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Agenda

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

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RUTGERS UNIVERSITY &
SAP
University Alliance
Agreement

&
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 What Are The Benefits?
• Cross-functional teaching tool
• Access advanced software technology
• Enhance marketability
• Pursue research opportunities
• Broaden outreach

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 What is SAP R/3?

• SAP is an ERP (Enterprise Resource

Planning) system

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 ERP - What is it?
– ERP is a generic term used to describe a
comprehensive information system
designed to integrate all the business
processes found in an enterprise.
– Efficiency and productivity are improved
through the integration of information and
the removal of duplicate information and
processes.

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 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

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 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

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

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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 ERP’s to Web – Web Services
• ASP’s = possible new market segments
• Enterprise Application Integration (EAI)
Tools

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What is the State of the ERP
Market?
• Portals
• Public Sector Growth  laggards
• Better Implementations Experience
• Upgrades: ½ of SAP’s customers need to
upgrade by 12/03
• Roll Up Projects
• Great Plains  MS Factor?
• Current Buzz: ERP II
• Next: Web Services Integration

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 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
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 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
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New Dimension Products
Business
Information
Warehouse
Strategic
Enterprise
Management
Supply Chain
Optimizer

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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

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 The Players
• SAP R/3 - still must maintain mainframe architecture of
large R/2 user population. Strong finance and accounting.
By far the largest vendor (approx. 30% market share).
• Baan - known for manufacturing, distribution, process
modeling modules - web and Internet.
• PeopleSoft - known for human resource package.
• Oracle - simplest product to install and support. Recently
advertising flow manufacturing enhancement.
• J.D. Edwards - SCM module (SCOREx) WSJ 11/17/98.
• Manugistics - Distribution - truck loading and routing
focus.
• i2 Technologies - Rhythm product - coordination of flow
oriented manufacturing. Comprehensive forecasting
module.
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 The Promise of Integration - SAP R/3 View of Manufacturing
Accounting and Human Resource Management

Sales and Distribution Production Planning Materials Management

Demand management Direct requisition
Sales planning
Profit planning Master planning Purchasing
SOP Inventory management
Rough-cut capacity Goods receipt
Planned requirements planning
Forecasts Material valuation
MRP/Planned orders Invoice verification
Customer order Order Warehouse management
processing - Creation
- Release
Shipping, - Confirmation Quality Management
billing, transport Shop floor control Lot inspection
Capacity leveling Process charting
It’s like they Process planning
programmed an Preventive Maintenance
Operations Management Planned repair
textbook! Project system Emergency
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 Sales/Distribution and Manufacturing
Features
• Real-time Available to Promise & scheduling.
• Multi-national and multi-site distribution
• Integration with financial module
• MRP or Kanban logic
• Configurable BOM (by order)
• Engineering change control (date oriented)
• Backflush for raw and in-process stocking
locations
• Interactive planning function
• Operations splitting and overlapping

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 Implementation Strategy - Accelerated SAP

•6-9 month project

plan
•Self documenting
•Expert system
•Library of
accelerators
•Knowledge base
•All on a CD!

Figure 3: ASAP Opening Screen

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Can you point
and click your
way to successful
project
implementation?

Figure 4: ASAP Question and Answer Database

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 Logging on to
the system

and

Figure 1: SAP R/3 Opening Screen

The user
interface.

Page 14.
Figure 5: R/3 Main Menu

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Navigating around the system.

Up one
menu level

Enter Return to Context

Cancel
Button prior screen sensitive help

Figure 6: R/3 Navigation Buttons

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Looks much like a regular
windows application - in Typical installation -
reality it is very different. •1 database server
•2 application server
•1,000 users
Presentation (User Computers)
Scalability -
Application Server(s)
Ability to
Database Server(s) match the
processing
requirements
to the needs of
Figure 11: Three-tier hardware architecture.
the
organization
Page 20.
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 Computer Center Management
Implementation
Computer
System (CCMS)
Management Guide (IMG)

architecture - System Configuration

distributing and -process/server assignments

-job/process priority
-user rights/privileges
Application Configuration
Tables - 8,000 entries

scaling.
Dispatcher - dialog and
batch processes

User Dialog Applications and Queued Processes

Interface Manager (batch processor)

Master Update
Processor Transactions
Data

Backup/Archive
Archive
Processor
Files

Backup
Files

Figure 12: The R/3 Software Architecture

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Configuring R/3

To view this click on

the following menu
items:
Tools > Business
Engineering >
Customizing

Press Enter
Press Enterprise IMG
Figure 13: Implementation Management Guide (IMG) Configuration Menu

Page 24.
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How R/3 Defines the Enterprise

Client

Business Areas Sales Areas

Companies Distribution Channels

Purchasing Organizations Sales Organizations
Plants Divisions
Storage Locations
Control Areas

Profit and Cost Centers

Figure 15: A Sample of the Organization Elements Used to Organize

Information Within R/3

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 Issue - Standard/Benchmark Processes

Figure 16: Flow Process Diagram for Reserving a Conference Room

Page 32.
Tools > Business Engineering > Business Navigator > Process Flow View
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Figure 18: Room Reservation Process Continued

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 R/3 Functional Modules

Figure 19: Functional Components Included in the Standard

Enterprise Model

Tools > Business Engineering > Business Navigator > Process Flow View

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 ERP Benefits - from a Lilly presentation
on their SAP R/3 project.
• Process Improvements • Related initiatives
– eliminate redundant – Better focus, reduced
transactions and multiple spending
reconciliations.
– More efficient job rotation
process Project highlights:
– More efficient staff and •45 global sites
succession planning
• Information Technology •implementation by 2002
– Reduced support costs. •single client, servers in
– Reduced infrastructure costs.
• Strategic Direction
Indianapolis
– Improved resource allocation •approx. 70 person
– More flexible organization.
– Better future decision making
implementation
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The mySAP.com E-Business Platform

mySAP Workplace

mySAP
mySAP HR
SCM mySAP
mySAPFinancials mySAP
E-Procurement
Industry CRM
mySAP SolutionsmySAP
PLM BI

SAPMarkets*

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