Chapter 01_ERP SAP Overview_ERP6.ppt

SAP OverviewAppraise the concept, benefit and use of ERP solution.
Define the SAP R/3 Overview.
Identify the different SAP R/3 Functional modules/areas.
Distinguish the components of SAP R/3.
Evolution of SAP Architecture to ERP6
Judge the use of ABAP programming language.
ERP / SAP Overview |
Materials Requirement Planning (MRP-I) began as a technique for developing enterprise-wide business solutions by providing automated tools for forecasting demands and planning according to the forecast
IBM Confidential
Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money
Enables corporate firms to readily change their processes to adapt to the ever changing business scenario
Provides expertise in industry specific business processes
IBM Confidential
Tier II Component
So, ERP is ….
Entails
Parameterization
IBM Confidential
…Integrated across the primary and support processes
Marketing
Manufacturing
Materials
Distribution
Finance
Engineering
Sales
ERP - What It Is
ERP is not just a software…but a complete business solution integrated across the entire value chain which creates an information infrastructure for efficient planning and effective execution.
IBM Confidential
Closely links, monitors, and controls primary enterprise resources like manpower, machine, material, methods, market and money.
Enables corporates to readily change their processes to adapt to the ever changing business scenario.
Provides expertise in industry specific business processes.
Entails
ERP facilitates the decision making but does not decide.
ERP provides comprehensive information to optimize but does not optimize dynamically.
It automates and integrates transactions but does not target the cycle time.
IBM Confidential
Operational initiative
via integration
Organizational initiative
Technology
IT is making the transition from a supporting operational entity to becoming a strategic competitive tool.
Because others are buying it !!!
ERP will impact
Information is available online generally to a much broader audience
ERP can alter how work gets done and thus how people work together
ERP alters the level of decision-making authority
ERP can alter organizational structure
IBM Confidential
Business Process Reengineering ( BPR )
Most large companies are attempting to cut in-house development costs, improve customer service, and speed products to market by reorganizing their existing business processes.
Software Pricing
Licensing and pricing of mainframe based packaged applications are tied to the size of mainframe system on which the applications run, but now customers are now demanding user-based licensing options and major corporate applications like SAP provide this instead of the conventional platform-based pricing technique.
Globalization
As businesses are becoming more global in scope, people are demanding packaged corporate applications that are available in a variety of languages with support for multiple currencies.
Integration
As more and more companies are going for BPR, there is increase in demand for integrated solution e.g.. different applications sharing a common database and thus enabling data definitions and business rules to be applied across an entire organization with the facility of doing modifications at one location only.
Global process/ Product management
Integrated Supply Chain Management
Order cycle time/ customer service improvement
Inventory reductions
Logistics and Distribution
Sales & Customer Service
Logistics
SAP R/3
Oracle ( Peoplesoft and JD Edwards were independent ERP venders earlier, but are subsets of Oracle now )
Peoplesoft
Comprehensive functionality
Best Business Practices
Reduced working capital requirements
Having accountability throughout the organization
Improved quality of life
Market Leader in Industrial Enterprise Application (IEA)
About 56% market share in the ERP market.
Employs more than 38,400 people in more than 50 countries.
As the world's third-largest independent software provider, SAP delivers business solutions to more than 36,200 customers in more than 120 countries around the world.
Strength lies in its high degree of integration, mainly for large, global corporate enterprises
Significant presence in Global Fortune 500 companies
In 1972, five former IBM employees -- Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther -- launch a company called Systems, Applications, and Products in Data Processing in Mannheim, Germany. Their vision: to develop standard application software for real-time business processing.
SAP is now the recognized leader in providing collaborative business solutions for all types of industries and for every major market.
Serving more than 36,200 customers worldwide, SAP is the world's largest business software company and the world's third-largest independent software provider overall.
Today, SAP employs more than 38,400 people in more than 50 countries.
IBM Confidential
Discontinued after release of R/2
The R/2 system
No sales effort planned – reactive only
4,300 copies worldwide in 1993
Mainframe-based to replace user legacy software;
co-existence and migration strategy underway for R/2 and R/3
Keeping in mind its multinational customers, SAP designs SAP
R/2 to handle different languages and currencies.
Note: "R" stands for real-time data processing.
R/2
Those SAP R/3 software components that
specialize in the management , storage and
retrieval of data form the Database Layer
specialize in processing business
specialize in interacting with end-users
form the Presentation Layer.
In 1990s SAP R/3 was released.
With SAP R/3, SAP ushers in a new generation of enterprise software -- from mainframe computing (client-server architecture) to the three-tier architecture of database, application, and user interface.
IBM Confidential
Database servers:
Specialized systems
Presentation Layer components are installed across many PCs
The Database Layer
end servers.
SAP was earlier divided into different Functional modules like Materials Management (MM), Sales & Distribution (SD), FI (Financial Accounting), CO (Controlling), HR (Human Resources), PP (Product Planning), PM (Plant Maintenance), PS (Project Systems) etc.
But, with the introduction of mySAP Business Suite, SAP is now organized into a service-based architecture, which has the following:
Procurement
Production
Distribution
MM
PP
SD
FI
CO
All business processes throughout the supply chain are executed in one system sharing all information
Workflow
All business processes throughout the supply chain are INTEGRATED & executed on a common system sharing all information
Scalability
Modular
With the Internet, the user becomes the focus of software applications. SAP develops mySAP
Workplace and paves the way for the idea of an enterprise portal and role-specific access to
information.
As mentioned earlier, with the introduction of mySAP Business Suite, SAP is now organized
into a service-based architecture, which has the following:
mySAP Customer Relationship Management (CRM)
mySAP ERP
mySAP Product Lifecycle Management (PLM)
mySAP Supply Chain Management (SCM)
mySAP Supplier Relationship Management (SRM)
mySAP ERP addresses the core business software requirements of the most demanding midsize and large organizations -- in all industries and sectors.
mySAP ERP includes four individual solutions that support key areas of Enterprise Resource Planning:
mySAP ERP Human Capital Management (HCM) -- Maximize workforce potential.
mySAP ERP Financials -- Turn finance into a strategic business partner.
mySAP ERP Operations -- Free up resources; budget for innovation.
mySAP ERP Corporate Services -- Streamline business processes and costs.
IBM Confidential
SAP has since broadened the integration vision of mySAP Technology into a blueprint they call
the Enterprise Services Architecture (ESA).
SAP NetWeaver is a comprehensive integration and application platform”, mySAP Technology is
now renamed SAP NetWeaver™; NetWeaver delivers the ESA blueprint.
SAP NetWeaver is a vision, or paradigm, of total integration of :
People
Information
Applications
SAP has a team of over 2000 developers in a single organization, working on NetWeaver.
IBM Confidential
Launched in June 2006
Approximately 7000 systems (12/2007)
Software innovation delivered via
Optionally installed and activated software innovations for SAP ERP 6.0
Software innovations include; UI simplifications, functional enhancements, industry specific capabilities and enterprise services
Cumulative in nature; current enhancement packages contain all contents of earlier packages
Enhancement packages are not support packages
SAP NetWeaver
Installation of new functionality separated from activation via Switch Framework
Content of enhancement packages
From a functional view each SAP enhancement package contains several “Business Functions”.
From a technical view each SAP enhancement package contains new versions of existing software components, grouped by a “technical usage”.
Selective Installation
Install the parts that are required for the selected Business Function.
If installed:
No UI or process change until a business function is activated via Switch Framework
Less Adjustment effort due to selective update of software components
No implications on the underlying NetWeaver platform, in addition enhancement packages contain most current Support Package Stack
Selective Activation
If activated:
Testing is simplified with templates, provided for every business function
Support
Packages
Enhancement
Packages
Coding
Configuration
Rendering the application appropriate to a specific customer by specifying data on which the application operates
Because configuration is captured in data, as opposed to code, it survives software upgrades and other changes.
IBM Confidential
ABAP Programming
SAP R/3 applications are written in the ABAP (Advanced Business Application Programming) programming language, and run within the application layer of the R/3 System.
ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAP GUI) at presentation level.
R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System.
ABAP programs communicate with the database management system of the central relational database (RDBMS), and with the graphical user interface (SAPGUI) at presentation level.
IBM Confidential
SAP R/3 scope
ABAP programs are objects of the R/3 Repository. Like all other Repository objects, you maintain them using an ABAP Workbench Tool.
To open ABAP programs directly from the tool ABAP Editor, select the menu path Tools -> ABAP Workbench ->Development -> User Interface -> ABAP Editor from the SAP menu of SAP Easy Access (or start Transaction SE38). If you want to change a program using this method, you must already know its name and environment.
This procedure is only suited for maintaining or creating relatively simple or short programs, which have few or no additional components. It is better to access ABAP programs through Tools -> ABAP Workbench -> Overview -> Object Navigator from the SAP menu of SAP Easy Access (or start Transaction SE80).
IBM Confidential
Materials Requirement Planning (MRP-I) began as a technique for developing enterprise-wide business solutions by providing automated tools for forecasting demands and planning according to the forecast.
ERP is an integrated suite of Applications to meet corporate needs.
Some major ERP vendors are : SAP R/3, Oracle, Baan
SAP AG was founded in Germany in 1972 and it is a Market Leader in Industrial Enterprise Application (IEA).
SAP NetWeaver is a vision, or paradigm, of total integration of :
People
Information
Applications
SAP has a 3 tier architecture comprising of the Presentation layer, Application layer and the Database layer.
The SAP solution is divided in different areas or Functional Modules like SD, MM, PP, QM, PM, FI, CO etc. which are reorganized under services in mySAP Business Suite.
R/3 applications are written in the ABAP programming language, and run within the application layer of the R/3 System.
What are the 3 layers of the SAP R/3 ?
What is SAP Netweaver ?
Why do we need ABAP developments ?

Chapter 01_ERP SAP Overview_ERP6.ppt

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