SAP Basic Introduction

System Applications and Products

Contents:

Introduction to SAP

History of SAP

Basic facts of SAP

SAP market share

ERP System of SAP

Advantages.

Disadvantages.

General Areas of Application

What makes SAP different?

Verticals of SAP

Reasons for implementing SAP

SAP application Modules

SAP solutions

Benefits of SAP

SAP-Security

Our Advice to Company

SAP-Introduction

SAP is the leading Enterprise Information and Management Package.

There is n number of ERP software's in market today of which SAP is use in medium to large enterprises.

SAP is a neatly integrated business software to process all functionalities of an organisation in order to obtain a Unifies Solution i.e., ERP software.

SAP is a leader when it comes to easy integration among all the departments.

History of SAP

SAP the company was founded in Waldorf, Germany in town of Heidelberg in 1972 by five Ex-IBM Engineers.

The full name of the parent Company is SAP AG.

SAP has subsidiaries in over 50 countries around the world from Argentina to Venezuela.

SAP stands for Systeme Andwendungen Produkte in der Datenverarbeitung which means System Applications and Products in Data Processing in English.

Basic facts

Worlds third largest Independent software provider

Now 70-80% top companies in their respective fields have implemented SAP

Serves More than 335,000 Global Customers world wide in more than 190 countries

SAP customers include:

87% of the Forbes Global 2000 companies

98% of the 100 most valued brands

100% of the Dow Jones top scoring sustainability companies

SAP market share

SAP is a leader in ERP industry

According to a recent report of Forbes, SAP leads ERP market share with 25% market share

While Oracle is at 16%and Microsoft at 9% market share.

Oracle is the biggest competitor of SAP in the field of ERP

Oracle has strong base in data storage

Sap is relatively new in data storage but its getting up to the speed with its own data storage system SAP HANA

ERP-Enterprise Resource Planning

Enterprise Resource Planning (ERP) is a software that is built to organizations belonging to different industrial sectors, regardless of their size and strength.

ERP is the term used for the software that controls the different departments of the whole organisation.

For Ex:

SAP, Oracle, Microsoft Dynamic, Saga, People Soft, JD Edwards are some of

the top ERP software Systems.

Advantages of ERP

By integrating the business processes, the ERP offers the following advantages −

Saves time and expenses.

Allows faster decision-making by the management, utilizing the data and reporting tools designed in the systems.

Single data source and sharing of data among all the units of an organization.

Helps in tracking every transaction that takes place in an organization, from starting till end.

Supplies real-time information whenever required.

Provides synchronized information transfer in between different functional areas such as sales, marketing, finance, manufacturing, human resource, logistics, etc.

Disadvantages of ERP

It is not always easy to incorporate ERP in an organization. ERP

suffers from the following drawbacks −

Sometimes business processes critical to an organization are to be re-engineered to align them with an ERP solution.

Cost of complex integration can be very high.

Switching from one ERP solution to another increases the implementation cost even further.

End-users are to be trained for their daily operations.

Customization is not preferred.

ERP Market Share

Timeline of SAP

General areas of applications of SAP

Financial Accounting − Deals with financial transactions and data.

Human Resource − Deals with information related to employee of an organization.

Customer Relationship Management − Deals with capturing and managing customer’s relationship, facilitating the use of customer experience to evaluate the knowledge database.

Sales and Distribution − Deals with order placement, delivery, shipment and invoicing

Logistics and Warehouse Management − Deals with storage of products and shipment.

Manufacturing and Material Management − Deals with the production and production planning activities.

Supply Change Management − Deals with the movement of products, storing, managing, and controlling supplies.

Business Intelligence − Analyses data and converts the same to information.

What makes SAP different?

Traditional computer information systems used by many businesses today have been developed to accomplish some specific tasks and provide reports and analysis of events that have already taken place

Occasionally, some systems operate in a real-time mode that is have up to date information in them and can be used to actually control events

SAP takes a different approach. All applications access common data.

Real events in the business initiate transactions

There is only one information system in an enterprise, SAP.

Accounting is done automatically by events in sales and production

Sales can see when products can be delivered

Production schedules are driven by sales

The whole system is designed to be real-time and not historical

Verticals Of SAP

Reasons for Implementing SAP

For better decision making

For Strategic planning

For higher system performance

To gain competitive advantage

To meet key business goals

To gain increased solution flexibility

Enables a company to link its business functions

Ties together different business processes

Enables Business change

Replacement of an outdated inefficient IT architecture

SAP Application Modules

SAP has several layers.

The Basis System is the heart of the data operations and should be not evident to higher level or managerial users

Other Customizing and implementation tools exist also

The heart of the system from a manager’s viewpoint are the applications modules

These modules may not all be implemented in a typical company but they are all related

Business solutions

Digital business solutions

Platform and technology solutions

Software productsIndustry solutions

Platforms and frameworks

Small/Mid-sized enterprises solutions

Benefits of SAP

Improves Productivity

Reduces cost by increasing flexibility

Supports additional extensions in an organisation, if required

Optimize IT spending

Provide immediate access to enterprise information

Simultaneously visibility across whole enterprise

To choose best marketing strategy

Offers good Understanding of current situation of company.

Offers high security and info consistence.

Offers coordination across the company.

Enables to focus attention core process.

Business Ideas to Current Challenges

Many Companies run into a number of challenges when coming up with solutions.

First, companies are increasingly integrating SAP with cloud-based applications.

Moreover, some business processes require SAP to be connected to multiple systems, each of which may communicate with SAP using a different technology. An integration layer is thus needed between SAP and these different systems.

As business needs change, new cases will emerge. The challenge for companies is to design a software architecture that will enable developers to quickly build applications and integrate with SAP.

SAP is made for

All range of companies

Different suites are available for different range of companies

Designed to satisfy the information needs for all business functions

Different module section for different area of businesses

Multilinguistic, Base Independent i.e., works on any operating System

SAP-Security

There are three points to look in order to ensure security-

1.Confidentiality – Unauthorized disclosure of data

2. Integrity – Unauthorized modification of data

3. Availability – Denial of Service(Lack of availability of resources)

SAP authorizations control access to transactions by

1.Keeping Unauthorized persons out of system

2.Keeping people out of places where they should not be

3.Safegaurding the data from damage or loss

Safeguards

Classification of Security

Advice to Company

The cost of product is too high for small business and companies and implementation of the tools is not easy.

The products need more refinement (eg:- in the business suite there is no option of payroll and hence requiring a third party application to be used in parallel).

Products should be made flexible

Thank You