What is SAP and it's Implementation

What is Enterprise resource planning (ERP)  ?

Enterprise resource planning (ERP) is business management software—usually a suite of integrated applications—that a company can use to store and manage data from every stage of business, including:

-Product planning,

-cost and development

-Manufacturing

-Marketing and sales

-Inventory management

-Shipping

-Payment, etc

Some ERP  Products in the Market

• SAP
• BAAN
• Oracle APPS
• People Soft
• JD Edwards
• Marshall
• and Many more opensource & Pvt. ERP systems

SAP History

 SAP was initially designed to be run on the mainframe and that release was called R/2 (Release 2). SAP quickly caught on to the client server model with a later release called R/3 and this was the most popular version of SAP. After R/3, later versions of their core software were launched called Enterprise Central Component (ECC).

The present version is ECC 6.0, EHP 7.0

Market Share of SAP

• SAP                                   -  70%
• BAAN                                -   7%
• Oracle APPS                     -   9%
• People Soft                       -   8%
• JD Edwards                      -   4%
• Others                              -   2%

1. 90% of the Fortune – 500 companies world-wide are using SAP
2. Oracle Corp. With its E-biz suit packed to excel with 142 modules is the biggest competitor of SAP
3. People Soft with its extra Ordinary performance in HR has next highest competitor of SAP

some SAP Consulting Companies

• PWC
• KPMG
• Siemens
• Delloite
• Accenture
• Cap Gemini
• TCS
• Earst & Young

SAP General Overview

It is a client/server enterprise application software SAP -ECC is arranged into distinct functional modules. Most common are FICO, HR, MM, SD, PM, PP, QM, PS,Each Module handles specific business tasks on its own but are linked with each other.

SAP typically focuses on the best practice methodologies for driving its software processes
SAP is now gradually moving from standard client server architecture to a completely web-based architecture where every transaction can be run from just a browser. These new dimension products developed on the web standards based framework (NetWeaver) are all under new umbrella called mySAP

SAP Client System

The R/3 System is a client system. The client concept enables the joint operation, in one system, of several enterprises that are independent of each other in business terms. During each user session you can only access the data of the client selected during the logon.

Client is, in organizational terms, an independent unit in the R/3 System. Each client has its own data environment and therefore its own master data and transaction data, assigned user master records and charts of accounts, and specific customizing parameters. 

SAP & Modules

• SAP Package is strategically divided into 2 main areas
• Functional & Technical
• People with domain experience can work on functional modules
• Two technical Modules are ABAP/4 & Basis
• In functional areas there are around 64 modules and all are enabled for web reporting via Web Application Server

Core SAP Modules

• FI  - Financial Accounting
• CO – Controlling
• HR – Human Resource
• MM – Materials Management
• PM – Plant Maintenance
• PP – Production Planning
• PS – Project system
• QM – Quality management
• SD – sales and distribution
• AM – Asset Management

SAP Architecture

SAP works on Three Tier Client-Server Architecture :

• The Presentation Layer (User Terminal) 
• where Data creation, modification & Retrieval takes place. Collects user input and creates process requests 
• The Application layer (Application Server)
• Managing User Requests. It uses the application logic of SAP programs to collect and process the requests 
• The Database Layer (Database Server) 
• Data Storage. It Stores and retrieves all data

Client / Server Detail

The three set of client / server :

1. Development Server/Client : 
• where all the development, customization and configuration is being done. If ok, the request is moved to Quality Server.
2. Quality Server/Client : 
•  All the testing (UAT) is being done I this server. UAT if ok, the request is transported to PROD Server.
3. Production Server/Client : 
•  Runtime activity is being done

SAP Objectives

• Cost Control & hence increase in profitability
• Increased productivity of all resources – man, material, money
• Process standardization
• Transparency in operations, resulting in better communication

SAP Characteristics

• Highly integrated solution covering entire business processes
• Technically capable of utilizing the network infrastructure
• Open system to ensure freedom to choose
• Provides multiple ways of configuring  business processes
• Workflow enabled business processes
• Enables to exploit the power of intranet and internet

Results of Integration

• Focus on Business processes
• Elimination of Redundant Data
• Easier Corporate Consolidation
• Better Managerial Control
• Elimination of Interfaces
• Faster reaction to changing structures

Implementation Phases

• Project planning
• Business Process Study & Analysis
• Installation
• Training
• Business Requirement Mapping
• Configuration
• Modification
• Data Conversion
• Testing
• Go-live
• Post Go-live support

Implementation Methodology

ASAP Methodology :  5 phases

• Project Preparation
• Business Blue-Print
• Realization
• Final Preparation
• Go-live & Support

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