Tutorial 1
- 1. ERP & SAP
- 2. Before……… • Before the advent of ERP system, each departments of a company had its own customized automation mechanism. • As a result, the business modules were not interconnected or integrated, and updating and sharing data across the business modules was a big problem.
- 3. Example: Without ERP • Sales S/W will update the Sales Dept regarding the Closing of sales of item ‘X’. But it wouldn’t update the Finance dept automatically. Consequently , the revenue generated from the sales of an item would need to be updated manually in the finance module, resulting a greater probability of errors and an asynchronous business Process. Finance Sales Finance S/W Sales S/W Sales of item ‘X’ is closed.
- 4. What is ERP? • Enterprise Recourse Planning • A system that automates and integrates all modules of business areas known as ERP system.
- 5. Exploring the concepts of an ERP • A centralized database is used to store data related all the modules of the business. • Centralized database ensure that the data can be accessed , shared and maintained by all the modules. • ERP helps synchronize data and keep it updated.
- 6. Why SAP? Despite the benefits of ERP system, the system has certain drawbacks. Some of the major drawbacks are 1. Customization of ERP s/w is restricted because you can’t easily adapt ERP system to specific workflow or business process of a company. 2. Once an ERP system is established , switching to another ERP system is very costly. SAP was introduced to overcome the drawbacks of the contemporary ERP system. The introduction of SAP system not only removed the preceding drawbacks but also improved system performance and business efficiency by integrating individual applications.
- 7. History of SAP SAP is a translation of the German term SYSTEME, ANWENDUNGEN , UND PRODUKTE in DER DATENVERARBEITUNG. It was developed by SAP AG, Germany. The development process began in 1972 with 5 IBM Employees. In 1973, first financial and accounting software was developed, SAP R/1. ‘R’ stands for real time data processing and ‘1’ indicates single tier architecture. Which means three networking layers, Presentation , Application and Database , on which the architecture of SAP depends ,are implemented on a single syatem. In 1980, SAP R/2 introduces. It was 2 tier architecture. In 1992, SAP R/3 Introduced, the 3 tier architecture.