Dipak Rajani

Lalit Choudhari
Kiran Bhatt
Chintan Nathani


WHAT IS SAP R/3?
SAP is an ERP (Enterprise Resource Planning)
system


SAP = Systems, Applications and Products in
Data Processing (R = real time, 3 = 3 tier)
architecture
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


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
SAP FOR E-BUSINESS SOLUTIONS
SAP Products empower companies of all sizes and all industry sectors to
respond quickly and decisively to dynamic market conditions, helping
businesses achieve and maintain a competitive advantage
.
On April 1, 1972 five former IBM employees founded SAP as Systems
Analysis and Program Development in, Germany
.
Their vision was to develop and market standard enterprise software which
would integrate all business processes.

The idea came to them through their work as systems consultants for IBM when
they noticed that client after client was developing the same, or very similar,
computer programs.

The second part of their vision was that data should be processed interactively in
real-time, and the computer screen should become the focal point of data
processing.
OVERVIEW ABOUT SAP
SAP INDUSTRY SOLUTIONS

Aligned with customer requirements, SAP software offers
solutions specific to 19 different industries

Aerospace and defense
Automotive
Banking
Chemicals
Consumer products
Engineering and construction
Health care
Higher education
High technology
Insurance
Media
Mill products
Oil and gas
Pharmaceuticals
Public sector
Retail
Telecommunications
Transportation
Utilities

SAP CRM - A COMPREHENSIVE,
INTEGRATED APPLICATION:

Sales opportunity management -- Records every sales
opportunity, from the first phone call to the successful close of a
transaction.
Bank transactions -- Takes care of all financial processing such as
cash receipts, check writing, deposits, advance payments, credit
card payments, and bank reconciliation.
Business partner management -- Controls all information about
customers, resellers, and vendors, including profiles, contact
summaries, account balances, and sales pipeline analysis.
Service management -- Enables service operations, contract
management, service planning, tracking of customer interaction,
and customer support.
SAP SEM -STRATEGIC ENTERPRISE
MANAGEMENT :

Vertically extends integrated data to support business managers
and senior executives in making key business decisions with
new value-based management processes.
Strategic planning, risk management and value communication.
It includes a corporate performance monitor complemented by
rich scenario planning.
And is designed to provide a sophisticated dashboard for
management.
That can enhance the long-term value of a company by
providing the right information at the right time for making
management decisions.
SAP BW- BUSINESS
INFORMATION
WAREHOUSE:
Application converts business
data into business intelligence
for decision-support needs.
Including a broad range of
predefined reporting templates
with industry-specific and user
role-based functionality.
SAP BW provides flexible
reporting and analysis tools to
support in evaluating and
interpreting data, as well as
facilitating its distribution

SAP SCM :Collaboration, Planning, Execution,
and Coordination Across The Adaptive Supply
Chain Network
Transforms supply chain management from a linear, sequential
process into an adaptive network that facilitates suppliers,
manufacturers, retailers, business partners, and customers.

SAP APO- Advanced Planner and Optimizer :
That improves demand-forecasting and increases production
efficiency.

SAP LES- Logistics Execution System:
That enables the efficient flow of goods along the supply chain
with greater speed and accuracy.
BENEFITS AND USAGE
IN PHARMACEUTICAL
INDUSTRY
AT A GLANCE WHY SAP SOLUTIONS
Best-in-class functionality
Low-risk service offering with
defined price and scope
Rapidly implemented
Scalable
Pharmaceutical-specific industry
expertise and software supporting
business processes for rapid
ramp-up
LUPIN SCORES WITH SAP

Lupin has virtually doubled
in size in the last three
years. The SAP ERP
implementation done by
the company in 2003 has
helped the company
streamline its business
processes by enhancing
connectivity and
accessibility
IMPLEMENTATION
opted for SAP's ERP solution based on the parameters of
technical support and the degree of customisation that
can be achieved
As the first step, the company implemented Lotus notes,
complete VSAT network and Lotus workflows.
Before the SAP ERP (version 4.6c) roll out, all disjoined
systems and locations were brought online in terms of
connectivity.
The legacies were cut off and all the functions were
moved on the ERP system from day one. "
OVERCOMING CHALLENGES
The user training was a major challenge., the training
started from the basics of computers and its applications.
several rounds of end user trainings were held, even though
the initial training was done by IBM. This was
accompanied with regular interactions and discussion
sessions with core users in every function.
help desk also took care of master data supervision,
day to day trouble shooting and configuring new business
processes coming into system.
To cope up with the changes taking place in the legal
environment, Lupin took the SAP support, which
comprised of patches.

BENEFITS TO LUPIN
Since the time of implementation of the ERP package, Lupin has not required
additional staff in the service areas like accounting, IT, finance and HR,
The company has virtually doubled in size. -credit goes to ERP, with the help
of the same set of people, we are able to handle much larger volume,
The ERP implementation also enhanced accessibility to available information.
Contrary to the earlier situation, even a sales manager has access to real time
data with respect to the inventory levels.
There is also an enhancement in online connectivity through the online
accounting system.
ERP has Helped in tracking the inventory levels very closely
Careful materials planning as only the required raw materials can be ordered,
resulting in cost saving to a large extent.

ADVANTAGE OF SAP
single source for your financial information.
Capturing your business transactions in one
location allows you to easily review inventory,
customer and vendor activity.
A solution on a single platform will enable easier
maintenance and support, reducing costs.
Having a consolidated system means fewer
interfaces to support
DRAWBACKS
Many custom SAP programs that use copies of the
standard components, have long not been updated
and dont work properly with the current SAP Release
some processes can not be implemented because too
many old SAP documents are not up-to-date.

Continued..
problems with the connectivity to other software
Termination due to Table space Overflow
'inappropriate downloads' from Oracle
SAP startup problems in win 98
New business solutions may have to fit within the
current system
technology must be compatible
human resources must adapt to handle data in certain
standard processes.


Continued
Determine where master data resides
Expensive
very complex
demands highly trained staff
lengthy implementation time

KEY CHALLENGES

Facilitating rapid growth while
keeping costs down
Transitioning from a virtual company
and bringing some core
competencies in-house
Executing complex
pharmaceutical-specific processes
in an efficient manner