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1 SAP ERP OVERVIEW by M S RAVI PRAKASH

Sap Erp Intro Msrp

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1

SAP ERP OVERVIEWby

M S RAVI PRAKASH

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WELCOME TO THEWORLD OF

SAP R/3

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ERPEnterprise Resources Planning

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Enterprise

Where a transaction takes place.

Where customers get the satisfaction.

Where the resources are available forthe peoples needs.

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Evolution of ERP

- 1960s: Inventory Control

- 1970s: Material Requirement Planning (MRP)

- 1980s: Manufacturing Resources Planning (MRP-II)

- 1990s: Enterprise Resource Planning (ERP)

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Problems Tackled by ERP Systems

     Material Shortages

     Productivity Enhancements

     Customer Service

     CashManagement     Inventory Problems

     Quality Problems

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ERP Products

SAP

BAAN

Oracle APPSPeople Soft

JD Edwards

MarshallEtc..

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Domain Share Of SAP

SAP

Baan

People soft

Oracle apps

JD Edwards

Etc

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SAP & Competitors

SAP R/3 had competition with Software giantslike Oracle Corp, People Soft & Bann.

Oracle with its E-biz suit packed to excel with

142 modules.

People Soft with its extra ordinary performancein HR has stormed the market.

But finally failed to gain the confidence of BigEnterprises.

Result is SAP Has become giant in ERP.

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Few SAP Customers

IBM

COMPAQ

Hewlett Packard

 AMD

Boeing

Mercedez

Toyota

Lucent 

Hitachi

Nike

T AT A sDr.Reddy s LabsRanbaxyL& TReliance IndustriesGlaxoMahindra & MahindraHero Honda

GrowelColgate Palmolive

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Consulting Companies

Price Water House Coopers.

K PMG.

Siemens.

Delloitte. Accenture.

Cap Gemini.

IntelliGroupTCS.

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SAP R/3

What is all about

Systems Applications &

Products in Data Processing

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SAP & Modules

S AP Package is strategically divided into2 main areas.

Functional & Technical.

People with domain experience can workon functional modules.

2 Technical modules are  ABAP/4 & Basis.

Cross  Applications are used for  ALEPurpose.

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SAP AREAS

In Functional area we have around 64 modules allare enabled for web reporting via Web Application

Server.

SAP

FunctionalTechnical T F

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SAP AG in 2002 revenues: ½7.4 billion

60,100 installations19,300 companies run SAPProviding 23 Industry Solutions

28,654 SAP employees (March 2003)12 million users in 120+ countries team with us toIntegrate their business processesExtend their competitive capabilitiesGet a better return on information at a lower total cost of 

ownershipMore than 1,500 partners

THE SAP COMPANY

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SAP Milestones over 30 years

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The SAP R/3 Architecture

S AP R /3 works on Three Tier Architecture

User Terminal Application Server Database Server  

Data Creation

Modification

Retrieval

Managing

User 

Requests

Data Storage

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The Presentation Layer 

collects user input and

creates process requests.

The Application Layer 

uses the application logic of 

SAP programs to collect and

process the process requests.

The Database Layer 

stores and retrieves all data.

Communication

3-Tier Client/Server Architecture

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SAP R/3 Customer Installations by Industry

SAP ENGINEERING &

CONSTRUCTION 10.5%

SAP HIGH TECH &

ELECTRONICS 11.3%

SAP CHEMICALS 9.5%

SAP CONSUMER

PRODUCTS 10.3%

Consulting & Professional Services 6.0%

SAP RETAIL 6.3%

SAP PHARMA -

CEUTICALS 3.4%

SAP PUBLIC SECTOR 3.4%

SAP OIL & GAS 3.2%

Metal, Paper & Wood

Products 2.8%

Services 3.1%

SAP HEALTHCARE 2.3%

SAP BANKING 2.0%

SAP MEDIA 2.3%

Others 11.5%

SAP UTILITIES 3.9%

SAP AUTOMOTIVE 4.8%

SAP TELECOM-

MUNICATIONS 3.4%

Worldwide

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Industry Solutions

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2Aerospace and Defense

2Apparel and Footwear 

2Automotive

2Chemicals

2Consumer Products

Trade Promotion Management

Key Account Management

2Distributor Reseller Management

2Financial Services

Banking

Insurances

Collections and Disbursement

Incentives & CommissionManagement

Claims Management

Asset & Liabilities Management

Financial Service Provider 

2Healthcare

2High Tech

2Media

2Oil&Gas

2Pharmaceuticals

2Public Sector 

2Real Estate

2Retail

Agency Business

Category Management

Store Management

2Service Providers

2Telco

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SAP - characteristics

Highly Integrated solution covering entire businessprocesses

Technically capable of utilizing the network infrastructure

Open system to ensure freedom to chooseProvides multiple ways of configuring business processes

Solutions in areas where currently no systems

Workflow enabled business processes

Enables to exploit the power of Intranet and Internet

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Common SAP objectives

Cost Control & increased profitabilityIncreased productivity of all resources ± man, material

& money

Process Standardization

Transparency in operations, resulting in better 

communication

Shift from post-mortem scenario to predictive scenario

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Results of Integration

Focus on Business Processes

Elimination of Redundant Data (Common Constant

Data)

Easier Corporate ConsolidationBetter Managerial Control

Elimination of Interfaces

Faster reaction to changing structures

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Success factors for SAP

implementation

Top Management Commitment & communication

down-the-line

Empowerment

Change management

Training

Compliance to methodology

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SAP IMPLEMENTATION - PHASES

Project Planning

Business Process Study & Analysis

Installation

Training

Business Requirement mapping

Configuration

Modifications / Interfaces

Data Conversion

Documentation

Testing

Go-Live

Post production support

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Implementation Methodology

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S ALES  AND DISTRIBUTION

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GENERAL SETTINGS

COUNTRY 

CURRENC Y 

TIME ZONE

CALENDER

UNITS OF ME ASURE

BASE S ALE DELIVERY 

F ACTORY 

 VENDOR

CUSTOMER

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ORGANIZATION STRUCTURE

COMPANY 

COMPANY-CODE PL ANT

SHPNG PT

P.ORGN

P.GRP

S ALES ORGN

DIS CHNL DIVISION

S ALES OFF

S ALES GRP

S ALES ORGN+DIST CHNL EMP EMP

CNTRL  ARE ACREDIT CNTRL  ARE A

S ALES

 ARE A

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MASTER DATA

     Organizational Master

     Customer Master Record

     Material Master Record

     CMIR 

     Condition Master

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SALES CYCLE

INQUIRY

QUOTATION

ORDER

DELIVERYPGI

BILLLING

REL TO ACCOUNTS

IN VENTORY 

 ACCOUNTS

CONTR ACTSSCHEDULING

 AGREEMNETS

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BASIC FUNCTIONS

     Condition Technique for Pricing

     Condition Tables

     Access Sequence

     Condition Type

     Pricing Procedure

     Pricing Procedure Determination

     Condition Records

     Pricing: Condition Exclusion

     Free Goods Determination

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BASIC FUCNTIONS

     Partner Determination

     Out Put Determination

     Material Determination

     Product Proposal

     Item Proposal

     Incompletion Procedure

     Availability Check

     Credit Management

     Number Ranges

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SHIPPING

     Delivery Document Types     Schedule Category

     Schedule Line category Determination

     Shipping point Determination

     Storage Location Determination

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BILLING

     Billing Documents     Billing Plans(Periodic,Milestone)

     Cancellation of Invoices

     Invoice lists

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SPECIAL FUNCTIONALITIES

     Third Party Order     Individual Purchase Order

     Consignment Sales

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Special Topics

     REBATE PROCESSING     VARIANT CONFIGURATION

     TRANSFER ORDER 

     INTEGRATION

     DATA TRANFER TECHNIQUE

     REPORTS

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ADDITIONALS

DA Y TO

DA Y NOTES(SOFT

COP Y)

PRESENT ATIONS

E VALUATIONS

DISCUSSIONS

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THANK YOU