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SAPHuman Capital Management
VIJAY
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What is SAP?
Systems
Applications
Products
Standard ERP Software for real time Dataprocessing
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What is ERP?
Enterprise
Resource
Planning
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What is an Enterprise?An Enterprise is a huge organization with
huge resources.
Does this definition stand right now?
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What are the ResourcesAn Enterprise has the following resources:
Money (Finance Dept.) Men (Human Resources Dept.) Materials (Purchasing Dept. and stores)
Machines (Production Dept.) Marketing (Sales and Distribution Dept.) Methods (pervade all the other resources)
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What do we plan
andwhy do we need to Plan?
Planning is done for resources. Planning entails the
optimal utilization of resources so that the followingare achieved:
Productivity
(relates to Men and Machines)
Effectiveness
(relates to Methods employed)Efficiency
(relates to Men, Methods and Machines)
The Result is the Profitability of the Enterprise.
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Enterprise Architecture - Benefits
Eliminates the duplication, discontinuity andredundancy in data
Increases the return on investment made
on IT implementations Delivers quality information designed for the
Enterprise as a whole
Faster and cheaper
Delivers quality information to produce aquality enterprise
Satisfying Partners/Customers
Reducing required manpower
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HISTORY
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Who? Founders : Ex-IBM Employees
As? Founded as Systemanalyse und Programmentwi
(System Analysis and Program Development)
When? On April 1, 1972
Where? In Mannheim, Germany
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Brains behind SAP
Dietmar Hopp
Hans-Werner Hector
Hasso Plattner Klaus Tschira
Claus Wellenreuther
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Why?
Reason 1 : As Client after client aredeveloping the same, or very similar,computer programs
Reason 2 : So that data is processedinteractively in real-time, and the
computer screen should be the focalpoint of data processing
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Rivals of SAP in ERP
Why do the rivals of SAP stand far behindSAP?
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SAP success story
Market share : Nearly 60%.
End users : More than onemillion end users around theworld work with the R/3
system. Worlds third-largestindependent software vendor.
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Events in SAP historyIn the fifth year of operations, SAP took a
new name Systeme Anwendungen Produktein der Datenverarbeitung
(Systems, Applications, Products in DataProcessing)
SAP moved its offices and headquarters toWalldorf in 1977.
SAP went public as SAP AG on Nov 4, 1988.
First customer for SAP
German ICI subsidiary in Ostringen
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SAP R/1 in1973
SAP R/2 in1979SAP R/3 in1992
R
stands forreal-time data processing
Architecture
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Architecture of R/1 System
Interfaces developed inapplication programs itself.
File systems were used.
Client/server conceptinexistent.
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Architecture of R/2 System
Main-frame versionUses DBMS for the first time
Interface programming withinApplication programming.Data stored in Database.
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SAP R/2How is it different?It attains the high level of stability
of the previous generation ofprograms.
It handles different languages and
currencies.
A hi f R/3
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Architecture of R/3System
Client/Server concept introducedUses RDBMS for data storage
Interface programming separated fromApplication programming.
Maintains more than 2 servers atdifferent tiers.
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Presentation Layer, or client, interfaces withthe user.
Application Layer houses all the businessspecific logic.
Database Layer records and stores all theinformation about the system, including
transactional and configuration data.
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SAP R/3How is it different?Client-server concept
Uniform appearance of graphicalinterfaces
Consistent use of relational databasesAbility to run on computers fromdifferent vendors
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Facts aboutSAP R/3
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SAP R/3 was officially launched on 6 July,1992.
It is a client-server version of software.
It is manageable on multiple platformsand operating systems, such as Windowsor UNIX .
It embraced the object-oriented concept
of business objects
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It is the Largest European software vendor.
SAP AG became the companys official
name after the 2005 annual generalmeeting.
It ranks after Microsoft, Google, Apple,and IBM in terms of Market Capitalization.
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While its original products are typically used byFortune 500 companies, SAP is now also activelytargeting small and Medium sized Enterprises(SME) with its SAP Business One and SAP
All-in-One.
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According to SAP officials, there are over
100,600 SAP installations serving more than38,000 companies in more than 120countries, which are used by more than 12 million
people.
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SAP provided selected standardizedprocesses, which were termed best-practice
solutions of processes.
The implementation of SAP software
commonly required the expertise ofknowledgeable external consultants, who arefamiliar with the best practices.
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SAP High Tech & Electronics
SAP Consumer Products
SAP Transportation
SAP Public Sector
SAP Telecomm.
SAP Chemicals
SAP Pharmaceuticals
SAP Retail
SAP Banking
SAP Industry Solution
SAP Engineering & Construction
SAP Oil & Gas
SAP Utilities
SAP Health Care
SAP Automotive
SAP Media
SAP Aerospace & Defense
SAP Service Providers
...
Business
Information
Ware-house
SalesForce
Auto-
mation
B2B
Procurement
Advanced
Planner &Optimizer
R/3
SAP FinanceSAP Mill
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R/3
Client / Server
ABAP
FIFinancial
Accounting
COControlling
TRTreasury.
PSProjectSystem
SDSales &
Distribution
MMMaterials
Mgmt.PP
ProductionPlanning
QMQuality
Manage-ment PM
Plant Main-tenance
HRHumanResources
WFWorkflow
ISIndustrySolutions
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 System
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Other major product offeringsinclude
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)
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SAP R/3 functionality is structuredusing its own proprietary language
called ABAP (Advanced BusinessApplication Programming).
ABAP or ABAP/4 is a fourth generationlanguage (4GL), geared toward the
creation of simple, yet powerfulprograms.
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SAP has several layers.
The Basis System (BC) includes the ABAPProgramming language, and is the heart (i.e.
the base) of operations and should not be
visible to higher level or managerial users.
The Heart of the system (from the managers
viewpoint) are the application modules.
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SAP BASIS (Basis)
ABAP etc. (Cross-Application)
HR
Central
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.comTechnology
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CustomerPrograms
Applications,such as FI/CO
SAP BasisSAP BasisSAP BasisSystem Software
SAP Basis
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SAP R/3 Conceptual AreasSAP Conceptual Areas
Application Area(Initiate and execute
SAP transactions)
(Functional)
Basis Area(The technical
administration ofthe system)
(Authorizations/Ids/etc)
Development Area(1. A developers
workbench2. Create & Test
ABAP/4 programs)
(Technical)
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mySAP? mySAP.com?
mySAP links e-commercesolutions to existing ERP
applications, using state-of-the-art
Web technology.
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System Landscape
ProductionDevelopment Quality Assurance
Transportgroup
Transportgroup
PRODQTST TRNGTEST CUST
SAND
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Logging on to SAP System
Logon pad withdifferentsystems
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Adding to favorites
Steps to add transaction to favorites
Step I: Select the transaction you want to add tofavoritesStep II: Right click on the transaction you want toadd to favoritesStep III: Select Add to favorites.
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W ki i S l S i
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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
Th I B i th R/3 S t
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SAP AG
R
The Icon Bar in the R/3 System
Enter
Save
Back
Exit
Cancel
Help
Execute
Find
Sort
Change Display
Page??
U P fil
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SAP AG
R
User Profiles
Own data: allows you tochange your address,
defaults, and parameters Address: enables you to
set your communicationinformation
Defaults: allows you tospecify your preferred
printer and date andnumber formats
Parameters: allows you toset default values infrequently used fields
Information systems Tools System
?? Create session
End sessionUser 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
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SAP HTML Help Files
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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 Accounting
HR - Human ResourcesLO - LogisticsInformation
CA - Cross Application
R/3 Library
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The most difficult part of SAP
R/3 is its implementation.Simply because SAP R/3 is
never used the same way inany two places.
Defining the Points on the ASAP Roadmap
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SAP AG 2002
Defining the Points on the ASAP Roadmap
ProjectPreparation
Business
Blueprint
Realization
FinalPreparation Go Live &
Support
Initial Project Planning
Project
Procedures
TrainingProject Kickoff
Technical Requirements
Planning
Quality Check
Project Management
Organizational Change ManagementDevelop System Environment
Training
Business Organizational Structure
Business Process Definition
User Roles and Authorization
Quality Check
Project Management
Organizational Change Management
TrainingBaseline Configuration and Confirmation
System Management
Final Configuration and Confirmation
Develop Programs, Interfaces etc.
Final Integration TestQuality Check
Project Management
End User Training
System ManagementSystem Tests
Detailed Project Planning
Cutover
Quality Check
Production Support
Ongoing KPI
Management
Project End
Documents of an ASAP Project
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SAP AG 2002
Master ListsMicrosoft ExcelSpreadsheets forDevelopment, Organization,Business Processes andAuthorizations
ProjectCharter
BPP
j
Q&Adb
Substructures:
Business StrategyOrganizationGeneral SettingsMaster DataBusiness Process
Cross ApplicationDevelopment
BusinessBlueprint
ProjectPlan
Scope
Config.
Plan
Testing
Plan
Unit testingTest scenarioIntegration
4321 5
CutoverPlan
Volume
Test
StressTest
Conduct
End User
Training
System
Performance
Review
ProjectTeamOrg.
Stand. &Proced.
TechnicalOperations
Manual
Progr.
Develp.
EUTraining
Material
Microsoft WordDocuments
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5/29/2012 67
INTRODUCTION TO SAP:Overview of the SAP R/3 System
& Getting Started with R/3
What Is Enterprise Resource
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What Is Enterprise Resource
Planning? The integration of all computing within an
organization such that:
allmajor business processes are
encompassed and standardizedand
alldata is usable by allfunctional
areas of the business Enterprise Resource Planning = ERP
Integrate many business functions into
one seamless application
What Is Enterprise Resource
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What Is Enterprise ResourcePlanning?
Strategic Information
Managerial Information
TransactionInformation
Sales &Marketing
Manufacturing
HR
Accounting& Finance
Procurement
Decision Support
Executive IS
One Integrated Information System
Ch t i ti f ERP
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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
Advantages of ERPs in
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Provide fully integrated businessfunctions or modules that supportbusiness processes
Help develop understanding ofbusiness processes by trackinginformation through the process
Standardize systems development lifecycle
Move toward business process re-
engineering
Advantages of ERPs, inGeneral
What Is SAP R/3?
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What Is SAP R/3?
SAP is an example of an ERP System SAP R/3
SAPs 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 Webenabled
Worldwide Organized in 4
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Worldwide Organized in 4Operating Regions
* Through Partners
Asia Pacific
Australia
Japan
Hong
Kong
China
India
Korea
Singapore
Malaysia
New
Zealand
Thailand
Philippines
Indonesia
Middle East*
Africa / Middle East
Israel*
Turkey*
South Africa
Switzerland
SlovakRepublic
Europe
Belgium
Denmark
Germany
France
Greece*
Italy
Netherlands
Austria
Portugal
Russia
Sweden
Spain
CzechRepublic
Hungary*
Poland
Norway
U.K.
America
U.S.A.
Mexico
Argentina
Brazil
Chile
Venezuela
Colombia
FinlandCanada
Romania
Croatia
R/3 I t t d P d t
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R/3 Integrated Products
03
OpenSystem
Designedfor all
types ofbusiness
IndustrySmultinationalolutions
R/3Client / Server
FIFinancial
Acctg.
COControlling
AMAsset
Mgmt
PSProjectSystem
WFWorkflow
MMMaterials
Mgmt
HRHuman
Resources
SDSales
PPProduction
Planning
QMQualityMgmt
PMPlantMaint.
IntegratedSolution
Client/Server
Architecture
Comprehensive
Functionality
ISIndustry
Solutions
Graphical UserInterface
Multinational
Over 12,000 installationsaround the world
Summary: What is SAP R/3?
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Highly Integrated ApplicationSoftware
Client/Server Technology
Based on Best Business Practices
Based on Open Standards
Various RDBMS: Oracle, Informix,etc.
TCP/IP (standard communicationprotocol)
Summary: What is SAP R/3?
Why is R/3 so Important?
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Forces a Consolidation of Diverse ISSystems
Total Change in Doing Business -
Redesign Business Process Aroundthe Information System
Main Vehicle for Re-engineering
Business Processes using BestPractices
ERPs are described by Some as the
Second Major Revolution in Computer
Why is R/3 so Important?
Main Features of R/3
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ALL Business processes draw on samedatabase
Rules are configurable and drive data
integrity Operates in many languages
Translates currency automatically
Documents workflow, businessprocesses and the data in one set ofmodels that are highly integrated
Integrates several views of data:
Main Features of R/3
What Does It Involve?
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What Does It Involve? Fully Implemented Three Tier
Client/Server Architecture
Involves All of the MajorBusiness Cycles:Procurement, Financial
Accounting, Sales, Logistics,HR, Production Planning, AssetMgmt..
What Does It Involve?
What Does It Involve?
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Database Server PrimarilyRuns on UNIX, However NT
Server is a Second PreferredPlatform
Applications Servers Run on
UNIX & Windows/NT Presentation Servers -
Windows, Windows/95,
What Does It Involve?
Introduction to SAP R/3
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Advantages of SAP Covers Many Business
Functions
Strong Workflow Capabilities Can Handle Many Different
Types of Complex Transactions
- Data Entered One time, OnePlace, At the Source
Implemented in Many Large,-
Introduction to SAP R/3
Introduction to SAP R/3
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Disadvantages of SAP Expensive
Very Complex
Demands Highly Trained Staff
Lengthy Implementation Time
Inter-modules functions leastunderstood by business, buthigh on list of reasons to buy
Creates internal conflict in
Introduction to SAP R/3
How Is It Done?
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An SAP Installation Is a SeriousUndertaking
Usually a Large Business Will Re-
engineer Its Business Processes at theSame Time (OR First)
Different Approaches
Big Bang - Convert All Systemsat Once
Phased Conversion - Gradual
Mi ration
How Is It Done?
How Is It Done?
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Things That Have to Be Done Learn the SAP System
Analyze the Current, As-IsProcesses
Determine What SAP
Functionality You Need Install and Configure (customize)
the SAP System
Test the configuration
How Is It Done?
(ASAP):
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(ASAP):R/3 Accelerated
Implementation1 2 3 4 5 6
Project
Prep.Business
Blueprint
Simu-
lation
Vali-
dation
Final
Prep.
Go Live
&
Support
Start Here
Realize Business Benefits
(ASAP):
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(ASAP):R/3 Accelerated
Implementation
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