany

France

Greece*

Italy

Netherlands

Austria

Portugal

Russia

Sweden

Spain

CzechRepublic

Hungary*

Poland

Norway

U.K.

America

U.S.A.

Mexico

Argentina

Brazil

Chile

Venezuela

Colombia

FinlandCanada

Romania

Croatia

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R/3 Integrated Products

03

Open

System

Designed

for all

types of

business

IndustrySmultinationalolutions

R/3Client / Server

FIFinancial

Acctg.

COControlling

AM

AssetMgmt

PSProjectSystem

WFWorkflow

MMMaterials

Mgmt

HRHuman

Resources

SDSales

PP

ProductionPlanning

QMQualityMgmt

PMPlantMaint.

Integrated

Solution

Client/Server

Architecture ComprehensiveFunctionality

ISIndustry

Solutions

Graphical User

Interface

Multinational

Over 12,000 installations

around the world

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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)

UNIX, Windows NT, OS/400, etc.

OLE, RPCs, Open Interfaces


Summary: What is SAP R/3?

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Adopted by Most Large Corporations (80% ofFortune 500)

Forces a Consolidation of Diverse IS Systems

Total Change in Doing Business - RedesignBusiness 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


Why is R/3 so Important?

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Importance of SAP as a Product/Company

Fastest Growing Software Company in the World

Second Largest Software Company in the World

Founded in 1972; Based in Waldorf, Germany

Market Share Leader (About 40% of ERP Market)

Over 12,000 Customers

Devotes 20-25% of Revenue to R&D

SAP translates into Systems, Applications and

Products in Data Processing (R stands for Real Time)

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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

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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



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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 logicaltables, nearly 8000 physical tables)



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Advantages of SAP over other ERPs

Three Tier Client/Server System

Open System - Many O/Ss & DBMSs

Differentiated Development, Test & ProductionSystems (SAPs Landscape)

Imbedded Version Control

Integrated Development & Implementation Tools

Sophisticated Management & Monitoring

Environment


Introduction to SAP R/3

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Advantages of SAP

Covers Many Business Functions

Strong Workflow Capabilities

Can Handle Many Different Types of ComplexTransactions - 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



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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



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Who Is Involved?

Businesses That Wish to Re-engineer Their

Business Processes

Presently This Includes Primarily Large Companies,

But Increasingly Smaller Businesses moving toERPs

Hardware & Software Vendors Providing the

Platforms That Run the Systems


Who Is Involved?

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Consultants That Provide the Installation, Training &Configuration Services

Individual Employees That Must Learn How to Adapt

to New Ways of Doing Their Jobs

In house implementation teams (usually IS/CIStypes that plan and execute implementations of

SAP)

SAP and in-house support teams that help trouble

shoot problems and support installations.


Who Is Involved?

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An SAP Installation Is a Serious Undertaking

Usually a Large Business Will Re-engineer Its

Business Processes at the Same Time (OR First)

Many Different Approaches Exist

Big Bang - Convert All Systems at Once

Reduces Need for External Interfaces

Huge in Scope

The larger the organization the less likely this

approach is used


How Is It Done?

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Approaches Used cont.

Phased Conversion

Necessary to Write External Interfaces to

Existing Legacy Applications

Limited in Scope: Prioritize Modular

Implementation

Pilot Approach - Use One of the Two Above

Conversion Methods, but Only Apply It to One

Division, Department, Plant, Etc.


How Is It Done?

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Things That Have to Be Done

Learn the SAP System

Analyze the Present Processes

Determine What SAP Functionality Is Needed

Install and Configure (customize) the SAP System

Test the configuration

Most Large SAP Installations Take 2 to 3Years to Complete


How Is It Done?

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Show Students How Business Best Practices

Operate in a REAL Environment

Use SAP to Demonstrate Concepts and Processes

Provide Students With High Demand Market Skills

More Closely Knit the College of Business

Curriculum Together

Keep Faculty Current on Emerging Technologies


What is the Academic Role in This?

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Getting Started with SAP

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SAP Academic Workshop:


Objectives:

Explain the log-on process in a 3 tiered landscape

Show ways to navigate in SAP

Explain the layout of the SAP screen

Show the uses of the most common buttons and features

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Short-cut Icon from the desktop

System logon screen - choosing the landscape

SAP R/3 Logon Screen

User IDs and Password changes



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Screen Features

Title Bar

Menu Bar

Tool Bar

Function keys

Main body of screen

Message line at bottom



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Title Bar

Function

Icons

Application

Toolbar

Status Bar

Window

Menu

Command

Field

Customizing

Display

Options

SessionNumber

Function

Buttons



Enter

Icon

Menu Bar

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Ways to Navigate in SAP

Menu Bar -- drop down navigation

Dynamic Menu

T-codes or Transaction codes

Function Keys (change for each transaction set)

Right mouse click (displays functions available at the time)



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Common Icons in Tool Bar

Enter (Green Check or Red Poppy)

Save (Open yellow folder)

Cancel (Red X)

Back (Green left arrow)

Exit this T-code (Yellow Up arrow)

Yellow Question Mark (On-line help)



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Other Helpful Features: System Drop down

Status (shows T-code or program in case of error)

Create Session

List > Print

List > Save

Log off



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Running a Transaction (set) or System Task

Equates to on-line representation of a business event

Example: Create a purchase order = business event (may involve

several screens of data)

Header and Detail

Fields and Values

Field Types:

Mandatory (white or yellow background with a ?)

Optional (white background but no ?)

Display only (gray background)

