SAP PPT (1)

(1)

An ov

(2)

History of SAP

y

y SS ystems ystems A A pplipplicatcationionss andand PProroduductctss inin DaDatata PrPrococesessinsingg

y

y GGerermamann :: SySyststememe,e, AnAnwwenendudungngenen,, PrProduoduktktee inin dederr DDatatenenveverrararbebeititunungg

y

y FFououndndeded inin 19719722 byby WWellellenenrereututheherr,, HHopopp,p, HHecectotorr,, PlaPlattttnenerr anandd TTscschihirara

y

y RRee nnaammeedd iinn 19197777

y

y BBeeffoorree 11997777 :: SSyysstteemmss AAnnaallyyssiiss aanndd PPrrooggrraamm DDeevveellooppmmeenntt ((GGeerrmmaann :: Sy

Systemstemanalanalyseyse undund ProgrProgrammammentwentwickluicklung)ng)

y

y SASAPP iiss bboothth ththee nnaammee ooff ththee CCoommppaannyy aass wweellll aass tthheeiirr EERPRP PPrrododuucctt

y

y SSAAPP ssyysstteemm ccoommpprriisseess ooff aa nnuummbbeerr ooff ffuullllyy iinntteeggrraatteedd mmoodduulleess,, wwhhiicchh

co

coveversrs virvirtutualallyly eveveryery asaspepectct ofof ththee bubusisinenessss

y

y ThThrreeee sysyststeemmss dedevveelolopepedd :: R/R/1,1, R/R/2,2, R/R/33

y

(3)

Wha

t is SAP? (t

he

softw

a

r

e)

y

Enterprise Resource Planning software

y

y Quote-to-Cash (Revenue cycle)Quote-to-Cash (Revenue cycle)

y

y Req-to-Check (Expenditure cycle)Req-to-Check (Expenditure cycle)

y

y Plan-to-Produce (MRP)Plan-to-Produce (MRP)

y

y Finance and ControllingFinance and Controlling

y

Massive

Massive accounting p

accounting package

ackage

y

T

Tool

ool kit

kit

y

Series of Modules

y

(4)

Wh

o Us

e

s SAP?

y

y the Worlds best run companies.the Worlds best run companies. y y 80% of Fortune 50080% of Fortune 500 y y CokeCoke y y ConagraConagra y y CaterpillarCaterpillar y

y Exxon Mobile (over 60 instances)Exxon Mobile (over 60 instances)

y

y ChevronChevron

y

y Marathon OilMarathon Oil

y

y Cooper IndustriesCooper Industries

y

y NikeNike

y

y GGeneral Electriceneral Electric

y

y Baker HughesBaker Hughes

y

(5)

S

A

P



E

R

P

and

D

a

t

a

Flow

y

Manufacturing most popular

y

y GG

rowth

rowth out of

out of MRP

MRP

y

9 basic modules

y

Interconnected and

independent

R/3

MM MM F FII CCOO S SDD PPPP PLM PLM Q QMM WWMM HHRR

(6)

S

A

P



E

R

P

and

D

a

t

a

Flow

y

Data types

y

Master data

y

y Vendor master Vendor master

y

y Customer masterCustomer master

y

y Material masterMaterial master

y

T

Transactio

ransactional data

nal data

y

y Sales ordersSales orders

y

y PaymentsPayments

y

(7)

S

A

P



E

R

P

and

D

a

t

a

Flow

Quote to Quote to Cash Cash Plan to Plan to Produce Produce R

R_{equisition to Check}_{equisition to Check}

Sales Order Sales Order Sales & Sales & Operations Operations Planning Planning Demand Demand Planning Planning Inventory Inventory Sourcing Sourcing Material Material   equirements equirements Planning Planning Delivery Delivery Planned Order

Planned Order ProductionProduction Order Order Production Production Control Control Purchase Purchase   equisition equisition Vendor Vendor Selection Selection Purchase Purchase Order

Order GoodsGoods

 

eceipt

eceipt InvoiceInvoice Verification Verification Vendor Vendor Payment Payment Cost Controlling Cost Controlling Financial and Logistics

Financial and Logistics 

eporting eporting

Business Information Warehouse Business Information Warehouse

Billing Billing Quote

Quote Customer Customer

Payment Payment QtC QtC PtP PtP R R_tC_tC

(8)

SAP Mo

du

l

e

s

SA

_P

R/3

SA

_P

R/3

FI FI FI FI WF WF WF WF P PSS P PSS PM PM PM PM W W_M_M W W_M_M PP PP PP PP MM MM MM MM SD SD SD SD H HRR H HRR A A_M_M A A_M_M CO CO CO CO QM QM QM QM PP ±

PP ± ProdProduction Puction Plannilanningng

WM ±

WM ±WarWarehoehouseuse

Management

PM ±

PM ±Plant Plant MaintMaintenanenancece

AM ±

AM ±Asset ManAsset Managemagementent

PS ±

PS ±ProjProject Syect Systemstem

MM ±

MM ±MatMaterierialsals

Management Management SD ± SD ±SalSales aes andnd Distribution Distribution QM QM ±±QuQualialityty Management Management WF ± WF ±WorWorkfkfloloww HR ±

HR ±HumaHuman Reson Resourcesurces

CO

CO ±± ContControllirollingng

FI ±

(9)

O

t

he

r SAP

Op

tio

n

s

y

Other Modules, Components, and

GG

rids

y y CRMCRM y y BI/BW BI/BW y y Treasury Treasury y

y Real EstateReal Estate

y

y Energy productsEnergy products

y

y SAP Business oneSAP Business one

y

y AFS  AFS  ApparApparel Fel Footwootwear ear SolutionSolution

y

y Industry specific moduleIndustry specific module

y

(10)

M

anagemen

t D

ec

isio

n

s

y

Data driven analysis

y

y What are important pieces of i What are important pieces of information fonformation for r aa

material? material?

y

y SAP material masterSAP material master

y

y 20 different views20 different views

y

y Average 20 fields per view Average 20 fields per view

y

y Several views change by plantSeveral views change by plant

y

Real time accounting information

y

y Accounts Receivable Accounts Receivable

y

(11)

M

anagemen

t D

ec

isio

n

s

y

Profitability

y

y What is profitable? What is profitable?

y

y Who is profitable? Who is profitable?

y

y Where are w Where are we profie profitable?table?

y

Dude, wheres my cash?

y

y InvInventory entory  which which matematerialsrials

y

y Acc Accounts Recounts Receivable eivable  which which customercustomerss

y

y Acc Accounts Paounts Payable yable  which which venvendorsdors

y

(12)

M

anagemen

t D

ec

isio

n

s

-

N

o

M

o

r

e

y

No longer

No longer decisio

decisions!

ns!

y

y When to pay When to pay

y

y What to buy What to buy

y

y When to buy When to buy

y

y What to make What to make

y

y When to make it When to make it

y

y What to count (inventory stock take) What to count (inventory stock take)

y

(13)

M

anagemen

t D

ec

isio

n

C

hange

s

y

Remo

Removal of

val of rote/r

rote/routine decisions

outine decisions

y

Chang

Changes the types of

es the types of decisions

decisions

y

y From how much of product X From how much of product X

y

y To should we sell product X To should we sell product X

y

Flattens the organization

y

Creates new opportunities

y

(14)

Costs of I

m

p

l

emen

ti

ng

SAP

y

What does it cost?

y y HardwareHardware y y SoftwareSoftware y y BiowareBioware y

y

Cultural changes

y

y Different organizationDifferent organization

y

y Change managementChange management

y

Process changes

y

(15)

Cost of SAP

(16)

SAP I

m

p

l

emen

t

a

tio

n

Costs

y

Adult diaper time!

y

$50-100 million, typical

y

By experience

By experience of

of companies

companies

y

y One companyOne company, $, $50 m50 million illion for current systemfor current system

y

y Previous companyPrevious company, >, >$250 mi$250 millionllion

y

y EvEverything erything in-housein-house

y

y Highly customizedHighly customized

y

Others

y

y Hershey faHershey failed(Trick or Tiled(Trick or Treat!)reat!)

y

(17)

SAP H

a

r

d

w

a

r

e

Costs

y

Do

Do you ha

you have

ve an ERP ready

an ERP ready data c

data center? 

enter?  not in $50

not in $50 MM

MM

y

y Fire detection and preventionFire detection and prevention

y

y Above 500 year flood level? Above 500 year flood level?

y

y In hurricane, earthquake, or tornado zone?In hurricane, earthquake, or tornado zone?

y

y Do you have a hot or cold backup site?Do you have a hot or cold backup site?

y

$5-10

$5-10 million depending on size

million depending on size

y

y Multi-mirroredMulti-mirrored

y

y Real-time backupReal-time backup

y

y Application, data Application, database, base, load load balancbalancee

y

(18)

Softw

a

r

e

Costs

y

$5-15 million up front

y

y SAP licenses (various modules)SAP licenses (various modules)

y

y Oracle or other database licensesOracle or other database licenses

y

y BW or other analyticsBW or other analytics

y

y Administration tools Administration tools

y

y Backup and recBackup and recovery software (real time?overy software (real time?))

y

Annual licensing/maintenance fees 20%

y

(19)

Costs of SAP Ex

p

e

rtis

e

y

$10-25 mi

$10-25 millio

llion on hardwar

n on hardware

e and soft

and software

ware

y

$40-75 million on bioware

y

y SAP eliminates $1SAP eliminates $10/hr data entry clerks0/hr data entry clerks

y

y Now Now you need $10you need $100,000+0,000+/yr /yr Basis administBasis administratorsrators

y

Consulta

Consultants

nts can be expensive

can be expensive

y

y You want the expensive ones You want the expensive ones

y

(20)

SAP Co

n

s

u

lt

an

ts

y

y LL

ots of consultants

y

y Few have the skillsFew have the skills

y

y Find, a finder!Find, a finder!

y

y LL

ots of billing rates

y

y SAP PlatSAP Platinum inum coconsultnsultant -ant - $300/$300/hrhr

y

y QualityQuality, , independent independent -- $150/hr$150/hr

y

y Someone Someone who who read an SAP book read an SAP book  not wnot worth the torth the timeime

y

y GG

ood c

ood consult

onsultants 

ants  kno

know the busi

w the business!

ness!

y

y TTechnical echnical aptitudeaptitude

y

(21)

C

u

lt

u

r

a

l C

hange

s

y

Immediate fear

y

y Job losses Job losses

y

y Job changes Job changes

y

Management oversight

y

y DashboardsDashboards

y

y DrilldownDrilldown

y

Allocation of costs

y

Data is a valuable asset

y

(22)

Pr

o

ce

ss C

hange

s

y

What changes?

y

y NothingNothing

y

y EverythingEverything

y

Optimize y

Optimize your process fir

our process first!

st!

y

y StreamlineStreamline

y

y LLeverageverage technologe technology y

y

y Only one big changeOnly one big change

y

Document, document, document

y

(23)

SAP C

a

r

ee

r

s

y

SAP Business Analyst

y

y LLiaison between the busiaison between the business and the techiesiness and the techies

y

y GGood communication skillsood communication skills

y

y UnderstandiUnderstanding of ng of local blocal business and industry practicusiness and industry practiceses

y

T

Technica

echnical

l track

track

y

Functional track

y

Project management

y

Best 

Best  T

Technofunctional that

echnofunctional that can manage

can manage projects

projects

y

IT Director

y

(24)

Benefits of

Benefits of m

mySAP ERP

ySAP ERP

SAP ERP delivers a comprehensiv

SAP ERP delivers a comprehensive set of integrated, crosse set of integrated, cross--functiona

functional bul businessiness procs processes. esses. With SAWith SAP ERPP ERP, we , we can gaincan gain the follo

the following benefwing benefits:its:

y

y Improve Improve alignment of alignment of strategies and operationstrategies and operationss y

y Improve Improve productivity and insproductivity and insightight y

y Reduce costs through increased flexibility Reduce costs through increased flexibility y

y Support changing industry requirementsSupport changing industry requirements y

y Reduce riskReduce risk y

y Improve financial management and corporate govImprove financial management and corporate governanceernance y

y Optimize IT spendingOptimize IT spending y

y GGain higher ROI fasterain higher ROI faster y

y Retain top performersRetain top performers y

(25)

Is it

W

ort

h

It?

y

YES!!!

y

If

If done correc

done correctly

tly



y

y Eliminate non-value added stepsEliminate non-value added steps

y

y Improve Improve management informatimanagement informationon

y

y SignifSignificant soft cicant soft cost savingost saving

y

(26)