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    SAPHuman Capital Management

    VIJAY

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    What is SAP?

    Systems

    Applications

    Products

    Standard ERP Software for real time Dataprocessing

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    What is ERP?

    Enterprise

    Resource

    Planning

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    What is an Enterprise?An Enterprise is a huge organization with

    huge resources.

    Does this definition stand right now?

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    What are the ResourcesAn Enterprise has the following resources:

    Money (Finance Dept.) Men (Human Resources Dept.) Materials (Purchasing Dept. and stores)

    Machines (Production Dept.) Marketing (Sales and Distribution Dept.) Methods (pervade all the other resources)

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    What do we plan

    andwhy do we need to Plan?

    Planning is done for resources. Planning entails the

    optimal utilization of resources so that the followingare achieved:

    Productivity

    (relates to Men and Machines)

    Effectiveness

    (relates to Methods employed)Efficiency

    (relates to Men, Methods and Machines)

    The Result is the Profitability of the Enterprise.

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    Enterprise Architecture - Benefits

    Eliminates the duplication, discontinuity andredundancy in data

    Increases the return on investment made

    on IT implementations Delivers quality information designed for the

    Enterprise as a whole

    Faster and cheaper

    Delivers quality information to produce aquality enterprise

    Satisfying Partners/Customers

    Reducing required manpower

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    HISTORY

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    Who? Founders : Ex-IBM Employees

    As? Founded as Systemanalyse und Programmentwi

    (System Analysis and Program Development)

    When? On April 1, 1972

    Where? In Mannheim, Germany

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    Brains behind SAP

    Dietmar Hopp

    Hans-Werner Hector

    Hasso Plattner Klaus Tschira

    Claus Wellenreuther

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    Why?

    Reason 1 : As Client after client aredeveloping the same, or very similar,computer programs

    Reason 2 : So that data is processedinteractively in real-time, and the

    computer screen should be the focalpoint of data processing

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    Rivals of SAP in ERP

    Why do the rivals of SAP stand far behindSAP?

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    SAP success story

    Market share : Nearly 60%.

    End users : More than onemillion end users around theworld work with the R/3

    system. Worlds third-largestindependent software vendor.

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    Events in SAP historyIn the fifth year of operations, SAP took a

    new name Systeme Anwendungen Produktein der Datenverarbeitung

    (Systems, Applications, Products in DataProcessing)

    SAP moved its offices and headquarters toWalldorf in 1977.

    SAP went public as SAP AG on Nov 4, 1988.

    First customer for SAP

    German ICI subsidiary in Ostringen

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    SAP R/1 in1973

    SAP R/2 in1979SAP R/3 in1992

    R

    stands forreal-time data processing

    Architecture

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    Architecture of R/1 System

    Interfaces developed inapplication programs itself.

    File systems were used.

    Client/server conceptinexistent.

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    Architecture of R/2 System

    Main-frame versionUses DBMS for the first time

    Interface programming withinApplication programming.Data stored in Database.

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    SAP R/2How is it different?It attains the high level of stability

    of the previous generation ofprograms.

    It handles different languages and

    currencies.

    A hi f R/3

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    Architecture of R/3System

    Client/Server concept introducedUses RDBMS for data storage

    Interface programming separated fromApplication programming.

    Maintains more than 2 servers atdifferent tiers.

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    Presentation Layer, or client, interfaces withthe user.

    Application Layer houses all the businessspecific logic.

    Database Layer records and stores all theinformation about the system, including

    transactional and configuration data.

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    SAP R/3How is it different?Client-server concept

    Uniform appearance of graphicalinterfaces

    Consistent use of relational databasesAbility to run on computers fromdifferent vendors

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    Facts aboutSAP R/3

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    SAP R/3 was officially launched on 6 July,1992.

    It is a client-server version of software.

    It is manageable on multiple platformsand operating systems, such as Windowsor UNIX .

    It embraced the object-oriented concept

    of business objects

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    It is the Largest European software vendor.

    SAP AG became the companys official

    name after the 2005 annual generalmeeting.

    It ranks after Microsoft, Google, Apple,and IBM in terms of Market Capitalization.

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    While its original products are typically used byFortune 500 companies, SAP is now also activelytargeting small and Medium sized Enterprises(SME) with its SAP Business One and SAP

    All-in-One.

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    According to SAP officials, there are over

    100,600 SAP installations serving more than38,000 companies in more than 120countries, which are used by more than 12 million

    people.

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    SAP provided selected standardizedprocesses, which were termed best-practice

    solutions of processes.

    The implementation of SAP software

    commonly required the expertise ofknowledgeable external consultants, who arefamiliar with the best practices.

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    SAP High Tech & Electronics

    SAP Consumer Products

    SAP Transportation

    SAP Public Sector

    SAP Telecomm.

    SAP Chemicals

    SAP Pharmaceuticals

    SAP Retail

    SAP Banking

    SAP Industry Solution

    SAP Engineering & Construction

    SAP Oil & Gas

    SAP Utilities

    SAP Health Care

    SAP Automotive

    SAP Media

    SAP Aerospace & Defense

    SAP Service Providers

    ...

    Business

    Information

    Ware-house

    SalesForce

    Auto-

    mation

    B2B

    Procurement

    Advanced

    Planner &Optimizer

    R/3

    SAP FinanceSAP Mill

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    R/3

    Client / Server

    ABAP

    FIFinancial

    Accounting

    COControlling

    TRTreasury.

    PSProjectSystem

    SDSales &

    Distribution

    MMMaterials

    Mgmt.PP

    ProductionPlanning

    QMQuality

    Manage-ment PM

    Plant Main-tenance

    HRHumanResources

    WFWorkflow

    ISIndustrySolutions

    Integrated turnkey

    solutions

    Open

    Systems

    Client/Server

    Architecture

    Enterprise Data

    Model

    Integrated Real-

    Time

    Multi-national

    Multi-currency

    Industry-Solutions

    Internet / Intranet

    SAP R/3 System

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    Other major product offeringsinclude

    Advanced Planner and Optimizer(APO)

    Business Information Warehouse(BW)

    Customer Relationship Management(CRM)

    Supply Chain Management(SCM) Supplier Relationship Management(SRM)

    Human Resources Management System(HRMS)

    Product Lifecycle Management(PLM)

    Exchange Infrastructure(XI) Enterprise Portal(EP)

    SAP Knowledge Warehouse(KW)

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    SAP R/3 functionality is structuredusing its own proprietary language

    called ABAP (Advanced BusinessApplication Programming).

    ABAP or ABAP/4 is a fourth generationlanguage (4GL), geared toward the

    creation of simple, yet powerfulprograms.

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    SAP has several layers.

    The Basis System (BC) includes the ABAPProgramming language, and is the heart (i.e.

    the base) of operations and should not be

    visible to higher level or managerial users.

    The Heart of the system (from the managers

    viewpoint) are the application modules.

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    SAP BASIS (Basis)

    ABAP etc. (Cross-Application)

    HR

    Central

    Applicationswith/without HR

    Plug-Ins IBU Add-On

    CRMBW

    SEM APO BBP

    classic R/3"

    A common Basis for all mySAP. com Products

    Common mySAP.comTechnology

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    CustomerPrograms

    Applications,such as FI/CO

    SAP BasisSAP BasisSAP BasisSystem Software

    SAP Basis

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    SAP R/3 Conceptual AreasSAP Conceptual Areas

    Application Area(Initiate and execute

    SAP transactions)

    (Functional)

    Basis Area(The technical

    administration ofthe system)

    (Authorizations/Ids/etc)

    Development Area(1. A developers

    workbench2. Create & Test

    ABAP/4 programs)

    (Technical)

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    mySAP? mySAP.com?

    mySAP links e-commercesolutions to existing ERP

    applications, using state-of-the-art

    Web technology.

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    System Landscape

    ProductionDevelopment Quality Assurance

    Transportgroup

    Transportgroup

    PRODQTST TRNGTEST CUST

    SAND

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    Logging on to SAP System

    Logon pad withdifferentsystems

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    Adding to favorites

    Steps to add transaction to favorites

    Step I: Select the transaction you want to add tofavoritesStep II: Right click on the transaction you want toadd to favoritesStep III: Select Add to favorites.

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    W ki i S l S i

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    SAP AG

    R

    Working in Several Sessions

    Session 4

    Session 3Session 3

    Session 2Session 2

    Cost center

    Cost acctg.

    Valid from

    Name

    Description

    Long text

    Descriptions

    Exec.Board

    Executive Board cost center

    X

    Session 6

    Session 5

    Session 1

    Th I B i th R/3 S t

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    SAP AG

    R

    The Icon Bar in the R/3 System

    Enter

    Save

    Back

    Exit

    Cancel

    Help

    Execute

    Find

    Sort

    Print

    Change Display

    Page??

    U P fil

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    SAP AG

    R

    User Profiles

    Own data: allows you tochange your address,

    defaults, and parameters Address: enables you to

    set your communicationinformation

    Defaults: allows you tospecify your preferred

    printer and date andnumber formats

    Parameters: allows you toset default values infrequently used fields

    Information systems Tools System

    ?? Create session

    End sessionUser profile

    Services

    Utilities

    List

    Object services

    Own spool requests

    Own jobs

    Short message

    Status...

    Log off

    Hold data

    Set data

    Delete data

    Application values

    Own data

    Favorite maint.

    SAP AG

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    SAP HTML Help Files

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    SAP AG

    R

    SAP HTML Help Files

    Contents SearchIndex

    R/3 Library

    SAP Help - R/3 Library

    Hide Back Forward Home Print Options

    BC - Basis

    FI - Financial Accounting

    HR - Human ResourcesLO - LogisticsInformation

    CA - Cross Application

    R/3 Library

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    The most difficult part of SAP

    R/3 is its implementation.Simply because SAP R/3 is

    never used the same way inany two places.

    Defining the Points on the ASAP Roadmap

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    SAP AG 2002

    Defining the Points on the ASAP Roadmap

    ProjectPreparation

    Business

    Blueprint

    Realization

    FinalPreparation Go Live &

    Support

    Initial Project Planning

    Project

    Procedures

    TrainingProject Kickoff

    Technical Requirements

    Planning

    Quality Check

    Project Management

    Organizational Change ManagementDevelop System Environment

    Training

    Business Organizational Structure

    Business Process Definition

    User Roles and Authorization

    Quality Check

    Project Management

    Organizational Change Management

    TrainingBaseline Configuration and Confirmation

    System Management

    Final Configuration and Confirmation

    Develop Programs, Interfaces etc.

    Final Integration TestQuality Check

    Project Management

    End User Training

    System ManagementSystem Tests

    Detailed Project Planning

    Cutover

    Quality Check

    Production Support

    Ongoing KPI

    Management

    Project End

    Documents of an ASAP Project

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    SAP AG 2002

    Master ListsMicrosoft ExcelSpreadsheets forDevelopment, Organization,Business Processes andAuthorizations

    ProjectCharter

    BPP

    j

    Q&Adb

    Substructures:

    Business StrategyOrganizationGeneral SettingsMaster DataBusiness Process

    Cross ApplicationDevelopment

    BusinessBlueprint

    ProjectPlan

    Scope

    Config.

    Plan

    Testing

    Plan

    Unit testingTest scenarioIntegration

    4321 5

    CutoverPlan

    Volume

    Test

    StressTest

    Conduct

    End User

    Training

    System

    Performance

    Review

    ProjectTeamOrg.

    Stand. &Proced.

    TechnicalOperations

    Manual

    Progr.

    Develp.

    EUTraining

    Material

    Microsoft WordDocuments

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    5/29/2012 67

    INTRODUCTION TO SAP:Overview of the SAP R/3 System

    & Getting Started with R/3

    What Is Enterprise Resource

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    What Is Enterprise Resource

    Planning? The integration of all computing within an

    organization such that:

    allmajor business processes are

    encompassed and standardizedand

    alldata is usable by allfunctional

    areas of the business Enterprise Resource Planning = ERP

    Integrate many business functions into

    one seamless application

    What Is Enterprise Resource

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    What Is Enterprise ResourcePlanning?

    Strategic Information

    Managerial Information

    TransactionInformation

    Sales &Marketing

    Manufacturing

    HR

    Accounting& Finance

    Procurement

    Decision Support

    Executive IS

    One Integrated Information System

    Ch t i ti f ERP

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    Link all business processes automatically Reduce interprocessing time (transactions occur

    one time at the source) Maintain complete audit trail of all transactions Use one common database (e.g., Oracle,

    Sybase, DB2) Perform automatic internal conversions (e.g.,

    foreign currency, taxes, legal rules for payroll) Improve customer service by putting data at the

    fingertips of any employee Involve users in the entire functional cycle Unify backup, recovery procedures and other

    system administration tasks Secure the system from disaster and unauthorized

    use

    Characteristics of ERPs

    Advantages of ERPs in

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    Provide fully integrated businessfunctions or modules that supportbusiness processes

    Help develop understanding ofbusiness processes by trackinginformation through the process

    Standardize systems development lifecycle

    Move toward business process re-

    engineering

    Advantages of ERPs, inGeneral

    What Is SAP R/3?

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    What Is SAP R/3?

    SAP is an example of an ERP System SAP R/3

    SAPs Client Server version (Distributes

    process and presentation) Based on R/2 (Mainframe version -

    centralization of data and process)

    R/3 4.6: New release distributes data,

    process, and presentation, and is Webenabled

    Worldwide Organized in 4

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    Worldwide Organized in 4Operating Regions

    * Through Partners

    Asia Pacific

    Australia

    Japan

    Hong

    Kong

    China

    India

    Korea

    Singapore

    Malaysia

    New

    Zealand

    Thailand

    Philippines

    Indonesia

    Middle East*

    Africa / Middle East

    Israel*

    Turkey*

    South Africa

    Switzerland

    SlovakRepublic

    Europe

    Belgium

    Denmark

    Germany

    France

    Greece*

    Italy

    Netherlands

    Austria

    Portugal

    Russia

    Sweden

    Spain

    CzechRepublic

    Hungary*

    Poland

    Norway

    U.K.

    America

    U.S.A.

    Mexico

    Argentina

    Brazil

    Chile

    Venezuela

    Colombia

    FinlandCanada

    Romania

    Croatia

    R/3 I t t d P d t

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    R/3 Integrated Products

    03

    OpenSystem

    Designedfor all

    types ofbusiness

    IndustrySmultinationalolutions

    R/3Client / Server

    FIFinancial

    Acctg.

    COControlling

    AMAsset

    Mgmt

    PSProjectSystem

    WFWorkflow

    MMMaterials

    Mgmt

    HRHuman

    Resources

    SDSales

    PPProduction

    Planning

    QMQualityMgmt

    PMPlantMaint.

    IntegratedSolution

    Client/Server

    Architecture

    Comprehensive

    Functionality

    ISIndustry

    Solutions

    Graphical UserInterface

    Multinational

    Over 12,000 installationsaround the world

    Summary: What is SAP R/3?

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    Highly Integrated ApplicationSoftware

    Client/Server Technology

    Based on Best Business Practices

    Based on Open Standards

    Various RDBMS: Oracle, Informix,etc.

    TCP/IP (standard communicationprotocol)

    Summary: What is SAP R/3?

    Why is R/3 so Important?

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    Forces a Consolidation of Diverse ISSystems

    Total Change in Doing Business -

    Redesign Business Process Aroundthe Information System

    Main Vehicle for Re-engineering

    Business Processes using BestPractices

    ERPs are described by Some as the

    Second Major Revolution in Computer

    Why is R/3 so Important?

    Main Features of R/3

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    ALL Business processes draw on samedatabase

    Rules are configurable and drive data

    integrity Operates in many languages

    Translates currency automatically

    Documents workflow, businessprocesses and the data in one set ofmodels that are highly integrated

    Integrates several views of data:

    Main Features of R/3

    What Does It Involve?

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    What Does It Involve? Fully Implemented Three Tier

    Client/Server Architecture

    Involves All of the MajorBusiness Cycles:Procurement, Financial

    Accounting, Sales, Logistics,HR, Production Planning, AssetMgmt..

    What Does It Involve?

    What Does It Involve?

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    Database Server PrimarilyRuns on UNIX, However NT

    Server is a Second PreferredPlatform

    Applications Servers Run on

    UNIX & Windows/NT Presentation Servers -

    Windows, Windows/95,

    What Does It Involve?

    Introduction to SAP R/3

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    Advantages of SAP Covers Many Business

    Functions

    Strong Workflow Capabilities Can Handle Many Different

    Types of Complex Transactions

    - Data Entered One time, OnePlace, At the Source

    Implemented in Many Large,-

    Introduction to SAP R/3

    Introduction to SAP R/3

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    Disadvantages of SAP Expensive

    Very Complex

    Demands Highly Trained Staff

    Lengthy Implementation Time

    Inter-modules functions leastunderstood by business, buthigh on list of reasons to buy

    Creates internal conflict in

    Introduction to SAP R/3

    How Is It Done?

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    An SAP Installation Is a SeriousUndertaking

    Usually a Large Business Will Re-

    engineer Its Business Processes at theSame Time (OR First)

    Different Approaches

    Big Bang - Convert All Systemsat Once

    Phased Conversion - Gradual

    Mi ration

    How Is It Done?

    How Is It Done?

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    Things That Have to Be Done Learn the SAP System

    Analyze the Current, As-IsProcesses

    Determine What SAP

    Functionality You Need Install and Configure (customize)

    the SAP System

    Test the configuration

    How Is It Done?

    (ASAP):

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    (ASAP):R/3 Accelerated

    Implementation1 2 3 4 5 6

    Project

    Prep.Business

    Blueprint

    Simu-

    lation

    Vali-

    dation

    Final

    Prep.

    Go Live

    &

    Support

    Start Here

    Realize Business Benefits

    (ASAP):

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    (ASAP):R/3 Accelerated

    Implementation