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INTRODUCTION TO SAP:
Overview of the SAP R/3 System
& Getting Started with R/3
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MINS 298C
SAP Implementation, Configuration & Use
Copyright 1996, 1997, 1998 - James R. Mensching, Gail Corbitt
Contents of this file are for the exclusive use of the special
MINS 298C class dealing with SAP software at CSU Chico
for the Spring 1998 semester. Any other use in either electronicor hardcopy form is prohibited without the express written
permission of the author. This material is confidential.
Do not share it with anyone not enrolled in the class.
Lecture #2
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Introduction to ERPs and SAP
Objectives
Define what SAP is within the Context of ERPs
Explain Why SAP, the Company, and R/3, the Product,
are Important
Explain What Implementing SAP R/3 Involves (How,
What and Who)
Define Our Role In This Process
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Introduction to ERPs and SAP
What Is Enterprise Resource Planning?
The integration of allcomputing within an organizationsuch that:
allmajor business processes are encompassed andstandardized and
alldata is usable byallfunctional areas of the business
Enterprise Resource Planning = ERP
Integrate many business functions into one seamless application
Usually are applications systems that run on top of a RDBMS
Replace 100s of legacy systems in organizations who use an ERP
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Introduction to ERPs and SAP
What Is Enterprise Resource Planning?
Strategic Information
Managerial Information
Transaction
Information
Sales &
Marketing
Manufacturing
HR
Accounting
& Finance
Procurement
Decision Support
Executive IS
One Integrated Information System
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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
Utilize one common database
Perform automatic internal conversions (e.g., foreign currency,taxes, legal rules for payroll)
Improve customer service by putting data at the fingertips of anyemployee
Involve users in the entire functional cycle
Unify backup, recovery procedures and other systemadministration tasks
Secure the system from disaster and unauthorized use
Introduction to ERPs and SAP
Characteristics of ERPs
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Introduction to ERPs and SAP
Overall ERP Market
Advanced Manufacturing Research, a Boston-based
research company states:
43 ERP Vendors
EWS Sales will exceed $10 Billion (1997)
27% will be Financial Module
Marketing Trend in ERP Software is towards mid-sized companies($50M-$500M in sales)
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Introduction to ERPs and SAP
Overall ERP Market
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Fully Integrated Business Functions or Modulesthat Support Business Processes
Helps develop understanding of business
processes by tracking information thru the
process
Standardized Systems Development Life Cycle
Move Toward Business Process Re-engineering
Centers Re-engineering Around the Software
Directly Links to External Systems
Introduction to ERPs and SAP
Advantages of ERPs
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Introduction to ERPs and SAP
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 4.0: New release (May 1998) distributes data, process, andpresentation
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Worldwide Organized in 4 Operating Regions
* Through Partners
Asia Pacific
Australia
Japan
HongKong
China
India
Korea
Singapore
Malaysia
NewZealand
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
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R/3 Integrated Products
03
Open
System
Designed
for all
types of
business
IndustrySmultinationalolutions
R/3Client / Server
FIFinancial
Acctg.
COControlling
AM
AssetMgmt
PSProjectSystem
WFWorkflow
MMMaterials
Mgmt
HRHuman
Resources
SDSales
PP
ProductionPlanning
QMQualityMgmt
PMPlantMaint.
Integrated
Solution
Client/Server
Architecture ComprehensiveFunctionality
ISIndustry
Solutions
Graphical User
Interface
Multinational
Over 12,000 installations
around the world
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Highly Integrated Application Software
Client/Server Technology
Based on Best Business Practices
Based on Open Standards
Various RDBMS: Oracle, Informix, etc.
TCP/IP (standard communication protocol)
UNIX, Windows NT, OS/400, etc.
OLE, RPCs, Open Interfaces
Introduction to ERPs and SAP
Summary: What is SAP R/3?
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Adopted by Most Large Corporations (80% ofFortune 500)
Forces a Consolidation of Diverse IS Systems
Total Change in Doing Business - RedesignBusiness Process Around the Information System
Main Vehicle for Re-engineering Business
Processes using Best Practices
ERPs are described by Some as the Second Major
Revolution in Computer History
Introduction to ERPs and SAP
Why is R/3 so Important?
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Introduction to ERPs and SAP
Importance of SAP as a Product/Company
Fastest Growing Software Company in the World
Second Largest Software Company in the World
Founded in 1972; Based in Waldorf, Germany
Market Share Leader (About 40% of ERP Market)
Over 12,000 Customers
Devotes 20-25% of Revenue to R&D
SAP translates into Systems, Applications and
Products in Data Processing (R stands for Real Time)
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ALL Business processes draw on same database
Rules are configurable and drive data integrity
Operates in many languages
Translates currency automatically
Documents workflow, business processes and the data
in one set of models that are highly integrated
Integrates several views of data: transactions,
managerial, decision support or executive
Fully customizable
Introduction to ERPs and SAP
Main Features of R/3
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What Does It Involve?
Fully Implemented Three Tier Client/Server
Architecture
Involves All of the Major Business Cycles:
Procurement, Financial Accounting, Sales,Logistics, HR, Production Planning, Asset Mgmt..
Fully Integrated Data Model (Non-redundant Data)
Application Processing (I.e. Middleware) is Totally
Scaleable
Introduction to ERPs and SAP
What Does It Involve?
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Database Server Primarily Runs on UNIX, However
NT Server is a Second Preferred Platform
Applications Servers Run on UNIX & Windows/NT
Presentation Servers - Windows, Windows/95,
Windows/NT, Apple MAC, UNIX (X-Windows)
75,000,000 Lines of Source Code
Over 7,000 Separate Relations (over 10,000 logicaltables, nearly 8000 physical tables)
Introduction to ERPs and SAP
What Does It Involve?
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Advantages of SAP over other ERPs
Three Tier Client/Server System
Open System - Many O/Ss & DBMSs
Differentiated Development, Test & ProductionSystems (SAPs Landscape)
Imbedded Version Control
Integrated Development & Implementation Tools
Sophisticated Management & Monitoring
Environment
Introduction to ERPs and SAP
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 ComplexTransactions - Data Entered One time, One Place, At
the Source
Implemented in Many Large, High-Tech Firms
Impressive process and data documentation
Supported by ALL Major Hardware Vendors
Introduction to ERPs and SAP
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 least understood by
business, but high on list of reasons to buy
Creates internal conflict in organizations
SAP rolls out new versions every 6 months
Introduction to ERPs and SAP
Introduction to SAP R/3
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Who Is Involved?
Businesses That Wish to Re-engineer Their
Business Processes
Presently This Includes Primarily Large Companies,
But Increasingly Smaller Businesses moving toERPs
Hardware & Software Vendors Providing the
Platforms That Run the Systems
Introduction to ERPs and SAP
Who Is Involved?
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Consultants That Provide the Installation, Training &Configuration Services
Individual Employees That Must Learn How to Adapt
to New Ways of Doing Their Jobs
In house implementation teams (usually IS/CIStypes that plan and execute implementations of
SAP)
SAP and in-house support teams that help trouble
shoot problems and support installations.
Introduction to ERPs and SAP
Who Is Involved?
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An SAP Installation Is a Serious Undertaking
Usually a Large Business Will Re-engineer Its
Business Processes at the Same Time (OR First)
Many Different Approaches Exist
Big Bang - Convert All Systems at Once
Reduces Need for External Interfaces
Huge in Scope
The larger the organization the less likely this
approach is used
Introduction to ERPs and SAP
How Is It Done?
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Approaches Used cont.
Phased Conversion
Necessary to Write External Interfaces to
Existing Legacy Applications
Limited in Scope: Prioritize Modular
Implementation
Pilot Approach - Use One of the Two Above
Conversion Methods, but Only Apply It to One
Division, Department, Plant, Etc.
Introduction to ERPs and SAP
How Is It Done?
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Things That Have to Be Done
Learn the SAP System
Analyze the Present Processes
Determine What SAP Functionality Is Needed
Install and Configure (customize) the SAP System
Test the configuration
Most Large SAP Installations Take 2 to 3Years to Complete
Introduction to ERPs and SAP
How Is It Done?
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Show Students How Business Best Practices
Operate in a REAL Environment
Use SAP to Demonstrate Concepts and Processes
Provide Students With High Demand Market Skills
More Closely Knit the College of Business
Curriculum Together
Keep Faculty Current on Emerging Technologies
Introduction to ERPs and SAP
What is the Academic Role in This?
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Getting Started with SAP
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SAP Academic Workshop:
Getting Started with SAP
Objectives:
Explain the log-on process in a 3 tiered landscape
Show ways to navigate in SAP
Explain the layout of the SAP screen
Show the uses of the most common buttons and features
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Short-cut Icon from the desktop
System logon screen - choosing the landscape
SAP R/3 Logon Screen
User IDs and Password changes
SAP Academic Workshop:
Getting Started with SAP
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Screen Features
Title Bar
Menu Bar
Tool Bar
Function keys
Main body of screen
Message line at bottom
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Getting Started with SAP
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Title Bar
Function
Icons
Application
Toolbar
Status Bar
Window
Menu
Command
Field
Customizing
Display
Options
SessionNumber
Function
Buttons
SAP Academic Workshop:
Getting Started with SAP
Enter
Icon
Menu Bar
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Ways to Navigate in SAP
Menu Bar -- drop down navigation
Dynamic Menu
T-codes or Transaction codes
Function Keys (change for each transaction set)
Right mouse click (displays functions available at the time)
SAP Academic Workshop:
Getting Started with SAP
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Common Icons in Tool Bar
Enter (Green Check or Red Poppy)
Save (Open yellow folder)
Cancel (Red X)
Back (Green left arrow)
Exit this T-code (Yellow Up arrow)
Yellow Question Mark (On-line help)
SAP Academic Workshop:
Getting Started with SAP
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Other Helpful Features: System Drop down
Status (shows T-code or program in case of error)
Create Session
List > Print
List > Save
Log off
SAP Academic Workshop:
Getting Started with SAP
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Running a Transaction (set) or System Task
Equates to on-line representation of a business event
Example: Create a purchase order = business event (may involve
several screens of data)
Header and Detail
Fields and Values
Field Types:
Mandatory (white or yellow background with a ?)
Optional (white background but no ?)
Display only (gray background)
SAP Academic Workshop:
Getting Started with SAP