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 organization
Integration 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
system
Implementation 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 infrastructure
Linking ERP’s to Front End Systems
ASP & possible new market segments
Product Life Cycle = State of decline
Public Sector Growth – laggards
New 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 Leader
80% Fortune 500 Companies Use SAP
Over 12,000 Customers
What is SAP R/3?
Client/Server Technology
Highly Customizable
Based on Industry Specific Best
Practices
Multi-lingual: International
Based on Open Standards
Integrated 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 manner
To make each element of the core
functionality of the R/3 System available in its
most up-to-date version
To allow users with very little or no previous
R/3 knowledge to easily run core scenarios in
the R/3 System
IDES - The Business Group
IDES Corporation
Manufacturing
IDES North America
IDES Europe
New York / US
Frankfurt / Germany
Toronto / Canada
Lisbon / Portugal
Barcelona / Spain
Paris / France
IDES Latin America
Mexico/ Mexico-C.
London / UK
IDES-Asia
Tokyo / Japan
IDES LOGISTICS
SAP Aerospace / Defense
 Production / Maintenance of an
aircraft engine
SAP Engineering / Construction
 Elevator and Turbine production
Complexity
Engineerto-order
Industry
Make-to-order
production
Production
by lot size
Process
manufacturing
Sturdiness
Assembly
manufacturing
JIT
Repetitive
manufacturing
Mass
production
SAP Automotive
 Manufacturers / Suppliers
processes
SAP Consumer Products
 Selling food and non-food products
SAP High Tech & Electronics
 PC assembly and customer
services
SAP Chemicals
 Paints, coating and solvents
production
SAP Pharmaceuticals
 Production of tablets
IDES - Financial Accounting
IDES Corporation
IDES North America
IDES Europe
IDES Asia
Consolidation
National and international
charts of accounts
(parallel)
Cost of sales accounting
Frankfurt / Germany
Lisbon / Portugal
Barcelona / Spain
Paris / France
London / UK
IDES - Cost Accounting
IDES Corporation
Controlling Area
IDES North America
Controlling Area
IDES Europe
Controlling Area
IDES Mexico
Frankfurt / Germany
Cost accounting for all
companies
Marginal costing
Activity-based costing
Lisbon / Portugal
Barcelona / Spain
Paris / France
London / UK
IDES - The Business Group
IDES Corporation
Retail
IDES North America
Los Angeles / US
IDES Europe
Giessen / Germany
Denver
Mainz
Boulder
Frankfurt
Colorado Springs
Darmstadt
Tuscon
San Diego
San Francisco
Oakland
IDES - Logistics
Production
Complexity
Engineerto-order
Retail
Make-to-order
production
Production
by lot size
Process
manufacturing
Sturdiness
Assembly
manufacturing
JIT
Textiles
Repetitive
manufacturing
Mass
production
Food
IDES - The Business Group
IDES Corporation
Banking
IDES North America
New York / US
IDES Europe
Frankfurt / Germany
Dublin / Irland
IDES - The Business Group
IDES Corporation
Service Provider
IDES North America
Philadelphia / US
IDES - Documentation
Process-oriented online help
Step-by-step documentation
with all relevant information
“Functions in Detail” brochure
IDES Summary
Complete R/3 model
company
Complete integration
Internet scenarios
Process-oriented
online help
Basis for all R/3
training
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