SAP Overview (SAP01)

Dr. Supakorn Kungpisdan

SAP Overview 1
 Enterprise Application

SAP Overview 2
SAP World

SAP Overview 3
 Evolution of ERP

ERP ‘90 Enterprise Resource Planning

MRP II ‘80 Material Resource Planning and

Manufacturing Resource Planning
Closed Loop MRP ‘70

MRP ‘60
Material Requirements Planning

MRP and MRPSAP

II only focus on manufacturing
Overview 4
 What is ERP?

• ERP is a high-end sophisticated software solution that

reduces the pressure and workload off the managers
and provides accurate, timely information for taking
appropriate business decisions. Managers with knowledge of
ERP will be able to achieve their targets and goals by proper
implementation of ERP system in their organization.
• In fact managers are expected to translate the business rules
and requirements for mapping them into ERP software.
• Implementation of ERP solutions is one of the largest drivers
of growth in the consultancy business.

SAP Overview 5
 ERP Characteristics

Real Time
Integrated System

Customizing
Best Practice
(Configuration)

Process Oriented

SAP Overview 6
 Enterprise Application

• First Generation

Company A
Suppliers Customers
ERP

SAP Overview 7
 SAP World
(1st Generation of Enterprise Application)

SAP Overview 8
 What is SAP?
• SAP is the leader of ERP software vendor
• Enterprise Resource Planning is a back office application for Enterprise

ERP
MRP II
MRP

SAP Overview 9
 SAP
• Systems, Applications, and Products in Data
Processing (SAP)
• Name of the company
– SAP AG
– SAP America
• Name of the software
– SAP R/2 – Mainframe version
– SAP R/3 – Client/Server version
– mySAP ERP

SAP Overview 10
 SAP AG
• Founded in Germany (1972)
• World’s fourth largest software provider
• World’s largest provider of Integrated Business
Solutions software
• Company stock trades on the Frankfurt and New
York exchanges

SAP Overview 11
 SAP R/3
• World-wide usage
• Designed to satisfy the information needs for all
business sizes (international to local)
– Multi-lingual
– Multi-currency
• Designed to satisfy the information needs for all
industries (industry solutions)

SAP Overview 12
 SAP R/3
• Enables a company to link it’s business
processes
• Ties together disparate business functions
(integrated business solution)
• Helps the organization run smoothly
• Real-time environment
• Scalable and flexible

SAP Overview 13
 Integrated Business Solutions
Software Vendors
• SAP
• Peoplesoft
• J.D. Edwards
• Oracle
• Microsoft—Great Plains
• IBM

SAP Overview 14
 Architecture
• Central relational database (e.g., Oracle and many
others)
• Client/Server—three-tiered
• ERP Component—Oriented towards common identifiable
business modules (PP, MM, SD, FI, CO, HR)
• Add-ons:
– Customer Relationship Management (CRM)
– Supply Chain Management (SCM)
– Product Lifecycle Management (PLM)

SAP Overview 15
 Relational Database
• Tables: Defines and links thousands of tables of
information
• Advantages
– Consistent and accurate data
– Common definitions for terms
– Shared, but restricted usage (e.g., profiles)
– Eliminates data redundancy

SAP Overview 16
 SAP Databases
FI
Financial
Accounting

QM PS PM
Quality Project Plant
Mgmt. System Maint.

PP SD MM
Workflow Prod. Sales & Materials
Planning Distrib. Mgmt.

HR AM
Human Asset
Resources Mgmt.

SAP can use a CO

Controlling

number of
database programs
to actually store
the data.

Oracle
DB2
MSSQL
SAP Overview 17
 Client/Server Environment
• Client
– Software/hardware combination that can make a
request for services from a central repository of
resources
• Server
– Software/hardware combination that can provide
services to a group of clients in a controlled
environment

SAP Overview 18
 Three-Tier SAP Structure
• GUI—Graphical User Interface or Web Interface
• Application server (one or many)
• Database server (one single location)

SAP Overview 19
 Three-tier Client/Server
Architecture

Application
Server
Application
Server
USER PCs
USER PCs
Database
Server

Application Application
Server Server

SAP Overview 20
Two Tier Client/Server System
(Training Configuration)

Database and
Application
Server

User PCs

SAP Overview 21
 Business Modules
• Collections of logically related transactions
within identifiable business functions
– PP: Production Planning (“Make”)
– MM: Material Management (“Buy”)
– SD: Sales & Distribution (“Sell”)
– FI: Financial Accounting and CO: Controlling (“Track”)
– HR: Human Resources

SAP Overview 22
 SAP System

System
SD FI
Sales & Financial
Distribution Accounting
MM CO
Materials
Mgmt. Controlling
PP AM

R/3
Production Fixed Assets
Planning Mgmt.

QM
Quality
Client / Server TR
Treasury
Manage-
ment PM ABAP/4 WF
Plant Main- Workflow
tenance
HR IS
Human Industry
Resources Solutions

SAP Overview 23
 SAP Industry Solution

• Aerospace/Defense • Media
• Automotive • Mill Products
• Banking • Mining
• Chemicals • Oil & Gas
• Consumer Products • Pharmaceuticals
• Engineering/Construction • Public Sector
• Financial Svc Provider • Retail
• Healthcare • Service Providers
• High Tech • Telecommunications
• Higher Education/Research • Utilities
• Insurance • …so on …
SAP Overview 24
 mySAP World
(2nd Generation of Enterprise Application)

SAP Overview 25
 The Future of ERP

Extended ERP 2000

ERP ‘90

MRP II ‘80

Closed Loop MRP ‘70

MRP ‘60

SAP Overview 26
 ERP Extension

• Web Enable
• Customer Relationship Management
(CRM)
• Supply Chain Management (SCM)
• Strategic Enterprise Management (SEM)
• Business Information Warehouse (BIW)
• Knowledge Management (KM)
• So on …

SAP Overview 27
 Enterprise Application Components

• Second Generation

Company A
Suppliers BW
Customers
KM CRM

ERP

SCM SEM

Web-enabled

SAP Overview 28
 What is mySAP?

• The future of ERP software must include CRM, SCM, SEM, BW, KM,
Web-enable …
• mySAP is the future or extended of SAP
ERP software

TEI

ERP
MRP II
MRP

SAP Overview 29
 mySAP Components

BW SAP
R/3
CRM SCM
SEM
KW

• mySAP Business Information Warehouse

• mySAP Customer Relationship Management
• mySAP Knowledge Management
• mySAP Supply Chain Management
• mySAP Strategic Enterprise Management
• mySAP …
SAP Overview 30
 SAP NetWeaver World
(3rd Generation of Enterprise Application)

SAP Overview 31
 Enterprise Service Architecture

• Third Generation (Enterprise Application Integration)

Company A
Web Service Web Service
Web Service Web Service
Suppliers BW
Customers
KM CRM

Web Service
ERP Web Service

SCM Web Service SEM

Web-enabled

SAP Overview 32
 mySAP Business Suite

mySAP PLM

mySAP SRM ( ERP

mySAP mySAP CRM

mySAP SCM

SAP NetWeaver

SAP Overview 33
SAP NetWeaver : Integration Tools

SAP Overview 34
 SAP NetWeaver

• The core capabilities of SAP NetWeaver are the

integration of people, information, and process
• In people integration, it simply means that it enables
you to bring people together and help them work
more efficiently
• Information integration means you can bring
together information from a variety of locations and
have it make sense in the context of what your folks
do everyday
• Process integration means coordinating the flow of
work across departments, divisions, and between
companies

SAP Overview 35
 SAP NetWeaver
• SAP Enterprise Portal: helps create software that brings
together all the data and software tools that a person needs
to do her job in one consistent user interface
• SAP Mobile Infrastructure: universal translator for mobile
devices
• SAP Business Intelligence: provides tool for information
integration, so what your people see is consistent and
accurate
• SAP Master Data Management: is a system for
harmonizing information that is distributed across a wide
variety of applications
• SAP Exchange Infrastructure: Integrates processes and
help applications talk to one another

SAP Overview 36
SAP EP Example

SAP Overview 37
 Programming Code Modifications
• Changes to the delivered code
• ABAP/4—Advanced Business Application
Programming (ABAP)
• This should be done sparingly and carefully as it
can make migration to new versions of the
software much more difficult

SAP Overview 38
 SAP People

Consultant

Technical Functional User

FI
Basis ABAP CO

MM

SD

…
SAP Overview 39