overview of sap for senior executives - nevaehtech.com

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Overview of SAP Overview of SAP for Senior Executivesfor Senior Executives

AtanuAtanu GhoshGhoshHead Head –– SAP ConsultingSAP [email protected]@nevaehtech.com

Sales &Sales &DistributionDistribution

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Plant MaintePlant Mainte--nancenance

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IndustryIndustrySolutionsSolutions

R/3R/3R/3Client/Server

ABAP/4Client/ServerClient/Server

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44--JunJun--0808 ©© Nevaeh Technology Pvt. Ltd.Nevaeh Technology Pvt. Ltd. 22

Discussion Thread Discussion Thread

1.1. Advantages of ERP over StandAdvantages of ERP over Stand--alone Solutionsalone Solutions2.2. SAP and Other SAP and Other ERPsERPs or or nERPsnERPs3.3. SAP and SMB SectorSAP and SMB Sector4.4. Overview of SAP SystemOverview of SAP System5.5. Comparison of various SAP solutionsComparison of various SAP solutions6.6. InIn--built built ““Best PracticesBest Practices”” in SAPin SAP7.7. SAP Project Implementation MethodologySAP Project Implementation Methodology8.8. Typical Scope of an SAP Maintenance ProjectTypical Scope of an SAP Maintenance Project9.9. Critical Success Factors of an SAP Project Critical Success Factors of an SAP Project


Advantages of ERP Advantages of ERP

Let us take the example of booking an order and confirming delivery date to customer in a stand-alone computerisedenvironment. This assumes the best case scenario where all information are accurately and timely available in the stand-alone systems and all concerned people make best efforts to provide the information.

Sales-woman enters order in a computerisedsystem. Customer asks for a delivery date.

Sales-woman calls up warehouse to check availability and confirm delivery date.

Warehouse clerk checks his inventory system in computer and says the stock is not available. But he says there may be some in production line.

Sales-woman calls up the production manager.

Production manager provides production completion date.

Sales-woman conveys delivery date to customer.

But its too late!

• You have spent huge amount of money to computerise your sales, inventory and production operations.

• Your people make best efforts to provide information to the customer.

• Still you have an unhappy customer and might have lost the order to your competition.

• Why?

• Because your computerised systems are stand-alone and they don’t talk to each other!



Now consider how things can be better in an ERP system

• Integration between your various systems has resulted in an ecstatic customer

• It will probably bring you repeat orders from the delighted customer

• Additionally, it has saved you money in terms of numerous hours of the sales-woman, warehouse clerk and production manager as well as the cost of a number of phone calls.

Sales-woman enters order in an ERP and checks availability date

ERP system checks instantaneously the availability date on-line in the inventory as well as in production systemSales-woman gets

delivery date instantaneously and confirms to customer



• Islands of computerisation does not give you any significant benefits since lack of communication between systems lead to

• time delay

• inaccurate information

• additional cost

• ERP provides an integrated system which ensures

• single point of entry for one data

• instantaneous access to all relevant information

• savings in cost, increase of sales and customer satisfaction

Islands of Automation One Integrated System

Purchasing

A/R

Inventory

General Ledger

Sales

A/P

1,000 island solution…….ProductionPlanning

Maintenance

New Product DevelopmentNew Product Development

Controlling

Manufacturing.

SUPPLIER

CUSTOMER

S A P R /3S A P R /3

Procurement Production Distribution

Finance and Accounting

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All business processes throughout the supply chain are executed in one system sharing all information

WorkflowSUPPLIER

CUSTOMER

S A P R /3S A P R /3

Procurement Production Distribution

Finance and Accounting

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All business processes throughout the supply chain are executed in one system sharing all information

Workflow



•• ERPsERPs, at the very basic, enable , at the very basic, enable •• Value AdditionValue Addition•• Cost ReductionCost Reduction•• Cash LiberationCash Liberation

•• But best of breed But best of breed ERPsERPs like SAP do much more like SAP do much more than increasing operational efficiencythan increasing operational efficiency

•• They They •• Are scalable Are scalable -- to ensure to ensure

•• expansionexpansion•• diversification diversification •• investment protectioninvestment protection

•• Are globally accepted and respected Are globally accepted and respected •• To get confidence of global customers and suppliersTo get confidence of global customers and suppliers•• To integrate with global customers, suppliers and To integrate with global customers, suppliers and

partnerspartners•• Address concerns of regulatory, government and Address concerns of regulatory, government and

social agenciessocial agencies•• ComplianceCompliance•• QualityQuality•• Environmental health and safetyEnvironmental health and safety

•• Are affordableAre affordable•• Assist in improving Assist in improving organisationorganisation’’ss valuation, credit valuation, credit

ratings, etcratings, etc•• Improve employee morale by improving their Improve employee morale by improving their

quality of work and lifequality of work and life

Value Addition

• Timely closure of books of accounts – reconciliation effort minimised through single point of data entry

• Improved bottom-line through profitable product portfolio through visibility of accurate product cost

• Improved top-line through higher customer satisfaction through on-line order booking and confirmation

• Better statutory and regulatory compliance – increase in customer and shareholder confidence

Cost Reduction

• Removal of non value adding and repetitive work through automation and single point data entry

• Productivity improvement

• Reduction in headcount

• Shorter lead time and wait time in shop floor

Cash Liberation

• Inventory reduction through better planning and on-line and accurate inventory visibility

• Better credit control through availability of credit information on-line



–– Though challenging, it is possible to measure Though challenging, it is possible to measure benefits of ERP implementation in financial benefits of ERP implementation in financial terms.terms.

–– The key steps a company must take to The key steps a company must take to measure the returns aremeasure the returns are–– Define business drivers upfront before start of Define business drivers upfront before start of

ERP deployment.ERP deployment.–– Link the business drivers to the specific process Link the business drivers to the specific process

and functionalities of ERP which will achieve the and functionalities of ERP which will achieve the business drivers.business drivers.

–– Estimate the financial gains expected from Estimate the financial gains expected from deployment of ERP.deployment of ERP.

–– Measure the business drivers again after 6 Measure the business drivers again after 6 months from go live.months from go live.

–– Challenges in measuring the returns accuratelyChallenges in measuring the returns accurately–– Segregating benefits due to ERP system and Segregating benefits due to ERP system and

those accruing from other initiatives and those accruing from other initiatives and improvements.improvements.

–– Attributing the reasons for non Attributing the reasons for non realisationrealisation of the of the returns returns –– those for ERP system and those for those for ERP system and those for other factors like other factors like organisationalorganisational change.change.

“Can I measure the benefits I am supposed to get from an ERP system?”

"Post the introduction of the SAP solution, the results have been terrific. The company has spent close to Rs. 40 crore on SAP implementation, and has already saved Rs 33 crore," said Mr. Ramesh C. Nadrajog, Vice President (Finance). The manpower cost has reduced from over $ 200 per ton two years ago, to about$140 per ton in 2000. The overdue outstanding has been brought down from Rs 5170 millions in 1999 to Rs 4033 millions by June 2000. The inventory carrying cost has drastically deflated from Rs190 per ton to Rs 155 per ton. To add to this, there have been significant costs savings through management of resources with the implementation of SAP.

Quoted from published data from Tata Steel on benefits from SAP implementation

Quoted from published data from Voehstalpine Stahl on benefits from SAP implementation


SAP and Other SAP and Other ERPsERPs and and nERPsnERPs

•• SAP has been consistently the #1 ERP SAP has been consistently the #1 ERP package in all geographies and package in all geographies and segmentssegments

•• The reasons for the success of SAP areThe reasons for the success of SAP are–– Richness of features catering to almost all Richness of features catering to almost all

business processes and industriesbusiness processes and industries–– Scalability Scalability –– ability to address your business ability to address your business

requirements even in case of rapid growth and requirements even in case of rapid growth and diversificationdiversification

–– An organic product development strategy An organic product development strategy ––SAP chose to develop the product mainly SAP chose to develop the product mainly internally rather than through acquisition internally rather than through acquisition leading to better integration and consistencyleading to better integration and consistency

–– Adapting eAdapting e--commerce at right time through commerce at right time through mySAPmySAP..

–– Adapting SOA architecture (Adapting SOA architecture (NetweaverNetweaver) early ) early for interfacing with other softwarefor interfacing with other software

–– Industry specific featuresIndustry specific features–– Facility of rapid implementation through preFacility of rapid implementation through pre--

configured clients for specific industries, configured clients for specific industries, thereby reducing time and costthereby reducing time and cost

–– Availability of experienced consultants to Availability of experienced consultants to implementimplement


SAP and SMB Sector SAP and SMB Sector

•• Contrary to popular perception, Contrary to popular perception, –– largest share of customers for SAP come largest share of customers for SAP come

from SMB segment.from SMB segment.–– SAP, used by large corporations, also SAP, used by large corporations, also

lead the market in the SMB segment.lead the market in the SMB segment.•• SMB segment features as one of the focus SMB segment features as one of the focus

areas in business roadmaps of SAPareas in business roadmaps of SAP•• Innovations like SAP AllInnovations like SAP All--inin--One have made One have made

products from ERP majors relevant and products from ERP majors relevant and affordable for SMB segment.affordable for SMB segment.

•• SAP provides unlimited scalability. Your SAP provides unlimited scalability. Your investments are protected while your investments are protected while your business expands. business expands.

•• Various innovations on accelerators like Various innovations on accelerators like micromicro--verticals, preverticals, pre--configured clients, etc configured clients, etc reduce the TCO significantly.reduce the TCO significantly.

•• SAPSAP’’ss partnership model is geared towards partnership model is geared towards providing the best product and services at an providing the best product and services at an affordable price.affordable price.

•• If you can get a world class software at an If you can get a world class software at an affordable price, why settle for less?affordable price, why settle for less?


Overview of SAP SystemOverview of SAP System

•• Full name of SAP translates into English from German as Full name of SAP translates into English from German as ““Systems, Applications and Products in Data ProcessingSystems, Applications and Products in Data Processing””–– The full name of SAP is rarely used nowThe full name of SAP is rarely used now

•• SAP is pronounced as SAP is pronounced as ““ESES--AYEAYE--PEEPEE”” and not and not ““SAPSAP””•• SAPSAP’’ss architecture is based on architecture is based on ““33--tiertier”” clientclient--server technology server technology

(GUI layer, application layer and database layer)(GUI layer, application layer and database layer)–– Hence the name Hence the name ““R/3R/3””–– ““R/3R/3”” does not stand for does not stand for ““Release 3Release 3””

•• ABAP/4 (Advanced Business Application Programming Language ABAP/4 (Advanced Business Application Programming Language Version 4) is the proprietary programming language in which the Version 4) is the proprietary programming language in which the SAP product is programmed and SAP product is programmed and customisationcustomisation donedone

•• SAP has SAP has categorisedcategorised basic business processes in an basic business processes in an organisationorganisation..–– These These ““building blocksbuilding blocks”” of processes are called of processes are called ““modulesmodules””–– SAPSAP’’ss ““honeycomb structurehoneycomb structure”” depicts the depicts the ““core R/3 modulescore R/3 modules””

•• SAP upgrades to new features through version managementSAP upgrades to new features through version management–– The latest version of SAP is The latest version of SAP is mySAPmySAP ECC (Enterprise Core Component) ECC (Enterprise Core Component)

6.06.0–– Previously SAP versions were named as 4.xa. The last version is Previously SAP versions were named as 4.xa. The last version is this this

series was SAP version 4.7. After this SAP discontinued this series was SAP version 4.7. After this SAP discontinued this nominclaturenominclature and moved to ECC nomenclatureand moved to ECC nomenclature

•• To cater to specific country needs, SAP has various To cater to specific country needs, SAP has various ““country country versionsversions”” to be boltto be bolt--on the base R/3on the base R/3–– Country Version for India is called CIN (Country India Version)Country Version for India is called CIN (Country India Version)

•• To cater to industry specific requirements, SAP has various To cater to industry specific requirements, SAP has various Industry Solutions (IS) e.g. ISIndustry Solutions (IS) e.g. IS--Oil for Oil and Gas, ISOil for Oil and Gas, IS--Mills for Mill Mills for Mill Products, ISProducts, IS--Retail for RetailRetail for Retail–– Many common industry solutions are built into AllMany common industry solutions are built into All--inin--One solution nowOne solution now

•• EE--commerce based modules like CRM, SRM are added commerce based modules like CRM, SRM are added components to R/3components to R/3–– Most features of these components are now built into AllMost features of these components are now built into All--inin--One One

solutionsolution


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SAP’s famous “honeycomb structure”depicting the core R/3 modules


Overview of SAP SystemOverview of SAP SystemBasic R/3 modules for SAP areBasic R/3 modules for SAP are•• Sales and Distribution (SD)Sales and Distribution (SD)

–– Customer Master, Enquiry, Quotation, Sales Order Processing, PriCustomer Master, Enquiry, Quotation, Sales Order Processing, Pricing, Credit cing, Credit Management, Transportation, etcManagement, Transportation, etc

•• Materials Management (MM)Materials Management (MM)–– Vendor Master, Enquiry, Quotation, Purchase Orders, Pricing, InvVendor Master, Enquiry, Quotation, Purchase Orders, Pricing, Inventory Management, entory Management,

Inventory Valuation, Stock Transfer, etcInventory Valuation, Stock Transfer, etc•• Production Planning (PP)Production Planning (PP)

–– Planning Strategy, MRP, BOM, Routing, Work Center, Production OrPlanning Strategy, MRP, BOM, Routing, Work Center, Production Orders, etcders, etc•• Quality Management (QM)Quality Management (QM)

–– Inspection Plan, Incoming Quality, InInspection Plan, Incoming Quality, In--process Quality, Finished Goods Quality, Quality process Quality, Finished Goods Quality, Quality Certificates, etcCertificates, etc

•• Plant Maintenance (PM)Plant Maintenance (PM)–– Maintenance Orders, Breakdown Maintenance, Preventive MaintenancMaintenance Orders, Breakdown Maintenance, Preventive Maintenance, Maintenance e, Maintenance

Notifications, etcNotifications, etc•• Human Resources (HR)Human Resources (HR)

–– Payroll, Training, Recruitment, Performance Management, etcPayroll, Training, Recruitment, Performance Management, etc•• Financial Accounting (FI)Financial Accounting (FI)

–– Chart of Accounts, Accounts Payable, Accounts Receivables, InvoiChart of Accounts, Accounts Payable, Accounts Receivables, Invoice Verification, Asset ce Verification, Asset Accounting, etcAccounting, etc

•• Controlling (CO)Controlling (CO)–– Cost Center Accounting, Profit Center Accounting, Internal OrderCost Center Accounting, Profit Center Accounting, Internal Orders, Product Costing, etc s, Product Costing, etc

•• Treasury (TR)Treasury (TR)–– Funds Management, Cash Management, etcFunds Management, Cash Management, etc

•• Project Systems (PS)Project Systems (PS)–– Work Breakdown Structure (WBS), Internal Projects, External ProjWork Breakdown Structure (WBS), Internal Projects, External Projects, Project Costing, ects, Project Costing,

etcetc•• Workflow (WF)Workflow (WF)

–– Not a separate module actually but the feature is built into mosNot a separate module actually but the feature is built into most modulest modules•• Industry Solutions (IS)Industry Solutions (IS)

–– Various Industry specific solutions like ISVarious Industry specific solutions like IS--Oil, ISOil, IS--Mills, ISMills, IS--Auto, ISAuto, IS--Banking, ISBanking, IS--Retail, Retail, etcetc


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SAP’s famous “honeycomb structure” depicting the core R/3 modules


Overview of SAP SystemOverview of SAP System•• Non R/3 modules Non R/3 modules –– With the advent of eWith the advent of e--business and various business and various

other specific business requirements, SAP added new modules other specific business requirements, SAP added new modules around 1998around 1998--9999–– CRM CRM –– Customer Relationship Management intended to capture sales Customer Relationship Management intended to capture sales

transactions over the net and also other features like call centtransactions over the net and also other features like call center er activities. This product is a close competitor to Siebel.activities. This product is a close competitor to Siebel.

–– SRM SRM –– Supplier Relationship Management intended to capture Supplier Relationship Management intended to capture purchases over the netpurchases over the net

–– PLM PLM –– Product Lifecycle Management Product Lifecycle Management –– APO APO –– Advanced Planner and Advanced Planner and OptimiserOptimiser intended to provide features intended to provide features

of rule based shop floor scheduling and of rule based shop floor scheduling and optimisationoptimisation, global , global availability checks across multiple plants, transportation availability checks across multiple plants, transportation optimisationoptimisation, , etc. This product is a close competitor to i2.etc. This product is a close competitor to i2.

–– BW BW –– Business Warehouse intended to provide management Business Warehouse intended to provide management reporting and data miningreporting and data mining

–– SEM SEM –– Strategic Enterprise Management intended to provide financial Strategic Enterprise Management intended to provide financial consolidation for group companies, balance score card, etcconsolidation for group companies, balance score card, etc

–– DMS DMS –– Document Management SystemDocument Management System–– EHS EHS –– Environment, Health and SafetyEnvironment, Health and Safety

•• SAP has now SAP has now reorganisedreorganised its module based components into its module based components into process based components and included eprocess based components and included e--business components business components into it. But module based terminology is still popularly used ininto it. But module based terminology is still popularly used inmost cases.most cases.–– SCM SCM –– includes erstwhile MM, PP, PM, APO and SRM modulesincludes erstwhile MM, PP, PM, APO and SRM modules–– CRM CRM –– includes erstwhile SD and CRM modulesincludes erstwhile SD and CRM modules–– Financials Financials –– includes erstwhile FI, CO, SEM and BW modulesincludes erstwhile FI, CO, SEM and BW modules–– PLM PLM –– includes erstwhile QM and PLM modulesincludes erstwhile QM and PLM modules


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•• Technical areas of SAP consist ofTechnical areas of SAP consist of–– ABAPABAP–– BASISBASIS

•• ABAP involves programming in ABAP ABAP involves programming in ABAP language for language for customisationcustomisation popularly called popularly called ““RICERICE””–– Reports (Reports (customisedcustomised reports)reports)–– Interfaces (with other systems)Interfaces (with other systems)–– Conversions (for migrating data from legacy Conversions (for migrating data from legacy

system to SAP)system to SAP)–– Enhancements (to address unique business Enhancements (to address unique business

conditions by writing a piece of code through conditions by writing a piece of code through ““user exitsuser exits”” or or ““module poolmodule pool””))

•• Minimum Minimum customisationcustomisation is strongly is strongly recommended forrecommended for–– Faster testingFaster testing–– Easier maintenanceEasier maintenance–– Easier upgradeEasier upgrade

•• SAP has introduced SAP has introduced NetweaverNetweaver technology technology which is an SOA (Service Oriented which is an SOA (Service Oriented Architecture) in 2003Architecture) in 2003

SAP identified “user exit” at pre-defined points in source code

You can write your own code here and return to source code

SAP’s Source Code

You will require a special key from SAP to modify “source code”. It is strongly discouraged as SAP may consider to withdraw its warranty support if source code is modified



•• Technical areas of SAP consist ofTechnical areas of SAP consist of–– ABAPABAP–– BASISBASIS

•• BASIS involvesBASIS involves–– Server sizingServer sizing–– SAP system installationSAP system installation–– Database administrationDatabase administration–– Performance tuningPerformance tuning–– Transports (i.e. transporting Transports (i.e. transporting

configuration and configuration and customisationcustomisation from from one system to another)one system to another)

–– User User authorisationsauthorisations–– ““PatchPatch”” and and ““Hot PackHot Pack”” applicationsapplications

•• Patches or hot packs are pieces of Patches or hot packs are pieces of ““correction codescorrection codes”” released by SAP from released by SAP from time to time or when there is a product time to time or when there is a product problemproblem

–– SAP version upgrade SAP version upgrade


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Overview of SAP Modules Overview of SAP Modules

–– The selection of modules should be The selection of modules should be driven by the business drivers you have driven by the business drivers you have defined and the sources from where defined and the sources from where you intend to generate the maximum you intend to generate the maximum ROI.ROI.

–– Most businesses adapt the modules Most businesses adapt the modules related to the following processes to be related to the following processes to be implemented in the first phaseimplemented in the first phase

–– Order to CashOrder to Cash–– Procure to PayProcure to Pay–– AccountingAccounting

–– Reasons for selecting the above areReasons for selecting the above are–– They are core processes in any They are core processes in any

organisationorganisation–– They provide quick tangible returnsThey provide quick tangible returns–– They are comparatively easy to They are comparatively easy to

implementimplement–– They are comparatively easy to manage They are comparatively easy to manage

changechange

“Which modules should I select as the first step?”


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Comparison of Various SAP Comparison of Various SAP Solutions: BusinessSolutions: Business--One One

•• SAP BusinessSAP Business--One One solution is primarily solution is primarily aimed at small industry aimed at small industry segment with segment with employees less than employees less than 100. Business100. Business--One is a One is a product bought by SAP. product bought by SAP. It caters to basic It caters to basic business processes like business processes like sales and distribution, sales and distribution, purchasing, operations, purchasing, operations, inventory management inventory management and financial and financial accounting.accounting.

•• The following diagram The following diagram provides an overview provides an overview of the features of the features available in Businessavailable in Business--One solution.One solution.


Comparison of Various SAP Comparison of Various SAP Solutions: AllSolutions: All--inin--One One

•• SAP AllSAP All--inin--One solution is One solution is an enterprise solution an enterprise solution built on built on NetweaverNetweavertechnology and ECC 6.0 technology and ECC 6.0 platform. The primary platform. The primary features of SAP Allfeatures of SAP All--inin--One One solution are:solution are:

•• mySAPmySAP ERP which forms a ERP which forms a key component of Allkey component of All--inin--One solutionOne solution

•• Features of CRMFeatures of CRM•• Business Analytics Business Analytics •• Industry microIndustry micro--vertical vertical

solution (including primary solution (including primary metals)metals)

•• PrePre--configured business configured business processes for speedier processes for speedier implementation implementation

•• Repository of industry Repository of industry best practicesbest practices

•• The features of AllThe features of All--inin--One One solution are available solution are available through through ““composite composite licensinglicensing”” and they are and they are installed on a single installed on a single server.server.


InIn--Built Best Practices in SAP Built Best Practices in SAP AllAll--inin--One Solution One Solution

SAP’s repository of industry specific “solution maps” provide industry best practices

•• SAP implementation helps SAP implementation helps organisationsorganisations to adapt to adapt best practicesbest practices–– SAP has incorporated business practices of SAP has incorporated business practices of

world class companies while developing the world class companies while developing the productproduct

–– These These ““best practicesbest practices”” are provided in the are provided in the form of business processes. For exampleform of business processes. For example•• Various planning strategies (Make to Order, Various planning strategies (Make to Order,

Make to Stock, Assembled to Order, etc)Make to Stock, Assembled to Order, etc)•• Various sales and inventory forecasting Various sales and inventory forecasting

techniquestechniques•• Various batch management techniquesVarious batch management techniques•• Various sampling proceduresVarious sampling procedures•• Various inventory valuation optionsVarious inventory valuation options•• Various costing optionsVarious costing options

–– During process design (called During process design (called ““Business Business BlueprintBlueprint”” in ASAP or SAP Project in ASAP or SAP Project Management Methodology), the functional Management Methodology), the functional consultants along with users discuss the best consultants along with users discuss the best options for the company and options for the company and ““selectselect”” the the options options •• This process is then This process is then ““configuredconfigured”” in the in the

systemsystem


Comparison of Various SAP Comparison of Various SAP Solutions: Full Business Suite Solutions: Full Business Suite

SAP Full Business Suite, targeted primarily at very large conglomerates, constitutes of the following components• mySAP ERP • mySAP CRM (Customer Relationship Management)• mySAP SCM (Supply Chain Management)• mySAP PLM (Product Lifecycle Management)• mySAP SRM (Supplier Relationship Management)• Various Industry Solutions• The licenses for various components of mySAPbusiness suite need to be bought separately. • The various components need to be installed in separate hardwares.• The diagrams below give an overview of the features available in Full Business Suite.




mySAP SCM Solution Map




mySAP SRM Solution Map


SAP Project Implementation SAP Project Implementation Methodology Methodology

ASAP (Accelerated SAP) - Implementation methodology of SAP

•• SAP has its proprietary project implementation SAP has its proprietary project implementation methodology called ASAP (Accelerated SAP)methodology called ASAP (Accelerated SAP)–– Though some consulting companies and clients have Though some consulting companies and clients have

their own methodology (like their own methodology (like ascendantSAPascendantSAP of PwC), of PwC), they are essentially built on ASAP methodologythey are essentially built on ASAP methodology

–– We will be implementing our projects on ASAP We will be implementing our projects on ASAP methodologymethodology

•• SAP project implementation methodology is different SAP project implementation methodology is different from standard SDLC methodologiesfrom standard SDLC methodologies–– Hence it is not mandatory for SAP implementation Hence it is not mandatory for SAP implementation

companies to be CMMI certified, unless the company is companies to be CMMI certified, unless the company is doing offshore development workdoing offshore development work

•• The key stages and deliverables of ASAP The key stages and deliverables of ASAP methodology:methodology:–– Project Preparation: Project Preparation:

•• Key Deliverables: Project Plan, Project Standards, Key Deliverables: Project Plan, Project Standards, Infrastructure and Resource Infrastructure and Resource MobilisationMobilisation, etc, etc

–– Business BlueprintBusiness Blueprint•• Key Deliverables: Process Definition Document, Key Data Key Deliverables: Process Definition Document, Key Data

Structures (Structures (ConfigConfig Specs), RICE Design Document, Data Specs), RICE Design Document, Data Conversion Templates, etcConversion Templates, etc

–– RealisationRealisation•• Key Deliverables: Unit Testing, Integration Testing, Volume Key Deliverables: Unit Testing, Integration Testing, Volume

and Stress Testing, Data Conversion Testing, and Stress Testing, Data Conversion Testing, AuthorisationAuthorisationTesting, etcTesting, etc

–– Final PreparationFinal Preparation•• Key Deliverables: End User Training, Data Migration, CutKey Deliverables: End User Training, Data Migration, Cut--

over strategyover strategy–– Go Live and SupportGo Live and Support

•• Key Deliverables: Go Live, HyperKey Deliverables: Go Live, Hyper--care support, Knowledge care support, Knowledge transfer to maintenance teamtransfer to maintenance team


Typical Scope of an SAP Typical Scope of an SAP Maintenance Project Maintenance Project

•• Traditionally when SAP sells Traditionally when SAP sells licenses to the customer directly, licenses to the customer directly, SAP handles the SAP handles the ““product bug product bug fixationfixation”” through the AMC.through the AMC.

•• In case of In case of PartnerEdgePartnerEdge program, program, SAP still handles the product bug SAP still handles the product bug fixation, but the Partner has the fixation, but the Partner has the responsibility ofresponsibility of–– AnalysingAnalysing and identifying a and identifying a

product bugproduct bug–– Routing the issues and Routing the issues and

coordinating with SAPcoordinating with SAP–– Providing single point of contact Providing single point of contact

to clientto client•• When we support your systems, When we support your systems,

we provide a we provide a ““single window single window serviceservice”” for all support for all support components components i.ei.e product bug product bug fixation as well as L1, L2, L3 fixation as well as L1, L2, L3 support for configuration, support for configuration, customisationcustomisation and enhancements. and enhancements.

System Maintenance (BASIS) (performance tuning, user administration, patch application, etc)

Product Bug Fixing (source code corrections, identification of patches)

Fixing ConfigIssues

Fixing CustomisationIssues

Minor Enhancements

L2 Help Desk (solving “how to”questions, assisting in correcting data errors, analysing whether the issue is a product or config/ customisation problem)

L1 Help Desk (logging calls, segregating SAP issues and routing, basic user administration)

L3 S

uppo

rt

Usually provided by client or 3rd

party vendor

Usually provided by client or Application Maintenance Service Provider

Exclusively provided by SAP

Only this part is included by SAP in AMC with the client in case SAP sells licenses directly


Critical Success Factors of an Critical Success Factors of an SAP Project SAP Project

–– You would need to adapt 3 simple You would need to adapt 3 simple ““mantrasmantras””at the very beginning: at the very beginning:

1.1. Ensure enough CEnsure enough C--office involvementoffice involvement–– Do not calibrate CDo not calibrate C--office involvement with the office involvement with the

investment you are putting in. It might be investment you are putting in. It might be small compared to some of your other small compared to some of your other projects, but if it goes wrong the cost to your projects, but if it goes wrong the cost to your business may be enormous business may be enormous –– much higher much higher than the money you have put in!than the money you have put in!

–– SAP implementation will bring in large scale SAP implementation will bring in large scale organisationalorganisational change. Only the change. Only the CxOCxO (most (most likely the CEO himself) can influence such likely the CEO himself) can influence such large change, middle level managers cannot.large change, middle level managers cannot.

2.2. Make business own the projectMake business own the project1.1. SAP implementation is a business SAP implementation is a business

transformation project, not a transformation project, not a computerisationcomputerisationproject.project.

2.2. Make business own the project to ensure Make business own the project to ensure success.success.

3.3. Select the right ERP product and consulting Select the right ERP product and consulting partnerpartner

“What do I need to do to make SAP implementation successful in my organisation?”

Ensure enough C-office involvement

Make business manage the project, not IT

Select right ERP product and consulting partner

overview of sap for senior executives - nevaehtech.com

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