Introduction To SAP

Rutgers University Faculty of Management

By Martin O’Reilly

Agenda

ERP & SAP Background

IDES

SAP Basics & Navigation

SAP Exercises With IDES

RUTGERS UNIVERSITY FOM & SAP R/3

&

What is SAP R/3?

SAP is an ERP (Enterprise Resource Planning) system

What is an ERP?

Enterprise-wide system which integrates the business functions and processes of an organizationIntegration of business functions into one seamless application Usually runs on a RDBMS Replaces Countless Departmental and Workgroup Information Systems

What is an ERP?

Links business processes Maintains audit trail Utilizes a common information systemImplementation normally involves BPR: Business Process Reengineering Very Difficult to Implement Correctly

Evolution of ERP

1960’s: Inventory Control Systems

1970’s: MRP: Material Requirement Planning

1980’s: MRPII: MRP & Distribution

1990’s: MRPII ERP with introduction of other business functions CRM’s

Today: Web Enabled ERP’s

What is the State of the ERP Market?

EPR Systems firmly entrenched in technological infrastructureLinking ERP’s to Front End SystemsASP & possible new market segments Product Life Cycle = State of declinePublic Sector Growth – laggardsNew Implementations declining due to new paradigms

What is SAP R/3?

SAP = Systems, Applications and Products in Data Processing (R stands for real time, 3 stands for 3 tier)German Based Company SAP: ERP Market Leader80% Fortune 500 Companies Use SAPOver 12,000 Customers

What is SAP R/3?

Client/Server TechnologyHighly Customizable Based on Industry Specific Best PracticesMulti-lingual: InternationalBased on Open StandardsIntegrated Applications System: Modular in design

New Dimension Products

Business Information Warehouse

Strategic Enterprise Management

Supply Chain Optimizer

What is IDES?IDES = International Demonstration and Evaluation System IDES Basics Fictitious company using R/3 Customizing, master data, transaction data Integrated, well-documented system environment Simulation of business processes

IDES is a Standard R/3 System System R/3 (standard) IDES data (customizing, master data,

transaction data)

IDES Guidelines

To reflect increasingly complex requirements of modern business To design all organizational structures in a practical mannerTo make each element of the core functionality of the R/3 System available in its most up-to-date versionTo allow users with very little or no previous R/3 knowledge to easily run core scenarios in the R/3 System

IDES-Asia

Tokyo / Japan

IDES Latin America

Mexico/ Mexico-C.

IDES CorporationManufacturing

IDES Europe

Frankfurt / Germany

Lisbon / Portugal

Paris / France

Barcelona / Spain

London / UK

New York / US

IDES North America

Toronto / Canada

IDES - The Business Group

Co

mp

lexi

ty

Sturdiness

Industry

AssemblymanufacturingJIT

Make-to-orderproduction SAP Automotive

Manufacturers / Suppliers processes

Massproduction

SAP Consumer Products Selling food and non-food products

Processmanu-facturing

SAP Chemicals Paints, coating and solvents

production

SAP Pharmaceuticals Production of tablets

Repetitivemanu-facturing

SAP High Tech & Electronics PC assembly and customer

services

SAP Engineering / Construction Elevator and Turbine production

Productionby lot size

Engineer-to-order

SAP Aerospace / Defense Production / Maintenance of an

aircraft engine

IDES LOGISTICS

IDES EuropeIDES North America

IDES Corporation

IDES Asia

National and international charts of accounts (parallel)

Cost of sales accounting

Lisbon / Portugal

Paris / France

Barcelona / Spain

London / UK

Frankfurt / GermanyConsolidation

IDES - Financial Accounting

Controlling Area IDES North America

IDES Corporation

Controlling Area IDES Mexico

Controlling Area IDES Europe

Marginal costing

Activity-based costing

Lisbon / Portugal

Paris / France

Barcelona / Spain

London / UK

Frankfurt / GermanyCost accounting for all companies

IDES - Cost Accounting

IDES CorporationRetail

IDES North America

Los Angeles / US

Denver

Boulder

Colorado Springs

Tuscon

San Diego

San Francisco

Oakland

IDES Europe

Giessen / Germany

Mainz

Frankfurt

Darmstadt

IDES - The Business Group

Productionby lot size

AssemblymanufacturingJIT

Make-to-orderproduction

Processmanu-facturing

Repetitivemanu-facturing

Massproduction

Engineer-to-order

Co

mp

lexi

ty

Sturdiness

Production Retail

Textiles

Food

IDES - Logistics

IDES North America

New York / US

IDES Europe

Frankfurt / Germany

Dublin / Irland

IDES CorporationBanking

IDES - The Business Group

IDES - The Business Group

IDES CorporationService Provider

Philadelphia / US

IDES North America

Process-oriented online helpStep-by-step documentationwith all relevant information“Functions in Detail” brochure

IDES - Documentation

Complete R/3 modelcompany

Complete integration

Internet scenarios

Process-oriented online help

Basis for all R/3 training

IDES Summary

Web Sites of Interest

http://www.erpworld.org/

http://www.cio.com/forums/erp/

http://www.intelligententerprise.com/

http://www.sap.com/

http://www.oracle.com/

http://www.peoplesoft.com/

http://www.jdedwards.com/

http://www.baan.com/index.html