Post on 10-Jul-2015
description
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
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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)
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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
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