Introduction ERP &

SAP
 Agenda

What is an ERP?

What is SAP?

What is IDES?

SAP Exercises With IDES

What Are The Benefits?
Cross-functional teaching tool
Access advanced software technology
Enhance marketability
Pursue research opportunities
Broaden outreach
 What is an ERP?
Enterprise-wide system which integrates the business
functions and processes of an organization
Integration of business functions into one seamless
application
Usually runs on a RDBMS
Replaces Countless Departmental and
Workgroup Information Systems
What is an ERP?(con)
Links business processes
Utilizes a common information
system
Implementation normally involves
BPR: Business Process
Reengineering
Difficult to Implement Correctly
 Evolution of ERP
1960’s: Inventory Control Systems
1970’s: MRP: Material Requirement
Planning
1980’s: MRPII: MRP & Distribution
1990’s: MRPII  ERP with introduction
of other business functions 
CRM’s
Today: Web Enabled ERP – Connecting
ERP Externally
What is the State of the
ERP Market?
Weak Economy = Fewer Implementations
ERP Systems firmly entrenched in infrastructure
Implementing CRM, SCM ERP Applications
Linking ERP’s to Web – Web Services
Enterprise Application Integration (EAI) Tools
What is the State of the
ERP Market?(con)
Portals

Public Sector Growth

Better Implementations Experience

Next: Web Services Integration

What Does “SAP” Stand
For?
Systems
Applications &
Products in Data Processing
R/3 - Real Time/ 3 Tier
What is SAP R/3?
SAP is an ERP (Enterprise Resource
Planning) system
 What is SAP R/3?
SAP = Systems, Applications and Products in
Data Processing (R = real time, 3 = 3 tier)
German Based Company
3rd Largest Independent Software Vendor in
the World
SAP: ERP Market Leader
80% Fortune 500 Companies Use SAP
Over 18,500 Customers in 120+ Countries
Over 12 million users
What is SAP R/3?(con..)
Client/Server Technology
Highly Customizable
Based on Industry Specific Best Practices
Multi-lingual: International
Based on Open Standards
Integrated Applications System: Modular in
design
New Dimension Products
Business
Information
Warehouse
Strategic
Enterprise
Management
Supply Chain
Optimizer
 SAP Company Timeline

• 1972: SAP AG founded in Germany

• 1979: SAP R/2 introduced for mainframe computers
•1980s: Europe and N. American expansion
•1992: SAP R/3 released as client-server application
•1996: SAP R/3 becomes partially Internet enabled
 SAP CompanyTime
line(cont..)

• 1997: Develops and launches New Dimension

product line including CRM, SCM and Data
Warehousing solutions
• 1999: SAP announces mySAP.com, the next
generation of its Enterprise Application system
based on an Internet architecture
 What SAP Is and Is Not
SAP Is...
Just software SAP Is Not...
Very flexible (to a point) THE answer
Very complicated, but fairly The strategic or operational
easy to learn vision
Very high quality, industrial A substitute for good
strength product
planning
A set of business processes
Conducive to a loose
A data model
project approach
Installed via A:\SETUP
Successful without
extensive user involvement
Modules and
Organisational
Structures
SAP R/3 System
 SAP R/3 - the System
BW
Business
Warehouse

The R/3 System SD

Sales &
FI
Financial
Distribution Accounting
◆ Over 1000 MM
Materials
CO
Controlling
Mgmt. AA
predefined PP
Production
Planning R/3 Asset
Accounting

transactions SM
Service Integrated Solution
EC
Enterprise
Controlling
Mgmt.
◆ Possibility of 30 QM
Quality
Client / Server PS
Project
Mgmt. PM Open Systems WF System
different Plant
Maintenance Workflow

languages HR
Human
Resources
IS
Industry
Solutions

◆ 14 different
modules
 R/3 Financial FI
Financial
Accounting

Applications
CO
Controlling
AA
Asset
Accounting
EC

Executive Information Enterprise

Controlling
General ledger
EC System PS
Project
Accounts Receivable/
FI
System

Payable Profit Center Accounting

Special Ledgers
Fixed Asset Accounting

Overhead Management
PS Work Breakdown
CO Activity Based Costing
Product Cost Accounting
Structure
Costs and budgeting
Profitability Analysis
Time scheduling
Investment Planning/ Orders in the project
Budgeting/Controlling

AM Depreciation Forecast/
Simulation/Calculation
 BW
Business
Warehouse

R/3 Logistics
SD
Sales &
Distribution

MM

Applications (1/2)
Materials
Mgmt.
PP
Production
Planning

Sales Promotion/Sales Sales/Production planning

Activities
Material requirements

SD
Inquiries/Quotations/Order
Contracts and scheduling PP planning
Forecasting
agreements
Capacity planning
Shipping/Transportation/ Foreign
trade Shop Floor Information
Billing System

Purchasing Management reporting

Goods movement Data collection from various
MM Invoice verification BW sources stored in a central
repository
Inventory management
Simulation/Calculation “Slice and Dice”
 R/3 Logistics SM
Service
Mgmt.
QM

Applications (2/2)
Quality
Mgmt. PM
Plant
Maintenance
HR

R/3 Human Resources

Human
Resources

SM Service planning
PM Maintenance planning
Processing service orders
Processing maintenance
Service Information orders
System Maintenance Information
System

QM Quality planning
Quality inspection HR Recruitment management
Personnel Capacity and
Quality Management Shift Planning
Information System Payroll accounting
Benefits and Constraints
of SAP R/3
Benefits
 Commonality
 Integration
 Flexibility
 World wide usage
 Real-time processing

Constraints
 Quality of Master Data drives integrity of
transactional data
 SAP Strengths
Tightly integrated software architecture
Multi-national and multi-site support
Ease of use and product functionality
Client/server technology
Real-time information
The mySAP.com E-Business
Platform
mySAP Workplace

mySAP
mySAP HR
SCM mySAP
mySAPFinancialsmySAP
E-Procurement
Industry CRM
mySAP SolutionsmySAP
PLM BI

SAPMarkets*
 mySAP.com Solutions

Cross-Industry Industry Solutions

Solutions ● mySAP Aerospace & Defense ● mySAP Insurance
● mySAP Workplace ● mySAP Automotive ● mySAP Media
● mySAP CRM ● mySAP Banking ● mySAP Mill Products
● mySAP SCM ● mySAP Chemicals ● mySAP Mining
● mySAP Marketplace* ● mySAP Consumer Products ● mySAP Oil & Gas
● mySAP E-Procurement ● mySAP Engineering & ● mySAP Pharmaceuticals
● mySAP BI Construction ● mySAP Public Sector
● mySAP PLM ● mySAP Financial Service Provider ● mySAP Retail
● mySAP HR ● mySAP Healthcare ● mySAP Service Providers
● mySAP Financials ● mySAP High Tech ● mySAP Telecommunications
● mySAP Mobile Business ● mySAP Higher Education & ● mySAP Utilities
Research
Infrastructure and
Services ● mySAP Services ● mySAP Hosted Solutions
● mySAP Technology

*mySAP Marketplace is delivered through MarketSet™,

a joint solution from SAPMarkets & Commerce One.
mySAP.com E-Business
Solutions
 What is IDES?
IDES = International Demonstration
and Evaluation System
IDES Basics
• Fictitious company using R/3
• Customizing, master data, transaction data
• Integrated, well-documented system environment
• Simulation of business processes
IDES is a Standard R/3 System
• System R/3 (standard)
• IDES data (customizing, master data,
transaction data)
 IDES Guidelines
To reflect increasingly complex requirements
of modern business
To design all organizational structures in a
practical manner
To make each element of the core functionality
of the R/3 System available in its most up-to-
date version
To allow users with very little or no previous
R/3 knowledge to easily run core scenarios in
the R/3 System
 IDES LOGISTICS
SAP Aerospace / Defense
 Production / Maintenance of an
aircraft engine
SAP Engineering / Construction
 Elevator and Turbine production

Engineer- Make-to-order Assembly

to-order production manufacturing
JIT SAP Automotive
 Manufacturers / Suppliers processes

Industry
Complexity

Production
by lot size Repetitive SAP Consumer Products
manu-  Selling food and non-food products
facturing

Process SAP High Tech & Electronics

manu- Mass  PC assembly and customer services
facturing production
SAP Chemicals
 Paints, coating and solvents
Sturdiness production
SAP Pharmaceuticals
 Production of tablets
 IDES - Financial Accounting

IDES Corporation

IDES North America IDES Europe

IDES Asia

Consolidation
Frankfurt / Germany

Lisbon / Portugal
National and international charts of accounts
(parallel) Barcelona / Spain
Cost of sales accounting
Paris / France
London / UK
 IDES - Cost Accounting

IDES Corporation
Controlling Area
IDES North America Controlling Area
IDES Europe

Controlling Area
IDES Mexico

Frankfurt / Germany
Cost accounting for all companies
Lisbon / Portugal
Barcelona / Spain
Marginal costing
Paris / France
Activity-based costing
London / UK
 IDES - Logistics

Production Retail

Engineer- Make-to-order Assembly Textiles

to-order production manufacturing
JIT
Complexity

Production
by lot size Repetitive
manu-
facturing

Process Food
manu- Mass
facturing production

Sturdiness
 IDES Summary
Complete R/3 model
company
Complete integration
Internet scenarios
Process-oriented
online help
Basis for all R/3
training
Questions???
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