PGDM 2013-15

Submitted to
Dr. Neetu Ganapathy
Date: 27-09-2014







ENTERPRISE RESOURCE
PLANNING

Assignment-1


Submitted by,
Yalamanchi Vamsee
PGDM # 13006






Table of Contents
1.0 SAP at a glance: Company information .................................................................................................. 1
2.0 Strategy: .................................................................................................................................................. 2
2.1 Business Strategy and Model .............................................................................................................. 2
3.0 Acquisitions ............................................................................................................................................ 4
3.1 Ariba ................................................................................................................................................... 4
3.2 Business Objects ................................................................................................................................. 4
4.0 Products and Modules ............................................................................................................................. 7
5.0 Industries ............................................................................................................................................... 10
6.0 IMPLEMENTATIONS ......................................................................................................................... 12
6.1 TVS group ......................................................................................................................................... 12
6.2 MAHAGENCO ................................................................................................................................. 12
6.3 NESTLE ............................................................................................................................................ 13
References ................................................................................................................................................... 13
















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1.0 SAP at a glance: Company information
SAP is the world leader in enterprise applications in terms of software and software-related
service revenue. Based on market capitalization, we are the worlds third largest independent
software manufacturer. It is having more than 253,500 customers in 188 countries with 66,500
employees and locations in more than 130 countries. SAP is a 42-year history of innovation and
growth as a true industry leader. Its Annual revenue (IFRS) of 16,82 billion
Listed under the symbol "SAP" on stock exchanges, including the Frankfurt Exchange and
NYSE


Vision Statement
To help the world run better and improve peoples lives


Mission Statement
Our mission is to help every customer become a best-run business. We do this by delivering new
technology innovations that we believe address todays and tomorrows challenges without
disrupting our customers business operations: Enterprise mobility will transform consumption
of IT; in-memory technology will simplify the IT architecture in the enterprise and drive high-
value applications; and the cloud delivery of IT solutions will simplify the consumption of
technology and enable business networks. By leveraging our leadership in applications and
analytics and combining them with new technology innovations, we can offer solutions that
make our customers run better. To help our customers derive value from their SAP solutions in a
fast, cost-effective, and predictable way, we also provide professional services and support.







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2.0 Strategy:
SAP seeks to secure the growth of the company primarily through organic innovation of our
portfolio product and solutions, focusing on market-leading innovation in five market
categories Applications, Analytics, Cloud, Mobile, and Database and Technology powered
by SAP HANA. We intend to increase SAPs market leadership in the existing market categories
of applications, analytics, and mobile, and to position SAP as a market leader in the new
categories of cloud and database and technology. SAP HANA platform allows customers to take
advantage of real-time in-memory technology across all five market categories. Expanding
partner network offers additional opportunities to develop innovative products and solutions and
significantly increases potential sales channels. Its growth strategy is also supported by mergers
and acquisitions to accelerate innovation strategy.
The world is undergoing a technology-driven revolution in which knowledge is the currency of
success. Technology is both a cause and the answer to this change. We believe that we have the
right team of highly qualified and motivated employees, the right portfolio of innovative
products and solutions, and the right strategy to turn this technology revolution into business
evolution for our customers. Whats more, we believe we are well positioned to become known
as a knowledge company. By providing end-to-end solutions to our customers, we continuously
gain a great deal of business and technology knowledge as well as a deep understanding
of industry best practices and value drivers. This knowledge is made available to our customers
and partners to help generate business outcomes. The outcome of this strategy not only provides
our customers a significant competitive advantage in this ever changing world, but it also helps
them operate more sustainably.

2.1 Business Strategy and Model
Creating economic, social, and environmental value over the long-term is central to SAP vision
of helping the world run better and improving peoples lives. To realize its vision, SAP provides
software and services to customers throughout the world, all based on their deep expertise in
business processes spanning 25 industries.
To provide software and related services to their customers, they rely on financial capital
provided by investors. SAP leverage their intellectual capital to continually increase knowledge
base and expertise. Engaged, highly skilled, and agile employees are central to innovating with
and building relationships with their customers and partners, and ultimately to business success.
Its direct sales organizations drive most business development. Sales go-to-market strategies are
established at the global level, and adapted and executed by the regional subsidiaries. Their
customer-facing employees, in close collaboration with sales support and marketing, drive
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demand, build pipeline, and enhance relationships with customers within their target industries.
Their marketing efforts cover large enterprises as well as small and midsize enterprises. They
believe in their broad portfolio of solutions and services enables them to meet the needs of
customers of all sizes and across industries.
In addition, their extensive ecosystem provides scalability to meet the demand for SAP
innovation and provide customers with a wide selection of third-party competencies. They have
developed an independent sales and support force through independent value-added resellers. It
has also established partnerships with hardware and software suppliers, system integrators, and
third-party consultants.
SAP sales model has been focused on charging a one-time, upfront fee for a perpetual license to
our software that is typically installed at the customer site. In addition, the customer usually
concludes a maintenance contract that covers support and software updates. As they see
customers preferences evolve, they are expanding the delivery of their solutions in the cloud,
which they believe is a simple and efficient software consumption model. Cloud solutions are
offered under a subscription-based licensing model. With this model, the customer periodically
pays a fee to use software for a limited amount of time. This software is installed at an SAP or an
SAP partner location, and the customer accesses the software through the Internet.
To help companies invest in SAP solutions and the associated services and hardware, the SAP
Financing service offers customers payment plans optimized for maximum economic benefit. It
can help preserve liquidity, provide an alternative to credit from their existing banking
relationships, and balance their budgetary priorities while giving customers the flexibility to
choose the best possible solution.
They measure the outcome of their activities through four performance indicators: revenue,
margin, customer loyalty, and employee engagement. Each of these directly correlates with their
ability to deliver financial returns to their providers of capital. Ultimately, it is their highly
engaged employees who build its customers success and loyalty to SAP.
SAP contributes to the creation of long-term value for society in a number of ways. At SAP and
within our ecosystem, we support job creation and economic prosperity through demand for
highly qualified workers to sell, implement, and enhance the software for customers. SAP
solutions support the learning and talent development of their customers employees. Other SAP
solutions enhance health and safety, both on the manufacturing side and in the final consumer
products, which impact millions of people worldwide.
Their greatest positive environmental impact stems from enabling improvements through the
solutions they provide to customers. For example, its software plays a primary role in driving
supply chain optimization, efficiency gains in production processes, and transparency regarding
energy consumption and emissions.
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They also leverage their expertise in business processes across industries to direct innovations to
the worlds greatest challenges, such as the social and environmental strains posed by a rapidly
expanding global middle class. Its goal is to create long-term value by providing solutions not
just for the current challenges faced by its customers, but also those of the future. In this way,
they see their role moving beyond the creation of new efficient solutions: SA want to help
fundamentally change how people live, conduct business, and use software. This framework
underscores how SAP can create its greatest impact through the use of our solutions by more
than 253,500 customers worldwide.
3.0 Acquisitions
3.1 Ariba: Leading cloud-based business commerce network (5 billion).
On May 22, 2012, SAP AG and Ariba, Inc. announced that SAP's subsidiary, SAP America, Inc.,
has entered into an agreement to acquire Ariba, the leading cloud-based business commerce
network, for $45.00 per share, representing an enterprise value of approximately $4.3 billion.
The acquisition was completed on October 1, 2012, and combines Ariba's successful buyer-seller
collaboration network with SAP's broad customer base and deep business process expertise to
create new models for business-to-business collaboration in the cloud.
3.2 Business Objects: Pioneer and the world's leading BI software company in business
intelligence (BI) (4.8 billion).
On October 7, 2007, SAP AG and Business Objects S.A. announced that the companies have
reached an agreement that will bring together two of the information technology industry's
leaders, resulting in an unmatched offering for Business Users, enabling timely and accurate
decision-making.
On January 15, 2008, SAP France S.A. ("SAP France"), SAP AG and Business Objects S.A.
announced today that SAP France's all-cash tender offers for Business Objects securities were
successful.

Fieldglass: Global Cloud Technology Leader in Contingent Workforce Management.
It is the leading technology provider for procuring and managing contingent labor and services.
The addition of Fieldglass cloud-based Vendor Management System (VMS) solution meets the
growing demand among employers to manage flexible workforces that can be quickly engaged
and on-boarded to support rapidly changing business and customer needs. Combined with the
collaborative, network-based procurement capabilities of Ariba and the human resources
expertise of SuccessFactors, the acquisition uniquely positions SAP to deliver a platform for
businesses to manage their entire workforce both temporary and permanent staff from
initial recruiting and on-boarding to ongoing development, performance management, retention
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and retirement.

Contingent labor and statement-of-work services is a US$3.3 trillion, high-growth market
according to industry analyst estimates. Companies are rapidly moving to more variable
operating models that enable them to quickly dial up and down infrastructure, talent and
expertise to accommodate changes in market dynamics, business needs and special projects.
Contingent workforces are expected to grow by nearly 30 percent over the next three years,
according to research by Ardent Partners.
Hybris: Rapidly growing and widely recognized leader in e-commerce technology.
On June 5, 2013,- SAP AG and hybris announced that SAP plans to acquire hybris, a rapidly
growing and widely recognized leader in e-commerce technology. The acquisition positions SAP
to deliver the next-generation e-commerce platform, with the choice of on-premise or cloud
deployment, as enterprises around the world seek to optimize the customer experience for
businesses and consumers across an ever-growing number of delivery channels, devices and
touch points.
SuccessFactors: Market-leading provider of cloud-based human capital management (HCM)
solutions.
SAP and SuccessFactors announced on December 3, 2011, that SAP's subsidiary, SAP America
has entered into a definitive merger agreement with SuccessFactors, the market-leading provider
of cloud-based human capital management (HCM) solutions. SAP acquired SuccessFactors for
about $3.8billion.
Sybase: Industry leader for enterprise and mobile software to manage, analyze, and mobilize
information.
Both SAP and Sybase will benefit from synergies across product lines and markets. SAP will
accelerate the reach of its solutions across mobile platforms and drive forward the realization of
its in-memory computing vision. This will drive higher user adoption of SAP software and
unlock significant business value out of existing customer investments. In addition, Sybases
innovative mobile platform can connect all applications and data (SAP and non-SAP) and enable
them on mobile devices. SAP, Sybase and their customers will be able to tap into Sybases
messaging network to reach 4 billion mobile subscribers through 850+ operator relationships
worldwide and engage their consumers via alerts, transactions and promotions on their mobile
devices.
For Sybase, SAP in-memory technology will provide the opportunity for dramatic performance
improvements to its analytic processing capabilities. Sybase will also be able to bring its
complex event processing and analytics expertise, which was built in the financial sector, to
customers in other industries, markets and product areas in which SAP has a complementary,
strong presence. Finally, Sybases core database business will be enhanced by SAP in-memory
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technology to deliver integrated transactional and analytical capabilities. At the same time, SAP
reinforced its dedication to customer choice by stating that it will continue its commitment to
supporting leading database vendors.
The synergies between the two companies will also expand opportunities for the SAP and Sybase
ecosystems. Software and implementation partners can capture new opportunities by innovating
on Sybases market-leading mobile platform, which will make it easier to create, deliver and
securely manage mobile enterprise applications across major device types. SAP acquired Sybase
for about $5.8billion.

Syclo: Enterprise mobile applications and technologies.
In a move that will drive innovation in mobile solutions for businesses of all sizes, SAP AG
announced plans to acquire Syclo, a leading provider of enterprise mobile applications and
technologies. The addition of Syclo's expertise in building and selling mobile solutions in
industries such as utilities, oil & gas, life sciences and manufacturing will immediately enhance
SAP mobile solutions. It will also accelerate the adoption and deployment of new mobile asset
management and field service solutions on Sybase Unwired Platform, part of the SAP mobile
platform and the company's infrastructure for developing and managing mobile apps.
Concur: Concur is Leading Innovator for US$1.2 Trillion Corporate Travel Industry.
On sep 18
th
2014 SAP SE (NYSE: SAP) and Concur Technologies, Inc. (NSDQ: CNQR)
announced that SAPs subsidiary, SAP America, Inc., has entered into an agreement to acquire
Concur. With more than 23,000 customers, 4,200 employees and 25 million active users in over
150 countries, Concur is the leader in the multi-billion space for travel and expense (T&E)
management software. With Concur, SAPs business network the worlds largest will
transact more than US$600 billion annually, deliver frictionless commerce across more than 25
different industries and address annual corporate travel spend of US$1.2 trillion worldwide.
Concur will expand SAPs business network to reach into the US$1.2 trillion corporate
travel spectrum.
Concur has developed an open platform to connect the corporate travel ecosystem, such
as airlines, hotels and car rental companies in new and innovative ways.
With the addition of the corporate travel ecosystem to the Ariba and Fieldglass networks,
SAPs business network will have an opportunity to power transactions that drive more
than US$10 trillion of global spend annually.
With SAP HANA, Concur anticipates real-time network collaboration that will reshape
the travel value chain, create new business models and eliminate needless complexity
confronting millions of business travelers worldwide.
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SAP applications touch two-thirds of global commerce; combined with the power of SAP
HANA, SAP is uniquely positioned to make the real-time networked economy a
reality.


4.0 Products and Modules
SAP is having different products based on Business Application, Analytics, Database &
Technology, Cloud and Mobile.
SAP Business Suite is a collection of various SAP enterprise software that ensure optimized
execution of business strategies. It consists of the following SAP Systems:
1. SAP Customer Relationship Management (SAP CRM)
2. SAP Enterprise Resource Planning (SAP ERP)
3. SAP Product Lifecycle Management (SAP PLM)
4. SAP Supply Chain Management (SAP SCM)
5 .SAP Supplier Relationship Management (SAP SRM)
It also provides Solutions for Small and Midsize Enterprises with the following products:
SAP Business One
SAP Business ByDesign
SAP's products focus on Enterprise Resource Planning (ERP).
The company's main product is SAP ERP.
The current version is SAP ERP 6.0 and is part of the SAP Business Suite.
Its previous name was R/3.
ERP consists of different modules. Each module is selected by the customer based upon his
requirement. They can take one module from SAP ERP and collate it with other vendors ERP.
We will be seeing about the different modules and sub-modules are present.
Modules
SAP AG is an innovative company because each of its solutions (aka modules) is
integrated with all of their other modules. There is an incredible number of SAP modules
available on the market.
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Financial Modules: Financial Accounting (FI), Controlling (CO), Investment Management (IM),
Treasury (TR), Enterprise Control (EC).
Logistics Modules: Material management (MM), Sales & distribution (SD), Production,
Planning & Control (PP), Product Data Management (PDM), Quality Management (QM), Plant
maintenance (PM), Service management(SM), Project systems (PS)
Human resource management Module: Personnel Management, Organizational Management,
Payroll Accounting, Time Management, Personnel Development, Training & Event Management
Cross Application Module: Workflow (WF), SAP Office.
SAP FI - Financial Accounting:
Designed for automated management and external reporting of General Ledger (GL),
Accounts Receivable (AR), Accounts Payable (AP), and Asset Management (AM) with a
user-defined chart of accounts.
External reporting, such as income statement and balance sheet Represents cost and
revenue flows throughout the organization
Aids in organizational decision making
Supports internal reporting such as cost center reports
SUB Modules
SAP FI-GL - General Ledger
SAP FI-AP - Accounts Payable
SAP FI-AR - Account Receivable
SAP FI-SL- Special Purpose Ledger
SAP FI-BL Bank Accounting
SAP CO Controlling : SAP CO Module helps management by providing reports on cost
centers, profit centers, contribution margins, profitability, etc. They also deal with cost
accounting processing, analytical reporting, and audit-controlling spectrums.
SUB Modules
SAP CO-CEA - Cost Element Accounting
SAP CO-CCA - Cost Center Accounting
SAP CO- Internal Orders
SAP CO- Activity-Based Costing
SAP CO-PC- Product Cost Controlling
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SAP CO-PA- Profitability Analysis
SAP CO-PCA- Profit Center Accounting
SAP CO-OM- Overhead Cost controlling
SAP CO-ML- Material Ledger

Human resource management Module
Human Resources - HR
SAP HCM (Human Capital Management) Or SAP HR - Human Resource: Takes care of
payroll, time recording, applicant administration, and organization data. It supports the planning
and control of personnel activities. It consists of all master data, system configuration, and
transactions to complete the Hire to Retire (or, as some say, Fire) process.
SUB Modules
Organizational Management (OM)
Personnel Administration (PA)
SAP PA - Personnel Administration
SAP PA-APP - Applicant Management
SAP PA-BEN - Benefits
SAP PA-EMP - Employee Management
SAP PA-INW - Incentive wages
SAP PA-PAY - Payroll
SAP PA-TIM - Time Management
SAP PA-TRV - Travel Expenses
Personnel planning and Development (PD)
SAP PD-OM - Organizational Management
SAP PD-RPL - Room Reservations Planning
SAP PD-WFP - Workforce Planning
SAP PD-SCM - Seminar and Convention Management
SAP PD-PD - Personnel development
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SAP SD - Sales & Distribution: This module includes the business processes used to sell and
deliver products and services to customers and business partners. Information about the product
and customers (both of which are stored in the master data) is used in SD.
SUB Modules
SAP SD-MD - Master Data
SAP SD-CAS - Sales Support
SAP SD-SLS - Sales
SAP SD-SHP - Shipping
SAP SD-TR - Transportation
SAP SD-BIL - Billing
SAP SD-SIS - Sales Information System
SAP SD-EDI - Electronic Data Interchange (EDI)
SAP SD-GF General Sales Functions
SAP LE - Logistic Execution

Sectors
SAP serves for different industries. Some of them are:
5.0 Industries
Aerospace & Defense
Automotive
Banking
Chemicals
Consumer Products
Defense & Security
Engineering, Construction & Operations
Healthcare
Higher Education & Research
High Tech
Industrial Machinery, Components
Insurance
Life Sciences
Media
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Mill Products
Mining
Oil & Gas
Professional Services
Public Sector
Retail
Sports & Entertainment
Telecommunications
Travel & Transportation
Utilities
Wholesale Distribution
Lines of Business
Asset Management
Corporate Strategy & Sustainability
Finance
Human Resources
Information Technology
Manufacturing
Marketing
R&D, Engineering
Sales
Service
Sourcing and Procurement
Supply Chain
Featured Solutions
Big Data
Internet of Things
Rapid Deployment Solutions
Small & Medium Enterprises
User Experience





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6.0 IMPLEMENTATIONS
6.1 TVS group
TVS groups Sundaram Clayton, a player in the automobile component market, has migrated
from its existing ERP system to SAP. The reason is that the company is striving to build a
uniform system across all the businesses of its parent organization. They allocated a budget of
Rs. 4 crore for the complete initiative and they are expecting to achieve the return on investment
(ROI) within 18 to 24 months.
6.2 MAHAGENCO
SAP has won the prestigious contract from the Maharashtra Power Generation Co. LTD
(MAHAGENCO) to standardize business processes and optimize energy and natural resource
efficiency in order to improve profitability and deliver better energy for the citizens of
Maharashtra. The project will be implemented by L&T InfoTech and is scheduled to go live by
December 2011.
MAHAGENCO generates and supplies of electricity, and strives to fully meet the energy needs
of the state by value enhancements. With an installed capacity of more than 9990 MW and
increasing demand for power, MAHAGENCO was looking for an ideal solution to help optimize
fuel management and decentralize the current processes. The company chose SAP for its
customized approach to suit the changing needs along with its proven domain expertise.
SAP, along with L&T InfoTech, will enable business process standardization at MAHAGENCO
across 14 different locations, including all power stations and offices in the state. The single
integrated enterprise resource planning (ERP) component SAP ERP Central Component will
allow senior management rapid information access, minimized costs, and better resource
utilization and management to offer enhanced services and improve power efficiency for their
customers.
Additionally, this integration will help MAHAGENCO maximize the value of its IT with Web-
based technologies and a centralized data center. The deployment will consolidate islands of
information across the organization, including financial accounting, human resources, payroll,
material management, maintenance management and project management, to bring the
information to a single concentrated platform.
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6.3 NESTLE
Nestle SA is the parent company of the candy-making giant and is headquartered in Switzerland.
In 2000 Nestle SA decided that it wanted to leverage its size and begin acting like the giant it is.
To do so, it signed a $200 million contract with SAP to roll out an ERP system to its 230,000
employees in 80 countries around the world .In addition to this sum, Nestle SA also committed
to an additional $80 million to be spent on consulting, maintenance, and upgrades .Executives at
Nestle SA realized that the company needed to standardize its business processes if it wanted to
be competitive. The rollout was scheduled to take three years for Nestle SAs largest sites with
the others to follow. Included in the implementation were the mySAP.com financials, accounts
payable, accounts receivable, planning, production management, procurement, direct
procurement, supply-chain, demand planning, fulfillment, and business-intelligence modules .

Prior to the Nestle SA ERP decision, Nestle UK had already implemented an ERP system. The
British subsidiary of Nestle SA implemented SAP R/3 over a period of five years in 18 UK
manufacturing sites. This implementation wrapped up in 1999 and was the one of the UKs
largest ERP systems with over 6,000 users. As with the Nestle SA deployment, the goals of the
Nestle UK implementation were centered on leveraging the size of the organization as well as
tightening up the supply chain and re-engineering work practices and processes

References

1. http://www.sap.com/corporate-en/about/our-company/history/index.html
2. http://www.sapintegratedreport.com/2012/en/performance/vision-mission-and-strategy.html
3. http://www.sapintegratedreport.com/2013/en/strategy-and-business-model/business-model.html
4. http://www.uwosh.edu/faculty_staff/wresch/ERPNestle.htm
5. http://firstbiz.firstpost.com/biztech/mahagenco-implements-sap-erp-to-optimise-energy-10581.html