History and Evolution of SAP

History and Evolution of SAP

Evolution of SAP
Founded in 1972 in Mannheim, Germany, as Systemanalyse und Programmen-twicklung for producing market standard software for integrated business solutions. Today that company is known as SAP (Systems, Applications and Products in Data Processing), headquartered in Walldorf, Germany

There are now 44,500 installations of SAP, in 120 countries, with more then 10 million users!

SAP built packaged applications for mainframe computers, called SAP R/2. SAP launched a major initiative to engineer powerful three-tiered integrated business applications under one framework which is SAP R/3

SAP overview
R/2 & R/3 R stands for Real time R/2 Two tiered architecture R/3 Three tiered architecture SAP R/2 is for mainframes only, whereas SAP R/3 is three-tiered implementation using client/server technology for a wide range of platforms-hardware and software.

Advantages of SAP
Integration

Integration can be the highest benefit of them all. The only real project aim for implementing ERP is reducing data redundancy and redundant data entry . SAP integrates various data base unifies into single data base
Efficiency

ERP software focus on integration of various data base and hence improve efficiency of the overall process
Cost Reduction

SAP eliminates lot of manual efforts and hence reduces time and manpower in accounting and reporting areas which in turn result in cost reduction. However only effective utilization of SAP alone will facilitate cost reduction
Accuracy

SAP forces users to be accurate without which SAP cannot function successfully since there is integration of data among various departments

Disadvantages of SAP
1. Expensive

This entails software, hardware, implementation, consultants, training, etc. Alternatively a programmer or two can be taken as an employee for customization and training. For business consulting alone outside source can be taken This can be cost-effective.

SAP Modules

Major Drivers for SAP implementation are

Time Frame
Depends on the size and complexity of the business process. Normal period is Nine to Eighteen months. It could be between five to ten years for some companies

People
The number of people required for implementation also depends on the complex of the process. Small companies can do with part time consultants also and largest could require hundreds of people for implementation

Hardware
Smallest require three instances- one for production system, one for testing and one for development . The largest may have over hundred instances if they involve multiple projects

History and Evolution of SAP

History and Evolution of SAP

Evolution of SAP
Founded in 1972 in Mannheim, Germany, as Systemanalyse und Programmen-twicklung for producing market standard software for integrated business solutions. Today that company is known as SAP (Systems, Applications and Products in Data Processing), headquartered in Walldorf, Germany

There are now 44,500 installations of SAP, in 120 countries, with more then 10 million users!

SAP built packaged applications for mainframe computers, called SAP R/2. SAP launched a major initiative to engineer powerful three-tiered integrated business applications under one framework which is SAP R/3

SAP overview
R/2 & R/3 R stands for Real time R/2 Two tiered architecture R/3 Three tiered architecture SAP R/2 is for mainframes only, whereas SAP R/3 is three-tiered implementation using client/server technology for a wide range of platforms-hardware and software.

Advantages of SAP
Integration

Integration can be the highest benefit of them all. The only real project aim for implementing ERP is reducing data redundancy and redundant data entry . SAP integrates various data base unifies into single data base
Efficiency

ERP software focus on integration of various data base and hence improve efficiency of the overall process
Cost Reduction

SAP eliminates lot of manual efforts and hence reduces time and manpower in accounting and reporting areas which in turn result in cost reduction. However only effective utilization of SAP alone will facilitate cost reduction
Accuracy

SAP forces users to be accurate without which SAP cannot function successfully since there is integration of data among various departments

Disadvantages of SAP
1. Expensive

This entails software, hardware, implementation, consultants, training, etc. Alternatively a programmer or two can be taken as an employee for customization and training. For business consulting alone outside source can be taken This can be cost-effective.

SAP Modules

Major Drivers for SAP implementation are

Time Frame
Depends on the size and complexity of the business process. Normal period is Nine to Eighteen months. It could be between five to ten years for some companies

People
The number of people required for implementation also depends on the complex of the process. Small companies can do with part time consultants also and largest could require hundreds of people for implementation

Hardware
Smallest require three instances- one for production system, one for testing and one for development . The largest may have over hundred instances if they involve multiple projects

SAP standard implementation methodology

ASAP Methodology

ACCELARATED SAP ROAD MAP

Phases

Phase 1: Project Preparation

Overview
Goal Settings
Define Project goals and Objectives

Implementation Strategy
1. Clarify the scope of implementation 2. Establish the project organization and relevant committees

Implementation Sequence
Define the sequence in project

Team
Project team and consultant team

Sign Off
At the end of each phase every step will be documented and will be signed off by the clients

System Landscape and Technical Requirements

The project team decides on the system landscape, as well as on the highlevel strategies for creating R/3 clients, implementing new releases and transporting system settings. The technical requirements for implementing R/3 include defining the infrastructure needed and procuring the hardware and the necessary interfaces. For this purpose, one make use of the Quick Sizing Service, which can be accessed via SAP Net. Note: Quick Sizing Tool calculates CPU, disk and memory resource categories based on the number of users working with the different components of the R/3 System in a hardware and database independent format. Define the strategy for archiving. Remote Archiving Service, SAP enables the outsourcing of all the tasks associated with archiving the data in R/3 System and have them performed by SAP specialists.

Other Tools Used

Issues Database Escalation procedures need to be in place in case an issue cannot be solved by the project team. Typically, issues must be resolved before phase completion or before beginning the next phase. The Issues Database allows the project team to enter, track, and report on project issues. The database supports the following data for each issue identified: Priority Project phase Status People responsible Date required for solution Date resolved Classification (for example: resource, documentation, training or configuration issue)

Other Tools Used

Concept Check Tool

ASAP also includes a concept check tool to evaluate the system concept and configuration and alert you to potential performance or design issues.
Using the tool checklists, you can analyze the project and implementation work either by yourself or with the assistance of your SAP consultant. The check focuses on project organization and the configuration of the R/3 applications. The checklists are designed dynamically, that is, as each question is answered, the following questions are selected so that you only answer those questions relevant to your system configuration. The checklists are used in the first two phases Accelerated SAP, as it is advisable to deal with questions relating to each phase of the project as they arise

Phase 2: Business Blueprints

Overview
Scope Document
This document will consist of questionnaire of the entire business process

AS IS
1. Understanding the business process from the core team 2. Documents needed to be create module wise

To Be
1. Mapping of business process in SAP based on AS IS. 2. TO BE document needs to be created

Gap Analysis
1. The inputs or business processes that cannot be mapped to standard SAP needs to be analyzed. 2. Gap Analysis document is created

Sign Off
At the end of each phase every step will be documented and will be signed off by the clients

Phase 3: Realization

Overview
Baseline
The major scope 80% of your daily business transaction, all master data and organization structure

Final Configuration
Remaining Scope Remaining Configuration done in process oriented cycles

Sign Off
Note: Purpose of the phase is to implement the business process At the end of each phase every step will be documented and will be signed off by the clients

Further Aspects
The following aspects of configuration need to be taken into account during the steps carried out for the Realization Phase: Authorizations (Profile Generator) SAP Business Workflow ABAP work bench Creating User Documentation Quality Checks

Phase 4: Final Preparation

Overview
Unit Testing
Testing within each module

Integration Testing
Combining all modules and testing

User Training

Cutover Strategy
Legacy system will be migrated to SAP System

Sign Off
At the end of each phase every step will be documented and will be signed off by the clients

Refining the Cutover

Cutover strategy is the last step before shifting from legacy system to SAP The following tasks are carried out Reviewing of the runtime of test runs to estimate runtime for the complete data size Conversion checklist for transporting all changes into the productive system is provided The technical environment should be in place The cutover programs should be ready and the application data is verified Data Transfer Made Easy Guidebook created especially for this purpose. It is located in the Knowledge Corner of the ASAP CD Setup help desk support Problems which cannot be solved by this internal help desk are forwarded to SAP via the OSS system. SAP offers the R/3 Going Live Customer Care Service, accessible via SAP Net and OSS

Phase 5: Go Live and Support

Overview

Production Support

Monitor System Transactions

Help Desk and Competency Center

Optimize Performance

Go Live and Support

Ready to Go live with the production system The project team focuses on supporting the end users Key SAP Services to support includes the following: The Online Service System (OSS) Remote Consulting EarlyWatch Services Activities such as the following are carried out: Production support facilities are defined (checking system performance on daily) Validation of business processes and their configuration Follow-up training for users Signoffs, etc.

Thank You
Rajasekhar Reddy