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  • 8/9/2019 sap and erp



  • 8/9/2019 sap and erp


    ERP The Enterprise Resource Planning System is a software

    package that was specially designed to help companies to runtheir businesses better. It consists of many modules. Each ofthe modules is used at different departments within onecorporation. All those modules are interconnected with eachother in one coherent system.

    Both SAP and Oracle have demonstrated over the last coupleof decades that each had sufficient ability to adapt to thechanging economic climate during the late 1980's through1990s.

    By 2007 Oracle had the third-largest software revenue, afterMicrosoft and IBM.

    SAP is the world's third-largest independent software vendor.

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    ORACLE by Mr. Larry Ellison

    Mr. Larry Ellison and his management team have grownOracle Corporation from a purely database companyinto a purveyor of software components includingmiddleware, development tools, and ERP/CRM/HRMS.

    Data Collection Advantage reduces transaction time bymore than 80 percent by providing Oracle with accurateinformation in real time.

    As became apparent with the acquisition of PeopleSoftin January 2005, Oracle has made acquisitions animportant component of a growth strategy.

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    Internet integration means that data collection can besupported across virtually any device that connects to theInternet, allowing Data Collection Advantage to supportmobile terminals and desktops in places where corporatenetworks are not available.

    The oracle company keeps upgrading and releasing newproducts into market, new versions releases which serves

    better than the earlier versions and thus the performance isimproved much in later versions and thereby retaining themarket growth and thus proves greater satisfaction to thecustomers using this technology. Thus the advantage of ahigher version is that one would have more features and better

    capabilities. Oracle is a major database which along with its addedfeatures passes the ACID test, which is important in insuringthe integrity of data. This is very important because data is the

    heart of any system in organization.

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    About ORACLE The world second-largest software supplierORACLE was

    founded in 1977 in the United States and by 1999 thecompany was serving 5000 clients in over 140 countries.

    Oracle is well known for their database systems rather than

    enterprise resource planning system. It is rating as the second ERP package vendor after SAP on

    the ERP market.

    Oracle has a reputation as a company with strong softwaresupport, a large financial budget and stable position among

    the competitors. At the same time the corporate culture of Oracle is

    conservative on benefits from revenues. Which causes suchproblems as inflexibility and slow implementation of theirERP products. In other words, the company lacks partnersand consultants for technical expertise.

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    SAP is a product developed and marketed by the German

    company SAP AG

    SAP was founded in 1972 as System analyse und

    Programmentwicklung("System Analysis and Program

    Development") by five former IBM engineers

    The SAP acronym was later changed to stand forSysteme,

    Anwendungen und Produkte in der Datenverarbeitung

    ("Systems, Applications and Products in Data Processing

    In 1973, the SAP R/1 solution was launched. Six years later, in

    1979, SAP launched SAP R/2.

    Change from R/2 to R/3 in 1992, followed a trend from

    mainframe computing to client-server architectures.

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    The SAP R/3 system runs on virtually any hardware/software platform and

    can use many different database management systems. IBMDB2Express Edition Microsoft SQL Server

    Since SAP is database-independent, the SAP architecturerequires the database to be defined as a part of the initial SAPinstallation. Once defined, the SAP programs (ABAP

    programs) will generate SQL that is compliant with the targetdatabase product.

    SAP MaxDB is the DBMS developed and supported by SAPAG. It is available for MS Windows, Linux, Unix. Today morethan 13,000 SAP customers run SAP MaxDB and SAPliveCache installations, proving SAP MaxDB's reliability,scalability and availability for configurations of all sizes.

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    While SAP can be run wit

    hmany different database products, nearly 85%of SAP customers now choose Oracle because of its dominance in the

    database marketplace.

    The SAP R/3 code is written in an interpretive language called ABAP. (ABAPis a German acronym that, loosely translated, means "Advanced BusinessApplication Programming.")

    The SAP R/3 application offers end users the ability to run their entirebusiness from a single application vendor. Some SAP customers choose torun their entire enterprise from SAP, while others run SAP only for specificbusiness processes, such as manufacturing or finance.

    When an SAP application is purchased with Oracle, each of the modules isdelivered with a complete Oracle schema consisting of thousands of tables

    and indexes. While SAP is available for many different hardware platforms and

    operating systems, the majority of SAP systems use Unix-based servers forhosting SAP and the Oracle database.

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    About SAP

    The main player on ERP market is the German company SAP (Systems,Application, and Products in Data processing) which was founded in 1972.

    It was the first time in software history that a company outside of theUnited States had gained such success.

    In 1999 SAP had more than twice as many customers as Oracle in 100

    countries around the world. Unlike Oracle, SAP decided to work in close collaboration with many other

    companies. The company success derives from the fact that SAP invests 20percent of the profit on research and shares 80 percent of the total revenueswith their alliance partners.

    Moreover, SAP has many consultants who provide help and training to

    their customers. And there are even third party developers who supply alarge number of add-in programs that can work together with SAPsproducts. As a result, customers enjoy more flexible and fastimplementation of their ERP systems. There is no doubt about why SAPbecame a leader.

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    Version 11g

    Launch :

    Oracle E-Business Suite

    Release 12.1

    Version R/3

    The client-server concept,

    uniform appearance of graphical interfaces,

    consistent use of relational

    databases, and the ability to

    run on computers from

    different vendors meets

    with overwhelming


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    Oracle became popular as amanufacturer of developingproducts that can be easilyintegrated with other

    models from other vendors,enabling them to build abest of breed system.

    Oracle offers a strongenterprise system that isable to accommodate morethan 1000 users.

    Oracle's decision to raise itslist prices by 15% to 20% is

    cause for concern for bothexisting and prospectivecustomers. But there areopportunities to offsetthose hikes, according toindustry analysts.

    The downside of the SAPsERP systems is that the SAPvendor forces its customersto change or adapt their

    corporate culture to matchhow SAP software works.

    Whereas t

    he ERP packagefrom SAP can be scaled

    from 25 to 1000 users.

    It is composed of a single,

    virtual file structure with nosubsystems.

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    Internet integration means thatdata collection can besupported across virtually anydevice that connects to the

    Internet, allowing DataCollection Advantage to supportmobile terminals and desktopsin places where corporatenetworks are not available.


    The database is transformedfrom one valid state to anothervalid state. Illegal transactionsaren't allowed and, if anintegrity constraint can't besatisfied then the transaction isrolled back.

    Isolation:The results of a transaction areinvisible to other transactionsuntil the transaction is completethus increasing the security ondata.

    In addition, SAP hasreleased MySAP which issoftware that provides for

    data interaction andprocessing connections withtheWeb.

    It provides for a "single dataentry point" where the dataentered from any location isinstantly sent to all otherappropriate modules in theERP system.

    Available in 14 differentlanguages (German, English,

    Spanish, etc.) and alsoincorporates Multiplecurrency features thatprovide essentialinformation processingcapabilities for

    multinational corporations

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    Durability:Once committed

    (completed), the results of atransaction are permanentand survive future systemand media failures and thusensuring maintenance andprotection of data.

    It provides check writingcapability in its Accounts

    Receivable componentwhich very few otherprograms offer.

    Oracle is used for almost all large application and one of

    the main applications in which oracle takes its major

    presence is banking , ten of the worlds top 10 banks run

    Oracle applications th

    is is because oracle offers apowerful combination of technology and comprehensive,

    pre-integrated business applications, including key

    functionality built specifically for banks.

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    Enterprise Resource planning

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    Enterprise resource planning (ERP) is an Integratedcomputer-based system used to manage internal andexternal resources including tangible assets, financialresources, materials, and human resources.

    It is a software architecture whose purpose is tofacilitate the flow of information between all businessfunctions inside the boundaries of the organization andmanage the connections to outside stakeholders. Builton a centralized database and normally utilizing a

    common computing platform, ERP systems consolidateall business operations into a uniform and enterprisewide system environment

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    ERP Market

    ERP Market consists of the big 5 vendors (Sap, Oracle,PeopleSoft, Baan, JD Edwards) and others. The big 5account for 61% of the market share.

    SAP (Systems, Applications and products in Data Processing)

    SAP ERP packages come in two versions: the mainframeversion (SAP R/2) and the client/server version (SAP R/3)

    SAP products feature a sophistication and robustnessunmatched by other business software solutions. SAP hasdeveloped an extensive library of more than 80 predefinedbusiness processes, spanning each functional softwarerequirement.

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    Advantages of ERP In the absence of an ERP system, a large

    manufacturer may find itself withmany softwareapplications that cannot communicate orinterface effectively with one another

    ERP systems connect the necessary software inorder for accurate forecasting to be done. Thisallows inventory levels to be kept at maximumefficiency and the company to be more profitable

    SAPs R/3 has been designed to be the best ERPsystem in the four areas ofhuman resources,financial, supply chain management, andmarketing

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    Integration among different functional areas to ensureproper communication, productivity and efficiency

    Design engineering

    Order tracking, from acceptance through fulfillment

    Managing inter-dependencies of complex processes billof materials

    Tracking the three-way match between purchase

    orders (what was ordered), inventory receipts (whatarrived), and costing (what the vendor invoiced)

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    Customization of the ERP software is limited

    Limited training budget

    Lack of Skills and Experience

    ERP systems can be very expensive Limited technical staff

    Systems difficult to use

    To rigid system and too difficult to adapt to thespecific workflow and business process of somecompanies

    Compatibly problem with legacy systems

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    Once a system is established, switching costs

    are very high for any one of the partners

    Resistance in sh

    aring sensitive internalinformation between departments can reduce

    the effectiveness of the software.

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    The Future of ERP

    ERP places new demands not only on support & delivery informationtechnology, but also on the way business processes have to bedesigned, implemented, monitored, & maintained.

    For e.g.: Several persons in different locations & with different

    hardware & software resources may simultaneously initiate apurchase process for the same product but with different selectioncriteria.

    Understanding the many different types of core & extended ERPcomponents can help an organization determine which componentswill add the most value.

    The 3 biggest vendors in the ERP market are:1. PeopleSoft,

    2. Oracle, &

    3. SAP.

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    In the Future

    The line between ERP, SCM, & CRM will continue to blur as ERP

    vendors broaden the functionality of their product suites &redefine the packaging of their products.

    ERP vendors with comprehensive but modular components will

    dominate the next high growth phase of the enterprise

    applications market.A vendors success will primarily depend upon how quickly it

    incorporates other kinds of functionality such as Internet,

    Interface, &Wireless Technology.

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    SAP is an ERP (Enterprise Resource Planning) system

    SAP = Systems, Applications and Products in DataProcessing

    German Based Company One of Largest Independent Software Vendor in theWorld

    ERP Market Leader (SAP R/3 and mySAP ERP)

    80% Fortune 500 Companies Use SAP

    Over 18,500 Customers in 120+ Countries

    Over 12 million users

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    R/3 Overview

    The 3-tier architecture separates a system into three functional layers, eachstructured to support the demands of its functions.

    The database layer resides on central servers or mainframe host computers

    The application layer holds the processing logic of the system, preparing andformatting data for individual offices or departments.

    The presentation layer typically on personal computers, handles all the tasksrelated to the presentation of data, including user interfaces that enableeasy access to complex applications and data.

    SAP also incorporated And integrated the intranet and internet technologiesinto business solutions for its customers.

    Although designed as an integrated system, R/3s modules can also be usedindividually

    SAP has recently come out with BAPIs (Business application programminginterface) whichhelps SAP interact with third party applications

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    The Baan series-based product family includes BaanEnterprise Resource Planning (Baan ERP), Baan FrontOffice, Baan Corporate Office Solutions, Baan Supply ChainSolutions etc.

    Baan serves a number of industries like Aerospace & Defenseand Automative.

    The Baan ERP modules include the following



    Project Distribution

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    Oracles Warehouse Technology Initiative provides customers with a complete datawarehousing solution.

    Oracles Integrated Business Intelligence Solutions deliver powerful capabilities tousers anywhere in the enterprise, at any time. Products include Oracle Reports,Oracles Enterprise Reporting Tool, Oracle Discoverer, Oracles Query and Analysistool etc.

    Oracle Applications is a leading provider of packaged and integrated front office andERP solutions for the enterprise. It follows internet computing model.

    Oracle has 45+ modules divided into following categories

    Oracle Financials

    Oracle Human Resource

    Oracle Projects

    Oracle Manufacturing Oracle Supply Chain

    Oracle Front Office

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    It provides industry specific enterprise solutions to customers in selectmarkets, including communications, financial services, healthcare,manufacturing, higher education.

    Its applications can be implemented as a single application, or a completeenterprise-wide solution

    Peoplesoft tools include several tools for reporting, customization andworkflow.

    Peoplesoft implementation toolkit has a modular application structure, whichlends itself to the use of phasing-an incremental process. It has fourphasing strategies:

    Geographical: Applicable when business practices and processes in variouslocations are independent to justify separate implementations.

    Departmental: Your initial phase is focused on full implementation for agiven department, additional departments incremented later.

    Core and then support processes

    No phasing required in some situations.

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    JD EdwardsWorldVision is a thin client bridge that provides the GraphicalUser Interface (GUI) with a look and feel common to the PC, while

    protecting your investment inWorldSoftware and the AS/400. Thedifferent product modules available from JD Edwards are:

    Foundation Suite

    Financial Suite

    Logistics/Distribution Suite

    Services Suite

    Manufacturing Suite

    Architecture, Engineering, Construction, Mining and Real Estate Suite

    Energy and Chemical Suite

    Payroll Suite

    Human Resource Suite

    Customer Service Management Suite Government, Education, and Not-for-profit Solutions

    Utility and Energy Solutions