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3. Evolution of ERPEvolution of ERP
SAP Overview 3
Closed Loop MRP ‘70
MRP II ‘80
MRP ‘60
ERP ‘90
Material Requirements Planning
Material Resource Planning and
Manufacturing Resource Planning
Enterprise Resource Planning
MRP and MRP II only focus on manufacturing
4. What is ERP?
ERP is a high-end sophisticated software solution that
reduces the pressure and workload off the managers
and provides accurate, timely information for taking
appropriate business decisions. Managers with knowledge of
ERP will be able to achieve their targets and goals by proper
implementation of ERP system in their organization.
In fact managers are expected to translate the business rules
and requirements for mapping them into ERP software.
Implementation of ERP solutions is one of the largest drivers of
growth in the consultancy business.
SAP Overview 4
8. What is SAP?
SAP is the leader of ERP software vendor
Enterprise Resource Planning is a back office application for
Enterprise
SAP Overview 8
MRP
MRP II
ERP
9. SAP
Systems, Applications, and Products in Data
Processing (SAP)
Name of the company
SAP AG
SAP America
Name of the software
SAP R/2 – Mainframe version
SAP R/3 – Client/Server version
mySAP ERP
SAP Overview 9
10. SAP AG
Founded in Germany (1972)
World’s fourth largest software provider
World’s largest provider of Integrated Business
Solutions software
Company stock trades on the Frankfurt and New
York exchanges
SAP Overview 10
11. SAP R/3
World-wide usage
Designed to satisfy the information needs for all
business sizes (international to local)
Multi-lingual
Multi-currency
Designed to satisfy the information needs for all
industries (industry solutions)
SAP Overview 11
12. SAP R/3
Enables a company to link it’s business processes
Ties together disparate business functions
(integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible
SAP Overview 12
14. Architecture
Central relational database (e.g., Oracle and many others)
Client/Server—three-tiered
ERP Component—Oriented towards common identifiable
business modules (PP, MM, SD, FI, CO, HR)
Add-ons:
Customer Relationship Management (CRM)
Supply Chain Management (SCM)
Product Lifecycle Management (PLM)
SAP Overview 14
15. Relational Database
Tables: Defines and links thousands of tables of
information
Advantages
Consistent and accurate data
Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy
SAP Overview 15
16. SAP Databases
SAP Overview 16
Oracle
DB2
MSSQL
SAP can use a
number of
database programs
to actually store
the data.
FI
Financial
Accounting
CO
Controlling
Workflow
PP
Prod.
Planning
SD
Sales &
Distrib.
MM
Materials
Mgmt.
QM
Quality
Mgmt.
PM
Plant
Maint.
HR
Human
Resources
AM
Asset
Mgmt.
PS
Project
System
FI
Financial
Accounting
CO
Controlling
Workflow
PP
Prod.
Planning
SD
Sales &
Distrib.
MM
Materials
Mgmt.
QM
Quality
Mgmt.
PM
Plant
Maint.
HR
Human
Resources
AM
Asset
Mgmt.
PS
Project
System
17. Client/Server Environment
Client
Software/hardware combination that can make a
request for services from a central repository of
resources
Server
Software/hardware combination that can provide
services to a group of clients in a controlled
environment
SAP Overview 17
18. Three-Tier SAP Structure
GUI—Graphical User Interface or Web Interface
Application server (one or many)
Database server (one single location)
SAP Overview 18
20. Two Tier Client/Server System
(Training Configuration)
SAP Overview 20
User PCs
Database and
Application
Server
21. Business Modules
Collections of logically related transactions within
identifiable business functions
PP: Production Planning (“Make”)
MM: Material Management (“Buy”)
SD: Sales & Distribution (“Sell”)
FI: Financial Accounting and CO: Controlling (“Track”)
HR: Human Resources
SAP Overview 21
28. What is mySAP?
The future of ERP software must include CRM, SCM, SEM,
BW, KM, Web-enable …
mySAP is the future or extended of SAP
ERP software
SAP Overview 28
MRP
MRP II
ERP
TEI
29. SAP Overview 29
SAP
R/3
CRM SCM
SEM
BW
KW
• mySAP Business Information Warehouse
• mySAP Customer Relationship Management
• mySAP Knowledge Management
• mySAP Supply Chain Management
• mySAP Strategic Enterprise Management
• mySAP …
30. SAP NetWeaver WorldSAP NetWeaver World
((33rdrd
Generation of Enterprise Application)Generation of Enterprise Application)
SAP Overview 30
31. Enterprise Service Architecture
Third Generation (Enterprise Application Integration)
SAP Overview 31
Company A
ERP
CustomersSuppliers BW
CRM
SEMSCM
KM
Web-enabled
Web ServiceWeb Service
Web Service
Web Service
Web Service
Web ServiceWeb Service
32. mySAP Business Suite
SAP Overview 32
(mySAP ERP
mySAP PLM
mySAP SRM
mySAP SCM
mySAP CRM
SAP NetWeaver
34. SAP NetWeaver
The core capabilities of SAP NetWeaver are the
integration of people, information, and process
In people integration, it simply means that it enables
you to bring people together and help them work
more efficiently
Information integration means you can bring
together information from a variety of locations and
have it make sense in the context of what your folks
do everyday
Process integration means coordinating the flow of
work across departments, divisions, and between
companies
SAP Overview 34
35. SAP NetWeaver
SAP Enterprise Portal: helps create software that brings
together all the data and software tools that a person needs to
do her job in one consistent user interface
SAP Mobile Infrastructure: universal translator for mobile
devices
SAP Business Intelligence: provides tool for information
integration, so what your people see is consistent and accurate
SAP Master Data Management: is a system for harmonizing
information that is distributed across a wide variety of
applications
SAP Exchange Infrastructure: Integrates processes and help
applications talk to one another
SAP Overview 35
36. Programming Code Modifications
Changes to the delivered code
ABAP/4—Advanced Business Application
Programming (ABAP)
This should be done sparingly and carefully as it
can make migration to new versions of the
software much more difficult
SAP Overview 36
In 1972, in Mannheim, Germany, five engineers formed a company that developed and marketed standard software for integrated business solutions.
They developed software that could help companies of all sizes link their business processes, tying together disparate business functions, and helping the whole enterprise run more smoothly. From the beginning, the software was developed to work on a multilingual/multinational level, gaining it quick acceptance in countries all over the world. And, because created through the SAP Business Framework, it evolved from mainframe to client/server business application software solutions.
The innovative thinking of SAP soon made it the top software vendor in Germany. Today, SAP is the largest supplier of business application software in the world and the world’s fourth-largest independent software supplier, overall. In its most recent fiscal year, ending Dec. 31, 1998, SAP AG reported revenues of DM 8.47 billion.
Over 19,000 installations in over 90 countries
In the past, computer systems were batch oriented, specified and brought into the organizations by each individual department: Production chose its own system, Material Management chose its system, and Accounting chose its own system, and so on.
Although each of those systems may have been the best choice for a particular department, keeping them working together was very time consuming and expensive. This type of patchwork system inhibited change in organizations.
SAP R/3 provides a single integrated system to handle the needs of all departments in an organization. This integration is the single biggest advantage of SAP R/3.
With in the context of Client/Server software, all software is characterized as either client (software that requests a service) or server (software that can provide a service).