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SAPSAPHuman Capital ManagementHuman Capital Management
VIJAY
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What is SAP?What is SAP?SystemsApplicationsProducts
◦Standard ERP Software for real time Data processing
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What is ERP?What is ERP?Enterprise ◦Resource Planning
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What is an What is an Enterprise?Enterprise?
An Enterprise is a huge organization An Enterprise is a huge organization with huge resources.with huge resources.
Does this definition stand right now?Does this definition stand right now?
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What are the What are the Resources?Resources?
An Enterprise has the following resources:
Money (Finance Dept.)Money (Finance Dept.) Men (Human Resources Dept.)Men (Human Resources Dept.) Materials (Purchasing Dept. and stores)Materials (Purchasing Dept. and stores) Machines (Production Dept.)Machines (Production Dept.) Marketing (Sales and Distribution Dept.)Marketing (Sales and Distribution Dept.) Methods (pervade all the other Methods (pervade all the other resources)resources)
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What do we plan What do we plan and and
why do we need to Plan?why do we need to Plan?Planning is done for resources. Planning Planning is done for resources. Planning
entails the optimal utilization of resources so entails the optimal utilization of resources so that the following are achieved:that the following are achieved:
ProductivityProductivity (relates to Men and Machines)(relates to Men and Machines)
EffectivenessEffectiveness (relates to Methods employed)(relates to Methods employed)
EfficiencyEfficiency (relates to Men, Methods and Machines)(relates to Men, Methods and Machines)
The Result is the Profitability of the Enterprise.
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Enterprise Architecture - Enterprise Architecture - BenefitsBenefitsEliminates the duplication, discontinuity
and redundancy in dataIncreases the return on investment made
on IT implementationsDelivers quality information designed for
the Enterprise as a wholeFaster and cheaperDelivers quality information to produce a
quality enterpriseSatisfying Partners/CustomersReducing required manpower
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HISTORYHISTORY
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Who?Who? Founders : Ex-IBM Employees As?As? Founded as Systemanalyse und Programmentwicklung
(System Analysis and Program Development)(System Analysis and Program Development) When? When? On April 1, 1972 Where?Where? In Mannheim, Germany
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Brains behind SAPBrains behind SAP
• Dietmar HoppDietmar Hopp• Hans-Werner HectorHans-Werner Hector• Hasso PlattnerHasso Plattner• Klaus TschiraKlaus Tschira• Claus WellenreutherClaus Wellenreuther
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Why?Why?• Reason 1 :Reason 1 : As Client after client are
developing the same, or very similar, computer programs• Reason 2 :Reason 2 : So that data is processed
interactively in real-time, and the computer screen should be the focal point of data processing
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Rivals of SAP in ERPRivals of SAP in ERP
Why do the rivals of SAP stand far
behind SAP?
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SAP success storySAP success story• Market share : Nearly 60%.Market share : Nearly 60%.• End users : More than one End users : More than one million million end users around end users around the world work the world work with the with the R/3 system.R/3 system.• World’s third-largest World’s third-largest independent independent software software vendor.vendor.
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Events in SAP historyEvents in SAP historyIn the fifth year of operations, SAP took
a new name Systeme Anwendungen Systeme Anwendungen Produkte in der DatenverarbeitungProdukte in der Datenverarbeitung (Systems, Applications, Products in (Systems, Applications, Products in
Data Processing”)Data Processing”)SAP moved its offices and headquarters
to Walldorf in 1977.SAP went public as SAP AG on Nov 4,
1988.
First customer for SAPFirst customer for SAPGerman ICI subsidiary in OstringenGerman ICI subsidiary in Ostringen
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SAP R/1 SAP R/1 inin 19731973SAP R/2 SAP R/2 inin 19791979SAP R/3 SAP R/3 inin 19921992
““R” R” stands for stands for
real-time data processingreal-time data processing
ArchitectureArchitecture
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Architecture of R/1 SystemArchitecture of R/1 System
Interfaces developed in Interfaces developed in application programs itself.application programs itself.
File systems were used.File systems were used.Client/server concept Client/server concept
inexistent.inexistent.
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Architecture of R/2 SystemArchitecture of R/2 System
Main-frame versionMain-frame versionUses DBMS for the first timeUses DBMS for the first time
Interface programming within Interface programming within Application programming.Application programming.Data stored in Database.
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SAP R/2SAP R/2How is it different?How is it different?
It attains the high level of It attains the high level of stability of the previous stability of the previous generation of programs.generation of programs.
It handles different languages It handles different languages and currencies.and currencies.
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Architecture of R/3 Architecture of R/3 SystemSystem
Client/Server concept introducedClient/Server concept introducedUses RDBMS for data storageUses RDBMS for data storage
Interface programming separated Interface programming separated from Application programming.from Application programming.
Maintains more than 2 servers at different tiers.
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Presentation LayerPresentation Layer, or client, interfaces , or client, interfaces with the user.with the user.
Application Layer Application Layer houses all the houses all the business specific logic.business specific logic.
Database Layer Database Layer records and stores all records and stores all the information about the system, the information about the system,
including transactional and including transactional and configuration data.configuration data.
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SAP R/3SAP R/3How is it different?How is it different?
Client-server conceptClient-server conceptUniform appearance of graphical Uniform appearance of graphical
interfacesinterfacesConsistent use of relational Consistent use of relational
databasesdatabasesAbility to run on computers from Ability to run on computers from
different vendorsdifferent vendors
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Facts about Facts about SAP R/3SAP R/3
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SAP R/3 was officially launched on 6 July, 1992.
It is a client-server version of software.
It is manageable on multiple platforms and operating systems, such
as Windows or UNIX . It embraced the object-oriented concept of “business objects”
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It is the Largest European software vendor.
SAP AG became the company’s official name after the 2005 annual
general meeting. It ranks after Microsoft, Google, Apple, and IBM in terms of Market
Capitalization.
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While its original products are typically used by Fortune 500 companies, SAP is now also actively targeting small and Medium sized Enterprises (SME) with its SAP Business One and SAP All-in-One.
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According to SAP officials, there are over 100,600 SAP installations serving more than 38,000 companies in more than 120 countries, which are used by more than 12 million people.
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SAP provided selected standardized processes, which were termed best-
practice solutions of processes.
The implementation of SAP software commonly required the expertise of knowledgeable external consultants,
who are familiar with the best practices.
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SAP High Tech & Electronics
SAP Consumer Products
SAP Transportation
SAP Public Sector
SAP Telecomm.
SAP Chemicals
SAP Pharmaceuticals
SAP Retail
SAP Banking
SAP Industry SolutionSAP Industry Solution
SAP Engineering & Construction
SAP Oil & Gas
SAP Utilities
SAP Health Care
SAP Automotive
SAP Media
SAP Aerospace & Defense
SAP Service Providers
...
BusinessInformation
Ware-house
SalesForceAuto-
mation
B2BProcurement
AdvancedPlanner &Optimizer
R/3
SAP FinanceSAP Mill
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R/3Client / Server
ABAP
FIFinancial
AccountingCO
Controlling
TRTreasury.
PSProjectSystem
SDSales &
DistributionMM
MaterialsMgmt.PP
ProductionPlanning
QMQuality
Manage-ment PM
Plant Main-tenance HR
HumanResources
WFWorkflow
ISIndustrySolutions
Integrated turnkey solutions
Open Systems
Client/Server Architecture
Enterprise Data Model
Integrated Real-Time
Multi-national Multi-currency
Industry-Solutions
Internet / Intranet
SAP R/3 SystemSAP R/3 System
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Other major product offerings Other major product offerings includeinclude
•Advanced Planner and Optimizer(APO)• Business Information Warehouse(BW)• Customer Relationship Management(CRM)• Supply Chain Management(SCM)• Supplier Relationship Management(SRM)• Human Resources Management System(HRMS)• Product Lifecycle Management(PLM)• Exchange Infrastructure(XI)• Enterprise Portal(EP)• SAP Knowledge Warehouse(KW))
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SAP R/3 functionality is structured SAP R/3 functionality is structured using its own proprietary language using its own proprietary language called called ABAP ABAP (Advanced Business (Advanced Business
Application Programming).Application Programming).
ABAP or ABAP/4 ABAP or ABAP/4 is a fourth is a fourth generation language (4GL), generation language (4GL),
geared toward the creation of geared toward the creation of simple, yet powerful programs.simple, yet powerful programs.
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SAP has several layers.SAP has several layers.
The The Basis System (BC) Basis System (BC) includes the includes the ABAP Programming language, and is ABAP Programming language, and is the heart (i.e. the base) of operations the heart (i.e. the base) of operations
and should not be visible to higher and should not be visible to higher level or managerial users.level or managerial users.
The Heart of the system (from the The Heart of the system (from the manager’s viewpoint) are the manager’s viewpoint) are the
application modulesapplication modules..
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SAP BASIS (Basis)
ABAP etc. (Cross-Application)
HRCentral
Applicationswith/without HR
Plug-Ins IBU Add-On
CRMBW
SEM APO BBP
classic R/3"
A common Basis for all mySAP.com Products
Common mySAP.com Common mySAP.com TechnologyTechnology
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CustomerPrograms
Applications,such as FI/CO
SAP BasisSAP BasisSAP BasisSystem Software
SAP BasisSAP Basis
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SAP R/3 Conceptual AreasSAP R/3 Conceptual AreasSAP Conceptual Areas
Application Area(Initiate and execute
SAP transactions)
(Functional)
Basis Area(The technical
administration of the system)
(Authorizations/Ids/etc)
Development Area(1. A developer’s
workbench2. Create & Test
ABAP/4 programs)
(Technical)
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mySAP? mySAP.com?mySAP? mySAP.com?
mySAP links e-commerce mySAP links e-commerce solutions to existing ERP solutions to existing ERP
applications, using state-of-applications, using state-of-the-art Web technology.the-art Web technology.
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System LandscapeSystem Landscape
ProductionDevelopment Quality Assurance
Transport group
Transport group
PRODQTST TRNGTEST CUST
SAND
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Logging on to SAP SystemLogging on to SAP System
Logon pad with different systems
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Adding to favorites Adding to favorites
Steps to add transaction to favoritesStep I: Select the transaction you want to add to favoritesStep II: Right click on the transaction you want to add to favoritesStep III: Select Add to favorites.
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SAP AG
R
Working in Several Sessions
Session 4
Session 3Session 3
Session 2Session 2
Cost centerCost acctg.Valid from
Name
Description
Long text
Descriptions
Exec.Board
Executive Board cost center
X
Session 6
Session 5
Session 1
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SAP AG
R
The Icon Bar in the R/3 System
Enter
Save
Back
Exit
Cancel
Help
Execute
Find
Sort
Change Display
Page??
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SAP AG
R
User Profiles
Own data: allows you tochange your address,defaults, and parameters
Address: enables you toset your communicationinformation
Defaults: allows you tospecify your preferredprinter and date andnumber formats
Parameters: allows you toset default values infrequently used fields
Information systems Tools System
?? Create sessionEnd sessionUser profileServicesUtilitiesListObject servicesOwn spool requestsOwn jobsShort messageStatus...Log off
Hold dataSet dataDelete dataApplication valuesOwn data
Favorite maint.
SAP AG
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SAP AG
R
Getting Help with the R/3 System
Accounting Human resourcesLogisticOffice
SAP R/3
??Dynamic menu
Information systems Tools System HelpExtended helpR/3 library Find...
Glossary Release notesGetting Started
Settings...
Help on help
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SAP AG
R
SAP HTML Help Files
Contents SearchIndex
R/3 Library
SAP Help - R/3 Library
Hide Back Forward Home Print Options
BC - Basis
FI - Financial AccountingHR - Human ResourcesLO - LogisticsInformation
CA - Cross Application
R/3 Library
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The most difficult part of The most difficult part of SAP R/3 is its SAP R/3 is its
implementationimplementation. . Simply because SAP R/3 is Simply because SAP R/3 is never used the same way never used the same way
in any two places.in any two places.
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SAP AG 2002
Defining the Points on the ASAP Roadmap
ProjectPreparation
BusinessBlueprint
Realization
FinalPreparation Go Live &
Support
•Initial Project Planning•ProjectProcedures
•Training•Project Kickoff•Technical Requirements Planning•Quality Check
•Project Management•Organizational Change Management•Develop System Environment•Training•Business Organizational Structure•Business Process Definition•User Roles and Authorization•Quality Check
•Project Management•Organizational Change Management•Training•Baseline Configuration and Confirmation•System Management•Final Configuration and Confirmation•Develop Programs, Interfaces etc.•Final Integration Test•Quality Check
•Project Management•End User Training•System Management•System Tests•Detailed Project Planning•Cutover•Quality Check
•Production Support•Ongoing KPI
Management•Project End
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SAP AG 2002
Master ListsMicrosoft Excel Spreadsheets for Development, Organization, Business Processes and Authorizations
Project Charter
BPP
Documents of an ASAP Project
Q&AdbSubstructures:
Business StrategyOrganizationGeneral SettingsMaster DataBusiness ProcessCross ApplicationDevelopment
Business Blueprint
ProjectPlan
Scope
Config. Plan
TestingPlan
Unit testingTest scenarioIntegration
4321 5Cutover
Plan
VolumeTest
Stress Test
ConductEnd UserTraining
SystemPerformance
Review
ProjectTeamOrg.
Stand. &Proced.
Technical Operations
Manual
Progr.Develp.
EUTrainingMaterial
Microsoft Word Documents
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INTRODUCTION TO SAP:Overview of the SAP R/3 System
& Getting Started with R/3
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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 top of a RDBMS
◦ Replace 100s of legacy systems in organizations who use an ERP
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What Is Enterprise Resource Planning?
Strategic Information
Managerial Information
Transaction Information
Sales &Marketing
Manufacturing
HR
Accounting& Finance
Procurement
Decision Support
Executive IS
One Integrated Information System
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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
Characteristics of ERPs
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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 Move toward business process re-
engineering Center re-engineering around the software Directly link to external systems
Advantages of ERPs, in General
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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 Operating Regions
* Through Partners
Asia Pacific
Australia
Japan
Hong Kong
China
India
Korea
Singapore
MalaysiaNew Zealand
Thailand
Philippines
Indonesia
Middle East*
Africa / Middle East
Israel*
Turkey*
South Africa
Switzerland
SlovakRepublic
Europe
Belgium
Denmark
Germany
France
Greece*
Italy
Netherlands
Austria
Portugal
Russia
Sweden
Spain
CzechRepublic
Hungary*
Poland
Norway
U.K.
America
U.S.A.
Mexico
Argentina
Brazil
Chile
Venezuela
Colombia
FinlandCanada
Romania
Croatia
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R/3 Integrated Products
03
OpenOpenSystemSystem
Designed Designed for all for all
types oftypes ofbusinessbusiness
IndustrySmultinationalolutions
R/3R/3Client / ServerClient / Server
FIFIFinancialFinancial
Acctg.Acctg.
COCOControllingControlling
AMAMAssetAssetMgmtMgmt
PSPSProjectProjectSystemSystem
WFWFWorkflowWorkflow
MMMMMaterials Materials
MgmtMgmt
HRHRHumanHuman
ResourcesResources
SDSDSalesSales
PPPPProductionProductionPlanningPlanning
QMQMQuality Quality MgmtMgmt PMPM
PlantPlantMaint.Maint.
Integrated Integrated
SolutionSolution
Client/ServerClient/ServerArchitectureArchitecture
ComprehensiveComprehensiveFunctionalityFunctionality
ISISIndustryIndustry
SolutionsSolutions
Graphical UserGraphical UserInterfaceInterface
Multinational
Over 12,000 installations around the world
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Highly Integrated Application SoftwareClient/Server TechnologyBased on Best Business PracticesBased on Open Standards
Various RDBMS: Oracle, Informix, etc. TCP/IP (standard communication protocol)
UNIX, Windows NT, OS/400, etc. OLE, RPC’s, Open Interfaces
Summary: What is SAP R/3?
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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 History
Adopted by Most Large Corporations (80% of Fortune 500)
Why is R/3 so Important?
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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 integrated
Integrates several views of data: transactions, managerial, decision support or executive
Fully customizable
Main Features of R/3
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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-redundant Data)
◦Application Processing (I.e. Middleware) is Totally Scaleable
What Does It Involve?
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◦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 MAC, UNIX (X-Windows)
◦75,000,000 Lines of Source Code◦Over 7,000 Separate Relations (over 10,000 logical tables, nearly 8000 physical tables)
What Does It Involve?
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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-Tech Firms
◦Impressive process and data documentation
◦Supported by ALL Major Hardware Vendors
Introduction to SAP R/3
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Disadvantages of SAP◦Expensive◦Very Complex◦Demands Highly Trained Staff◦Lengthy Implementation Time◦Inter-modules functions least understood by business, but high on list of reasons to buy
◦Creates internal conflict in organizations
◦SAP rolls out new versions every 6 months
Introduction to SAP R/3
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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 Migration◦Pilot Approach (Big Bang or Phased, but One Business Area Only)
How Is It Done?
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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
◦Test the configurationMost Large SAP Installations Take 2 to 3
Years to Complete
How Is It Done?
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Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation1 2 3 4 5 6
Project Prep.
Business Blueprint
Simu-lation
Vali-dation
Final Prep.
Go Live&
Support
Start Here
Realize Business Benefits
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Accelerated SAP Roadmap (ASAP): R/3 Accelerated Implementation