SAP Overview (SAP01) Dr. Supakorn Kungpisdan SAP Overview 1 Enterprise Application SAP Overview 2 SAP World SAP Overview 3 Evolution of ERP ERP ‘90 MRP II ‘80 Enterprise Resource Planning Material Resource Planning and Manufacturing Resource Planning Closed Loop MRP ‘70 MRP ‘60 Material Requirements Planning MRP and MRP II only focus on manufacturing SAP Overview 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 5 ERP Characteristics Real Time Integrated System Best Practice Customizing (Configuration) Process Oriented SAP Overview 6 Enterprise Application • First Generation Company A Suppliers ERP SAP Overview Customers 7 SAP World (1st Generation of Enterprise Application) SAP Overview 8 What is SAP? • SAP is the leader of ERP software vendor • Enterprise Resource Planning is a back office application for Enterprise ERP MRP II MRP SAP Overview 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 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 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 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 13 Integrated Business Solutions Software Vendors • • • • • • SAP Peoplesoft J.D. Edwards Oracle Microsoft—Great Plains IBM SAP Overview 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 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 16 SAP Databases SAP can use a number of database programs to actually store the data. Oracle DB2 SAP Overview MSSQL 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 18 Three-Tier SAP Structure • GUI—Graphical User Interface or Web Interface • Application server (one or many) • Database server (one single location) SAP Overview 19 Three-tier Client/Server Architecture Application Server Application Server USER PCs USER PCs Database Server Application Server Application Server SAP Overview 20 Two Tier Client/Server System (Training Configuration) Database and Application Server User PCs SAP Overview 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 22 SAP System System SD FI Sales & Distribution Financial Accounting MM CO Materials Mgmt. Controlling PP AM Production Planning QM R/3 Fixed Assets Mgmt. Client / Server ABAP/4 Quality Management PM Plant Maintenance TR Treasury WF Workflow HR IS Human Resources Industry Solutions SAP Overview 23 SAP Industry Solution • • • • • • • • • • • Aerospace/Defense Automotive Banking Chemicals Consumer Products Engineering/Construction Financial Svc Provider Healthcare High Tech Higher Education/Research Insurance • • • • • • • • • • • SAP Overview Media Mill Products Mining Oil & Gas Pharmaceuticals Public Sector Retail Service Providers Telecommunications Utilities …so on … 24 mySAP World (2nd Generation of Enterprise Application) SAP Overview 25 The Future of ERP Extended ERP 2000 ERP ‘90 MRP II ‘80 Closed Loop MRP ‘70 MRP ‘60 SAP Overview 26 ERP Extension • Web Enable • Customer Relationship Management (CRM) • Supply Chain Management (SCM) • Strategic Enterprise Management (SEM) • Business Information Warehouse (BIW) • Knowledge Management (KM) • So on … SAP Overview 27 Enterprise Application Components • Second Generation Company A Suppliers BW Customers KM CRM ERP SCM SEM Web-enabled SAP Overview 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 TEI ERP MRP II MRP SAP Overview 29 mySAP Components BW CRM SAP R/3 SCM SEM KW • • • • • • mySAP Business Information Warehouse mySAP Customer Relationship Management mySAP Knowledge Management mySAP Supply Chain Management mySAP Strategic Enterprise Management mySAP … SAP Overview 30 SAP NetWeaver World (3rd Generation of Enterprise Application) SAP Overview 31 Enterprise Service Architecture • Third Generation (Enterprise Application Integration) Company A Web Service Suppliers Web Service BW Web Service Customers KM Web Service SCM Web Service CRM ERP Web Service Web Service SEM Web-enabled SAP Overview 32 mySAP Business Suite mySAP PLM mySAP SRM ( ERP mySAP mySAP CRM mySAP SCM SAP NetWeaver SAP Overview 33 SAP NetWeaver : Integration Tools SAP Overview 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 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 36 SAP EP Example SAP Overview 37 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 38 SAP People Consultant Technical Functional User FI Basis ABAP CO MM SD … SAP Overview 39