mis 1 FINAL

8/6/2019 mis 1 FINAL

http://slidepdf.com/reader/full/mis-1-final 1/38

What is SAP?

S System

A Application

P Products in data processing

Def inition

Systems Application and Products in Data Processing. A company that develops

software which allows business to track customers and business interactions. SAP is

well known for its Enterprise Resource Management (ERP) and data management

programs.

Introduction o f SAP:

The SAP is an acronym of German language description, Systemanalyse und Programmentwicklung which means System Analysis and Program Development. Aftersome time the acronym was changed as Systeme, Anwendungen und Produkte in der Datenverarbeitung which means Systems, Applications and Products in DataProcessing SAP is a table drive customization software. It allows businesses to makerapid changes in their business requirements with a common set of programs. User-exits are provided for business to add in additional source code. Tools such as screen

variants are provided to let you set fields attributes whether to hide, display and makethem mandatory fields.

What do e s SAP do?

´Delivering on the promise of e-business integration to help our customers faster

growth, innovation and valueµ

SAP stands for increased efficiency, streamlining the supply-chain network andoverhauling the entire business process of the organization. Companies that adoptSAP can look forward to a total makeover before they are done. The transparency that

follows, enables faster information processing and making decisions with ease and nofear of risk. SAP, having evolved for over 3 decades is agile enough to adapt to mostindustries. SAP is not offered in modules any more but available as various solutionstailored to each industry. Enterprises must acknowledge that humans are as much apart of the chain and focus their efforts on making their personnel proud stakeholdersin their new venture. To leverage SAP functionality SAP training courses areinvaluable. SAP courses can help executives, finance managers, accountants,engineers and IT mavens. SAP functionality is truly enterprise wide. If one wants toreplace an outdated and inefficient IT architecture, if one wants to implement business



process change, if one want parts to maintain a competitive advantage in the field,SAP is the answer. In a standard SAP project system, it is divided into threeenvironments, which are

Development

Quality

Assurance and Production

The development system is where most of the implementation work takes place. Thequality assurance system is where all the final testing is conducted before moving thetransports to the production environment. The production system is where all the

daily business activities occur. It is also the client that all the end users use toperform their daily job functions.

H istory o f SAP:

On April 1, 1972 five former IBM employees

y Dietmer Hopp

y Hans-Werner

y Hasso Plattner

y klaus Tschiray Claus Wellenreuther

Founded SAP as System analyses and Programmentwicklung (´Systems Analysis and

Program Developmentµ) in Mannheim, Germany. Over the years, it has grown and

evolved to become the world premier provider of client/server business solutions for

which it is so well known today. The original SAP idea was to provide customers with

the ability to interact with a common corporate database for a comprehensive range of

applications. Gradually, the applications have been assembled and today many

corporations, including IBM and Microsoft, are using SAP products to run their own

businesses.

SAP is a German software corporation that provides enterprise software applications

and support to businesses of all sizes globally. Headquartered in Walldorf, Germany,

with regional offices around the world, SAP is the largest enterprise software company

in the world (as of 2009). It is also the largest software company in Europe and the

fourth largest globally. The company's best known products are its SAP Enterprise

Resource Planning (SAP ERP) and SAP Business Objects software.



SAP currently has:

y More than 51,000 employees in over 50 countries developing, marketing, andselling applications and services

y 82,000 customers of all sizes across 25 industries and in over 120 countriesy It is available in 37 different languagesy 75 offices in all over the world

More Company detail:

Key numbers for fiscal year ending December, 2010:Sales: $16,517.3MOne year growth: 8.0%Net income: $2,403.9MIncome growth: (4.0%)Employee growth: 12.5%

M ission stat eme nt

To be the focused service provider of the SAP capital management solutions. Tosupport our customers through all phases of their SAP lifecycle to better leverage andunderstand the complexities of the SAP environment so that they can realize theinherent benefits of the total SAP solution

V ision o f SAP

́To develop Standard Application Software for real-time business Processingµ



Working region of SAP:

1. SAP operates in three geographic regions which are,

2. EMEA (representing Europe, Middle East, and Africa)

3. Americas

4. Asia Pacific Japan (APJ, representing Japan, Australia, and parts of Asia)

V e rsion o f SAP:

These are the three versions of SAP.which are

1. SAP R/1 system

2. SAP R/2 system

3. SAP R/3 system

SAP R/1:

SAP completes its first financial accounting system ² RF. This system serves as thecornerstone in the ongoing development of other software modules of the system thatwill eventually bear the name SAP R/1. ´Rµ stand for real time data processing and 2stand for two tier.. It is ongoing process.

SAP R/2:



In the late 1970s, SAP ¶R/2· was released with IBM·s database and a dialogue-orientedbusiness application. The SAP R/2 system attains the high level of stability of theprevious generation of programs. Keeping in mind its multinational customers, SAPdesigns SAP R/2 to handle different languages and currencies. With this and otherinnovations in SAP R/2, SAP sees rapid growth. It is base on Mainframe computer. This is made to understand Programming language ABAP ( Advanc e d Busin e ss

Application Progra mm ing). It was particularly popular with large multinationalEuropean companies who required soft-real-time business applications, with multi-currency and multi-language capabilities built in.

SAP's close relationships with customers led to continuous enhancements in theexisting program modules, while important new additions were made, such as theCost Accounting (RK) System. The R/2 System was now ready for the international

market. New computers with drastically improved price/performance ratios helpedexpand the customer base, and SAP raised its profile still further by appearing at theSystems trade fair in Munich - the company's first-ever presence at an industry tradeshow.

In 1982, SAP celebrated its tenth anniversary, with sales soaring 48% to over DM 24million. By the end of the year, 236 companies in Germany, Austria and Switzerlandwere working with the SAP standard programs. Sales continued to climb in thefollowing year, increasing by 45%.

In 1984 SAP took additional steps into the international arena with the founding of SAP (International) AG in Switzerland, whose focus was to increase sales of the R/2

System in international markets. Development teams began work on two newapplications, Personnel Management and Plant Maintenance, while the ProductionPlanning and Control System was installed at its first pilot customers.

SAP R/3:

With the R/3 System release in mid-1992, SAP began to penetrate the mid-sizemarket, and into branches and subsidiaries of large companies. The release of the R/3client/server system was the most significant event in SAP's history and started arecord of growth that even SAP's most optimistic planners had not predicted.

SAP took top position among German software vendors in 1993.O

n an internationalscale, the company moved to 7th place among software companies, establishing aclear lead in the global business applications software market. Sales surpassed theimportant DM 1 billion mark for the first time in 1993, and the global customer basestood at 3,500 companies. SAP made an investment in iXOS Software GmbH with theaim of developing and marketing graphical user interfaces and optical archiving of documents.



SAP R/3 was unleashed into the market, the client-server concept, uniformappearance of graphical interfaces, consistent use of relational databases and theability to run on computers from different vendors met with an overwhelmingapproval. The client-server architecture moved to a more flexible and scalablearchitecture. Going by this technology, the processing of an application could be splitbetween the server and workstations ² the server handling the centralizedfunctionality, while the client workstation maximized for users. The data managementwas separate from the server.

SAP ushered in a new generation of enterprise software ² from mainframe computingto the three-tier architecture consisting of the Database layer, Application (businesslogic) layer, and user interface layer. Today is the day for client-server architecture,where one can make changes or scale on layer without having to retool the whole

system. The term SAP R/3 stands for runtime system three and the client-server environmentprovides a set of business application for the system. The R/3 architecture allowsdistribution of the workload to multiple PC's connecting in a network. The SAPruntime system is designed in such a way that it distributes the presentation,application logic and the data management to different computers.SAP R/3 which wasrenamed SAP ERP and later again renamed ECC (ERP Central Component). SAP cameto dominate the large business applications market over the next 10 years. SAP ECC5.0 ERP is the successor of SAP R/3 4.70. The newest version of the suite is SAP ERP6.0.

SAP R/3 all versions Releases:

y SAP R/3 Release 1.0A Release Date 6 July 1992y SAP R/3 Release 4.0B Release Date June 1998 y SAP R/3 Release 4.5B Release Date March 1999y SAP R/3 Release 4.6A Release Date 1999y SAP R/3 Release 4.6B Release Date Dec 1999y SAP R/3 Release 4.6C Release Date April 2001y SAP R/3 Enterprise Release 4.70 Release Date March- Dec 2003y SAP R/3 Enterprise Edition 4.7y SAP R/3 Enterprise Central Component 5.0y SAP R/3 Enterprise Central Component 6.0 (2010)

The success of R/3 has propelled SAP to the top of the global software market. IT isundergoing yet another revolution with the advent of the Internet, and SAP is againthere with a solution: the latest version of R/3 provides the first comprehensive,Internet-enabled business application package. Release 4.0, which is already in



development, further increases the attractiveness of the R/3 System by making itmore user-friendly. Small and mid-sized businesses should especially welcome thisdevelopment. The R/3 System is here to stay, and users can look forward to itscontinuing enhancement.SAP R/3 was arranged into distinct functional modules, covering the typical functionsin place in an organization. The most widely used modules were Financial s andControlling (FICO), Human Resources (HR), Materials Management (MM), Sales &Distribution (SD), and Production Planning (PP)

Each module handled specific business tasks on its own, but was linked to the otherswhere applicable. For instance, an invoice from the billing transaction of Sales &Distribution would pass through to accounting, where it will appear in accountsreceivable and cost of goods sold.

SAP typically focused on best practice methodologies for driving its software processes,but more recently expanded into vertical markets. In these situations, SAP producedspecialized modules (referred to as IS or Industry Specific) geared toward a particularmarket segment, such as utilities or retail.

SAP based the architecture of R/3 on a three-tier client/server

1. Presentation Server(GUI)2. Application Server3. Database Server

SAP allows the IT supported processing of a multitude of tasks, accruing in a typicalcompany or bank. SAP ERP is differing from R/3 mainly because it is based on SAPNet Weaver: core components can be implemented in ABAP and in Java and newfunctional areas are mostly no longer created as part of the previous ERP system, withclosely interconnected constituents, but as self-contained components or evensystems.

Presentation Server

The presentation server is actually a program named sapgui.exe. It is usually installedon a user's workstation. To start it, the user double-clicks on an icon on the desktopor chooses a menu path. When started, the presentation server displays the R/3menus within a window. This window is commonly known as the SAPGUI, or the userinterface (or simply, the interface). The interface accepts input from the user in theform of keystrokes, mouse-clicks, and function keys, and sends these requests to theapplication server to be processed. The application server sends the results back tothe SAPGUI which then formats the output for display to the user.



Application Server

An application server is a collection of executable s that collectively interpret theABAP/4 (Advanced Business Application Programming / 4th Generation) programsand manage the input and output for them. When an application server is started,these executable s all start at the same time. When an application server is stopped,they all shut down together. The number of processes that start up when you bring upthe application server is defined in a single configuration file called the applicationserver profile. Each application server has a profile that specifies its characteristicswhen it starts up and while it is running. For example, an application server profilespecifies:

y Number of processes and their typesy Amount of memory each process may usey L ength of time a user is inactive before being automatically logged off.

The Application layer consists of one or more application servers and a messageserver. Each application server contains a set of services used to run the R/3 system.Not practical, only one application server is needed to run an R/3 system. But inpractice, the services are distributed across more than one application server. Thismeans that not all application servers will provide the full range of services. Themessage server is responsible for communication between the application servers. Itpasses requests from one application server to another within the system. It alsocontains information about application server groups and the current load balancingwithin them. It uses this information to choose an appropriate server when a user logs

onto the system.

The application server exists to interpret ABAP/4 programs, and they only run there-the programs do not run on the presentation server. An ABAP/4 program can start anexecutable on the presentation server, but an ABAP/4 program cannot execute there.If your ABAP/4 program requests information from the database, the applicationserver will format the request and send it to the database server.

Database Server

The database server handles the user's request for addition, retrieval andmodifications in the data.

What is client?



A client is a unique one in organizational structure, can have one or more companycodes. Each company code is its own legal entity in finance.

C or e Proc e ss o f SAP R/3:

y SAP are categorized into 3 core functional areas:

o L ogistics Sales and Distribution (SD) Material Management (MM) Warehouse Management (WM) Production Planning (PP) General L ogistics (LO) Quality Management (QM)



o F inancial Financial Accounting (FI) Controlling (CO) Enterprise Controlling (EC) Investment Management (IM) Treasury (TR)

o H u m an R e sourc e s Personnel Administration (PA) Personnel Development (PD)

Sal e s & D istribution (S D ):

The SAP sales and distribution is part of the logistics module that support yourcustomers, starting from quotations, sales order and all the way towards billing thecustomer. It is tightly integrated with the MM and PP functional modules. It allowscompanies to input their customer sales price, check for open orders and forecast etc.

The most important basic functional features in the sd module are:

Pricing Availability CheckCredit Management Material DeterminationOutput Determination Text Processing Tax Determination Account Determination

M at e rial M anag eme nt ( MM ):

SAP MM ( Material Management ) is one the largest functional module in SAP. Thismodule mainly delas with Procurement Process,Master Data (Material & VendorMaster),Inventory Management,Valuation of Material & AccountDetermination,Material Requirement Planning,Invoice Verification etc. It supports allthe phases of materials management from materials planning and control, purchasing,goods receiving, inventory management and the final payment to vendor. ThePurchasing function includes creation of requisitions, requisition approval, purchaseorder generation, and receipt of goods and services. It Integration with other moduleslike Material management, Financial Accounting, Cost Accounting, Human Resources

& Development, Sales and Distribution etc adds on to reliability of the productionplanning system in SAP R/3. The system is a real time system. The changes indemand (cancelled or added sales order etc) and supply (high/low rejection, early/latesupply from supplier, breakdown of facilities etc) are reflected in real time and theproduction controller can react fast to these changes..



War e hous e M anag eme nt (W M ):

Processes in the area of Inventory Management address the recording and tracking of materials on a quantity and value basis. This includes planning, entry, anddocumentation of stock movements such as goods receipts, goods issues, physicalstock transfers, and transfer postings as well as the performance of physical inventory(stocktaking). Warehouse Management Processes cover warehouse-internalmovements and storage of materials. The SAP WM ( Warehouse Management)application provides flexible, automated support to assist you in processing all goodsmovements and in maintaining current stock inventories in your warehousingcomplex.It handles the warehousing processes like Define and manage complexwarehousing structures, Optimize material flow using advanced put away and pickingtechniques, Process goods receipts, goods issues and stock transfers quickly and

easily

Production Planning (PP) :

SAP PP ( Production Planning ) is one the largest functional module in SAP.Thismodule mainly deals with production process like capacity planning, Masterproduction scheduling, Material requirement planning shop floor etc.The PP module of SAP takes care of Master data needed like Bill Of Materials ( BOMs), Routing and WorkCenters and stores it in one separate component. Production Planning support theplanning for the types and quantities of products on demand to assist production. Itincludes procurement, warehousing and the transportation of materials andintermediate products from one stage of production to another as well as resource

allocation to complete the production process in a timely manner.

G e n e ral L ogistics ( LO ):

SAP LO ( L ogistics ) is a functional module that provides you tools to monitor carrierperformance, gain greater visibility into supply chains, and provide accurate and up-to-the-minute information about shipments and supply chain performance. You canalso anticipate customer demands, develop and market new services, manage yourservice portfolio, and analyze customer profitability to focus on your most profitablecustomers.Transportation, purchasing, warehousing are some of the main tasksinvolved in logistics module.

Quality M anag eme nt (Q M ) :

The integration of the QM application component in the R/3 System allows qualitymanagement tasks to be combined with those in other applications (such as materialsmanagement, production, sales and distribution and cost accounting) and supportstasks associated with quality planning, quality inspection and quality control. Inaddition, it controls the creation of quality certificates and manages problems with thehelp of quality notifications



Quality Management focuses on the market requirements for quality managementprocedures, the business processes in a company, as well as data processing supportfor integrating quality management functions in the logistics supply chain.

The main task of a quality management system is to ensure that at every stage of thelogistics supply chain, business processes and the resulting products fulfill the qualityrequirements that have been laid down for them. It also focuses on prevention andcontinuous process improvement through collaboration and sustained quality control.

The following business goals and objectives can be achieved through theimplementation of these processes:

Improving Customer Service

Increasing Revenue L owering Working Capital

Reducing Operating Costs & Increasing Efficiency

F inancial Accounting ( F I) :

The SAP FI Module has the capability of meeting all the accounting and financialneeds of an organization. It is within this module that Financial Managers as well asother Managers within your business can review the financial position of the companyin real time as compared to legacy systems which often times require overnightupdates before financial statements can be generated and run for management review.

The real-time functionality of the SAP modules allows for better decision making andstrategic planning. The FI (Financial Accounting) Module integrates with other SAPModules such as MM (Materials Management), PP (Production Planning), SD(Sales andDistribution), PM (Plant Maintenance),and PS (Project Systems).

The FI Module also integrates with HR(Human Resources) which includesPM(Personnel Management), Time Management, Travel Management,Payroll.Document transactions occurring within the specific modules generate accountpostings via account determination tables.

Controlling (CO) :

The SAP CO (Controlling) Module provides supporting information to Management forthe purpose of planning, reporting, as well as monitoring the operations of theirbusiness. Management decision-making can be achieved with the level of informationprovided by this module.

Some of the components of the CO(Controlling) Module are as follows:



· Cost Element Accounting

· Cost Center Accounting

· Internal Orders

· Activity-Based Costing ( ABC)

· Product Cost Controlling

· Profitability Analysis

· Profit Center Accounting

All data relevant to cost flows automatically to Controlling from Financial Accounting.At the same time, the system assigns the costs and revenues to different CO accountassignment objects, such as cost centers, business processes, projects or orders. Therelevant accounts in Financial Accounting are managed in Controlling as costelements or revenue elements.

Controlling provides you with information for management decision-making. Itfacilitates coordination, monitoring and optimization of all processes in anorganization. This involves recording both the consumption of production factors andthe services provided by an organization.

As well as documenting actual events, the main task of controlling is planning. Youcan determine variances by comparing actual data with plan data. These variancecalculations enable you to control business flows.

Income statements such as, contribution margin accounting, are used to control thecost efficiency of individual areas of an organization, as well as the entire organization.

E nt e rpris e C ontrolling ( E C ) :

In addition to the application component Controlling (CO), whose functions designed

primarily for the operational management of occupational areas are be in R / 3application component of the Enterprise Controlling (EC) further controlling functions

made available, based on the entire control of the company relate.

In the application component Enterprise Controlling (EC) are the following

components:



� Profit Center Accounting (EC-PCA)

� Consolidation (EC-CS)

� Executive Information System (EC-EIS)

� Business Planning (EC-BP)

With the development of the Strategic Enterprise Management (SEM) in conjunction

with the SAP Business Warehouse, the sub-components can be in the company

controlling be replaced. This does not apply to the profit center accounting. For this

reason, the components are shown only briefly. The R / 3 Components have the

following correspondence in SEM:

� Consolidation (EC-CS) Â SEM-BCS (Business Consolidation)

� Executive Information System (EC-EIS) Â SEM CPM (Corporate Performance

Manager)

� Business Planning Â SEM-BPS (Business Planning & Simulation)

Investment Management (IM):

The solution's investment planning capabilities assist telecommunications networkoperators in making key strategic decisions about infrastructure projects. At the same

time, comprehensive cost-controlling features help you keep a tight rein on yourinvestment projects.

Business Goals & Objectives which achieve through it

Managing Fixed Assets & Resources

Accurately depreciate and value of assetsImprove accounting processesImprove return-on-investment (ROI) of fixed assetsMaintain asset profiles and records

T r e asury ( T R) :

SAP Treasury solutions ( TR module ) are positioned within SAP Financial SupplyChain management and are an integrated approach to provide better management andcontrol over all the Treasury related processes like Strengthen the return of funds &improve cost-saving,Optimize the working capital & excess cash, Trust the auditcontrols and reduce operational risk etc.



Using treasury applications from SAP, your treasury and cash managers gain insightand control over hedging transactions, pooling and allocating cash globally, andenabling straight-through-processing of banking, corporate treasury and financialaccounting processes.

Treasury applications from SAP include the following:

y SAP Cash and Liquidity Management o Helps you monitor and manage cash flow and liquidityo Generates comprehensive and timely cash forecasts and plans

y SAP In-House Cash o Enables centralized control of banking balances, cash management, and

paymentso Reduces costs of interunit payments, transfers, and bank fees

y SAP Treasury and Risk Management o Models risk scenarios and executes mitigation strategieso Reduces your organization's financial risk levels and ensures regulatory

compliance

y SAP Bank Communication Management o Streamlines and optimizes your corporate-to-bank communicationso Provides straight-through processing, improved payment control, and lower

processing costs

y SAP Integration Package for SWIFT o Enables direct connection to SWIFTnet, the secure bank payments networko Reduces complexity by providing a single point of connectivity to multiple

banks

P e rsonn e l Ad m inistration (PA):

Personnel Management provides a streamlined, comprehensive and fully integratedpersonnel data structure. Its user-friendly and intuitive online navigation coupled withits process-oriented data entry provide for speedy and efficient data maintenance.

It also use in Recording employee data for administrative, time recording, and payroll

purposes is of primary importance for master data administration in HR. In the SAPSystem, the information units used to enter master data are called infotypes.

Infotypes are used to group related data fields together. They provide information witha structure, facilitate data entry, and enable you to store data for specific periods.

Structure



Infotypes are characterized by the following:

y Infotype Structurey Data Entryy Time-Dependent Storage of Infotype Data

Infotype Structure

To the user, infotypes appear as data entry screens. They contain whole series of information (for example, last name, first name, date of birth) that you enter in datafields. Data fields concerning the same or similar subject matter are combined intodata groups or information units.

In database terms, infotypes represent a data structure or set of related data records.When you update an infotype, old data is not lost but is instead stored in the systemfor historical evaluation purposes.

Data Entry

perform data entry as follows:

y Your entries are automatically checked for accuracy and against table entries.y Predefined default values help you to enter and maintain data.y Checks and default values depend on the employee·s organizational

assignment. The organizational assignment determines the relevant informationused from time recording, wage type and pay scale structure.

Time-Dependent Storage of Infotype Data

When you update an infotype, the old data may not be lost. Instead, it must beretained so that past data can be evaluated. When you update an employee·s personaldata, the old data is automatically time-delimited. The system creates a validity periodfor each infotype record. As a result, each employee infotype has several data recordsthat differ from each other by their validity periods.

P e rsonn e l De v e lop me nt (P D ) :

The HR Module Personnel Development supports the Human Resources department insetting up qualification catalogs. You can store position requirements andqualifications of employees in the company in your qualifications catalog and lateranalyze this data by means of profile matchups.Integration with Training and Event



M anagement enables you to offset any qualification deficits by enrolling employees forfurther training in good time.

C urr e nt Products o f SAP?

SAP's products focus on Enterprise Resource Planning (ERP). The company's mainproduct is SAP ECC. The current version is SAP ECC 6.0 and is part of the SAPBusiness Suite.

SAP E CC

N e tW e av e r plat f or m

Gov e rnanc e, Risk and C o m plianc e (GR C )

Radio- f r eq u e ncy id e nti f ication (R F I D )

S AP E CC :

SAP ECC is used extensively in medium to large-sized corporations. This module will be

useful to those working in such corporations as daily users, or to those looking for an

introduction to the basic theory and functioning of the SAP graphical user interface as a

stepping stone to advanced topics such as configuration and implementation

ECC is stand for Erp Central Component

SAP ECC is one of five enterprise applications in SAP's Business Suite. The other fiveapplications are:

y Customer Relationship Management (CRM)y Product L ifecycle Management (PL M)y Supply Chain Management (SCM)y Supplier Relationship Management (SRM)

y Enterprise Resource Planning (ERP)

Other major product offerings include: the NetWeaver platform, Governance, Risk andCompliance (GRC) solutions, Duet (joint offering with Microsoft), PerformanceManagement solutions and RFID. SAP offers SOA capabilities (calling it EnterpriseSOA) in the form of web services that are wrapped around its applications.

C usto me r R e lationship M anag eme nt ( C R M ):



It is a widely-implemented strategy for managing a company·s interactions withcustomers, clients and sales prospects. It involves using technology to organize,automate, and synchronize business processes³principally sales activities, but alsothose for marketing, customer service, and technical support. The overall goals are tofind, attract, and win new clients, nurture and retain those the company already has,entice former clients back into the fold, and reduce the costs of marketing and clientservice. Customer relationship management describes a company-wide businessstrategy including customer-interface departments as well as other departments

Unlike other CRM software, the SAP Customer Relationship Management (SAP CRM)application, part of the SAP Business Suite, not only helps you address your short-term imperatives ² to reduce cost and increase your decision-making ability ² but canalso help your company achieve differentiated capabilities in order to competeeffectively over the long term. The SAP CRM application is an integrated customerrelationship management (CRM) software manufactured by SAP AG that targetsbusiness software requirements of midsize and large organizations in all industriesand sectors.

The three phases in which CRM support the relationship between a business and itscustomers are to:

y Acquire: CRM can help a business acquire new customers through contact

management, selling, and fulfillmenty Enhance: web-enabled CRM combined with customer service tools offers

customers service from a team of sales and service specialists, which offerscustomers the convenience of one-stop shopping

y Retain: CRM software and databases enable a business to identify and rewardits loyal customers and further develop its targeted marketing and relationshipmarketing initiatives.



Benefits of CRM

The use of a CRM system will confer several advantages to a company:

y Quality and efficiencyy Decreased costsy Decision supporty Enterprise agility

Product L i fe cycl e M anag eme nt (P LM )

In industry, product lifecycle management (PL M) is the process of managing the entirelifecycle of a product from its conception, through design and manufacture, to service

and disposal. PL M integrates people, data, processes and business systems andprovides a product information backbone for companies and their extended enterprise.

Product lifecycle management is one of the four cornerstones of a corporation'sinformation technology structure. All companies need to manage communications andinformation with their customers (CRM-Customer Relationship Management), theirsuppliers (SCM-Supply Chain Management), their resources within the enterprise(ERP-Enterprise Resource Planning) and their planning (HCM-Human CapitalManagement). In addition, manufacturing engineering companies must also develop,describe, manage and communicate information about their products.

Recent (as of 2010) ICT development (EU funded PROMISE project 2004-2008) hasallowed PL M to extend beyond traditional PL M and integrate sensor data and real time'lifecycle event data' into PL M, as well as allowing this information to be madeavailable to different players in the total lifecycle of an individual product (closing theinformation loop). This has resulted in the extension of PL M into Closed L oop L ifecycleManagement (CL 2M).



A generic lifecycle of products

Benefits of PLM

y Reduced costsy Better business resultsy Higher product qualityy Faster developmenty Improved manufacturing operationsy Higher productivityy Better business decisionsy L ower cost of ownership

Areas of PLM

Within PL M there are five primary areas;

1. Systems Engineering (SE)2. Product and Portfolio Management (PPM)

3. Product Design (PD)4. Manufacturing Process Management (MPM)5. Product Data Management (PDM)

Supply C hain M anag eme nt (S CM )

"Design, planning, execution, control, and monitoring of supply chain activitieswith the objective of creating net value, building a competitive infrastructure,



leveraging worldwide logistics, synchronizing supply with demand and measuringperformance globally is called Supply Chain Management (SCM)µ

Supply chain management (SCM) is the management of a network of interconnected businesses involved in the ultimate provision of product andservice. It also helps in Supply chain management spans all movement and storageof raw materials, work-in-process inventory, and finished goods from point of originto point of consumption

Supply chain management (SCM) optimizes value creation and delivery along theentire chain of supply and demand partners operating in global markets. SAP SCMoffers customers a complete set of tools and capabilities that enable customers toperform supply chain networking, planning, execution, and coordination.

Supply chain management is a cross-function approach including managing themovement of raw materials into an organization, certain aspects of the internalprocessing of materials into finished goods, and the movement of finished goods out of the organization and toward the end-consumer. As organizations strive to focus oncore competencies and becoming more flexible, they reduce their ownership of rawmaterials sources and distribution channels. These functions are increasingly beingoutsourced to other entities that can perform the activities better or more cost

effectively. The effect is to increase the number of organizations involved in satisfyingcustomer demand, while reducing management control of daily logistics operations.L ess control and more supply chain partners led to the creation of supply chainmanagement concepts. The purpose of supply chain management is to improve trustand collaboration among supply chain partners, thus improving inventory visibilityand the velocity of inventory movement.

Suppli e r R e lationship M anag eme nt (SR M ):



Supplier relationship management (SRM) is the proactive management of an ongoingbusiness relationship to secure a competitive advantage for your own organisation

The SAP Supplier Relationship Management (SAP SRM) application automates,simplifies, and accelerates procure-to-pay processes for goods and services. With SAPSRM, you can reduce procurement costs, build collaborative supplier relationships,better manage supply bases, and improve your bottom line with innovative offeringsand a faster time to market.

It is a comprehensive approach to managing an enterprise's interactions with the

organizations that supply the goods and services it uses. The goal of supplierrelationship management (SRM) is to streamline and make more effective theprocesses between an enterprise and its suppliers just as customer relationshipmanagement (CRM) is intended to streamline and make more effective the processesbetween an enterprise and its customers. SRM includes both business practices andsoftware and is part of the information flow component of supply chain management(SCM). SRM practices create a common frame of reference to enable effectivecommunication between an enterprise and suppliers who may use quite differentbusiness practices and terminology. As a result, SRM increases the efficiency of processes associated with acquiring goods and services, managing inventory, andprocessing materials.

According to proponents, the use of SRM software can lead to lower production costsand a higher quality, but lower priced end product. SRM products are available from anumber of vendors, including 12 Technologies, Manugistics, PeopleSoft, and SAP.

SAP SRM simplifies and automates procurement. The SAP SRM process integratessupplier qualification, negotiation, and contract management more tightly and cost-effectively with other enterprise functions and their suppliers· processes ² through asingle framework with support for multichannel suppliers.



The SAP SRM application is designed as a long-term foundation to secure the cost andquality advantages of center-led purchasing and broadened supplier involvement forenduring value and long-term results.

What is E RP?

An ERP system is a business support system that maintains in a single database the

data needed for a variety of business functions such as Manufacturing, Supply ChainManagement, Financials, Projects, Human Resources and Customer RelationshipManagement.

E nt e rpris e R e sourc e Planning ( E RP)

An ERP system is a business support system that maintains in a single database thedata needed for a variety of business functions such as Manufacturing, Supply ChainManagement, Financials, Projects, Human Resources and Customer RelationshipManagement

SAP ERP consists of several modules including: utilities for marketing and sales, fieldservice, product design and development, production and inventory control, humanresources, finance and accounting. SAP ERP collects and combines data from the



separate modules to provide the company or organization with enterprise resourceplanning.

Characteristics of ERP:

y An integrated system that operates in (next to) real time, without relying onperiodic updates

y A common database, that supports all applications.y A consistent look and feel throughout each module.y Installation of the system without elaborate application/data integration by the

Information Technology (IT) department

Functional areas of ERP:

y Finance/Accountingy Human Resourcey Manufacturingy Supply Chain Managementy Project Managementy Customer Relationship Managementy

Data Servicesy Access Control

Implementation of ERP:

ERP's scope usually implies significant changes to staff work practices. Generally,three types of services are available to help implement such changes³consulting,customization, and support.Implementation time depends on business size, number of modules, customization, the scope of process changes, and the readiness of thecustomer to take ownership for the project. Modular ERP systems and can beimplemented in stages. The typical project for a large enterprise consumes about 14months and requires around 150 consultants. Small projects can require months;

multinational and other large implementations can take years. Customization cansubstantially increase implementation times.

Implementing ERP software can overwhelm inexperienced technicians. As a result,hiring professionally trained consultants to implement these systems is common.Consulting firms typically provide three areas of professional services: consulting,customization, and support. The client organization can also employ independent



program management, business analysis, change management, and UAT specialists toensure their business requirements remain a priority during implementation.

Although there can be major benefits for customers of SAP ERP, the implementationand training costs are expensive. Many companies experience problems whenimplementing SAP ERP software, such as: failing to specify their operation objectives,absence of a strong commitment or positive approach to change, failing to deal withorganizational differences, failing to plan the change to SAP ERP properly, inadequatetesting. All these factors can mean the difference between having a successfulimplementation of SAP ERP or an unsuccessful one.

If SAP ERP is implemented correctly an enterprise can go from its old calculationssystem to a fully integrated software package. Potential benefits include: efficient

business process, inventory reduction, and lead time reduction.

ERP advantages and disadvantages:

Advantages

y Allows easier global integration (barriers of currency exchange rates, language,and culture can be bridged automatically)

y Updates only need to be done once to be implemented company-widey Provides real-time information, reducing the possibility of redundancy errorsy May create a more efficient work environment for employeesy Vendors have past knowledge and expertise on how to best build and

implement a system

Disadvantages

y L ocked into relationship by contract and manageability with vendor - a contractcan hold a company to the vendor until it expires and it can be unprofitable toswitch vendors if switching costs are too high

y Inflexibility - vendor packages may not fit a company's business model well andcustomization can be expensive

y Return on Investment may take too long to be profitabley Implementations have a risk of project failure



N e tW e av e r plat f or m :

SAP NetWeaver's release is considered as a strategic move by SAP for drivingenterprises to run their business on a single, integrated platform that includes bothapplications and technology. Industry analysts refer to this type of integrated platformoffering as an "applistructure" (applications + infrastructure). According to SAP, thisapproach is driven by industry's need to lower IT costs through an enterprisearchitecture that is at once (1) more flexible; (2) better integrated with applications; (3)built on open standards to ensure future interoperability and broad integration; and,(4) provided by a vendor that is financially viable for the long term.

SAP is fostering relationships with system integrators and independent softwarevendors, many of the latter becoming "Powered by SAP NetWeaver".

SAP NetWeaver is part of SAP's plan to transition to a more open, service-orientedarchitecture and to deliver the technical foundation of its applications on a single,integrated platform and common release cycle.

Gov e rnanc e, Risk and C o m plianc e (GR C )

Governance, Risk, and Compliance, almost always referred to as GRC, is the latest

addition to the parade of three-letter acronyms that are used to describe the processesand software that run the business world. The goal of GRC is to help a companyefficiently put policies and controls in place to address all its compliance obligationswhile at the same time gathering information that helps proactively run the business.Done properly, GRC creates a central nervous system that helps you manage yourbusiness more effectively. You also derive a competitive advantage from understandingrisks and choosing opportunities wisely. In other words, GRC helps you make sure



that you do things the right way: It keeps track of what you are doing and raises analert when things start to go off track or when risks appear.

These companies increase visibility across risk and compliance initiatives, and they doso efficiently to minimize the cost of governance, risk, and compliance (GRC).Achieving effective and efficient operations and reporting requires a clear, unified GRCstrategy that guides people, standardizes processes, and integrates technology toembed GRC at every organizational level.

SAP BusinessObjects governance, risk, and compliance solutions (SAPBusinessObjects GRC solutions) close the gap between strategy and execution andestablish a clear path to long-term value by enabling a preventative, real-timeapproach to GRC across heterogeneous environments. The solutions provide completeinsight into risk and compliance initiatives and enable greater efficiency and improvedflexibility.

GRC is not just about complying with requirements for one quarter or one year.Rather, those who are serious about GRC, meaning just about everyone these days,seek to create a system and culture so that compliance with external regulations,enforcement of internal policies, and risk management are automated as much aspossible and can evolve in an orderly fashion as business and compliance needschange. That·s why some would say that the C in GRC should stand for controls:controls that help make the process of compliance orderly and make process

monitoring and improvement easier.

D u e t:

Duet software brings together the best of these industry leaders to provide informationworkers with an unprecedented level of information access. Duet brings to the desktopof every Microsoft Office user a comprehensive set of functionality from SAPapplications.



The basic architecture of Duet software consists of the following major elements:

y Duet client add-on for the Microsoft Office environmenty Duet add-on for SAP softwarey Duet server, which facilitates deployment and communication between the two

environments

The following figure provides an overview of the software architecture.

Figure 1 - Architecture of Duet Software

Duet Client Add-On

The Duet client add-on is installed as a typical "plug-in" to Microsoft Office withstandard remote installation tools, such as Microsoft·s Systems Management Server(SMS). Once installed, the add-on automatically gives information workers the abilityto perform processes necessary for their work by propagating the correspondingcomponents and definitions to each client based on user role. Any subsequentmodifications will be similarly propagated and become automatically available onclient desktops. These data flows are discussed in further detail later. The Duet client



add-on houses several important modules to support integration with the MicrosoftOffice Suite, including:

y Runtime engine - Interprets user interface metadata to represent the Duetsoftware components within the user·s Microsoft Office software

y Secure client cache - Stores metadata and data pertaining to supported end-user task sequences, where a persistence feature permits the cache to be usedas offline storage

y Output queue - Triggers updates once the client is back online

Duet Add-On for SAP Software

The architecture of the Duet add-on for SAP software leverages metadata storage in all

Duet components to ensure that Duet delivers the user·s query response and theprocess logic, business rules, and configuration parameters resident in the SAPsoftware. This ensures that there is no adverse impact on the underlying SAP softwareand no need to recreate the upper-level process logic.

The architecture of the Duet add-on for SAP software encompasses the following majorelements:

y Service-bundling engine - Assembles service requests and supportsasynchronous service calls to the SAP software, with an interface that exposesWeb services

y Item handler - Receives processing results of a client request from the SAP

software and converts them to a format understood by the request handler inthe Duet server; also derives the mapping between the SAP software and theMicrosoft Active Directory user

y Metadata repository - Provides tools to configure metadata of the Duetsoftware and map it to Web services provided by SAP and to the existingconfiguration tables of the underlying SAP software components

Duet Server

This software serves as the deployment and communication facilitator for the clientand the SAP software. The server contains the following:

y Authorization module - Maps Duet users to roles in SAP software; is based onthe authorization management module

y Runtime metadata service and repository - Stores the metadata describingthe user interface, configuration, and routing information for each user roledefined in the Duet software

y Request handler - Formats and routes information to Microsoft Office clientsvia Microsoft Exchange Server



y Deployment module - Automatically propagates the latest updates of themetadata and associated binaries and data references to client systems whenupdates are made.

The deployment mechanism depends on how Duet defines the user·s role. Themechanism also deploys logic (Microsoft Office .NET components) and forms (MicrosoftOffice InfoPath forms and Windows Forms) to the client machines upon client request.

P e r f or m anc e M anag e n e nt:

SAP released new performance management software yesterday that it says will helpcompanies better manage sustainability programs by spending less time collecting andorganizing data.

Most companies are currently keeping track of sustainability data with Excelspreadsheets, email and phone calls, or with homegrown applications. SAP's newperformance management software instead collects data directly from enterpriseapplications and organizes it into a scorecard, from which customers can generatereports or further analyze the data.

SAP BusinessObjects Sustainability Performance Management also includes a libraryof key performance indicators (KPIs) that SAP developed with companies such asNestlé. The embedded analytics help companies see how they're executing on thoseKPIs. It also includes out-of-the-box integration with SAP software. This is a greatopportunity for businesses to reduce the cost and complexity of trying to understandtheir sustainability performance. It's part of a push by SAP to release more softwarethat will help companies attain sustainable business practices. The new performancemanagement application is the first to be certified by the Global Reporting Initiative(GRI) Certified Software and Tools Program, a catalog of indicators designed torepresent a company's sustainable performance. Customers using the software seemto be pleased with it.

SAP HR has the performance management system that helps enterprises to align theirworkforce with overall strategy. Comprehensive solutions for objective setting,appraisal and performance based pay combined with people development and learningapplications ensure that employees are best suited and motivated to work towards

enterprise goals.

This business scenario describes how corporate goals are translated into employeeobjectives. Based on regular feedback sessions, line managers ensure that employeeswork in sync with the overall strategy. Individual contribution is measured andrewarded. Succession for key positions is ensured.

Objective setting and appraisals:



The objective-setting and appraisal capabilities of SAP HR allow measurablecomparisons, support performance-based compensation, and promote personneldevelopment that is in line with corporate objectives. Both the goals and personalcontributions to attaining them are highly visible, which inspires trust in bothmanagers and their employees. This in turn improves the performance and morale of your teams.

Objective setting:Integration of the Balanced Scored with SAP HR greatly facilitates the objective-settingprocess. You can transfer departmental goals relevant to employees directly from thedepartmental scorecard into an individual·s objective-setting agreement.

Continuous feedback:

Employee reviews during the year enable you to monitor objectives continuously. Youcan set dates for reviews in the system during the objective-setting phase. During thereview, you can delete objectives that are no longer relevant or adjust agreed-uponobjectives to meet new requirements.

Appraisals:Appraisals from employees· superiors, their colleagues, and other managers can beintegrated into the appraisal process. Permission-based access to information ensuresthat employees can access only their own data and that their superiors can accessappraisals of all their subordinates.

Performance based pay:

The system can generate automatic suggestions for compensation adjustments basedon overall performance, or the achievement of a single objective.

Personnel development planning: L ine managers can change requirements for positions within their area of responsibility via Manager Self-Service (MSS), due to organizational or strategicchanges within the company. To enable employees to follow-up with their newrequirements, manager and employee can set up individual development plans basedon generic templates delivered by the HR department. Fully integrated with Objectivesettings and appraisals, the individual development planning can be triggered withinthe objective setting. The progress of the individual development can be monitored aspart of the continuous feedback process.

Learning: L ine managers can directly assign training courses (instructor-led, web-based,curricula) to employees or whole organizational unit as mandatory and monitorparticipation and success. Employees can benefit from a personalized learningenvironment that helps them in qualifying according to their personal and thecompany's needs.



Career and succession planning: L ine managers can name potential successors for their own position and key talentsfor key positions within the company. Based on the named key talents, the HRdepartment can fill vacancies and is prepared with potential successors for keypositions.

Radio- f r eq u e ncy id e nti f ication (R F I D )

It is a technology that uses communication via radio waves to exchange data betweena reader and an electronic tag attached to an object, for the purpose of identificationand tracking.

It is possible that by 2030, RFID technology will have inserted itself into our daily livesthe way that bar code technology wrought unobtrusive but remarkable changes whenit was new.

RFID technology makes it possible to give each product in a grocery store its ownunique identifying number. Compare that to the situation today, with bar codes,where it is only possible to identify the brand and type of package. Furthermore, RFIDtags can be read if passed within close enough proximity to an RFID tag reader. It isnot necessary to "show" them to it, as with a bar code.

Some tags can be read from several meters away and beyond the line of sight of thereader. The application of bulk reading enables an almost-parallel reading of tags.

Radio-frequency identification involves interrogators (also known as readers ), and tags (also known as labels ).

Most RFID tags contain at least two parts: one is an integrated circuit for storing andprocessing information, modulating and demodulating a radio-frequency (RF) signal,



and other specialized functions; the other is an antenna for receiving and transmittingthe signal.

SAP·s goal is to be a leader in what it sees as an emerging market for systems thatcreate "real-world aware" supply networks that can quickly adapt to changes in themarketplace. RFID products will be key components in the 21st-century businessmodel that SAP calls the Adaptive Business Network. "Auto-ID enables the trulyadaptive business," Blanchard says. "Unless you actually know where goods are andwhere they've been, you're just guessing. This takes all the guesswork out of it.Business managers will know where goods are in the back room of a retailer andwhere supplies are in a factory. This isn't just a demand-side benefit; it affects thewhole supply chain."

Blanchard declines to give specific launch dates for SAP products. But he says thecompany will roll out software applications supporting RFID within the next year. Atthe heart of SAP's RFID strategy is a networked software platform called Auto-IDInfrastructure (AII). Developed over the past two years by SAP corporate research inconjunction with several of the company's product and industry teams, AII will collect,analyze and manage high volumes of real-time information from tagged items,environmental sensors, global positioning systems and wireless data.

The Auto-ID Infrastructure will be integrated with SAP and non-SAP supply chainapplications. The company will not make an announcement about the availability of the platform until it's complete, which will depend, in part, on industry developments,including the formalization of standards.

SAP Products f or E RP Solution:

SAP offers his ERP solution in four categories, which are;

1. Enterprise Solution2. Solution for small & midsize companies3. On demand Solution4. Repid deployment Solution

E nt e rpris e Solution:

These are the solution software for any Enterprise

SAP Business Suiteo SAP Customer Relationshipo SAP ERPo SAP Product L ife Managemento SAP Supply Chain Management



o SAP Supplier Relationship Management SAP Manufacturing SAP Service and Asset Management Alloy Duet Duet Enterprise Mobile Application,Platform, and Service SAP Business Objects Analytic Solution SAP Business Objects Business Intelligence Solution SAP Business Objects GRC Solution SAP Crystal Solution SAP Solution For auto-ID and Item Serialization SAP Solution For Enterprise Information Management

SAP Solution For Sustainability Solution Extensions

Solution f or s m all & m idsiz e co m pani e s

Following solutions software are for small & midsize companies

SAP Business All-in-one SAP Business By design SAP Business One SAP Business Objects Portfolio

o SAP Business Objects Edgeo Free Trial

SAP Crystal Solutions

O n d em and Solution;

SAP offer different solutions on the company demands or their requirments, followingare the solutions which are SAP offers

SAP Business Objects BI on demand SAP Business By Design SAP Carbon Impact

SAP CRM One Demand Solutions SAP E-Sourcing One Demand Solution SAP StreamWork

R e pid d e ploy me nt Solution

Repid Deployment of SAP Business Communication Management Repid Deployment of SAP CRM



Repid Deployment of SAP IT Service Desk Operation Repid Deployment of SAP Business Objects Spend Performance Management Repid Deployment of Sustainability Analytics Sybare Mobile Sales Repid Deployment Solution Of SAP CRM

mis 1 FINAL

Documents

Transcript of mis 1 FINAL