Sap basics (SAP Modules)

SAP
Systems, Applications, Products in data
processing

Objectives:
• To explain:
The Concept, History and
Scope of Enterprise
system
Why it is important.
• To explore:
Various SAP Modules.

Introduction
Sales
SCM/
Vendor
s
Financ
e
Inventor
y
FG/Raw HR
Productio
n
Planning
Shop
Floor

Classification of Enterprise System
Decentralized System:
 Data is maintained locally at the individual departments
 Departments do not have access to information or data from other
departments
Centralized System:
 Data is maintained at a central location and is shared with various
Departments
 Departments have access to information or data from other
Departments

Sales
Decentralized System
Inventory
FG/Raw
Productio
n
Planning
Product out of Stock – Plan for future use
No real time inventory information
(May loose Customer)
Raw material is available
as per the inventory
Raw material is
out of stock
Shop
Floor
Manpower short
Finance
No update regarding purchases
Payment dues to vendor

Decentralized System Cont...
Major Problems:
 Numerous disparate information systems created individually over
time which are difficult to maintain
 Integrating the data is time and money consuming
 Inconsistencies and duplication of data
 Lack of timely information leads to customer dissatisfaction, loss
of revenue and reputation
 High Inventory, Material, and Human resource cost.

Centralized System Cont....
Key benefits:
 It eliminates the duplication, discontinuity, and redundancy in data
 Provides information across departments in real time
 Better inventory & effective human resources management
 Improves customer service
SAP Software is a centralized enterprise management system

SAP
 SAP Software is a centralized enterprise management system
 SAP stands for Systems Applications and Products in Data Processing
 Since it is an acronym, it is pronounced as individual letters (S-A-P)
 Software solutions for managing business operations & relationships
 Consists of fully integrated modules, which covers virtually every aspect of
business management.
 Competitive products of SAP Software in the market are Oracle, Microsoft
Dynamics, etc.

History of SAP
 Founded in 1972 by five ex IBM employees (Listed below) in Weinheim,
Germany:
 Dietmar Hopp.
 Klaus Tschira
 Hans-Werner Hector
 Hasso Plattner
 Claus Wellenreuther.
 Primarily known as System Analysis and Program Development till 1976.
 Firstly used at German branch of Imperial Chemical Industries in
Östringen.
 1977: Outside Germany - Two companies in Austria decided to
implement SAP software.
 1996: SAP introduced its joint Internet strategy with Microsoft.
 1996: SAP India began its operations with headquarters in Bangalore.

SAP – Basic Architecture
Cont..
ID Name Organization
118257 Kamal Joshi AL India
111111 Abc xyx AL India
Row-based storage sequence:
118257, Kamal Joshi, AL India; 111111, Abc xyz, AL India;
Column-based storage sequence:
118257, 111111; Kamal Joshi, Abc xyz; AL India, AL India;
R/3, ECC & S/4 HANA:
 SAP ECC - Successor version of R/3 also follows same architecture as R/3.
 ECC stands for ERP Central Component
 Both systems – SAP R/3 and SAP ECC – were only offered as an on-
premises solution, i.e. as an installation on a separate server with
clients.
 SAP S/4 HANA - An on-premises or a cloud solution
 SAP S/4 HANA – Pricing difference. (According to resource usage not no.
of users)
 Database (storage sequence) is based on columns instead of rows
(Example as below)

Sap basics (SAP Modules)

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