SAP-TheLeaderinERP

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SAP – The Leader in ERP

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The ERP Implementation Cycle

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Discovery Focus on the business requirements and how the organization’s needs fit with the software.

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Design System configuration, gaps and data conversion from legacy systems.

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Develop Write the programs, configure the security, develop the conversion process, and test the configuration.

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Test & Train Stress test the system by trying to break the system. Make sure to train the users otherwise a great implementation looks bad.

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Deploy & Optimize Plan to succeed or succeed to fail. Always be watching to see how to make the system better.

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Support No matter which implementation strategy you follow, make sure that you have planned to support the users.

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SAP

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Birth of SAP ¾

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Until 1972 ERP was just a concept that companies had to integrate all departments and functions to increase revenues and strengthen the business In 1972, 5 IBM managers set out to start what is today known as SAP SAP was the first to develop and implement ERP specific software and Applications

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SAP – A Corporate Overview ¾ ¾

SAP: Systeme, Anwendungen und Produkte (in derDatenverarbeitung). Fun facts – Founded in 1972 by five IBM engineers – Third largest software vendor in the world, behind Microsoft and Oracle respectively. – 53000 customers in 120 countries • 95% of the Fortune 1000 companies use SAP worldwide • 8 of the top ten largest US corporations use SAP – 31% Market Share

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Market Share

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SAP – Financial Information ¾

Two Corporate Entities – SAP AG (AktienGesselschaft) • German Headquarters, based in Waldorf, Germany.

– SAP America Inc. • American Headquarters, based in Newtown Square, Pa ¾

Ticker symbol: NYSE: SAP, German: SAP

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SAP Business Suite (Product Life-Cycle Management)

(Customer Relationship Management)

(Supplier Relationship Management)

(Supply Chain Management)

(Application Infrastructure)

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SAP Product Overview

mySAP.com Increasing Business Size

mySAP All-in-One

mySAP Business One

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Full functionality

Full functionality, pre-configured, single database

Necessary functionality up to 250 users

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SAP Product Features ¾ ¾

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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)

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SAP Products Features ¾ ¾

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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

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The Module Breakdown

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SAP R/3 Modules Client/Server Architecture

Open System

Multi-national

Comprehensive Functionality

Integrated Solution

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Financial Accounting & Controlling Module

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Financial Accounting & Controlling

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Logistics Module

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Sales & Distribution

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Materials Management

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Production Planning

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Quality Management

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Human Resources Module

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Human Resources & Project Planning

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How It Comes Together

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Architecture ¾ ¾ ¾

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)

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What Does it Involve ¾ ¾ ¾ ¾

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Database server Application server Presentation server 24,000 tables in R/3 Enterprise – 47,000 in ECC 6.0 12,000 separate relations – 22,000 in ECC 6.0

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Relational Database ¾ ¾

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

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Who is Involved ¾ ¾ ¾ ¾ ¾ ¾

Consultants – installation, configuration, training Individual employees In‐house implementation teams Super users SAP and in‐house support teams Hosting Centers

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How Long Does It Take ¾ ¾ ¾ ¾

Large organizations spend 2‐3 years implementing Value SAP approach allows basic implementation in 6‐9 months Smaller organizations have implemented in 3‐4 months To implement – Training – Prepare for change

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Advantages of SAP R/3 ¾ ¾ ¾ ¾ ¾

Integration Business Process Re‐Engineering Non‐redundant data Automatic international conversions Complete audit trail

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Advantages (contd.) ¾ ¾ ¾ ¾

Open system Integrated development Sophisticated management and monitoring capabilities Workflow capabilities

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Disadvantages of R/3 ¾ ¾ ¾ ¾ ¾ ¾

Expensive Complex Demands highly trained staff Very lengthy implementation times Inter‐module functions least understood by business Internal conflict in organizations

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