SAP & ERP PRESENTATION

8/8/2019 SAP & ERP PRESENTATION

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ENTERPRISE RESOURCE PLANNING(ERP)

(SAP)


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ERP

ERP is the latest high-end solution, information

technology has lent to business application.

Configurable information systems packagesthat integrate information and information-

based process within and across functional

areas in an organization

READY TO RUN PACKAGE

CONFIGURABLE


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ENTERPRISE

AN ENTERPRISE IS A GROUP OF PEOPLEWITH A

COMMON GOAL,WHICHHAS CERTAIN GOAL

ENTERPRISE IS THE GROUP OF INDIVIDUALS, FUNCTIONS,

DIVISIONS, COMPONENTS & FUNCTIONAL ELEMENTS

WORKING IN AN ORGANIZATION TO MANAGE ALLRESOURCES (5Ms) OF THE BUSINESS TO ATTAIN SPECIFIC

OBJECTIVES AND DEFINED GOALS


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INTEGRATION

PROCESS OF BRINGING

DISCRETE PRODUCTS /

COMPONENTS &

MAKING THEMWORKTOGETHER SO AS TO

WORK AS A SINGLE

PRODUCT.


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Different functional managements

Production management

Sales & Marketing

Financial management Human resource management


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WHY ERP& WHY NOT - DBMS

DBMS only manipulates data but does not

integrate all functionalities of enterprise

Connecting capacity of ERP to internet andintranet for E-commerce

DBMS does not improve productivity & reduce

time delay in business operation.

ERP reacts through faster customer

responsiveness


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WHY ERP

Non-ERP systems experienced many limitations such as:

Lack of integration (as data was scattered across many legacy systems)

Incompatibility between systems

Inconsistent and / or redundant data

Inability to provide real-time enterprise-wide information

Inability to support easy consolidation of groups

Limited scalability and upgradation limitations of existing systems

(hardware, software and functionality)

Integration problems for enterprise-wide upgrades need to deal withmultiple vendors

High maintenance cost due to disparate and obsolete systems

Lack of internet and intranet based connectivity of business data for

manipulation and E-commerce.


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FEATURES OF ERP

MODULAR: Consists of different modules

CONFIGURABALE / READY TO USE

CONTAINS A COMMON CORE DATABASE, TO WHICH ANY DATA FED BY ONE

FUNCTIONAL DEPARTMENT CAN BE ACCESSED BYOTHER DEPARTMENTS.

ERP allows automatic introduction of latest technologies like Electronic

Fund Transfer (EFT), Electronic Data Interchange (EDI), Internet, Intranet,

and video conferencing, E-Commerce etc.

ERP provides business intelligence tools like Decision Support

System(DSS), Executive Information System (EIS), Reporting, Data Mining,

and EarlyWarning Systems for enabling people to make better decisionsand thus improve their business processes.

Multi site /entity processing


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MODULES OF ERP

Sales and distribution Purchasing

Manufacturing & production planni

Logistics

Finance

Shop floor & Plant maintenance

Quality management

Materials management

Treasury management

Investment mangemnt

Project module

Human resource

Supply chain management


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ERP objectives

Enterprise wide integration: primarily integrate

financial information or customer order information.

Standardize speed manufacturing process

Decrease inventory

Standardize HR information

Fix broken processes

Integrate vendors and customers

Increase efficiency

Gain competitive edge


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Benefits ofERPThe benefits accruing to any enterprise on account of implementing ERP are unlimited.

According to the companies like NIKE, DHL, Sun Microsystems, following are some of the

benefits they achieved by implementing ERP packages:

Gives Accounts Payable personnel increased control of invoicing and payment processing andthereby boosting their productivity and eliminating their reliance on computer personnel for

these operations.

Reduce paper documents by providing on-line formats for quickly entering and retrieving

information.

Improves timeliness of information by permitting, posing daily instead of monthly.

Greater accuracy of information with detailed content, better presentation, fully satisfactoryfor the Auditors.

Improved cost control

Faster response and follow up on customers

Better monitoring and quicker resolution of queries.

Enables quick response to change in business operations an market conditions

Helps to achieve competitive advantage by improving its business process.

Improves supply-demand linkage with remote locations and branches in different countries.

Provides a unified customer database usable by all applications.

Improves international operations by supporting a variety of tax structures, invoicing

schemes, multiple currencies, multiple period accounting, and languages.

Improves information access and management throughout the enterprise.

High security of data

Important data is not hidden by some people


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LIMITATIONS OF ERP

High investment process

High implementation cost

Long implementation time (12 -24 months)

Training is required to be given to employees

which again is costly

Risk is involved with certain business

Not appropriate for vertical structured

organization


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Selection ofERPOnce the BPR is completed, the next task is to evaluate

and select a suitable package for implementation.Evaluation of the right ERP package is considered as more

crucial step. Evaluation and selection involves:

1. Checking whether all functional aspects of the business

are duly covered2. Checking whether all the business functions and

processes are fully integrated.

3. Checking whether all the latest IT trends are covered

4. Checking whether the vendor has customizing andimplementing capabilities.

5. Checking whether the business can absorb the cost

6. Checking whether the ROI is optimum.


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ERP availability Major players

1. SAP - AG

2. Oracle

3. Baan4. DB2

5. People Soft

6. J.D.Edwards


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Market Share of ERP solutions

According to a Gartner report issued in June 2003,

for 2002, the top 5 worldwide ERP software

application new license revenue market share

estimate is as follows: SAP: 25.1%

Oracle: 7%

Peoplesoft: 6.5% SAGE(Best):5.4

Microsoft: 4.9%

Others : 51.1%


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SAP - AG

SAP-System Applications, Product of DBMS

AG-Publically held copororation

Founded in :1972

Head office:Walldorf, Germany

Competitors: Microsoft ,Oracle, DB2 etc.

Shares listed in : German, Swiss stockexchanges, NYSE etc.


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Advantages of SAP Its highly configurable

highly secure data handling

minimum data redundancy

maximum data consistency

Connectivity to internet & intranet

available in all business languages (>25)

Supports all types of Currencies

Supports regional tax and legal aspects.

Installations in all most all countries.

Works in all most all operating systems.

SAP solution is available for implementation for over 30

types of businesses.

Client server architecture


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SAP solutions Types of Businesses

Oil

Chemical

Consumer products

High technology

Electronic industry

Banking

Investment

Retail

Wheels & tyres

Automobiles

Mill products

Professional services

Clothing & textiles

Public sector

Food industry

Beverages industry

Fashion industry

Utilities

Communication

IT industries

ITES

Cement

Biotechnology

Agriculture

Mining

Education


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Customers

Deusch Bank, Microsoft, General motors,

Mercedes-Benz, IBM, BMW, Siemens, Bosch,

NIKE, Nestle, Lucent technologies, Dow

Corning, .etc.

L&T, P&G, Colgate Palmolive,, Whirlpool,

Wipro, all Tyre industries in India,, DHL, Sun

Microsystems .etc


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What is an ABAP?

ABAP (Advanced Business Application Programming)

is a high level programming language created by the

German software company SAP. It is currently

positioned as the language for programming SAP'sWeb Application Server, part of its NetWeaver

platform for building business applications. Its syntax

is somewhat similar to COBOL.

ABAP/4 DevelopmentWorkbench


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What is SAP R/3?

A third generation set of highly integrated

software modules that performs common

business function based on multinational

leading practice. Takes care of any enterprise

however diverse in operation, spread over the

world. In R/3 system all the three servers like

presentation, application server and databaseserver are located at different system.


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R/3 CLIENT SERVER ARCHITECTURE


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R/3 CLIENT SERVER ARCHITECTURE


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Modules of SAP

Material Management (MM)

Quality Management (QM)

Production Planning (PP)

Financial Accounting (FI) & Controlling (CO)

Human Resource (HR)

Sales & Distribution (SD)


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Other applications by SAP-AG

1. SAP KnowledgeWarehouse (KW)

2. Product Lifecycle Management (PLM)

3. Human Resource Management Systems (HRMS)

4. Supplier Relationship Management (SRM)

5. Supply Chain Management (SCM)

6. Customer Relationship Management (CRM)

7. Advanced Planner and Optimizer (APO)

8. Business InformationWarehouse (BW)

9. SAP Ecosystem


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Why SAP suitable to manufacturing Discrete & separate functioning of departments

Manufacturing nodes are being pushed out to distant locations leading to a loss ofvisibility and control.

invisible cost factors or manufacturing

To attain continuous improvement, manufacturing excellence, Manufacturing

synchronization etc.

Production personnel lack the decision support information to meet their targets

Business and financial impact of production exceptions cannot be monitored or

controlled at the enterprise level.

Inability to connect multiple plant floor systems cost effectively to the Enterprise

Multiple copes of Master Data across the Plant

Inability to aggregate real time plant floor information for analysis onto the

enterprise desktop Inability to monitor, measure, analyze, control and improve key performance

indicators (KPIs) against targets

Customer orders lost on the factory floor

Lack of viscibility, Responsiveness, Performance

Requirement of real time data of production activities.


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SWOT Analysis

(STRENGTH) Highly suitable for manufacturing industries

Applicable for all types of business

Any modification can be done to the extent of

business requirement. Wide range of services from SAP-AG & their

consultants

Greater market share & greater acceptability

Established world wide.

Capable of operating in all most all business

languages

Connectivity to internet & intranet


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Weakness

Lower market share in some business areas

like banking, retail, investment etc.

H

igh implementation cost Long implementation time


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Opportunities

SAP introduced ERP for SMEs which will open

up new business in Small & Medium Scale

Enterprises.

ASAP (Accelerated SAP) reduces the

implementation time, opens up more business


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Threats

Economic crisis world wide

High competition from rivals like Oracle

Some business develop its own ERP packagesbecomes a threat to SAPs implementation there.

Organizational resistance to change for SAP

implementation in some organization.


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Documents

SAP & ERP PRESENTATION