SAP

Human Capital Management

VIJAY

What is SAP?
Systems
Applications
Products

Standard ERP Software for real time

Data processing

What is ERP?
Enterprise

Resource
Planning

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

Does this definition stand right now?

What are the

Resources?

An 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)

What do we plan
and
why do we need to Plan?
Planning is done for resources. Planning entails
the optimal utilization of resources so that the
following are 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.

Enterprise Architecture Benefits

Eliminates

the duplication, discontinuity

and redundancy 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 a
quality enterprise
Satisfying Partners/Customers
Reducing required manpower

HISTORY

Who? Founders : Ex-IBM Employees

As? Founded as Systemanalyse und

Programmentwicklung

(System Analysis and Program Developmen

When? On April 1, 1972

Where? In Mannheim, Germany

Brains behind SAP

Dietmar Hopp
Hans-Werner Hector
Hasso Plattner
Klaus Tschira
Claus Wellenreuther

Why?
Reason 1 : As Client after client are
developing the same, or very similar,
computer programs
Reason 2 : So that data is processed
interactively in real-time, and the
computer
screen should be the focal
point of data
processing

Rivals of SAP in ERP

Why do the rivals of SAP stand far

behind SAP?

SAP success story

Market share : Nearly 60%.
End users : More than one
million end users around
the world work with the R/3
system.
Worlds third-largest
independent
software
vendor.

Events in SAP history

In the fifth year of operations, SAP took
a new name Systeme Anwendungen
Produkte in der Datenverarbeitung
(Systems, Applications, Products in
Data Processing)
SAP moved its offices and headquarters
to Walldorf in 1977.
SAP went public as SAP AG on Nov 4,
1988.

First customer for SAP

Architecture
SAP R/1 in 1973
SAP R/2 in 1979
SAP R/3 in 1992
R
stands for
real-time data processing

Architecture of R/1 System

Interfaces developed in
application programs itself.
File systems were used.
Client/server concept
inexistent.
17

Architecture of R/2 System

Main-frame version
Uses DBMS for the first time
Interface programming within
Application programming.
Data stored in Database.

SAP R/2

How is it different?
It attains the high level of
stability of the previous
generation of programs.
It handles different languages
and currencies.

Architecture of R/3
System
Client/Server concept introduced
Uses RDBMS for data storage
Interface programming separated
from Application programming.
Maintains more than 2 servers at
different tiers.

Presentation Layer, or client, interfaces

with the user.
Application Layer houses all the
business specific logic.
Database Layer records and stores all
the information about the system,
including transactional and
configuration data.

SAP R/3
How is it different?

Client-server concept
Uniform appearance of graphical
interfaces
Consistent use of relational
databases
Ability to run on computers from
different vendors

Facts about
SAP R/3
29

SAP R/3 was officially launched on 6

July,
1992.
It is a client-server version of
software.
It is manageable on multiple
platforms
and operating systems,
such as Windows or UNIX .
It embraced the object-oriented
concept
of business objects

30

It is the Largest European software

vendor.
SAP AG became the companys
official name after the 2005 annual
general
meeting.
It ranks after Microsoft, Google,
Apple, and IBM in terms of Market
Capitalization.

While its original products are typically

used by Fortune 500 companies, SAP is now
also actively targeting small
and Medium
sized Enterprises (SME)
with its SAP
Business One and SAP All-in-One.

32

According to SAP officials, there are

over 100,600 SAP installations serving
more than 38,000 companies
in more
than 120 countries, which are used by more
than 12 million people.

33

SAP provided selected standardized

processes, which were termed bestpractice solutions of processes.
The implementation of SAP software
commonly required the expertise of
knowledgeable external consultants,
who are familiar with the best
practices.
34

SAP Industry Solution

SAP Mill

SAP Finance

SAP High Tech & Electronics

SAP Engineering & Construction

SAP Consumer Products

SAP Oil & Gas

SAP Utilities
SAP Health Care

SAP Aerospace & Defense

SAP Service Providers

SAP Public Sector

Sales
Force
Automation

...

R/3
R/3

SAP Automotive
SAP Media

SAP Transportation

Business
Information
Warehouse

SAP Telecomm.
SAP Chemicals
SAP Pharmaceuticals

Advanced
Planner &
Optimizer

B2B
Procurement

SAP Retail
SAP Banking

36

SAP R/3 System

Integrated turnkey
solutions

Financial
Accounting

Sales &
Distribution

MM

PP

Open
Systems

Controlling

TR

R/3

Production
Planning

QM

Client/Server
Architecture

CO

Materials
Mgmt.

Quality
Management

Integrated RealTime

FI

SD

Treasury.

Client / Server
ABAP
PM

Plant Maintenance

HR

Human
Resources

IS

Multi-national
Multi-currency

PS

Project
System

WF

Workflow

Industry
Solutions

Industry-Solutions
Enterprise
Model

Data
Internet / Intranet

Other major product offerings

include
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)

SAP R/3 functionality is structured

using its own proprietary language
called ABAP (Advanced Business
Application Programming).
ABAP or ABAP/4 is a fourth
generation language (4GL),
geared toward the creation of
simple, yet powerful programs.

SAP has several layers.

The Basis System (BC) includes the
ABAP Programming 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.

Common mySAP.com
Technology
SEM
APO
BBP
Plug-Ins
IBU Add-On
classic R/3"

BW

CRM

Central
Applications
with/without HR

HR

ABAP etc. (Cross-Application)

SAP BASIS (Basis)

A common Basis for all mySAP.com Products

SAP Basis
Customer
Programs

Applications,
such as FI/CO

SAP Basis
System Software

SAP R/3 Conceptual Areas

SAP Conceptual Areas

Application Area
(Initiate and execute
SAP transactions)
(Functional)

Basis Area
(The technical
administration of
the system)
(Authorizations/Ids/etc)

Development Area
(1. A developers
workbench
2. Create & Test
ABAP/4 programs)
(Technical)

mySAP? mySAP.com?
mySAP links e-commerce
solutions to existing ERP
applications, using state-ofthe-art Web technology.
44

System Landscape

SAND

TEST

CUST

QTST

Development

TRNG

PROD

Quality Assurance

Transport
group

Transport
group

Production

Logging on to SAP System

Logon pad
with different
systems

Adding to favorites

Steps to add transaction to favorit

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

Working in Several Sessions

Session
Session 22

Session 1

Session
Session 33
Cost center
Cost acctg.
Valid from

Session 6

Descriptions
Name

Exec.Board

Description

Executive Board cost center

Long text

Session 4

Session 5

SAP AG

The Icon Bar in the R/3 System

Enter

Execute

Save

Find

Back

Sort

Exit

Print

Cancel

Change Display

Help

Page

SAP AG

User Profiles

Defaults: allows you to

specify your preferred
printer and date and
number formats

Tools

Hold data
Set data
Delete data
Application values
Own data
Favorite maint.

System

Create

session

Address: enables you to

set your communication
information

Information systems

Own data: allows you to

change your address,
defaults, and parameters

End session
User profile
Services
Utilities
List
Object services
Own spool requests
Own jobs
Short message
Status...
Log off

Parameters: allows you to

set default values in
frequently used fields

SAP AG

Getting Help with the R/3 System

SAP R/3

Office

Logistic Accounting Human resources

Information systems Tools System

?
?
Dynamic menu

Help

Extended help
R/3 library
Find...
Glossary
Release notes
Getting Started
Settings...
Help on help

SAP AG

SAP HTML Help Files

SAP Help - R/3 Library
Hide

Back Forward Home

Print

Options

Contents Index Search

R/3 Library

BC - Basis
CA - Cross Application
FI - Financial Accounting
HR - Human Resources
LO - Logistics
Information

R/3 Library

SAP AG

The most difficult part of

SAP R/3 is its
implementation.
Simply because SAP R/3 is
never used the same way
in any two places.

Defining the Points on the ASAP Roadmap

Initial Project Planning
Project
Procedures
Training
Project Kickoff
Technical Requirements
Planning
Quality Check

Project Management
Organizational Change Management
Training
Baseline Configuration and Confirmation
System Management
Final Configuration and Confirmation
Develop Programs, Interfaces etc.
Final Integration Test
Quality Check

Project
Preparation
Business Realization

Blueprint

SAP AG 2002

Project Management
Organizational Change Management
Develop System Environment
Training
Business Organizational Structure
Business Process Definition
User Roles and Authorization
Quality Check

Production Support
Ongoing KPI
Management
Project End

Final
Preparation Go Live &
Support
Project Management
End User Training
System Management
System Tests
Detailed Project Planning
Cutover
Quality Check

Documents of an ASAP Project

1
Project
Charter
Project
Plan
Scope
Project
Team
Org.
Stand. &
Proced.

SAP AG 2002

Q&Adb
Substructures:
Business Strategy
Organization
General Settings
Master Data
Business Process
Cross Application
Development

3
Master Lists
Microsoft Excel
Spreadsheets for
Development, Organization,
Business Processes and
Authorizations

BPP
Config.
Plan

Business
Blueprint

Testing
Plan

Microsoft Word
Documents

Unit testing
Test scenario
Integration

Progr.
Develp.

Cutover
Plan
Volume
Test

System
Performance
Review

Stress
Test
Technical
Operations
Manual

EU
Training
Material
Conduct
End User
Training

INTRODUCTION TO SAP:
Overview of the SAP R/3 System
& Getting Started with R/3

05/31/16

67

What Is Enterprise Resource

Planning?
The integration of all computing within an

organization such that:

all major business processes are

encompassed and standardized and
all data is usable by all functional 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

What Is Enterprise
Resource Planning?
Executive IS

Strategic Information

Decision Support
Managerial Information

Sales &
Marketing

HR

Manufacturing

Procurement
Accounting
& Finance

One Integrated Information System

Transaction
Information

Characteristics of ERPs

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

Advantages of ERPs, in
General

Provide fully integrated business functions

or modules that support business processes
Help develop understanding of business
processes by tracking information through
the process
Standardize systems development life cycle
Move toward business process reengineering
Center re-engineering around the software
Directly link to external systems

05/31/16

71

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 Web
enabled
05/31/16

72

Worldwide Organized in 4
Operating Regions
Europe
Europe

America
America

Austria

Norway

Belgium

Poland

Croatia

Portugal

Asia
Asia Pacific
Pacific

Brazil

Czech
Republic
Denmark

Canada

Finland

Chile

France

Slovak
Republic
Spain

Colombia

Germany

Sweden

Indonesia

Singapore

Mexico

Greece*

Switzerland

Japan

Thailand

U.S.A.

Hungary*

U.K.

Venezuela

Italy

Argentina

Netherlands

* Through Partners

Romania

Australia

Korea

Russia

China

Malaysia

Hong
Kong
India

New
Zealand
Philippines

Africa
Africa // Middle
Middle East
East
Israel*

South Africa

Turkey*

Middle East*

R/3 Integrated Products

Client/Server
Architecture
Integrated

Comprehensive
Functionality
FI

SD

Financial
Acctg.

Sales

PP

Controlling

Materials
Mgmt

Open
System

Quality
Mgmt

Asset
Mgmt

Client / Server
PM

Plant
Maint.

PS

Project
System

Multinational

WF

Workflow

HR

Human
Resources

Designed
for all
types of
business

AM

R/3

Production
Planning

QM

Graphical User
Interface

CO

MM

Solution

IS

Industry
Solutions

Over 12,000 installations

around the world
Industry

Smultinationalolutions

03

Summary: What is SAP

R/3?

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

05/31/16

76

Why is R/3 so Important?

Forces

a Consolidation of Diverse IS
Systems
Total Change in Doing Business - Redesign
Business 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
Adopted by Most Large Corporations (80%
of Fortune 500)
05/31/16

77

Main Features of R/3

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

05/31/16

78

What Does It Involve?

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 (Nonredundant Data)
Application Processing (I.e.
Middleware) is Totally Scaleable
05/31/16

79

What Does It Involve?

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 logical tables, nearly 8000
physical tables)
05/31/16

80

Introduction to SAP R/3

Advantages

of SAP

Covers Many Business Functions

Strong Workflow Capabilities
Can Handle Many Different Types of
Complex Transactions - 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
05/31/16

81

Introduction to SAP R/3

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
05/31/16

82

How Is It Done?
An

SAP Installation Is a Serious Undertaking

Usually a Large Business Will Re-engineer Its
Business Processes at the Same Time (OR First)
Different Approaches

Big Bang - Convert All Systems at Once

Phased Conversion - Gradual Migration
Pilot Approach (Big Bang or Phased,
but One Business Area Only)

05/31/16

83

How Is It Done?
Things

That Have to Be Done

Learn the SAP System

Analyze the Current, As-Is Processes
Determine What SAP Functionality You
Need
Install and Configure (customize) the SAP
System
Test the configuration
Most

Large SAP Installations Take 2 to 3

Years to Complete

05/31/16

84

Accelerated SAP Roadmap

(ASAP):
R/3 Accelerated
1
2
3
4
5
6
Implementation
Start Here
Project
Prep.

Business SimuBlueprint lation

Validation

Final
Prep.

Go Live
&
Support

Realize Business Benefits

Accelerated SAP Roadmap

(ASAP):
R/3 Accelerated
Implementation