*SAP ERP OVERVIEW by Namamula.Rambabu*

*

WELCOME TO THE WORLD OF SAP R/3

*

ENTERPRISE RESOURCES PLANNINGERP

EnterpriseWhere a transaction takes place.

Where customers get the satisfaction.

Where the resources are available for the peoples needs.

Evolution of ERP1960s: Inventory Control 1970s: Material Requirement Planning (MRP) 1980s: Manufacturing Resources Planning (MRP-II) 1990s: Enterprise Resource Planning (ERP)

ResourcesMoney

Men

Machines

Materials

PlanningProper Planning and Optimization of the valuable resources make enterprise run into profits. A Software Solution that addresses the ENTERPRISE NEEDS taking the PROCESS VIEW of an organization to meet the ORGANIZATIONAL GOALS tightly INTEGRATING all functions of an enterprise. Definition for ERP

Need for ERPIntegration of Business ProcessesOnline information at the corporate office Standardization of systems across Locations Reduce cash to cash cycle times Faster Consolidation at Head office for statutory reporting

Problems Tackled by ERP SystemsMaterial Shortages Productivity EnhancementsCustomer ServiceCash ManagementInventory ProblemsQuality Problems

ERP ProductsSAPBAANOracle APPSPeople SoftJD EdwardsMarshallEtc..

Domain Share Of SAP

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

Oracle with its E-biz suit packed to excel with 142 modules.

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

But finally failed to gain the confidence of Big Enterprises.

Result is SAP Has become giant in ERP.

Few SAP CustomersIBMCOMPAQHewlett PackardAMDBoeingMercedezToyotaLucentHitachiNike

TATAsDr.Reddys LabsRanbaxyL& TReliance IndustriesGlaxoMahindra & MahindraHero HondaGrowelColgate Palmolive

Consulting CompaniesPrice Water House Coopers.KPMG.Siemens.Delloitte.Accenture.Cap Gemini.IntelliGroupTCS.

SAP R/3 What is all aboutSystems Applications & Products in Data Processing

SAP & ModulesSAP Package is strategically divided into 2 main areas. Functional & Technical.People with domain experience can work on functional modules.2 Technical modules are ABAP/4 & Basis.Cross Applications are used for ALE Purpose.

SAP AREASIn Functional area we have around 64 modules all are enabled for web reporting via Web Application Server.

SAPFunctionalTechnicalT F

SAP AG in 2002 revenues: 7.4 billion 60,100 installations 19,300 companies run SAP Providing 23 Industry Solutions 28,654 SAP employees (March 2003)12 million users in 120+ countries team with us to Integrate their business processes Extend their competitive capabilities Get a better return on information at a lower total cost of ownership More than 1,500 partners

THE SAP COMPANY

SAP Milestones over 30 years

The SAP R/3 ArchitectureSAP R/3 works on Three Tier Architecture

User TerminalApplication ServerDatabase ServerData CreationModificationRetrieval Managing User RequestsData Storage

The SAP World

3-Tier Client/Server Architecture

SAP R/3 Customer Installations by Industry 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%

Industry Solutions

Aerospace and DefenseApparel and FootwearAutomotiveChemicalsConsumer ProductsTrade Promotion ManagementKey Account ManagementDistributor Reseller ManagementFinancial ServicesBankingInsurancesCollections and DisbursementIncentives & Commission ManagementClaims ManagementAsset & Liabilities ManagementFinancial Service Provider

HealthcareHigh TechMediaOil&GasPharmaceuticalsPublic SectorReal EstateRetailAgency BusinessCategory ManagementStore ManagementService ProvidersTelco

SAP - characteristicsHighly Integrated solution covering entire business processesTechnically capable of utilizing the network infrastructureOpen system to ensure freedom to choose Provides multiple ways of configuring business processes Solutions in areas where currently no systemsWorkflow enabled business processes Enables to exploit the power of Intranet and Internet

Common SAP objectivesCost Control & increased profitabilityIncreased productivity of all resources man, material & moneyProcess StandardizationTransparency in operations, resulting in better communicationShift from post-mortem scenario to predictive scenario

Results of IntegrationFocus on Business ProcessesElimination of Redundant Data (Common Constant Data)Easier Corporate ConsolidationBetter Managerial Control Elimination of InterfacesFaster reaction to changing structures

Success factors for SAP implementationTop Management Commitment & communication down-the-lineEmpowermentChange managementTrainingCompliance to methodology

SAP IMPLEMENTATION - PHASESProject PlanningBusiness Process Study & AnalysisInstallation TrainingBusiness Requirement mapping ConfigurationModifications / InterfacesData ConversionDocumentationTestingGo-LivePost production support

Implementation Methodology

SALES AND DISTRIBUTION

GENERAL SETTINGSCOUNTRYCURRENCYTIME ZONECALENDERUNITS OF MEASUREBASESALEDELIVERYFACTORYVENDORCUSTOMER

ORGANIZATION STRUCTURECOMPANYCOMPANY-CODEPLANTSHPNG PTP.ORGNP.GRPSALES ORGNDIS CHNLDIVISIONSALES OFFSALES GRPSALES ORGN+DIST CHNLEMPEMPCNTRL AREACREDIT CNTRL AREASALES AREA

MASTER DATA Organizational MasterCustomer Master RecordMaterial Master RecordCMIRCondition Master

SALES CYCLEINQUIRY

QUOTATION

ORDER

DELIVERY PGI

BILLLING

REL TO ACCOUNTS

INVENTORY ACCOUNTSCONTRACTSSCHEDULINGAGREEMNETS

BASIC FUNCTIONSCondition Technique for PricingCondition TablesAccess SequenceCondition Type Pricing Procedure Pricing Procedure DeterminationCondition RecordsPricing: Condition ExclusionFree Goods Determination

BASIC FUCNTIONSPartner DeterminationOut Put DeterminationMaterial DeterminationProduct ProposalItem ProposalIncompletion ProcedureAvailability CheckCredit ManagementNumber Ranges

SHIPPING Delivery Document TypesSchedule CategorySchedule Line category DeterminationShipping point DeterminationStorage Location Determination

BILLING Billing DocumentsBilling Plans(Periodic,Milestone)Cancellation of InvoicesInvoice lists

SPECIAL FUNCTIONALITIES Third Party OrderIndividual Purchase OrderConsignment Sales

Special Topics REBATE PROCESSINGVARIANT CONFIGURATIONTRANSFER ORDER INTEGRATIONDATA TRANFER TECHNIQUEREPORTS

ADDITIONALSDAY TO DAY NOTES(SOFT COPY)PRESENTATIONS EVALUATIONSDISCUSSIONS

THANK YOU

**************