SAP

What IS ERP?
ERP stands for Enterprise Resource Planning.

Why needs an ERP?

 Standardization of Software
 Better Accounting and Financial Reporting
 Faster Response Times
 Regulatory Compliance and Security
 Mobility and Flexibility

Why should an ERP system be used for?

 Inventory management:
 \Purchasing:
 Sales and Marketing
 financial management
 Customer relationship management (CRM):
 Supply chain management (SCM):
 Human resource management (HRM):
 Automated reporting
 Business intelligence (BI)
 Project Management:
 Compliance monitoring:
 IT optimization:
 Asset management
 E-commerce

Advantages of ERP
 Higher management performance
 Better accuracy and availability of information
 Improved coordination
 Precise planning
 Enhanced reports
 Scalability and flexibility
 Cost-effectiveness
 Easier access to management systems
 Improved customer service
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 Better Improved customer service

 Better competitiveness on the market

Disadvantages of ERP

o Large cost of licensing and development

o High costs to deploy and maintain
o Requires training and practice
o Requires tweaking
o It takes time to realize its full potential

Major ERP in the Market

 SAP
 Oracle
 Baan
 People Soft
 Ramco
 Microsoft

What does SAP stand for –

 SAP stands for Systems, Applications, and Products in data processing.

 SAP is the fourth largest software company in the world – www.sap.com
 The SAP R/3 system is a business software package designed to integrate
all areas of a business.
 It provides end-to-end solutions for financials, manufacturing, logistics,
distribution, etc.
 All business processes are executed in one SAP system and sharing
common information with everyone.

SAP is an Enterprise Resource Planning (ERP) system by SAP AG, a company

based out of Walldorf in Germany. AG is derived from the German word
Aktiengesellschaft. which literally translates to 'stock corporation' or 'shares
corporation' in English. Systemanalyse Programmentwicklung, which translates to
System Analysis Program Development
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An SAP software suite that is being implemented as part of re-engineering

and provides end-to-end solutions for financial, logistics, distribution,
inventories. Present scenario large number of companies are using sap
software for their day-to-day business activities.

After the hugely successful R/3, SAP created more and more niche software
like Customer Relationship Management (CRM), SRM, XI (now called Process
Integration or PI) and once again living up to the standards of SAP by
maintaining tight integration with their core ECC software. The newest version
of the suite is SAP ECC 6.0.

SAP History
SAP Founded in and around 1972 by five IBM engineers Hopp, Wellenreuther,
Hector, Tschira and Plattner.

SAP R/1:– The first version of SAP software was launched in and around 1972
known as the “R/1 system. R” stands for real-time data processing. it is one
tier architecture in which three layers Presentation, Application, and Database
are installed in one system/server (one – Presentation + Application +
Database)

SAP R/2:– In 1979 second version of SAP R/2 was released. with IBM’s
database and a dialogue-oriented business application. SAP R/2 to handle
different languages and currencies. R/2 is 2 tier architecture in which three
layers of Presentation, Application, and Database are installed in two
separate servers.
(Server one – Presentation, Server two – Application + Database

SAP R/3:– SAP upgraded R/2 to R/3. SAP R/3 is the client/server version of the
software and it is 3 tier architecture in which three layers of Presentation,
Application, and database are installed in three servers/systems.
Server one – Presentation, Server Two – Application, server Three – Database

SAP S/4Hana – In the year 2010, a new version of SAP Hana has been
released. SAP Hana (High-Performance Analytic Application) is a memory
computing database. The latest version of Hana is SAP S/4Hana 2020,

Products of SAP

 SAP S/4HANA (Enterprise Resource Planning on-premise and cloud)

 SAP Business ByDesign (SME Cloud Enterprise Resource Planning)
 SAP Business One(B1 on HANA) (Small enterprise Enterprise Resource Planning)
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 SAP CRM (Customer Relationship Management)

 SAP ERP (Enterprise Resource Planning)
 SAP PLM (Product Lifecycle Management)
 SAP SCM (Supply Chain Management)
 SAP SRM (Supplier Relationship Management)

Industry Solutions of SAP

SAP R/3 – Modules & Integration

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SAP Functional Modules

 FICO – Finance & Control

 PP – Production Planning
 MM – Material Management
 SD – Sales & Distribution
 WM – Warehouse Management
 QM – Quality Management
 HR – Human Resources
 CRM – Customer Relationship Management

SAP Technical Module

 ABAP – Advanced business applications programming

 XI – Exchange Infrastructure
 Net viewer
 Basis
 BIW – Business Information Warehousing

what is SAP R/1, R/2, R/3? or Difference between R/1, R/2, R/3?

SAP R/1 was the first version, and it is one tier architecture in which three
layers Presentation, Application, and Database are installed in one
system/server

Server one – Presentation + Application + Database

SAP R/2 is the mainframe version of the software, and it is 2 tier architecture
in which three layers Presentation, Application, and Database are installed
in two separate servers.

(Server one – Presentation, Server two – Application + Database

SAP R/3 is the client/server version of the software, and it is 3 tier architecture
in which three layers Presentation, Application, and database are installed in
three server/system

Server one – Presentation, Server Two – Application, server Three – Database.

What is R/2 Client-Server Architecture?

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R/2 Client-Server
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1. Client provides an interface to communicate with

the server. Eg: IE, GUI
2. Client uses DB Client software to communicate with server
3. Each request is processed by communicating with server only i.e.
there is no intermediate layer in R/2
4. Servers are heavily loaded/ traffic, long queues there by reducing the
performance of the servers.
5. There is no queuing mechanism and only server queues are maintained.
6. Server needs to process the request (Understanding the user
language). Interpretation takes time.

These are the disadvantages of R/2 Systems.

Client Server Environment:

Client requests and server responds. The major disadvantage of Client

Server architecture is

DB Client is installed on the

client Processing takes place at
client side
No intermediate buffers for the frequently accessed content
There is no queue mechanism to handle the requests there by servers are
heavily loaded.
The server-side processing consumes resources to process (Interpret the
user requests)

The need of middle layer/ tier rose to come out of the steps. The result is the
Application layer/ Server

Application server is deployed and it provides the following functionality

DB Client is installed to free up the clients (i.e. there will be only one DB Client
for Application server earlier each client needs DB Client software)
There is a queue mechanism to handle the request there by reducing the load
on the client and server.
User requests are served based on the FIFO using dispatcher.
Work process task handlers are used to interpret and process the request.
Intermediate buffers are available for the frequently accessed content to
reduce the load on the Database server.
The server side processing is only takes place for new requests there
by server resources are optimally used.

What is SAP R/3?

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SAP R/3 is a 3 tier architecture consisting of 3 layers

1. Presentation
2. Application
3. Database

In simple words, it’s a client server architecture.

 R signifies Real-time system

 3 represents – 3-tier architecture.

User’s PC:- Users can access SAP system in two ways:-

1. Through SAP GUI

2. Through Web browser
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It’s called front-end. Only the front-end is installed in the user’s PC not the
application/database servers.

Front-end takes the user’s requests to database server and application

servers.

Application Servers: – Application server is built to process business-logic. This

workload is distributed among multiple application servers. With multiple
application servers, the user can get the output more quickly.

Application server exists at a remote a location as compared to the location

of the user PC.

Database Server: –Database server stores and retrieves data as per SQL
queries generated by ABAP and Java applications.

Database and Application may exist on the same or different physical

location.

Understanding different SAP layers

Presentation Layer:
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The Presentation Layer contains the software components that make up the
SAPgui (graphical user interface). This layer is the interface between the R/3
System and its users. The R/3 System uses the SAPgui to provide an intuitive
graphical user interface for entering and displaying data.

The presentation layer sends the user’s input to the application server, and
receives data for display from it. While a SAPgui component is running, it
remains linked to a user’s terminal session in the R/3 System.

Application Layer:

The Application Layer consists of one or more application servers and a

message server. Each application server contains a set of services used to
run the R/3 System. Theoretically, you only need one application server to
run an R/3 System. In practice, the services are distributed across more than
one application server. The message server is responsible for communication
between the application servers. It passes requests from one application
server to another within the system. It also contains information about
application server groups and the current load balancing within them. It uses
this information to assign an appropriate server when a user logs onto the
system.

Database Layer:

The Database Layer consists of a central database system containing all of the
data in the R/3 System. The database system has two components – the
database management system (DBMS), and the database itself. SAP has
manufactured its own database named Hana but is compatible with all major
databases such as Oracle.All R/3 data is stored in the database. For example,
the database contains the control and customizing data that determine how
your R/3 System runs. It also contains the program code for your
applications. Applications consist of program code, screen definitions,
menus, function modules, and various other components. These are stored in
a special section of the database called the R/3 Repository, and are
accordingly called repository objects. R/3 repository, objects are used in
ABAP workbench.

Understanding the components of SAP R/3 3-tier Architecture:-

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