Introduction To SAP

Rutgers Business School Newark and New Brunswick

By Martin OReilly

Agenda
What is an ERP? What is SAP? What is IDES? SAP Basics & Navigation SAP Exercises With IDES

What Are The Benefits?

Cross-functional teaching tool Access advanced software technology Enhance marketability Pursue research opportunities Broaden outreach

What is SAP R/3?

SAP is an ERP (Enterprise Resource Planning) system

What is an ERP?
Enterprise-wide system which integrates the business functions and processes of an organization Integration of business functions into one seamless application Usually runs on a RDBMS Replaces Countless Departmental and Workgroup Information Systems

What is an ERP?
Links business processes Maintains audit trail Utilizes a common information system Implementation normally involves BPR: Business Process Reengineering Difficult to Implement Correctly Railroad Tracks

Evolution of ERP
1960s: Inventory Control Systems 1970s: MRP: Material Requirement Planning 1980s: MRPII: MRP & Distribution 1990s: MRPII ERP with introduction of other business functions CRMs Today: Web Enabled ERP Connecting ERP Externally

What is the State of the ERP Market?

Weak Economy = Fewer Implementations ERP Systems firmly entrenched in infrastructure Implementing CRM, KM, SCM ERP Applications Linking ERPs to Web Web Services ASPs = possible new market segments Enterprise Application Integration (EAI) Tools

What is the State of the ERP Market?

Portals Public Sector Growth laggards Better Implementations Experience Upgrades: of SAPs customers need to upgrade by 12/03 Roll Up Projects Great Plains MS Factor? Current Buzz: ERP II Next: Web Services Integration

What is SAP R/3?

SAP = Systems, Applications and Products in Data Processing (R = real time, 3 = 3 tier) German Based Company 3rd Largest Independent Software Vendor in the World SAP: ERP Market Leader 80% Fortune 500 Companies Use SAP Over 18,500 Customers in 120+ Countries Over 12 million users

What is SAP R/3?

Client/Server Technology Highly Customizable Based on Industry Specific Best Practices Multi-lingual: International Based on Open Standards Integrated Applications System: Modular in design

New Dimension Products

Business Information Warehouse Strategic Enterprise Management Supply Chain Optimizer

Enterprise Structure Terminology

SAP
Enterprise Enterprise

Client
Subsidiary Subsidiary

Company Company

Company Code Plant

Factory Factory Sales Sales Organization Organization Department Department Warehouses Warehouses Division Division Business Business Area Area

Sales Organization Division Storage Locations

SAP AG 1999

What is MySap.com or the MySAP Business Suite?

Hosted E-Business Platform Solution Hosted is + & Link Organization to Supply Chain Link Organization to Consumers Exchange

The mySAP.com E-Business Platform

mySAP Workplace
mySAP HR

mySAP SCM

mySAP E-Procurement Industry Solutions mySAP PLM

mySAP Financials

mySAP CRM mySAP BI

SAPMarkets*

mySAP.com Solutions
Cross-Industry Solutions Industry Solutions
mySAP mySAP mySAP mySAP mySAP Workplace CRM SCM Marketplace* E-Procurement mySAP mySAP mySAP mySAP mySAP Aerospace & Defense Automotive Banking Chemicals Consumer Products mySAP mySAP mySAP mySAP mySAP Insurance Media Mill Products Mining Oil & Gas

mySAP BI mySAP PLM mySAP HR mySAP Financials mySAP Mobile Business

mySAP Engineering & Construction mySAP Financial Service Provider mySAP Healthcare mySAP High Tech mySAP Higher Education & Research
mySAP Services

mySAP mySAP mySAP mySAP mySAP mySAP

Pharmaceuticals Public Sector Retail Service Providers Telecommunications Utilities

Infrastructure and Services

mySAP Technology mySAP Hosted Solutions

*mySAP Marketplace is delivered through MarketSet, a joint solution from SAPMarkets & Commerce One.

mySAP.com E-Business Solutions

What is IDES?
IDES = International Demonstration and Evaluation System IDES Basics

Fictitious company using R/3 Customizing, master data, transaction data Integrated, well-documented system environment Simulation of business processes System R/3 (standard) IDES data (customizing, master data, transaction data)

IDES is a Standard R/3 System

IDES Guidelines
To reflect increasingly complex requirements of modern business To design all organizational structures in a practical manner To make each element of the core functionality of the R/3 System available in its most up-to-date version To allow users with very little or no previous R/3 knowledge to easily run core scenarios in the R/3 System

IDES - The Business Group

IDES Corporation Manufacturing
IDES North America New York / US

IDES Europe
Frankfurt / Germany

Toronto / Canada

Lisbon / Portugal
Barcelona / Spain

Paris / France IDES Latin America Mexico/ Mexico-C. London / UK IDES-Asia Tokyo / Japan

IDES LOGISTICS
SAP Aerospace / Defense Production / Maintenance of an aircraft engine SAP Engineering / Construction Elevator and Turbine production
Engineerto-order
Make-to-order production Assembly manufacturing JIT

SAP Automotive Manufacturers / Suppliers processes SAP Consumer Products Selling food and non-food products SAP High Tech & Electronics PC assembly and customer services SAP Chemicals Paints, coating and solvents production SAP Pharmaceuticals Production of tablets

Complexity

Industry

Production by lot size

Repetitive manufacturing Mass production

Process manufacturing

Sturdiness

IDES - Financial Accounting

IDES Corporation
IDES North America

IDES Europe

IDES Asia

Consolidation National and international charts of accounts (parallel) Cost of sales accounting

Frankfurt / Germany

Lisbon / Portugal
Barcelona / Spain

Paris / France
London / UK

IDES - Cost Accounting

IDES Corporation
Controlling Area IDES North America Controlling Area IDES Europe Controlling Area IDES Mexico

Frankfurt / Germany

Cost accounting for all companies Marginal costing Activity-based costing

Lisbon / Portugal
Barcelona / Spain

Paris / France
London / UK

IDES - The Business Group

IDES Corporation Retail
IDES North America Los Angeles / US Denver Boulder
Colorado Springs

IDES Europe
Giessen / Germany Mainz Frankfurt Darmstadt

Tuscon San Diego

San Francisco

Oakland

IDES - Logistics
Production
Engineerto-order Make-to-order production Assembly manufacturing JIT

Retail
Textiles

Complexity

Production by lot size

Repetitive manufacturing Mass production Food

Process manufacturing

Sturdiness

IDES - The Business Group

IDES Corporation Banking
IDES North America

IDES Europe
Frankfurt / Germany

New York / US

Dublin / Irland

IDES - The Business Group

IDES Corporation Service Provider
IDES North America

Philadelphia / US

IDES - Documentation
Process-oriented online help Step-by-step documentation with all relevant information Functions in Detail brochure