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Introduction To SAP. Rutgers University Faculty of Management By Martin O’Reilly. Agenda. ERP & SAP Background IDES SAP Basics & Navigation SAP Exercises With IDES. RUTGERS UNIVERSITY FOM & SAP R/3. &. What is SAP R/3?. SAP is an ERP (Enterprise Resource Planning) system. SAP = ERP.
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Introduction To SAP Rutgers University Faculty of Management By Martin O’Reilly
Agenda • ERP & SAP Background • IDES • SAP Basics & Navigation • SAP Exercises With IDES
What is SAP R/3? • SAP is an ERP (Enterprise Resource Planning) system SAP = ERP
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 • Very Difficult to Implement Correctly
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’s
What is the State of the ERP Market? • EPR Systems firmly entrenched in technological infrastructure • Linking ERP’s to Front End Systems • ASP & possible new market segments • Product Life Cycle = State of decline • Public Sector Growth – laggards • New Implementations declining due to new paradigms
What is SAP R/3? • SAP = Systems, Applications and Products in Data Processing (R stands for real time, 3 stands for 3 tier) • German Based Company • SAP: ERP Market Leader • 80% Fortune 500 Companies Use SAP • Over 12,000 Customers
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
New Dimension Products Business Information Warehouse Strategic Enterprise Management Supply Chain Optimizer
What is IDES? • IDES = International Demonstration and Evaluation System • IDES Basics • Fictitious company using R/3 • Customizing, master data, transaction data • Integrated, well-documented system environment • Simulation of business processes • IDES is a Standard R/3 System • System R/3 (standard) • IDES data (customizing, master data, transaction data)
IDES Guidelines • To reflect increasingly complex requirements of modern business • To design all organizational structures in a practical manner • To make each element of the core functionality of the R/3 System available in its most up-to-date version • To allow users with very little or no previous R/3 knowledge to easily run core scenarios in the R/3 System
IDES Corporation Manufacturing IDES North America IDES Europe New York / US Frankfurt / Germany Toronto / Canada Lisbon / Portugal Barcelona / Spain Paris / France IDES Latin America London / UK Mexico/ Mexico-C. IDES-Asia Tokyo / Japan IDES - The Business Group
IDES LOGISTICS • SAP Aerospace / Defense • Production / Maintenance of an aircraft engine • SAP Engineering / Construction • Elevator and Turbine production Engineer-to-order AssemblymanufacturingJIT Make-to-orderproduction • SAP Automotive • Manufacturers / Suppliers processes Productionby lot size Repetitivemanu-facturing • SAP Consumer Products • Selling food and non-food products • SAP High Tech & Electronics • PC assembly and customer services Processmanu- facturing Massproduction • SAP Chemicals • Paints, coating and solvents production • SAP Pharmaceuticals • Production of tablets Industry Complexity Sturdiness
IDES North America IDES Europe IDES Asia Lisbon / Portugal Frankfurt / Germany Barcelona / Spain Paris / France London / UK • National and international charts of accounts (parallel) • Cost of sales accounting IDES - Financial Accounting IDES Corporation • Consolidation
IDES - Cost Accounting Controlling Area IDES North America Controlling Area IDES Mexico Controlling Area IDES Europe Lisbon / Portugal Frankfurt / Germany Barcelona / Spain Paris / France London / UK • Marginal costing • Activity-based costing IDES Corporation • Cost accounting for all companies
IDES CorporationRetail IDES North America IDES Europe Los Angeles / US Giessen / Germany Mainz Colorado Springs Denver Boulder Tuscon San Diego San Francisco Oakland Frankfurt Darmstadt IDES - The Business Group
IDES - Logistics Retail Textiles Food Production AssemblymanufacturingJIT Engineer-to-order Make-to-orderproduction Productionby lot size Repetitivemanu-facturing Complexity Processmanu- facturing Massproduction Sturdiness
IDES CorporationBanking IDES North America IDES Europe New York / US Frankfurt / Germany Dublin / Irland IDES - The Business Group
IDES CorporationService Provider IDES North America Philadelphia / US IDES - The Business Group
IDES - Documentation • Process-oriented online help • Step-by-step documentationwith all relevant information • “Functions in Detail” brochure
IDES Summary • Complete R/3 modelcompany • Complete integration • Internet scenarios • Process-oriented online help • Basis for all R/3 training
Web Sites of Interest • http://www.erpworld.org/ • http://www.cio.com/forums/erp/ • http://www.intelligententerprise.com/ • http://www.sap.com/ • http://www.oracle.com/ • http://www.peoplesoft.com/ • http://www.jdedwards.com/ • http://www.baan.com/index.html