INTRODUCTION TO SAP: Overview of the SAP R/3 System & Getting Started with R/3

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What Is Enterprise Resource Planning?

The integration of all computing within an organization such that:

all major business processes are encompassed and standardized and all data is usable by all functional areas of the business

What Is Enterprise Resource Planning?

Enterprise Resource Planning = ERP Integrate many business functions into one seamless application Usually are applications systems that run on top of a RDBMS Replace 100s of legacy systems in organizations who use an ERP

What Is Enterprise Resource Planning?

Executive IS Strategic Information Decision Support Managerial Information

Sales & Marketing

HR

Procurement Accounting & Finance Transaction Information

Manufacturing

One Integrated Information System

Characteristics of ERPs
Link all business processes automatically Reduce interprocessing time (transactions occur one time at the source) Maintain complete audit trail of all transactions Use one common database (e.g., Oracle, Sybase, DB2) Perform automatic internal conversions (e.g., foreign currency, taxes, legal rules for payroll) Improve customer service by putting data at the fingertips of any employee Involve users in the entire functional cycle Unify backup, recovery procedures and other system administration tasks Secure the system from disaster and unauthorized use

Advantages of ERPs, in General

Provide fully integrated business functions or modules that support business processes Help develop understanding of business processes by tracking information through the process Standardize systems development life cycle
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Advantages of ERPs, in General

Move toward business process reengineering Center re-engineering around the software Directly link to external systems

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What Is SAP R/3?

SAP is an example of an ERP System SAP R/3
SAPs Client Server version (Distributes process and presentation) Based on R/2 (Mainframe version centralization of data and process) R/3 4.6: New release distributes data, process, and presentation, and is Web enabled
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Worldwide Organized in 4 Operating Regions

Europe
Austria Norway Poland Portugal Romania Russia

America
Argentina Brazil Canada Chile Colombia Mexico U.S.A. Venezuela

Belgium Croatia Czech Republic Denmark

Asia Pacific
Australia China Hong Kong India Indonesia Japan Korea Malaysia New Zealand Philippines Singapore Thailand

Finland
France Germany Greece* Hungary* Italy Netherlands

Slovak Republic Spain

Sweden Switzerland U.K.

Africa / Middle East

Israel* Turkey* South Africa

Middle East*

* Through Partners

R/3 Integrated Products

Client/Server Architecture
FI
Financial Acctg.

Comprehensive Functionality

Integrated Solution
PP

SD
Sales

MM
Materials Mgmt Production Planning

CO
Controlling

Graphical User Interface

AM

R/3
Client / Server
WF HR IS
Industry Solutions

Asset Mgmt

Open System

QM
Quality Mgmt

PS
Project System Workflow

Multinational

PM
Plant Maint. Human Resources

Designed for all types of business

Over 12,000 installations Industry world around the

Smultinationalolutions

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Summary: What is SAP R/3?

Highly Integrated Application Software Client/Server Technology Based on Best Business Practices Based on Open Standards
Various RDBMS: Oracle, Informix, etc. TCP/IP (standard communication protocol) 11/29/2012 UNIX, Windows NT, OS/400, etc.

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Why is R/3 so Important?

Forces a Consolidation of Diverse IS Systems Total Change in Doing Business Redesign Business Process Around the Information System

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Why is R/3 so Important?

Main Vehicle for Re-engineering Business Processes using Best Practices ERPs are described by Some as the Second Major Revolution in Computer History Adopted by Most Large Corporations (80% of Fortune 500)
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Main Features of R/3

ALL Business processes draw on same database Rules are configurable and drive data integrity Operates in many languages Translates currency automatically
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Main Features of R/3

Documents workflow, business processes and the data in one set of models that are highly integrated

Integrates several views of data: transactions, managerial, decision support or executive

Fully customizable
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What Does It Involve?

What Does It Involve?
Fully Implemented Three Tier Client/Server Architecture Involves All of the Major Business Cycles: Procurement, Financial Accounting, Sales, Logistics, HR, Production Planning, Asset Mgmt.. Fully Integrated Data Model (Non-redundant Data) Application Processing (I.e. Middleware) is Totally Scalable 11/29/2012

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What Does It Involve?

Database Server Primarily Runs on UNIX, However NT Server is a Second Preferred Platform Applications Servers Run on UNIX & Windows/NT Presentation Servers - Windows, Windows/95, Windows/NT, Apple MAC, UNIX (X-Windows) 75,000,000 Lines of Source Code Over 7,000 Separate Relations (over 10,000 logical tables, nearly 8000 physical tables)
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Introduction to SAP R/3

Advantages of SAP Covers Many Business Functions Strong Workflow Capabilities Can Handle Many Different Types of Complex Transactions - Data Entered One time, One Place, At the Source Implemented in Many Large, High-Tech Firms Impressive process and data documentation Supported by ALL Major Hardware Vendors
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Introduction to SAP R/3

Disadvantages of SAP Expensive Very Complex Demands Highly Trained Staff Lengthy Implementation Time Inter-modules functions least understood by business, but high on list of reasons to buy Creates internal conflict in organizations SAP rolls out new versions every 6 months
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How Is It Done?
An SAP Installation Is a Serious Undertaking Usually a Large Business Will Re-engineer Its Business Processes at the Same Time (OR First) Different Approaches Big Bang - Convert All Systems at Once Phased Conversion - Gradual Migration Pilot Approach (Big Bang or Phased, but One Business Area Only)
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How Is It Done?
Things That Have to Be Done Learn the SAP System Analyze the Current, As-Is Processes Determine What SAP Functionality You Need Install and Configure (customize) the SAP System Test the configuration Most Large SAP Installations Take 2 to 3 Years to Complete
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Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation

1 Start Here Project Prep. Go Live & Support 2 3 4 5 6

Business SimuBlueprint lation

Validation

Final Prep.

Realize Business Benefits

Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation