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    Sap PPT 1

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    Jyotiraditya Banerjee
    SAP is a leading ERP software founded in 1972 in Germany. It provides integrated business process management across various functions like finance, logistics, and HR. Implementing SAP ERP involves high costs of $50-100 million on software, hardware, consultants and process changes. However, it provides significant benefits like improved operations, productivity, cost reductions and access to real-time enterprise-wide information if implemented correctly.

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    Sap PPT 1

    Uploaded by

    Jyotiraditya Banerjee
    163 views26 pages
    SAP is a leading ERP software founded in 1972 in Germany. It provides integrated business process management across various functions like finance, logistics, and HR. Implementing SAP ERP involves high costs of $50-100 million on software, hardware, consultants and process changes. However, it provides significant benefits like improved operations, productivity, cost reductions and access to real-time enterprise-wide information if implemented correctly.

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    SAP is a leading ERP software founded in 1972 in Germany. It provides integrated business process management across various functions like finance, logistics, and HR. Implementing SAP ERP involves high costs of $50-100 million on software, hardware, consultants and process changes. However, it provides significant benefits like improved operations, productivity, cost reductions and access to real-time enterprise-wide information if implemented correctly.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    163 views26 pages

    Sap PPT 1

    Uploaded by

    Jyotiraditya Banerjee
    SAP is a leading ERP software founded in 1972 in Germany. It provides integrated business process management across various functions like finance, logistics, and HR. Implementing SAP ERP involves high costs of $50-100 million on software, hardware, consultants and process changes. However, it provides significant benefits like improved operations, productivity, cost reductions and access to real-time enterprise-wide information if implemented correctly.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 26

    An overview of the world’s leading ERP system

    History of SAP
    Systems Applications and Products in Data Processing
     German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

     Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira


     Re named in 1977
     Before 1977 : Systems Analysis and Program Development (German :
    Systemanalyse und Programmentwicklung)

     SAP is both the name of the Company as well as their ERP Product

     SAP system comprises of a number of fully integrated modules, which


    covers virtually every aspect of the business

     Three systems developed : R/1, R/2, R/3

     Trades on NYSE: SAP


    What is SAP? (the software)
    Enterprise Resource Planning software
    Quote-to-Cash (Revenue cycle)
    Req-to-Check (Expenditure cycle)
    Plan-to-Produce (MRP)
    Finance and Controlling
    Massive accounting package
    Tool kit
    Series of Modules
    Bought and customized to your business
    Who Uses SAP?
    “the World’s best run companies….”
    80% of Fortune 500
     Coke
     Conagra
     Caterpillar
     Exxon Mobile (over 60 instances)
     Chevron
     Marathon Oil
     Cooper Industries
     Nike
     General Electric
     Baker Hughes
     Enron….?
    SAP – ERP and Data Flow
    Manufacturing most popular

    Growth out of MRP R/3


    MM SD PP
    9 basic modules
    FI PLM CO

    Interconnected and QM WM HR
    independent
    SAP – ERP and Data Flow
    Data types
    Master data
    Vendor master
    Customer master
    Material master
    Transactional data
    Sales orders
    Payments
    Meta data
    SAP – ERP and Data Flow
    Financial and Logistics Reporting

    Cost Controlling

    QtC Quote Sales Order


    Inventory
    Delivery Billing Customer
    Sourcing Payment

    Quote to
    Cash

    Sales & Material


    PtP Operations
    Demand
    Requirements Planned Order
    Production Production
    Planning Planning Order Control
    Planning
    Plan to
    Produce

    RtC Purchase Vendor Purchase


    Goods Receipt
    Invoice Vendor
    Requisition Selection Order Verification Payment

    Requisition to Check

    Business Information Warehouse


    SAP Modules
    SD – Sales and FI – Financial Accounting
    Distribution
    MM – Materials SD FI CO – Controlling
    Management
    PP – Production Planning MM CO AM – Asset Management

    PP AM

    SAP R/3
    QM HR
    QM – Quality HR – Human Resources
    Management
    PM WF
    PM – Plant Maintenance WF – Workflow

    WM – Warehouse
    WM PS
    PS – Project System
    Management
    Other SAP Options
    Other Modules, Components, and Grids
    CRM
    BI/BW
    Treasury
    Real Estate
    Energy products
    SAP Business one
    AFS – Apparel Footwear Solution
    Industry specific module
    Governance, Risk and Compliance
    Management Decisions
    Data driven analysis
    What are important pieces of information for a
    material?
    SAP material master
     20 different views
     Average 20 fields per view

     Several views change by plant

    Real time accounting information


    Accounts Receivable
    Accounts Payable
    Management Decisions
    Profitability
    What is profitable?
    Who is profitable?
    Where are we profitable?
    Dude, where’s my cash?
    Inventory – which materials
    Accounts Receivable – which customers
    Accounts Payable – which vendors
    Others – prepaids, accrued payroll, other expenses
    Management Decisions - No More
    No longer decisions!
    When to pay
    What to buy
    When to buy
    What to make
    When to make it
    What to count (inventory stock take)
    Who to hire (always MBA students)
    Management Decision Changes
    Removal of rote/routine decisions
    Changes the types of decisions
    From how much of product X
    To should we sell product X
    Flattens the organization
    Creates new opportunities
    How many analysts does it take…
    Costs of Implementing SAP
    What does it cost?
    Hardware
    Software
    Bioware
    Cultural changes
    Different organization
    Change management
    Process changes
    Where to start?
    Cost of SAP deployment
    SAP Implementation Costs
    Adult diaper time!
    $50-100 million, typical
    By experience of companies
    One company, $50 million for current system
    Previous company, >$250 million
     Everything in-house
     Highly customized

    Others
    Hershey failed(Trick or Treat!)
    Enron went in smooth and easy
    SAP Hardware Costs
    Do you have an ERP ready data center? – not in $50 MM
    Fire detection and prevention
    Above 500 year flood level?
    In hurricane, earthquake, or tornado zone?
    Do you have a hot or cold backup site?
    $5-10 million depending on size
    Multi-mirrored
    Real-time backup
    Application, database, load balance
    Do you need new PC’s?
    Software Costs
    $5-15 million up front
    SAP licenses (various modules)
    Oracle or other database licenses
    BW or other analytics
    Administration tools
    Backup and recovery software (real time?)
    Annual licensing/maintenance fees 20%
    Hint – select the right state and download
    Costs of SAP Expertise
    $10-25 million on hardware and software

    $40-75 million on bioware


    SAP eliminates $10/hr data entry clerks
    Now you need $100,000+/yr Basis administrators

    Consultants can be expensive


    You want the expensive ones
    Know business and technical
    SAP Consultants
    Lots of consultants
    Few have the skills
    Find, a finder!
    Lots of billing rates
    SAP Platinum consultant - $300/hr
    Quality, independent - $150/hr
    Someone who read an SAP book – not worth the time
    Good consultants – know the business!
    Technical aptitude
    Communication skills
    Cultural Changes
    Immediate fear
    Job losses
    Job changes
    Management oversight
    Dashboards
    Drilldown
    Allocation of costs
    Data is a valuable asset
    Centralized/Shared processes and resources
    Process Changes
    What changes?
    Nothing
    Everything
    Optimize your process first!
    Streamline
    Leverage technology
    Only one big change
    Document, document, document
    Communicate, communicate, communicate
    SAP Careers
    SAP Business Analyst
    Liaison between the business and the techies
    Good communication skills
    Understanding of local business and industry practices
    Technical track
    Functional track
    Project management
    Best – Technofunctional that can manage projects
    IT Director
    Consultant
    Benefits of mySAP ERP
    SAP ERP delivers a comprehensive set of integrated, cross-
    functional business processes. With SAP ERP, we can gain the
    following benefits:
    Improve alignment of strategies and operations
    Improve productivity and insight
    Reduce costs through increased flexibility
    Support changing industry requirements
    Reduce risk
    Improve financial management and corporate governance
    Optimize IT spending
    Gain higher ROI faster
    Retain top performers
    Provide immediate access to enterprise information
    Is it Worth It?
    YES!!!
    If done correctly…
    Eliminate non-value added steps
    Improve management information
    Significant soft cost saving
    Focus resources

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