SAP ERP

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SAP Modules Defined

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What is SAP? SAP was founded in 1972 as System analyse und Programmentwicklung by five former IBM engineers in Mannheim, Germany (Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther). The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications and Products in Data Processing"). In 1976 "SAP GmbH" was founded and the following year it moved headquarters to Walldorf. SAP AG became the company's official name after the 2005 annual general meeting. SAP is the largest business application and Enterprise Resource Planning (ERP) solution vendor and one of the biggest software provider in terms of revenue in the world. SAP's products focus on Enterprise Resource Planning (ERP), which it helped to pioneer. The company's main product is mySAP ERP. The name of its predecessor, SAP R/3 gives a clue to its functionality: the "R" stands for realtime data processing and the number 3 relates to a 3-tier architecture: database, application server and client (SAPgui). R/2, which ran on a Mainframe architecture, was the first SAP version. 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 Resource Management Systems (HRMS), Product Lifecycle Management (PLM), Exchange Infrastructure (XI), Enterprise Portal (EP) and SAP Knowledge Warehouse (KW). The APO name has been retired and rolled into SCM. The BW name (Business Warehousing) has now been rolled into the SAP NetWeaver BI (Business Intelligence) suite and functions as the reporting module. The company also offers a new technology platform, named SAP NetWeaver which replaces SAP Business Connector for Integration/middleware capabilities and offers a systematic approach to Enterprise SOA solutions with a collection of products. 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. SAP officials say 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 in more than 120 countries. SAP holds a partnership with Hewlett-Packard. This partnership will expand around new services linked to NetWeaver and Enterprise SOA (service-oriented architecture). The software infrastructure for business applications developed by SAP is to be upgraded by Hewlett-Packard. One of the services to be upgraded is the Discovery System which was launched by SAP earlier this year. Among other services there are assessment, government and architecture for R3.

SAP Modules Defined

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An introduction to SAP R/3 SAP R/3 is a standard business application software system that integrates all business processes and systems into one seamless and efficient framework. SAP's R/3 is the world's most-used standard business software for client/server computing SAP R/3 is scalable and highly suited for many types and sizes of organizations. The software is highly customizable. SAP’s development language is ABAP and can be programmed across different platforms i.e. UNIX and Windows. SAP R/3 is arranged into distinct functional modules, covering the typical functions in place in an organization. The most widely used modules are Financials and Controlling (FICO), Human Resources (HR), Materials Management (MM), Sales & Distribution (SD), Production Planning (PP) Terminology Configuration - This is when the system is configured to meet the needs of the business by using existing data. Customising - This is when the system is customised or adapted to meet the business requirements which is the process of mapping SAP into the clients business process. Functional Consultant - A functional FICO consultant evaluates the customer requirements, works with business models to transform them into logical and technical views. The functional consultant then customises/configures the respective business area and makes sure the system works well in line with the requirements. Functional consultants also prepare proper guidelines that allow other consultants to do further changes. Technical Consultant (ABAPER, Programmer, developer)- SAP FICO Technical consultant may be an ABAPER, who has lack of knowledge of FICO configuration and functional knowledge and is better suited for technical jobs e.g. reports development, testing, debugging, coding. Support - 1st and 2nd line support, fielding calls and resolving issues and requests. ABAP/4 Programming Language ABAP (Advanced Business Application Programming) ABAP is a high level programming language created specifically by SAP. Released in 1992. In 1999 SAP released an object-orientated extension to ABAP called ABAP objects along with R/3 release 4.5, SAP’s most recent development platform, Net weaver, supports both ABAP and Java. Main ABAP tools for an ABAPER: Reports (Classical, Interactive and ALV Reports) Module pool programming BDC's (session method, call transaction method)

SAP Modules Defined

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SAP Script LSMW SMART FORMS BAPI/RFC Business Add-Ins (BaDI) User Exits Data Dictionary Core modules in SAP FI CO (Finance and Controlling) SD (Sales and distribution) MM (Material Management) PP (Production Planning) HR (Human Resources) SAP FI/CO FI - Finance. Designed for automated management and external reporting of general ledger, accounts receivable and accounts payable and other sub ledger accounts with a user defined chart of accounts. CO - Controlling. Represents the company's flow of cost and revenue. It is a management instrument for organizational decisions. It too is automatically updated as events occur. Finance submodules FI-AA: Asset Accounting FI-AR: Accounts Receivable FI-AP: Accounts Payable FI-BL: Bank Accounting FI-GL: General Ledger FI-LC: Consolidation FI-SL: Special Purpose Ledger FI-FM: Funds Management FI-TR: Treasury Controlling submodules CO-PA: Profitable analysis CO-OM: Overhead Costing (cost centers, Activity based costing, internal Order Costing) CO-PC: Product cost controlling

SAP Modules Defined

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SAP SD SD - Sales and Distribution. Helps to optimize all the tasks and activities carried out in sales, delivery and billing. Sales and Distribution sub modules: Pre-sales support Inquiry processing Quotation processing Sales order processing Delivery processing Billing Sales information system SAP MM MM - Material Management. Supports the procurement and inventory functions occurring in day-to-day business operations such as: Material Management sub modules: Purchasing Inventory management Reorder point processing, etc. SAP PP PP - Production Planning. Used to plan and control the manufacturing activities of a company. Production Planning sub modules: Bills of material Work centres Sales and operations planning Master production scheduling Material requirements planning Shop floor control Production orders Product costing, etc. SAP HR HR - Human Resources. Complete integrated system for supporting the planning and control of personnel activities and HR module is sometimes equivalently referred as HCM (Human Capital Management).

SAP Modules Defined

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Human Resources sub modules: HR-PA HR-PD HR-RC HR-PY HR-TM HR-HCM HR-ESS Personnel Administration Personnel Development Recruitment Payroll Time Management Human Capital Management Employee Self Services

Mysap - ERP New Dimension Products BW or BIW (Business Warehouse or Business Information Warehouse) CRM (Customer Relationship Management) SCM (Supply Chain Management) APO (Advanced Planning and Optimising) SAP BW For the modern enterprise, time wasted due to data loss and inconsistencies is unacceptable, particularly when this can often be remedied easily through the use of a data warehouse system. SAP introduced Business Warehouse Information Systems (BW) in 1997. SAP’s BW information model is based on the core building block of InfoObjects which are used to describe business processes and information requirements. They provide basis for setting up complex information models in multiple languages, currencies, units of measure, hierarchy, etc. The key elements in the SAP’s BW information model are: DataSources –DataSources are flat data structures containing data. They are responsible for extracting data. InfoSources - are the group of InfoObjects that belong together from a business point of view. It contains the transactional data obtained from the transactions in online transactional processes (OLTP) and master data such as addresses of customers and organizations, which remain unchanged for longer time period. ODS Objects - which is formed as a result of merging data from one or more info sources. In it information is stored in the form of flat, transparent database tables that are used for preparing reports and quality assurance purposes. InfoCubes - InfoCubes are multidimensional data storage containers for reporting and analysis of data. InfoProviders - InfoProviders refer to all the data objects that are present in the SAP BW systems.

SAP Modules Defined

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MultiProviders - MultiProviders do not contain any data and are used to combine data from different info providers. Their main purpose is to make this data accessible for reports and analysis. MySAP CRM CRM (customer relationship management) Is an information industry term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. CIC (Customer Interaction Centre) With its extensive call center functionality, the Customer Interaction Center enables agents to provide a high level of customer service, to handle incoming and outgoing calls and emails, to analyze problems and find solutions quickly and effectively. The Customer Interaction Center can be implemented in numerous scenarios such as the Service Interaction Center, telesales and Telemarketing. CRM Mobile Sales This supports field staff by recording orders, checking the availability of goods, providing access to customer information and monitoring the status of customer orders. It also allows field staff to enter information about the customer into the system and thereby make this information available to other staff both inside and outside the company. Assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes (for example, taking orders using mobile devices, handheld computers. CRM Marketing Helping an enterprise to enable its marketing departments to identify and target their best customers, manage marketing campaigns with clear goals and objectives, and generate quality leads for the sales team.

Netweaver SAP NetWeaver is an application builder platform from SAP for integrating business processes across various systems, databases and sources. It is the technological foundation of all SAP products. SAP NetWeaver is marketed as a service-orientated application and integration platform (i.e. SAP NetWeaver is the interface between SAP applications) It furthermore integrates with and can be extended using various technologies, some of which you will see as Microsoft, .NET, Sun, Java EE and IBM Websphere. SAP is fostering relationships with system integrators and technology providers, many of the latter becoming "Powered by SAP Netweaver". The strong momentum illustrates the power SAP holds over the market for packaged software solutions. SAP Netweaver can be seen as part of SAP's plan to transition to a new architecture. From a technical point of view, one can say that SAP NetWeaver is an evolution of mySAP technology, also known as simply SAP.

SAP Modules Defined

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NetWeaver's release is considered a strategic move by SAP for driving enterprises to run their independent business applications on a single SAP platform. The list of products you will hear of are: SAP Web Application Server (Web AS), SAP exchange, SAP Exchange Infrastructure (XI), SAP Enterprise Portal, SAP Master Data Management (MDM) SAP mobile infrastructure (MI) SAP Business Information Warehouse, SAP knowledge Warehouse (KW) Industry Solutions (IS) IS (Industry solutions) combines the SAP application modules and additional industry-specific functionalities. As of February 2006, the following industry specifc solutions are supported by SAP. IS-Retail – Retail IS-U – Utilities IS-OIL – Oil IS-A – Automotive IS-ADEC – Aerospace and Defence IS-AFS – Apparel and Footwear IS-B – Banking IS-HT – High Tech IS- M – Media IS-PS – Public Sector IS-DFS – Defense and Security IS-H – Hospital IS-HER – Higher Education IS-HSS – Hospitality Management IS-REA – Recycling IS-T – Telecommunications

BASIS The SAP BC (Basis Components) is the root of the SAP Applications ERP software. It provides the runtime environment for the rest of the R/3 Applications. It ensures that applications are optimally integrated in the system environment. The SAP Basis Components contains powerful tools such as CCMS (Computing Center Management System) for easy system administration. It is also provides the interfaces to the distribute system components and third-pary vendors (EDI, RFC etc.). PM - Plant Maintenance Equipment servicing and rebuilding. These tasks affect the production plans.

SAP Modules Defined

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Portals/Enterprise - SAP R/3 Enterprise Successor product to SAP R/3 (today: mySAP Enterprise Resource Planning). Consists of a core (SAP R/3 Enterprise Core) and several extensions (SAP R/3 Enterprise Extensions), which are technically part of an add-on. PS - Project System On one hand, the market demands the development and production of new products in ever shorter times. On the other hand, companies are forced to reduce the costs for the development of new products by the growing pressure of competition. Therefore, a process for research and development projects that is both chronologically and organizationally perfect gains more importance . The SAP Project System optimizes the business processes from project planning through to carrying out the project and enables a project progress analysis. You can plan, carry out and control projects in a target-orientated and a business fashion. QM - Quality Management A quality control and information system supporting quality planning, inspection, and control for manufacturing and procurement. SEM - Strategic Enterprise Management A suite of tools and processes that managers and executives can use to introduce enterprise-wide, value-chain-orientated management practices. SAP SEM provides an integrated, realtime overview of the performance of a company over and beyond its organisational structures. This enables managers to gauge and even increase - the value of their company. SM - Solution Management Management concept which ensures that SAP solutions have the services, support, expertise and infrastructure they need to perform reliably at lowest cost of ownership. SRM - Supplier Relationship Management mySAP Supplier Relationship Management (mySAP SRM) is a solution that enhances and improves the processes previously covered by mySAP EProcurement. It enables companies to evaluate their procurement strategies, connect up vendors and integrate them in the procurement process with mutual benefit.

SAP Modules Defined

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WF - Workflow Flow of structured or ad-hoc tasks including the organizational role and people as well as business documents involved and along a business process. A computersupported workflow allows you to model, execute and control workflows, typically with a graphical user interface. SAP has offered Web-enabled SAP Business Workflow since SAP R/3 release 3.1 (today: mySAP Enterprise Resource Planning). WM - Warehouse Management Subdivides the "Storage Location", which is used in the MM Module to define inventory values by location, into "Storage Types" and then into "Storage Bins". Control of stock to a physical level down to a warehouse bin. Placement and removal rules can be configured, stock counts can be done. XI - Exchange Infrastructure SAP Exchange Infrastructure is a building block of SAP NetWeaver and runs on SAP Web Application Server. Through the strength of its integration, SAP Exchange Infrastructure enables a new breed of adaptive business solutions.

Different types of ERP SAP, BAAN, JD Edwards, Oracle Financials, Siebel, PeopleSoft. Among all the ERP’s most of the companies implemented or trying to implement SAP because of number of advantages over other ERP packages.

Advantages and disadvantages of SAP ERP Advantages • • • • • ERP allows easier global integration (Barriers of currency exchange rates, language, and culture can be bridged automatically) Updates only need to be done once to be implemented company wide Provides real-time information, reducing the possibility of redundancy errors Creates a more efficient work environment making it easier for employees to do their job which leads to effectiveness Vendors have past knowledge and expertise on how to best build and implement a system Locked into relationship by contract and manageability with vendor - a contract can hold a company to the vendor until it expires and it can be unprofitable to switch vendors if switching costs are too high Inflexibility- vendor packages may not fit a company's business model exactly and customization can be very expensive Return on Investment may take too long to be profitable

Disadvantages •

• •

SAP Modules Defined

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• • SAP ERP implementations have a risk of project failure Expensive, very complex, demands highly trained staff, lengthy implementation time.

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