Introduction to SAP Business without ERP PP contacts Purchasing for raw material Customers Purchasing Customer Calls to place 1 order for a Car Sales office/Inventory contacts PP 4 Production Planning 3 3 Sales office contacts Inventory 2 Sales Inventory -2- Business without ERP (Contd..) Lets add some more Business Processes -3- Business without ERP (Contd..) Where is my car Customers What is this confusion What to manufactur e?? Production Planning Whom to contact for status? What is Cost and profit Sales Shop floor Finance Purchasing Vendors Inventory -4- Lets Deliver the end product to customer.. I did not order for a TRUCK!!!! Dear Sir, Your Order… Sales -5- Business without ERP (Contd..) I AM NOT TAKING DELIVERY AND WILL NEVER DEAL WITH YOU! We are SORRY Sir Sales -6- Overall Picture Vendors Purchasing Sales Customers A/R General Ledger A/P Production Planning Inventory -7- Shop Floor Execution Why Enterprise Architecture • Why Enterprise Architecture ? – Numerous disparate information systems – Integrating the data becomes costly • Time • Money • Resources – Inconsistencies and duplication of data – Lack of timely information – Required: Central enterprise definitions – Required: Centrally controlled business change -8- Enterprise Structure – Integrating Business Payroll FA HR Marketing Partner Systems Treasury GL Shop Floor AP Purchasing Sales PP AR Mfg. Plants -9- -10- Enterprise Architecture - Benefits • • • • • • • Eliminates the duplication, discontinuity and redundancy 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 a quality enterprise Satisfying Partners/Customers Reducing required manpower ERP -11- Quiz Time • What is the full form of SAP? • When was SAP founded? -12- Quiz Time • What is the full form of SAP? Systems Applications and Products in Data Processing • When was SAP founded? Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira – Renamed in 1977 – Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) -13- History of SAP • Systems Applications and Products in Data Processing – German : Systeme, Anwendungen, Produkte in der Datenverarbeitung • Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira – Renamed in 1977 – Before 1977 : Systems Analysis and Program Development (German : Systemanalyse und Programmentwicklung) • SAP is both the name of the Company as well as their ERP Product • SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business • Three systems developed : R/1, R/2, R/3 -14- Steps to Strategic ERP Enterprise Resource Planning is evolved through these stages … Enterprise Resource Planning Collaborative Business Inter-Enterprise Co-operation Create Strategic Value Efficiency and Control Total Company Value Automation 80’s R/2 90’s R/3 Today mySAP ERP Evolution of ERP -15- Evolution of SAP -17- Quiz Time • SAP R/3 client server architecture evolved in year___________. • Which is the latest SAP product? – mySAP ERP – mySAP Business Suite – mySAP.com with one step business -18- Quiz Time • SAP R/3 client server architecture evolved in year 1992 • Which is the latest SAP product? – mySAP ERP – mySAP Business Suite – mySAP.com with one step business -19- SAP R/3 Architecture 3 Tier Client / Server Architecture • The SAP R/3 architecture is based on a 3-tier client/server principle – Presentation Server – Application Server – Database Server • Dedicated Servers are linked by Communication Networks • Perform tasks without sacrificing data integration and processes within the system, as a whole -21- SAP R/3 System Architecture (Contd...2) -22- Overview of Presentation & Database Servers • The Presentation Server – – – – – • GUI only At workstation Very light Sends requests to application server Obtains screens from application server and displays The Database Server – Interface between application server and RDBMS – Also holds the vendor specific DB driver -23- SAP R/3 Conceptual Areas SAP Conceptual Areas Application Area (Initiate and execute SAP transactions) (Functional) Basis Area (The technical administration of the system) (Authorizations/Ids/etc) -24- Development Area (1. A developer’s workbench 2. Create & Test ABAP/4 programs) (Technical) Systems in R3 Transport Request Development System (DC) Quality System (QC) Client 110 100 etc.. -25- Production System (IC) Clients in R/3 • The Logon Client – 3 digit number ( 000 to 999) – Helps maintain independent sets of data within the same R/3 system • Client mechanism and handling -26- Clients in R/3 -27- R/3 Technology Environment Hardware UNIX Systems Bull IBM Digital SNI HP SUN Bull/Zenith Compaq Data General ... Operating AIX Reliant systems Digital UNIX UNIX (SINIX) HP-UX Databases Dialog SAPGUI Digital NCR HP (Intel) Sequent IBM (Intel) SNI Windows NT IBM AS/400 IBM S/390 OS/400 OS/390 DB2 for OS/400 DB2 for OS/390 SOLARIS ADABAS D DB2 for AIX INFORMIX-OnLine ORACLE ADABAS D MS SQL Server INFORMIX-OnLine ORACLE Windows 3.1, Windows 95, Windows NT, OSF/Motif *, OS/2 Presentation Manager (PM), Macintosh *, Java Languages ABAP/4, C, C++, HTML, Java Platforms and Databases supported by R/3 Operating Systems Supported Hardware Supported Front ends Supported Databases AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX SOLARIS HP-UX Digital HP OSF / Motif Informix – Online Digital Unix Bull OS/2 Macintosh Oracle 7.1 ADABAS D Windows NT AT&T Compaq Bull / Zenith HP (Intel) SNI IBM (Intel) Digital (Intel) Data-General Win 3.1 / 95 / NT OSF / Motif OS/2 Macintosh Oracle 7.1 SQL Server 6.0 ADABAS D OS/400 AS/400 Win 95 OS/2 DB2/400 -29- Client Server Benefit -30- Quiz Time Match the following Presentation Server Windows Application Server Basis 3 Digit number Quality System Client Testing/ UAT GUI Unix Systems Oracle Authorizations Client Business Administration -31- Quiz Time Match the following Presentation Server GUI Application Server Business Administration 3 Digit number Client Client Testing/ UAT Quality System (QC) Unix Systems Windows Authorizations Basis -32- SAP R/3 Modules SAP Modules SD – Sales and Distribution FI – Financial Accounting SD MM – Materials Management FI MM PP – Production Planning CO – Controlling CO PP AM – Asset Management AM SAP R/3 HR QM QM – Quality Management WF PM PM – Plant Maintenance WM PS WM – Warehouse Management HR – Human Resources WF – Workflow PS – Project System -34- SAP R/3 Application Modules • Financial accounting (FI) • Controlling (CO) • Asset management (AM) • Materials management (MM) • Sales and Distribution (SD) • Production Planning (PP) • Quality management (QM) • Plant maintenance (PM) & Customer Service (CS) • Project system (PS) • Human resources (HR) • Workflow (WF) -35- Module Functionalities MM Material Procurement Inventory Management Batch Management Goods inspection Invoice Verification PP BOM/Work Center/Routing MRP Capacity Evaluations Production Orders QM in production FI General Ledger Accounts Payable Accounts receivable Cash management SD Inquiry processing Sales Order Processing Delivery Processing Billing CO Cost Center Accounting Product Costing Order Contribution Analysis -36- Quiz Time Match the following Financial Accounting Inventory Management Controlling Shop Floor Control Materials Management Financial Reporting Sales & Distribution Profit center Accounting Production Planning Billing Project System Activity monitoring Asset Management -37- Quiz Time Match the following Financial Accounting Asset Management & Financial Reporting Controlling Profit center Accounting Materials Management Inventory Management Sales & Distribution Billing Production Planning Shop Floor Control Project System Activity monitoring -38- Module FI – Financial Accounting • External reporting of • General ledger • Accounts receivable/payable • Sub-ledger accounts with a user-defined Chart of Accounts • Key elements • General ledger • Accounts payable • Accounts receivable • Asset Management • Special Purpose Ledger (FI-SL) • Legal consolidation • Accounting Information System -39- Financial Accounting Bank Foreign exchange management Finance information system Management of secureties and loans Cash management and forecast Accounts payable Bank accounts Payables Accounts receivable Receivables General Ledger Invoice verification Extended General Ledger Consolidation -40- Credit management Module CO – Controlling • Represents the flow of cost and revenue • Instrument for organizational decisions • Key elements of the CO application module include : • Cost center accounting • Product cost Planning • Product Costing • Profitability analysis • Profit center accounting • Activity based costing • Enterprise controlling -41- Module SD – Sales and Distribution • Optimize tasks/activities in • Sales • Delivery • Billing • Key elements of the SD application module include : • Pre-sales support • Inquiry processing • Quotation processing • Sales order processing • Delivery processing • Warehouse management • Billing • Credit Management • Sales Information system -42- Sales Support Sales Sales activity Inquiry Contract Quotation USD Delivery free of charge Subsequent delivery free of charge Sales order Returns Scheduling agreement Shipping Delivery Billing Debit memo Invoice Credit memo FINANCIAL ACCOUNTING -43- MATERIALS MANAGEMENT SALES INFORMATION SYSTEM Sales and Distribution Processing Module MM – Materials Management • Supports • Procurement • Inventory • Key elements • Materials procurement (purchasing) • Inventory management • Invoice verification • Material valuation • Vendor evaluation • External Services management • Purchasing Information System (PurchIS) • Inventory Controlling Information system -44- Materials Management Vendor/one-time customer Purchasing info record Service specifications Workflow Optical archive Purchase requisition Material/service Price comparisons Price comparison list Purchasing PP Third-party order Requirements Purchase orders Outline agreements Scheduling agreements Service/ Spare Parts Service / parts lot Inspection QM spare PM FI INVENTORY MANAGEMENT Classification Conditions SD RFQ/Quotation Texts Mail Communication Documents MRP Direct requisition Release procedures Vendor evaluation Material Special stock Batch PURCHASING Purchasing information system BASIC DATA Goods receipt/issue Transfer posting Quantities and values Physical inventory Storage bins AM CO INVOICE VERIFICATION Check and post Price update -45- PS G/L accounts Cash management and forecast Fixed assets Cost center / Budget Project Module PP – Production Planning • To plan and control the manufacturing activities • Key elements • Bill of Material (BOM) • Routings • Work Centers • Sales and Operations planning (SOP) • Master Production Scheduling (MPS) – Capacity Planning • Materials Requirement Planning (MRP) • Shop Floor Control (SFC) • Production orders • Product costing, activity-based costing • Work in process • Kanban • Production planning for process industries (PP-PI) • Repetitive Manufacturing -46- Production Planning SD PP Customers SD Sales Shipping Billing Vendors FI Financial accounting MM SD Purchasing Warehouse Invoice verification CO Sales and Operations Planning Demand management / MPS Material requirements planning Detailed Schedeling and Planning Capacity planning Shop floor control Costing Information system PS SD Project Networks PM SD Maintenance Repairs Plant maintenance QM SD Inbound Raw Material Finished Goods HR Cost accounting -47- Human resources Module QM – Quality Management • Supports • Quality planning • Inspection • Control for manufacturing • Costing • Procurement • Key elements • Quality planning • Quality during procurement, production, distribution • Quality Management Information - Quality inspection • Information System (QMIS) -48- Module PS – Project System & HR – Human Resource • PS – Project Systems • Support planning, control, & monitoring of long term highly complex projects with defined goals • Key elements • Project WBS – Plan • Budget & Monitor • Network Management • Activity monitoring, Material Planning, Milestones, Capacities Scheduling • Project Management Information System • HR – Human Resource • Key elements • Recruitment • Payroll & Time management • Travel Expense accounting & Benefits • Workforce planning & Training administration • Organization management -49- Quiz Time • Is Industry solutions an SAP module like FI/CO/MM etc? • True/False – PP Supports procurement and Inventory – FI Handles project budgeting and monitoring – WF management is a support tool for all modules -51- Quiz Time • Is SAP - Industry solutions a module like FI/CO/MM etc? NO • True/False – PP Supports procurement and Inventory (False – MM Supports these functions) – FI Handles project budgeting and monitoring (False – PS handles these functions) – WF management is a support tool for all modules (True) -52- IS – Industry Solutions • Combines SAP R/3 application modules to additional industry- specific functionality • Result of the research by industry Centers expertise (ICOE) -53- mySAP Industry Solutions (Some Examples) • SAP for Aerospace & Defense • SAP for Healthcare • SAP for Media • SAP for Public Sector • SAP for Automotive • SAP for High Tech • SAP for Mill Products • SAP for Retail • SAP for Banking • • SAP for Mining SAP for Higher Education & Research • SAP for Chemicals • SAP for Service Providers • SAP for Oil & Gas • SAP for Industrial Machinery & Components • SAP for Consumer Products • SAP for Telecommunications • SAP for Pharmaceuticals • SAP for Engineering, Construction & Operations • SAP for Insurance • SAP for Utilities • SAP for Professional Services -54- SAP Product Overview Evolution of SAP products mySAP ERP R/3 R/3 Enterprise Solutions mySAP CRM mySAP SCM mySAP HR mySAP PLM ……….. mySAP Business Suite SAP NetWeaver Web AS •Easing Upgrade Plans & Providing Transition Options •Bringing benefits of SAP Netweaver into installed base •New Customers have more entry options & receive world –class ERP -56- Evolution of SAP products SAP R/3 my SAP Solutions -57- my SAP Business Suite SAP R/3 Financials HR Corporate Services Operations -58- mySAP Solutions mySAP PLM mySAP SCM mySAP Financials mySAP CRM mySAP SRM mySAP HR Corporate Services Operations SAP R/3 Adaptive Business Solutions -59- my SAP Business Suite mySAP PLM mySAP SCM mySAP mySAP SRM CRM mySAP Financials mySAP HR Corporate Services Operations SAP NetWeaver Application Platform ( Web As) People Integration (Portal) Information Integration( BI,MDM) Process Integration (XI) -60- mySAP Solutions & Netweaver • mySAP CRM • mySAP SRM • mySAP SCM • mySAP PLM • SAP Netweaver -61- My SAP Customer Relationship Management (CRM) CRM Solution Map -63- CRM – Holistic view -64- Where does a CRM solution fit? Who What Marketing Sales Service Executives Service Engage Use a CRM Solution to complete the Cycle Fulfill Transact Workplace Which way Internet Mobile Telephony How Operational Analytical Collaborative -65- CRM Component Landscape mySAP.com Portal Users OLTP R/3 System CRM System BW As one big logical box Internet Telephone Callers Mobile Clients -66- APO CRM Internet Sales Enterprise B2C Scenario Consumer BBP Scenario Business Partner B2R Scenario Reseller Internetselling -67- Service module within CRM • Service Planning • Proactively engage customers with the correct resources at the most beneficial times • Customer Care • Provide customer with 24/7 accessibility from all communication channels with precise and consistent informationon • Installed Base Management • Maintain an accurate, up-to-date record of a customer’s products and installations to facilitate service and anticipate customer requirements -68- Mobile Sales module within CRM • Suite of tools tailored to the needs of the offline mobile sales force – Provides an integrated view of customers, prospects, products, services, competitors, activities, opportunities, quotations, orders, etc. – Heavy cross-referencing for easy navigation • Facilitates the sales process by – Effectively managing customers and prospects – Providing appropriate customer, product and competitive information – Determining product and pricing configurations – Managing sales projects across sales teams – Generating presentation and proposals -69- Quiz Time • What is the latest version of mySAP CRM • Name the three service modules with in CRM -70- Quiz Time • What is the latest version of mySAP CRM (Version 5.0) • Name three service modules with in CRM – Service Planning – Customer care – Installed base management -71- My SAP Supplier Relationship Management (SRM) SRM Solution Map -73- Key Components of mySAP SRM mySAP SRM – eProcurement mySAP SCE Supplier Collaboration Engine • Enterprise Buyer Prof 3.5 • Supplier self services 1.0 • Business Inf. W’house 3.0B • Bidding Engine 3.5 • Requisite Bugs Eye 3.5 • User Management 3.0 • Requisite eMerge 3.5 • Enterprise Portal 5.0 Exchange Infrastructure Content Integrator -74- Key Components of mySAP SRM • Strategic Sourcing •Sourcing analytics: Helps provide analytics based on supplier location, line of business •Supplier evaluation: Helps you evaluate the supplier base within the organization systems and external market places to identify and select supplier to ensure reliable & uninterrupted supply •Request for quotation and auctions: Provides electronic auctioning and bidding tools to compress sourcing cycle times •Contract management: Helps create and manage value and quantity contracts • Operational Procurement •Self-service procurement: Enables decentralizing procurement process within organization, without diluting the control •Plan-driven procurement: Enables automatic purchase order generation for stock materials across the integrated supply chain •Services procurement: Enables service procurement process to be managed online -75- Key Components of mySAP SRM….Contd. • Supplier Enablement •Supplier portal: Provides portal features for suppliers to manage their product data and orders •Supplier connectivity: Provides capability to connect multiple suppliers through XM_based document exchange • Content Management •Content consolidation: Provides capability to consolidate product and vendor information •Catalog content management: Provides capability to manage OCI compatible catalog with tools for data import, data edit and a search engine -76- Quiz Time • Name any one key component of mySAP SRM Solution map -77- Quiz Time • Name any one key component of mySAP SRM Solution map – Following are the three key components of mySAP SRM • Strategic Purchasing & Sourcing • Operational Procurement • Supplier Collaboration -78- My SAP Supply Chain Management (SCM) SCM – Solution Map -80- mySAP SCM SAP APO (Advanced Planning and Optimizing) Flexible and Adaptive Planning, Integration with CRM, SRM and PLM SAP ICH (inventory Collaboration Hub) Collaboration with Suppliers SAP EM (Event Management) Monitor, alert and resolve exceptions -81- Typical SAP SCM Solution-scape SAP R/3 Dominant source of Master Data in SAP SCM, destination of transaction data like planning outputs or Availability Checks for Execution systems SAP SCM Transaction Data Core Interface Planning system where selective Master data maintained and sourced from R/3 Master Data Module includea Demand Planning, SNP & Deployment, PPDS, GATP, TPVS and TLB Core interface SAP CRM, SAP SRM and SAP PLM Legacy Systems BAPI -82- Planning Outputs include Forecasts, SNP or PPDS Planned Orders, Stock Transfers and Production Orders One-on-One comparison i2 Technologies (Tradematrix SCM) SAP SCM ORACLE APS Manugistics (Networks SCM) Forecasting Demand Planner/Demand Management Demand Planner Oracle Demand Planner Demand Management ATP and Fulfillment Demand Fulfillment SAP GATP (Global ATP) Oracle GOP (Global Order Promising) Fulfillment Management Material and Resource planning Supply Chain Planning SAP SNP (Supply Network Planning) Oracle ASCP (Advanced SCP) Master Planning Manufacturing Planning Factory Planning PP/DS (Production Planning and Detailed Scheduling) Oracle Manufacturing Scheduling Manufacturing Planning and Scheduling Transportation TMS (Transportation Management Solutions) TP/VS (Transportation Planning/Vehicle Scheduling) Oracle Transportation Logistics Management Solutions -83- mySAP Product Life Cycle Management (PLM) PLM Solution Map -85- SAP Netweaver A Roadmap for Web Services -87- Services are changing SAP’s Product portfolio -88- From Basis to WAS -89- Integration is the Key Challenge Business Drivers Extended Value Network Document Mgmt Call Center Increased Market Dynamics Market Analysis Integration costs are high Long integration projects SCM IT environments become increasingly rigid Lots of heterogeneous systems ERP E-sales Pressure on IT increases Must leverage existing investments Must support new business processes quicker Trading E-procurement Technical systems Must reduce total cost of ownership (TCO) PLM -90- How to Address the Integration Challenge Reduce Complexity • Minimize the number of connections through hubs Document Mgmt •Use only one platform to integrate all people, information, and systems Market Analysis Call Center Reduce Cost Integration SCM ERP •Deliver .NET and J2EE interoperability •Deliver adaptors for ISV products •Deliver products, not projects E-sales Increase company performance •Increase ease of use, scalability and adaptability Trading E-procurement Technical systems PLM -91- •Increase business process flexibility by using an Enterprise Services Architecture The fundamental Web services standards are supported by the Web Application Server (Web AS), which is the basis for all other NetWeaver components -92- SAP NetWeaver The integration and application platform for lower TCO Unifies and aligns people, information and business processes Integrates across technologies and organizational boundaries A safe choice with full .NET and J2EE interoperability The Business foundation for SAP and partners Powers business-ready solutions that reduce custom integration It’s Enterprise Services Architecture increases business process flexibility -93- SAP NetWeaver in Detail (SAP Internal View) Product components and killer features SAP Mobile Infrastructure Tight coupling and alignment with SAP business solutions SAP NetWeaver SAP Enterprise Portal Business packages People Integration SAP Business information Warehouse Business content Tight integration to Sap Open architecture (Crystal, Accential ) Master Data Management Coming in 2003 SAP Exchange Infrastructure Proxy generation and mapping tools Integration directory SAP’s ability to execute Multi-channel Access Portal Information Integration Bus. Intelligence Knowledge Mgmt Master Data Management Process Integration Integration Broker Business Process Management Application Platform J2EE SAP Web Application Server Collaboration ABAP Multi-channel Access Proven, scalable, comprehensive toolsets Leverage existing infrastructure/skillets -94- Life cycle Management Composite Application Framework Collaboration SAP Solutions Powered by SAP NetWeaver Business content makes the business foundation -95-