ERP

Final Project Report

Group Members:
 Muhammad Rauf Mughal. (9428)
 Shaista Fatima. (9066)
 Arslan Ali Khan. (9197).
 Taha Ameen Naurange. (8668)

Date: 19th November, 2019.

 Acknowledgement
First of all, thanks to Almighty Allah for bestowing upon us great knowledge and wisdom
and opportunities to improve and show our skills whatever the platform maybe, He always
guided us, showed the right path at the right time and let us show our abilities to the fullest.
We highly admire and acknowledge the efforts of our Faculty because it wouldn’t have been
for him, we would’ve never accomplish such difficult task of assembling a comprehensive
report on an ERP Software. He helped us throughout the Project by explaining things that we
didn’t know, so efficiently and he guided us a lot about how to gather and what to gather to
assemble this report.
We admire and acknowledge the efforts of all our Group Members for working together so
diligently and actually taking interest in doing so. The Group Leader guided the group very
efficiently about the things that we couldn’t do alone, he was always with us whenever we
required any help regarding the project and the members worked so hard to get things done.
Lastly, we thank each and every one who helped us even a little bit in doing what we have
done. The Project wasn’t possible without them helping us and assisting in making of report.

Table of Contents
Title Pg. no.
 ERP Software – An Overview 03
» Introduction 03
» ERP Trends 03
» The need for ERP Software 04
» Top ERP Software 04
 SAP ERP Software 05
» About SAP Inc. 05
» About SAP ERP 05
» Business Applications 05
» Modules of ERP 06
 Functional Modules 06
 Integration of Modules 06
 Technical Modules 09
» SAP Business Suite Applications 09
» SAP Additional Components 09
» Current Technology Trends in SAP 10
» Customers of SAP 12
» Reasons to choose SAP ERP 12
» Popularity of SAP ERP 13
» SAP ERP – A Market Leader 14
» Unique Characteristics of SAP ERP 15
» SAP User Interface 18
» Conclusion 19

ERP – An Overview
Introduction:
Enterprise resource planning (ERP) is business process management software that allows an
organization to use a system of integrated applications to manage the business and automate
many back office functions related to technology, services and human resources.
ERP software typically integrates all facets of an operation including Product Planning,
Development, Manufacturing and Sales and marketing in a single database, application and
user interface.
ERP software is considered to be a type of enterprise application, that is software designed to
be used by larger businesses and often requires dedicated teams to customize and analyze the
data and to handle upgrades and deployment. In contrast, Small business ERP applications
are lightweight business management software solutions, often customized for a specific
business industry.

ERP Trends:
Following are the current trends followed by Enterprise these days:
 Mobile ERP.
 Cloud ERP.
 Social ERP.
 Two-tier ERP.

Mobile ERP:
Executives and employees want real-time access to information, regardless of where they are.
It is expected that businesses will embrace mobile ERP for the reports, dashboards and to
conduct key business processes.

Cloud ERP:
The cloud has been advancing steadily into the enterprise for some time, but many ERP users
have been reluctant to place data in the cloud. Those reservations have gradually been
evaporating, however, as the advantages of the cloud become apparent.

Social ERP: 03
There has been much hype around social media and how important or not it is to add to ERP
systems. Certainly, vendors have been quick to seize the initiative, adding social media
packages to their ERP systems with much fanfare. But some wonder if there is really much
gain to be had by integrating social media with ERP.

Two-tier ERP:
Enterprises once attempted to build an all-encompassing ERP system to take care of every
aspect of organizational systems. But some expensive failures have gradually brought about a
change in strategy – adopting two tiers of ERP.

The need for an ERP Software:

Following are the reasons as to why an Organization may need an ERP Software:
 ERP helps process automation.
 Possibility of less errors and more efficiency.
 ERP provides better Communication and higher Productivity.
 ERP ails in better relations with customers and suppliers.
 ERP assists in better Information Management.
 ERP also assists in better Performance Management.

Top ERP Software

Paid ERP Software:
Following are the top-of-the-line ERPs available on the internet:
 SAP ERP Software.
 Oracle ERP Software.
 Microsoft Dynamics.

Open Source ERP Software:

Following are the top-of-the-line Open Source ERPs available:
 ADempiere.
 ERPNext.
 Odoo.
 xTuplePostbooks.

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About SAP Inc.:
SAP is the market leader in enterprise application software, helping companies of all sizes
and in all industries run at their best: 77% of the world’s transaction revenue touches an SAP
system. Our machine learning, Internet of Things (IoT), and advanced analytics technologies
help turn customers’ businesses into intelligent enterprises. Our end-to-end suite of
applications and services enables our customers to operate profitably, adapt continuously, and
make a difference. With a global network of customers, partners, employees, and thought
leaders, SAP helps the world run better and improves people’s lives.

About SAP ERP:

SAP ERP is an enterprise resource planning software developed by the German company
SAP SE. SAP ERP incorporates the key business functions of an organization. The latest
version of SAP ERP was made available in 2006. The most recent Enhancement Package for
SAP ERP 6.0 was released in 2016.

Business Applications:
SAP is employed in various businesses such as:
 Aerospace.
 Automotive.
 Finance.
 Defense & Security.
 Healthcare.
 Education.
 Media.
 Life science.
 Oil & Gas.
 Pharmaceuticals.
 Telecommunications.

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 Modules of SAP
Modules of SAP are categorized as Functional & Technical Modules. Following are the
details about these modules:

Functional Modules:
 SAP FICO Module.
 MM Module.
 SD Module.
 HR Module.
 PP Module.
 PS Module.
 Basis Module.
 Security Module.
 ABAP Module.
 Financial Supply Chain Management (SAP FSCM).
 Plant Maintenance (SAP PM).
 Quality Management (SAP QM).

Integration of Modules
Sub Modules of SAP FICO:
 SAP General Ledger Accounting.
 SAP Accounts Payable.
 SAP Accounts Receivable.
 SAP Bank Accounting.
 Budgeting and Monitoring.
 Cash Management.
 SAP Asset Accounting.
 SAP Funds Management.
 SAP Treasury Management.
 SAP Special Purpose Ledger.
 Withholding Tax (TDS).
 SAP Cost Element Accounting.
 Cost center Accounting.
 SAP Product Cost Accounting.

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  SAP CO Internal Orders.
 SAP Profit Center Accounting.
 SAP Profitability Analysis.

Sub-Modules of SAP HR Module:

 Organizational Management.
 Personnel Administration.
 Recruitment.
 Payroll.
 Travel Management.
 Personnel Management.
 Time Management.
 Compensation Management.
 Training and Event Management.
 Wages.
 Personnel Development.
 Workforce Administration.

Sub-Modules of SAP MM Module:

 Purchasing.
 Inventory Management.
 Material Planning.
 Invoice Verification.
 Material Requirement Planning (MRP)
 Warehouse Management.
 Vendor Valuation.

Sub-Modules of SAP SD Module:

 Sales.
 Shipping and Transportation.
 Billing or Invoice Generation.
 Bills of Material (BOM).
 Sales Information System.
 Credit Control.
 EDI (Electronic Data Interchange).

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Sub-Modules of SAP PS Module:
 Project Planning.
 Project Preparation.
 Project Tracking.
 Project Reporting.
 Project Costs.
 WBS Elements.

Sub-Modules of SAP PP Module:

 Sales and Production Planning.
 Demand Management.
 Material Requirement Planning.
 Capacity Requirement Planning.
 Bills of Material.
 Production Orders.
 Routing.
 Work Center.
 Shop Floor Control.

Sub-Modules of SAP PM Module:

 Maintenance Planning.
 Preventive Planning.
 Service Management.
 Predictive Maintenance.
 Project Maintenance.

Sub-Modules of SAP QM Module:

 Planning.
 Process Inspections.
 Notifications of Quality.
 Quality Control.
 Test Equipment.
 Quality Certifications
 General Functions.

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Sub-Modules of SAP FSCM Module:
 Credit Management.
 Cash & Liquidity Management.
 Treasure and Risk Management.
 Collections Management.
 Payments.
 Dispute Management.

Technical Modules:
 SAP Basis.
 SAP Security.
 Advanced Business Application Programming (SAP ABAP).
 High Performance Analytic Appliance (SAP HANA).
 SAP NetWeaver.
 Information Systems Management (SAP IS).
 Customer Relationship Management (SAP CRM Technical Module).
 Exchange Infrastructure (SAP XI).
 SAP Solution Manager.

SAP Business Suite Applications:

 Enterprise Resource Planning SAP (ERP SAP).
 SAP Customer Relationship Management (SAP CRM).
 SAP Supply Chain Management (SAP SCM).
 SAP Supplier Relationship Management (SAP SRM)
 SAP Product Life cycle.
 SAP HANA (High Performance Analytic Appliance).
 Government, Risk and Compliance (SAP GRC).
 SAP Strategic Enterprise Management (SAP SEM).
 SAP Compliance Management for SOA,

SAP Additional Components:

SAP has following additional Components:

 SAP Business Warehouse (SAP BW).

 SAP Advanced Planning and Optimization (SAP APO).

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  Salesforce Automation (SFA).
 Internet Transaction Server (ITS).

Current Technology Trends in SAP:

 Digital Transformation.
 Machine Learning.
 Blockchain.
 Internet of Things (IoT).
 Cloud Computing.
 Big Data.

Digital Transformation:
Traditional business models are being radically disrupted in the digital economy. Discover
what it means and takes to transform – explore strategies, best practices, and more.

Machine Learning:
Artificial intelligence (AI), machine learning, and deep learning are powering a new breed of
software innovation. See how the technology can harness an ocean of Big Data to create
business opportunities.

Blockchain:
Blockchain has the potential to majorly disrupt every industry. This distributed ledger
technology goes far beyond cryptocurrencies to include everything from land titles and
intellectual property to votes. 

Internet of Things:
The Internet of Things (IoT) is connecting machines to machines (M2M) and machines to
people in nearly every industry. Explore this world of networks – including the IIoT and
Internet of Everything (IoE).

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Cloud Computing:
From SaaS and PaaS to private and hybrid – learn more about cloud technology and its
benefits. You can also investigate the latest cloud trends and hot topics, such as security and
public cloud options.

Big Data:
Big Data continues to explode in volume and variety, and companies must keep up. Learn
about the latest Big Data tech trends, including real-time analytics and AI – and find out what
they can do for business. 

Customers of SAP:
SAP ERP is used in:

 SMEs (Small Medium Enterprises).

 Large Business Organizations.
 Huge Enterprises.
 All Industry Sectors.

Reasons to choose SAP:

Organizations can get following benefits if they use SAP ERP:

 Customized Solutions.
 Increased Productivity & Efficiency.
 Cost-Efficient Use.
 Data Analysis & Reporting.
 Maintained Consistent Operations.

Customized Solutions:
Since the needs of every company are different, each gets a customized system. It considers
operational and departmental needs. ERP systems are simple, flexible, and adaptable. That
means it is easy for every employee to use it. It is flexible because there are different system
modules for different departments. For example, sales and distribution, product management,
finance, and personnel management modules. It is adaptable because the system is available
via mobile. Hence, employees or management can use the software from anywhere.

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Increased Productivity and Efficiency:
With real-time information, employees do more work and handle customer queries faster.
Different departments communicate effectively since all the information is up-to-
date.Customers are able to relate to the company because they can make orders, pay, and
track their goods. This customer relationship system also ensures the company can improve
its customer services.Employees use the supply chain management system to monitor the
inventory. They track transactions between the business, the suppliers, and the customers.

Cost-Efficient Use:
For the price of one, a company gets a system that operates in each department. It reduces the
cost of labor by making sure everyone is working at the right time. This helps to reduce
administration costs as well.There are controls on replenishing the supply and this reduces the
cost of inventory. It prevents overstocking unnecessary goods.Aside from reducing the
compliance costs, the software ensures there is incoming revenue. This is because customers
are using a seamless system for ordering and paying for goods.

Data Analysis and Reporting:

It is tough to rely on people to provide accurate data analysis and reports. Human error can
cost your business a lot of money. An ERP system takes the risk out since there is no data
duplication. The system provides real-time reports of everything happening in the business. It
delivers risk analysis and performance reports. It updates transactions and inventory changes
as they are occurring. The company’s old data can help to determine the future of the
business and industry.

Maintained Consistent Operations:

With a SAP ERP system, managers direct all departments to achieve the same goals. This
speeds up the decision-making process. You can make system updates centrally and it applies
to every department. The system manages a global business. It resolves foreign exchange
rates and allows the group of companies to communicate. It becomes easy to spot operational
risks as well.

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 Popularity of SAP ERP
SAP stands at no. 1 when it comes to popularity and usage all over the world because of its
distinct features and user-friendly interface. Given below is the official ranking of ERP
Systems that’re being used by different organizations:

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SAP ERP – A Market Leader:
In 2017, the top 10 ERP software vendors accounted for nearly 31.7% of the global ERP
applications market which grew 0.4% to approach nearly $82.6 billion in ERP license,
maintenance and subscription revenues. The ERP applications market includes both ERP
Financial Management & ERP Services and Operations applications.Last year SAP led the
pack with nearly 7% market share riding on a 6.4% jump in ERP license, maintenance and
subscription revenues. Oracle was #2, followed by Intuit , FIS Global and Fiserv.
A forecast suggests that the ERP applications market is expected to reach $85.9 billion by
2022, compared with $82.6 billion in 2017 at a compound annual growth rate of 0.8%.

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Unique Characteristics of SAP ERP:
It is, at its core, based on the concept of MRP II, a concept developed long ago that consisted
of 16 core module functionalities, all of which work better when they are tightly integrated
with each other. Though many, if not most, other ERP vendors also use the concept of MRP
II, it is the inter-module integration that SAP provides that make it a strong contender for
‘Best ERP”. For instance, there are approximately 230+ integration points between CRM and
the rest of the ERP system. SAP designs, builds and maintains these on behalf of their
customer base (at great, on-going expense). So every time they release a new Enhancement
Package, all of these and many, many other integration points get tested. Following are the 10
unique characteristics that make SAP stand out as compared to all other ERPs:
 Specialized Industry Solution.
 Large Base of Skill Consultants.
 User Groups.
 Support.
 Partners.
 Acquisitions.
 Value Creation.
 Business Transformation Consulting.
 SAP ASAP.

Specialized Industry Solutions:

With a thoroughly established strategy of developing Industry Specific solutions, they have
not just developed ‘Best Practices’, they have developed Best Practices that use the language
of that industry. In many cases, they actually defined or normalized the language within an
industry. For instance, Functional Location, a key concept used to develop a blueprint of an
aircraft (my primary area of expertise), is a key concept used not just within MRO for
Aviation, but across every industry where you need to configure and maintain complex
equipment structures, which includes things like Oil Refineries, Oil Rigs, Ships, Hospital’s,
Trains, Construction Equipment, in short, anything you need to maintain. This is very hard.

Large Base of Skilled Consultants:

At one point, it was very lucrative to be a SAP Consultant. That attracted and continues to
attract, a large number of people to the market. This greatly facilitates the implementation of
SAP. Without those consultants, whether they are top gun SAP Consultants or newbies, the
software would essentially be worthless. Think having it available in the cloud will eliminate
the need for these guys? Think again, with or without wizards, someone still has to know
what it will do and what you need it to do and decide how you want to configure it.

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User Groups:
This is the killer app. SAP really can’t invent all that many new solutions - but their
customers can. These user groups, some more than others, are where the actual new
functionality needs largely come from. Ever hear of Linear Asset Management or Catch
Weight Management? Only during testing by customers (when it theoretically was done) did
I truly understand what they really needed.

Support:
Some might snicker at this one. But SAP, like any software company, lives or dies by the
level of support it is both able to deliver and that their customers are able to consume. They
do an OK job of it, and for ‘enterprise clients’, do a very good job of it. Support messages are
also where they learn a lot. Could it be better? Most definitely! But it is one of the reasons
their software works.

Partners:
There are something like 20,000 SAP partners, which come in a variety of shapes and sizes;
SAP relies heavily on them to drive the sales, especially in the channel. But beyond providing
an army of implementation consultants at various price points, the partners also provide a
huge number of bolt-on solutions that extend the SAP ERP footprint. In some cases, further
extension of the software footprint is mostly in the hands of the partners. That means the
solution benefits from having deep expertise going even deeper into the software
development process. Why is this a huge deal? SAP has no need for some of this expertise
internally (product development excepted), at least on a long term basis. Plus, if they hired
someone with deep expertise, because that person is now away from their industry, they
quickly lose ‘tip-of-spear’ expertise.

Acquisitions:
Some have worked, some have not, others may not. But, now that they have started acquiring
companies (actually, they are way beyond ‘started’), they have bought solutions that they
were not going to be able to attack on their own. This has had the dual benefit of bringing in
new functionality to solve very complex problems that yield very large profits to their
customers, i.e., Contract Lifecycle Management (CLM) for Mobile Phone Operators while
also bringing in a much wider customer base, i.e., Crystal Reports.

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Value Creation:
A key differentiator is their ability to help customers achieve value from their SAP
implementation. If you do not provide a value case for your customers, it is very easy for a
customer to continually hammer SAP on their ‘high cost’ for both the software and
consulting, . But when you have a solid value case, it is a much easier to work collaboratively
with your customers in terms of positioning the right solutions and expertise for their
problems. When you do not, and lets face it, the clients procurement department is going to
do all it can to keep the process focused on buying the features and functions at the lowest
possible cost, what you end up doing, sadly, is selling them what they can afford, not what
they actually need.

Business Transformation Consulting:

When coupled with the Value Creation approach, the ability of the BTS (their name changes
but the concept and organization remain in place) to combine non-SAP solutions to find a
solution for a client is a key reason why SAP is not just able to beat the competition over and
over again, but why they are able to expand the footprint of their solution. Sometimes to
include, say, all the transportation infrastructure of an entire country. To play in this space,
you have to have both the size and connections (including executive level connections) to
‘seal the deal’.

SAP ASAP:
SAP ASAP is a new implementation methodology. This methodology, when explained
properly, is one of the most important pieces of information a client is looking for. In fact, it
can recover a lost deal also! For all these reasons, SAP has a very good solution and a vast
installed base. Within certain vertical sectors, there may be competing solutions that provide
something better, but taken as whole, SAP usually has a solid offering.

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SAP User Interface

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 Conclusion
It is concluded that ERPs are transforming the way the businesses are run today as compared
to days of the past when most of the things were done manually. Everything in businesses of
today’s world is being automated as no. of employees is decreasing and no. of computer
systems is increasing and technical advancements are happening. Corporate World is on the
verge of single-click, convenient and integrated systems all thanks to excessive usage of
ERPs. In this journey, SAP has stepped up and gained quick popularity among different
businesses for example Imtiaz Super Market of Pakistan that has implemented SAP very
effectively and has proven to be a highly profitable business. In addition to providing ease to
its customers, SAP has transformed the way the modern-day business should run and is
continuously improving its dynamics to ensure a fully tech=oriented corporate world.

*****************************THE END***********************************

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