1. Overview of the SAP R/3 System & Getting Started with R/3
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INTRODUCTION TO SAP:
Overview of the SAP R/3 System
& Getting Started with R/3
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2. MINS 298C SAP Implementation, Configuration & Use
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MINS 298C SAP Implementation, Configuration & Use
Copyright 1996, 1997, James R. Mensching, Gail Corbitt
Contents of this file are for the exclusive use of the special
MINS 298C class dealing with SAP software at CSU Chico
for the Spring 1998 semester. Any other use in either electronic
or hardcopy form is prohibited without the express written
permission of the author. This material is confidential.
Do not share it with anyone not enrolled in the class.
Lecture #2
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3. Introduction to ERPs and SAP Objectives
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Introduction to ERPs and SAP Objectives
Define what SAP is within the Context of ERPs
Explain Why SAP, the Company, and R/3, the Product, are Important
Explain What Implementing SAP R/3 Involves (How, What and Who)
Define Our Role In This Process
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4. Introduction to ERPs and SAP What Is Enterprise Resource Planning?
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Introduction to ERPs and SAP 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
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5. Introduction to ERPs and SAP What Is Enterprise Resource Planning?
Executive IS
Strategic Information
Decision Support
Managerial Information
Sales &
Marketing
Procurement HR
Transaction Information
Manufacturing
Accounting
& Finance
One Integrated Information System
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6. Introduction to ERPs and SAP Characteristics of ERPs
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Introduction to ERPs and SAP 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
Utilize one common database
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
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7. Introduction to ERPs and SAP Overall ERP Market
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Introduction to ERPs and SAP Overall ERP Market
Advanced Manufacturing Research, a Boston-based research company states:
43 ERP Vendors
EWS Sales will exceed $10 Billion (1997)
27% will be Financial Module
Marketing Trend in ERP Software is towards mid-sized companies ($50M-$500M in sales)
IDC Consulting estimates $15 and by the year 2000 $20 Billion.
Global Competition has placed great demands on all multi-national companies. They are making every effort to incorporate the best business practices into all areas of business. Corporations are using EWS to accomplish this goal. Many companies refer to this as Maketing Warfare and the DSS as Virtual War Rooms for plotting a multitude of strategies. This is the environment that EWS Software companies are competing. The EWS Software companies are therefore continuously strategizing to produce the finest quality EWS software. R & D budgets are high.
Major EWS Software Companies are gobbling up Best-Of-Breed Software Companies and incorporating them into there own systems.
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8. Introduction to ERPs and SAP Overall ERP Market
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Introduction to ERPs and SAP Overall ERP Market
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9. Introduction to ERPs and SAP Advantages of ERPs
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Introduction to ERPs and SAP Advantages of ERPs
Fully Integrated Business Functions or Modules that Support Business Processes
Helps develop understanding of business processes by tracking information thru the process
Standardized Systems Development Life Cycle
Move Toward Business Process Re-engineering
Centers Re-engineering Around the Software
Directly Links to External Systems
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10. Introduction to ERPs and SAP What Is SAP R/3?
SAP is an example of an ERP System
SAP R/3
SAP’s Client Server version (Distributes process and presentation)
Based on R/2 (Mainframe version - centralization of data and process)
R/3 4.0: New release (May 1998) distributes data, process, and presentation
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11. Worldwide Organized in 4 Operating Regions
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Worldwide Organized in 4 Operating Regions
Europe
Austria
Norway
Belgium
Poland
America
Asia Pacific
Croatia
Portugal
Argentina
Czech Republic
Romania
Australia
Korea
Brazil
Denmark
Russia
China
Malaysia
Canada
Finland
Hong Kong
New Zealand
Slovak Republic
Chile
France
Spain
India
Philippines
Colombia
Germany
Sweden
Indonesia
Singapore
Mexico
Greece*
Switzerland
Japan
Thailand
U.S.A.
Hungary*
U.K.
Venezuela
Italy
Africa / Middle East
Netherlands
Israel*
South Africa
Turkey*
Middle East*
SAP is separately incorporated in over 40 countries around the world, broken up into 4 operating regions:
America
Europe and Africa / Middle East
Asia Pacific.
* Through Partners

12. R/3 Integrated Products
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R/3 Integrated Products
R/3
Client / Server FI
Financial Acctg. CO
Controlling AM
Asset Mgmt PS
Project System WF
Workflow MM
Materials Mgmt HR
Human Resources SD
Sales PP
Production Planning QM
Quality Mgmt PM
Plant Maint.
Integrated Solution
Client/Server Architecture
Comprehensive Functionality IS
Industry Solutions
Graphical User
Interface
Multinational
Open System
Over 12,000 installations
around the world
Designed for all types of
business
Industry
Smultinationalolutions 03 5

13. Introduction to ERPs and SAP 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, RPC’s, Open Interfaces
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14. Introduction to ERPs and SAP Why is R/3 so Important?
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Introduction to ERPs and SAP Why is R/3 so Important?
Adopted by Most Large Corporations (80% of Fortune 500)
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
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15. Introduction to ERPs and SAP Importance of SAP as a Product/Company
Fastest Growing Software Company in the World
Second Largest Software Company in the World
Founded in 1972; Based in Waldorf, Germany
Market Share Leader (About 40% of ERP Market)
Over 12,000 Customers
Devotes 20-25% of Revenue to R&D
SAP translates into Systems, Applications and Products in Data Processing (R stands for Real Time)
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16. Introduction to ERPs and SAP 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
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17. Introduction to ERPs and SAP What Does It Involve?
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Introduction to ERPs and SAP 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 (Non-redundant Data)
Application Processing (I.e. Middleware) is Totally Scaleable
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18. Introduction to ERPs and SAP What Does It Involve?
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Introduction to ERPs and SAP 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)
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19. Introduction to ERPs and SAP Introduction to SAP R/3
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Introduction to ERPs and SAP Introduction to SAP R/3
Advantages of SAP over other ERPs
Three Tier Client/Server System
Open System - Many O/S’s & DBMS’s
Differentiated Development, Test & Production Systems (SAP’s Landscape)
Imbedded Version Control
Integrated Development & Implementation Tools
Sophisticated Management & Monitoring Environment
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20. Introduction to ERPs and SAP Introduction to SAP R/3
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Introduction to ERPs and SAP 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
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21. Introduction to ERPs and SAP Introduction to SAP R/3
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Introduction to ERPs and SAP 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
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22. Introduction to ERPs and SAP Who Is Involved?
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Introduction to ERPs and SAP Who Is Involved?
Who Is Involved?
Businesses That Wish to Re-engineer Their Business Processes
Presently This Includes Primarily Large Companies, But Increasingly Smaller Businesses moving to ERPs
Hardware & Software Vendors Providing the Platforms That Run the Systems
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23. Introduction to ERPs and SAP Who Is Involved?
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Introduction to ERPs and SAP Who Is Involved?
Consultants That Provide the Installation, Training & Configuration Services
Individual Employees That Must Learn How to Adapt to New Ways of Doing Their Jobs
In house implementation teams (usually IS/CIS types that plan and execute implementations of SAP)
SAP and in-house support teams that help trouble shoot problems and support installations.
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24. Introduction to ERPs and SAP How Is It Done?
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Introduction to ERPs and SAP 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)
Many Different Approaches Exist
Big Bang - Convert All Systems at Once
Reduces Need for External Interfaces
Huge in Scope
The larger the organization the less likely this approach is used
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25. Introduction to ERPs and SAP How Is It Done?
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Introduction to ERPs and SAP How Is It Done?
Approaches Used cont.
Phased Conversion
Necessary to Write External Interfaces to Existing Legacy Applications
Limited in Scope: Prioritize Modular Implementation
Pilot Approach - Use One of the Two Above Conversion Methods, but Only Apply It to One Division, Department, Plant, Etc.
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26. Introduction to ERPs and SAP How Is It Done?
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Introduction to ERPs and SAP How Is It Done?
Things That Have to Be Done
Learn the SAP System
Analyze the Present Processes
Determine What SAP Functionality Is Needed
Install and Configure (customize) the SAP System
Test the configuration
Most Large SAP Installations Take 2 to 3 Years to Complete
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27. Introduction to ERPs and SAP What is the Academic Role in This?
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Introduction to ERPs and SAP What is the Academic Role in This?
Show Students How Business Best Practices Operate in a REAL Environment
Use SAP to Demonstrate Concepts and Processes
Provide Students With High Demand Market Skills
More Closely Knit the College of Business Curriculum Together
Keep Faculty Current on Emerging Technologies
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28. Getting Started with SAP
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29. SAP Academic Workshop: Getting Started with SAP
Objectives:
Explain the log-on process in a 3 tiered landscape
Show ways to navigate in SAP
Explain the layout of the SAP screen
Show the uses of the most common buttons and features
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30. SAP Academic Workshop: Getting Started with SAP
Short-cut Icon from the desktop
System logon screen - choosing the landscape
SAP R/3 Logon Screen
User IDs and Password changes
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31. SAP Academic Workshop: Getting Started with SAP
Screen Features
Title Bar
Menu Bar
Tool Bar
Function keys
Main body of screen
Message line at bottom
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32. SAP Academic Workshop: Getting Started with SAP
Menu Bar
Title Bar
Function
Icons
Application
Toolbar
Status Bar
Window
Menu
Command
Field
Customizing
Display
Options
Session
Number
Buttons
Enter
Icon
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33. SAP Academic Workshop: Getting Started with SAP
Ways to Navigate in SAP
Menu Bar -- drop down navigation
Dynamic Menu
T-codes or Transaction codes
Function Keys (change for each transaction set)
Right mouse click (displays functions available at the time)
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34. SAP Academic Workshop: Getting Started with SAP
Common Icons in Tool Bar
Enter (Green Check or “Red Poppy”)
Save (Open yellow folder)
Cancel (Red X)
Back (Green left arrow)
Exit this T-code (Yellow Up arrow)
Yellow Question Mark (On-line help)
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35. SAP Academic Workshop: Getting Started with SAP
Other Helpful Features:
System Drop down
Status (shows T-code or program in case of error)
Create Session
List > Print
List > Save
Log off
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36. SAP Academic Workshop: Getting Started with SAP
Running a Transaction (set) or System Task
Equates to on-line representation of a business event
Example: Create a purchase order = business event (may involve several screens of data)
Header and Detail
Fields and Values
Field Types:
Mandatory (white or yellow background with a ?)
Optional (white background but no ?)
Display only (gray background)
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