INTRODUCTION TO SAP:

Overview of the SAP R/3 System

& Getting Started with R/3

7/5/2019 1
 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
What Is Enterprise Resource
Planning?
Executive IS Strategic Information

Decision Support
Managerial Information

Sales & HR Procurement

Marketing Transaction
Information
Manufacturing Accounting
& Finance
One Integrated Information System
 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
• Use one common database (e.g., Oracle,
Sybase, DB2)
• 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
Advantages of ERPs, in General

• Provide fully integrated business

functions or modules that support
business processes
• Help develop understanding of business
processes by tracking information through
the process
• Standardize systems development life
cycle
•7/5/2019
Move toward business process re- 5

engineering
 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 4.6: New release distributes data,
process, and presentation, and is Web enabled

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 Worldwide Organized in 4
Europe
Operating Regions
Austria Norway
Belgium Poland
America
Croatia Asia Pacific
Portugal
Argentina Czech
Republic Romania Australia Korea
Brazil Denmark China Malaysia
Russia
Canada Finland Slovak Hong New
Republic Kong Zealand
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*

* Through Partners
R/3 Integrated Products
Client/Server Comprehensive
Architecture Functionality

Integrated FI
SD Financial
Sales
Solution Acctg.
Graphical User
MM CO
Materials
Mgmt
Controlling Interface
PP AM

R/3
Production Asset
Planning Mgmt

QM Client / Server PS
Open Quality
Project
System
Multinational
Mgmt
System PM WF
Plant Workflow
Maint.
HR IS
Human Industry
Resources Solutions

Designed Over 12,000 installations

for all
types of
Industry
around the world
business Smultinationalolutions

03
 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
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 Why is R/3 so Important?

• 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 11
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History
 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
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integrated 12
 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-
7/5/2019
redundant Data) 13
 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
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MAC, UNIX (X-Windows) 14
 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-
7/5/2019 15
Tech Firms
 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
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on list of reasons to buy 16
 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)
• Different Approaches
–Big Bang - Convert All Systems
at Once
–Phased Conversion - Gradual
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 How Is It Done?

• Things That Have to Be Done

–Learn the SAP System
–Analyze the Current, As-Is
Processes
–Determine What SAP
Functionality You Need
–Install and Configure (customize)
the SAP System
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–Test the configuration
 Accelerated SAP Roadmap
(ASAP):
R/3 Accelerated
Implementation
1 2 3 4 5 6

Start Here

Go Live
Project Business Simu- Vali- Final &
Prep. Blueprint lation dation Prep. Support

Realize Business Benefits

Accelerated SAP Roadmap
(ASAP):
R/3 Accelerated
Implementation