SAP PPT (1)

 An overvi overview ew of the worlds leading ERP system

History of SAP y

S ystems A pplicat pplication ionss and Produ roduct ctss in Data Data Proc Proces essin sing g y

y

erman n: Germa

Syst System eme, e, An Anw wendu endung ngen en,, Produ Produkt ktee in der der Daten atenve verrarbe arbeit itun ung g

Found ounded ed in 1972 1972 by Wellen ellenre reut uthe herr, Hopp, opp, Hecto ectorr, Platt Plattne nerr and and Tsc schi hira ra Re named in 197 1977 Before 1977 : Systems Analysis and Program Development (German : System Systemanal analyse yse und Programm Programmentw entwicklu icklung) ng) y y

y

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SAP SAP is both the the name of the the Company as well as their ERP Produ oduct SAP system comprises of a number of fully integrated modules, which cove co vers rs virtu virtual ally ly every every aspe aspect ct of the the busi busine ness ss

y

Thr Three syst systeems dev develope loped d : R/1, R/1, R/2, R/2, R/3 R/3

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Trades ades on NYSE NYSE:: SAP SAP

Whatt is SAP? (the Wha (the softw softwa are) y

Enterprise Resource Planning software y

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y

y

y y y y

Quote-to-Cash (Revenue cycle) Req-to-Check (Expenditure cycle) Plan-to-Produce (MRP) Finance and Controlling

Massive accounting package package Tool kit Series of Modules Bought and customized to your business

Who Wh o Use Uses SAP? y

the Worlds best run companies.

y

80% of Fortune 500 y y y y y y y y y y y

Coke Conagra Caterpillar Exxon Mobile (over 60 instances) Chevron Marathon Oil Cooper Industries Nike General Electric Baker Hughes Enron.?

SAP  ERP and Data Flow y

Manufacturing most popular

y

Growth out of

R/3

MRP MM

y

PP

9 basic modules FI

y

SD

Interconnected and independent

PLM CO

QM WM HR

SAP  ERP and Data Flow y y

Data types Master data y

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y

y

Transactional ransactional data y

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 Vendor master Customer master Material master Sales orders Payments

Meta data

SAP  ERP and Data Flow Financial and Logistics eporting  

Cost Controlling

QtC

Quote

Inventory Sourcing

Sales Order 

Billing

Delivery

Customer  Payment

Quote to Cash

PtP

Sales & Operations Planning

Demand

 

Planning

Requisition

Planned Order 

Production

Production

Order 

Control

Planning

Plan to Produce

RtC

Material equirements

 

Purchase equisition

Vendor  Selection

Purchase Order 

to Check

Business Information Warehouse

Goods eceipt  

Invoice Verification

Vendor  Payment

SAP Modu Modulles SD ± Sal Sales es and and Distribution MM ± Mat Materi erials als Management

FI ± Finan Financial cial Accoun Accounting ting SD

FI

MM

PP ± Prod Production uction Planni Planning ng

CO ± Cont Controlli rolling ng

CO

PP

 AM ± Asset Managem Management ent AM

SAP R/3 QM ± Qu Quali ality ty Management

HR

QM

PM ± Plant Maint Maintenan enance ce

WF

PM

WM ± War Wareho ehouse use Management

HR ± Huma Human n Resources Resources WF ± Wor Workf kflo low w

WM

PS PS ± Proj Project ect System System

herr SAP Optio tion ns Othe y

Other Modules, Components, and Grids y

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CRM BI/BW  Treasury  Real Estate Energy products SAP Business one  AFS  Apparel Apparel Footw Footwear ear Solution Industry specific module Governance, Risk and Compliance

Managemen anagementt Dec Decisio ision ns y

Data driven analysis y

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 What are important pieces of information i nformation for fo r a material? SAP material master y

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20 different views  Average 20 fields per view Several views change by plant

Real time accounting information y

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 Accounts Receivable  Accounts Payable

Managemen anagementt Dec Decisio ision ns y

Profitability  y

y

y

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 What is profitable?  Who is profitable?  Where are we we profitable? profi table?

Dude, wheres my cash? y

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Inventory Inventory  which materials materials  Accounts  Acc ounts Receivable Receivable  which customers customers  Accounts  Acc ounts Payable Payable  which vendors vendors Others  prepaids, prepaids, accrued accrued payroll, payroll, other expenses

Management Decisions - No More y

No longer decisions! decisio ns! y

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 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 (always MBA students) studen ts)

Managemen anagementt Dec Decisio ision n Change hangess y y

Removal Removal of rote/routine rote/routine decisions Changes Changes the types of decisions y

y

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From how much of product X  To should we sell product X 

Flattens the organization Creates new opportunities y

How many analysts does it take

Costs of Im Implemen ementi ting ng SAP  What does it cost?

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Cultural changes y

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Hardware Software Bioware Different organization Change management

Process changes y

 Where to start?

Cost of SAP deploy loymen mentt

SAP Im Implemen ementtatio tion n Costs y y y

 Adult diaper time! $50-100 million, typical By experience of companies y

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One company, company, $50 $ 50 million m illion for current system Previous company, company, >$250 > $250 million mi llion y

y

y

Everything Everything in-house Highly customized

Others y

y

Hershey failed(Trick fa iled(Trick or Treat!) Treat!) Enron went in smooth and easy 

SAP Ha Hardware Costs y

Do you have have an ERP ready data center? center?  not in $50 MM y

y

y

y

y

$5-10 million depending on size y

y

y

y

Fire detection and prevention  Above 500 year flood level? In hurricane, earthquake, or tornado zone? Do you have a hot or cold backup site? Multi-mirrored Real-time backup  Application, database, database, load balance balance

Do you you need need new new PCs?

Softwa Softw are Costs y

$5-15 million up front y

y

y

y

y

y y

SAP licenses (various modules) Oracle or other database licenses BW or other analytics  Administration tools Backup and recovery recovery software (real time?) time? )

 Annual licensing/maintenance fees 20% Hint  select the right state and download download

Costs of SAP Expertis rtise e y

$10-25 millio million n on hardware hardware and software software

y

$40-75 million on bioware y

y

y

SAP eliminates $10/hr $1 0/hr data entry clerks Now you need $100,000+ $10 0,000+/yr /yr Basis administrators administ rators

Consultants Consultants can be expensive y

y

 You want the expensive ones Know business and technical

SAP Con Consult ltan ants ts y

Lots of consultants y

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Lots of billing rates y

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Few have the skills Find, a finder! SAP Platinum Platinum co consult nsultant ant - $300/hr $300/hr Quality, Quality, independent - $150/hr Someone who read an SAP book  not worth worth the time time

Good consult consultants ants  know know the business! business! y

y

Technical aptitude Communication skills

Cult ltu ural Change Changess y

Immediate fear y

y

y

Management oversight y

y

y y y

 Job losses  Job changes Dashboards Drilldown

 Allocation of costs Data is a valuable asset Centralized/Shared processes and resources

Pro Pr oce cess ss Change Changess y

 What changes? y

y

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Optimize your your process first! first! y

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y

y y

Nothing Everything Streamline Leverage everage technology  technolog y  Only one big change

Document, document, document Communicate, communicate, communicate

SAP Ca Caree eerrs y

SAP Business Analyst y

bus iness and the techies Liaison between the business

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Good

y

y y y y y y

communication skills Understanding Understanding of local business b usiness and industry practices practices

Technical echnical track Functional track Project management Best  Technofunctional that can manage projects IT Director Consultant

Benefits of mySAP ERP

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SAP ERP delivers a comprehensive comprehensive set of integrated, crosscross functional functiona l busines bu sinesss processes. processes. With SAP SA P ERP, ERP, we can gain the following following benefits: benef its: Improve alignment of strategies and operations operation s Improve productivity and insight ins ight Reduce costs through increased flexibility  Support changing industry requirements Reduce risk Improve financial management and corporate governance governance Optimize IT spending Gain higher ROI faster Retain top performers Provide immediate access access to enterprise information informat ion

Is it Wort orth h It?

 YES!!!

y y

If done correctly correctly  y

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Eliminate non-value added steps Improve management information informati on Significant Signif icant soft cost cost saving Focus resources