Systeme, Anwendungen, Produkte or Systems Applications And

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Systeme, Anwendungen, Produkte OR Systems Applications and Product By: Jasmeet Neha Supreet 1

Transcript of Systeme, Anwendungen, Produkte or Systems Applications And

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Systeme, Anwendungen, ProdukteOR

Systems Applications and Product

By: Jasmeet

NehaSupreetVrinda

Section AUBS 2009-11

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Contents:

Topics Page

1. Vision 3

2. SAP History 33. Features 54. SAP Implementation 75. Cost of SAP Implementation 86. Benefits Of SAP 87. Why Companies Use SAP? 108. SAP’s Comparison with competitors 10

People Soft JD Edwards Oracle

9. Integration 1410. SAP today 17

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SAP vision for business: Optimize. Collaborate. Transform.

The vision is for companies of all sizes to see clearly, think clearly, and act clearly so that they can close the gap between strategy and execution and become best-run businesses. Best-run businesses drive clarity into their organizations by gaining insight for improved performance, efficiency for optimized operations, and flexibility to adapt quickly to changing circumstances.By using SAP solutions, companies of all sizes – including small businesses and midsize companies – can reduce costs, optimize performance, and gain the insight and agility needed to close the gap between strategy and execution. To help the customers get the most out of their IT investments so that they can maximize their business performance, the professionals deliver the highest level of service and support.

SAP defines business software as comprising enterprise resource planning and related applications such as supply chain management, customer relationship management, product life-cycle management, and supplier relationship management.

History and Evolution

SAP AG Headquarters, Walldorf.

SAP the company was founded in Germany in 1972 by five ex-IBM engineers (Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus E. Tschira, and Claus Wellenreuther). SAP stands for Systeme, Andwendungen, Produkte in der Datenverarbeitung which - translated to English - means Systems, Applications, Products in Data Processing. Being incorporated in Germany, the full name of the parent company is SAP AG (AG is short for Aktiengesellschaft; a public company). It is located in Walldorf, Germany which is close to the beautiful town of Heidelberg. SAP has subsidiaries in over 50 countries around the world from Argentina to Venezuela. SAP America (with responsibility for North America, South America and Australia - go figure!) is located just outside

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Philadelphia, PA. SAP is listed in Germany (where it is one of the 30 stocks which make up the DAX) and on the NYSE.

In 1979 SAP released SAP R/2 (which runs on mainframes) into the German market. SAP R/2 was the first integrated, enterprise wide package and was an immediate success. For years SAP stayed within the German borders until it had penetrated practically every large German company. Looking for more growth, SAP expanded into the remainder of Europe during the 80's. Towards the end of the 80's, client-server architecture became popular and SAP responded with the release of SAP R/3 (in 1992). This turned out to be a killer app for SAP, especially in the North American region into which SAP expanded in 1988.

The success of SAP R/3 in North America has been nothing short of stunning. Within a 5 year period, the North American market went from virtually zero to 44% of total SAP worldwide sales. SAP America alone employs more than 5,000 people and has added the names of many of the Fortune 500 to it’s customer list (8 of the top 10 semiconductor companies, 7 of the top 10 pharmaceutical companies etc). SAP comes in 21 industry-specific versions.

SAP R/3 is delivered to a customer with selected standard process turned on, and many other optional processes and features turned off. At the heart of SAP R/3 are about 10,000 tables which control the way the processes are executed. Configuration is the process of adjusting the settings of these tables to get SAP to run the way one wants it to. SAP functionality included is truly enterprise wide including: Financial Accounting (e.g. general ledger, accounts receivable etc), Management Accounting (e.g. cost centers, profitability analysis etc), Sales, Distribution, Manufacturing, Production Planning, Purchasing, Human Resources, Payroll etc.

SAP is both the name of the Company as well as their ERP Product. SAP system comprises of a number of fully integrated modules, which covers virtually every aspect of the business with 10,000 tables to configure.

Timeline of SAP’s products

1972: SAP AG founded in Germany.

1979: SAP R/2 introduced for mainframe computers. 1992: SAP R/3 released as client-server application. 1996: SAP R/3 became partially Internet enabled.

1997: Developed and launched the new dimension product line including CRM, SCM, and Data Warehousing solutions.

1999: SAP announced mySAP.com, the next generation of its Enterprise Application System, based on the Internet architecture.

2000-2005: Introduced my SAP business Suite, NetWeaver, and X ApplicationsSAP AG main product is mySAP ERP.

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Here, R = real time data processing 3 = 3-tier architecture: database server, application server and client / front end server (SAPgui) GUI = Graphical User Interface front end server (SAPgui)

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For Over 30 Years, SAP Has Been Driving ERP – and They Continue to Do So…

SAP Invents Real-Time ERPSAP defines and establishes a new approach to Integrated Standard Business Software.

ERP = The Business Software IndustryThe approach that SAP established becomes industry standard. New competitors enter the market.

ERP Rapid AdoptionCompanies start to adopt ERP on a massive scale

Dot.com Hype: ERP = Old E-Business = NewTrends seemed to indicate that ERP was an out-of-fashion model

mySAP ERPE-Business is now seen as an extension of ERP, not a replacement.

SAP is leading the new industry standard for collaborative business applications.

80s 90s 00s

Features & Functions

SAP runs on a fourth generation programming language called Advance Business Application Programming (ABAP).  It has many of the features of other modern programming languages such as the familiar C, Visual Basic, and Power Builder

End-user service delivery – To ensure that the employees of a company can readily access the critical data, applications, and analytical tools they need to perform all their job functions efficiently and effectively while also supporting a shared-services organizational model for human resources, finances, and other key processes. SAP ERP offers role-based access and self-services through the manager and the employee portals, Duet, and employee interaction center support. Plus, SAP Mobile Time and Travel enables employees in the field to report time and expenses offline.

SAP ERP Financials – Ensure compliance and predictability of business performance – so your organization can gain a deeper financial insight across the enterprise and tighten control of finances. SAP ERP Financials automates financial and management accounting and financial supply chain management. The solution also provides rigorous support for corporate-governance mandates such as Basel II and Sarbanes-Oxley.

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SAP ERP Human Capital Management – Optimize your HR processes with a complete, integrated, and global human capital management (HCM) solution. SAP ERP provides this HCM solution for organizations of all sizes and in all industries. You can maximize the potential of your workforce, while supporting innovation, growth, and flexibility. The SAP ERP HCM solution automates talent management, core HR processes, and workforce deployment – enabling increased efficiency and better compliance with changing global and local regulations.

SAP ERP Operations – Manage end-to-end procurement and logistics business processes for complete business cycles – from self-service requisitioning to flexible invoicing and payment – optimizing the flow of materials. SAP ERP Operations also helps discrete and process manufacturers manage the entire life cycle of product development and manufacturing. The solution automates the entire manufacturing process and reduces costs by controlling and adapting the manufacturing process in real time – and increases customer satisfaction by delivering higher-quality products.

SAP ERP Corporate Services – Helps organizations manage their most cost-intensive corporate functions by supporting and streamlining administrative processes in the areas of real estate; enterprise assets; project portfolios; corporate travel; environment, health, and safety compliance; quality; and global trade services. SAP ERP Corporate Services is a complete and integrated solution that maximizes transparency and control, while reducing financial and environmental risks and enhancing safety of employees.

Performance management – Support the entire life cycle of performance management delivering real-time, personalized measurements and metrics to improve business insight and decision making. SAP ERP supports financial analytics, operations analytics, and workforce analytics, as well as consolidated financial and statutory reporting; planning, budgeting, and forecasting, strategy management and scorecards, and risk management.

SAP R/3 Application Modules

1) Financial accounting (FI)2) Controlling (CO)

3) Asset management (AM)

4) Materials management (MM)

5) Sales and Distribution (SD)

6) Production Planning (PP)

7) Quality management (QM)

8) Plant maintenance (PM) & Customer Service (CS)

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9) Project system (PS)

10) Human resources (HR)

11) Workflow (WF)

SAP Implementation

SAP Implementation is the whole of processes that defines a complete method to implement the Enterprise Resource Planning SAP ERP software in an organization. The SAP implementation process is made up out of four main phases, i.e. 1. The project preparation phase where a vision of the future-state of the SAP

solution is being created. Here we also sketch a design that meets both business and financial requirements. The focus is on the company’s core business and how the SAP solution will better enable that core business to be successful.

2. Sizing and blueprinting phase where the solution stack is created and training is being performed.

3. Functional development phase or recognition phase: Develop a planned approach to the changes in the organization. The objective is to maximize the collective efforts of all people involved in the change and minimize the risk of failure of implementing the changes related to the SAP implementation. Also create a foundation for the SAP systems management and test the SAP business processes, by executing functional tests to ensure that business processes work.

4. Final preparation phase when the last tests are being performed before the system goes live. Plan, script, execute and monitor SAP Stress Tests to see if the expectations of the end users, defined in service level agreements, will be met.

5. Go Live phase: Go-live means to turn on the SAP system for the end-users and to obtain feedback on the solution and to monitor the solution. It is also the moment where product software adoption comes into play.

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Cost of SAP Implementation

Implementing SAP is expensive. But the potential rewards can dwarf the costs (as it has proved for many existing customers already).

SAP sells its R/3 product on a price per user bases. The actual price is negotiated between SAP and the customer and therefore depends on numerous factors which include number of users and modules (and other factors which are present in any negotiation). There is an annual support cost of about 10% which includes periodic upgrades.

Then there is the implementation cost. The major drivers of the total implementation cost are the Timeframe, Resource Requirements and Hardware.

1. Timeframe - The absolute quickest implementation one has ever heard of is 45 days. But this was for a tiny company with very few users and no changes to the delivered SAP processes. At the other end of the scale you get the multi-nationals who are implementing SAP over 5 to 10 years. For the most part, you should be able to get ones (single instance) project completed in a 9 to 18 month period.

2. People – The smallest of SAP implementations can get done on a part-time basis without outside help. The largest swallow up hundreds of people (sometimes over a thousand) and include whole armies of consultants. This adds up fast. The types of people involved range from heavy duty techies to project managers.

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3. Hardware – The smallest of SAP implementations probably use only three instances one for the production system, one for test, and one for development. The largest implementations have well over 100 instances, especially if they involve multiple parallel projects (otherwise known as a program).

Adding all this up, the SAP project can run anywhere from $400,000 to hundreds of millions of Dollars.

Benefits of SAP implementation: SAP ERP delivers a comprehensive set of integrated, cross-functional business processes. With SAP ERP, you can gain the following benefits:

Improve alignment of strategies and operations. Run the enterprise in accordance with strategy and plans, accessing the right

information in real time to identify concerns early. Pursue opportunities proactively. Achieve corporate objectives by aligning workforce and organizational

objectives. Find the best people and leverage their talent in the right job at the right time. Improve productivity and insight Leverage self-services and analytics across your organization. Improve operational efficiency and productivity within and beyond your

enterprise. Reduce costs through increased flexibility Use enterprise services architecture to improve process standardization,

efficiency, and adaptability. Extend transactions, information, and collaboration functions to a broad business

community. Support changing industry requirements Take advantage of the SAP NetWeaver platform's latest open, Web-based

technology to integrate your end-to-end processes seamlessly. Reduce risk Solve complex business challenges today with SAP, your trusted partner for long-

term growth, with 30 years of experience working with organizations of all sizes in more countries than any other vendor.

Join SAP's world-class partner network, uniquely qualified to support the best business practices in more than 25 industries.

Improve financial management and corporate governance Gain deep visibility into your organization with financial and management

accounting functionality combined with business analytics. Increase profitability, improve financial control, and manage risk. Optimize IT spending Integrate and optimize business processes. Eliminate high integration costs and the need to purchase third-party software.

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Deploy other SAP Business Suite applications incrementally to improve cash flow and reduce costly borrowing.

Gain higher ROI(Return On Investment) faster Install SAP ERP using rapid-implementation techniques that cost less than half

what traditional approaches cost. Leverage preset defaults and prepackaged versions available for specific

industries. Retain top performers Retain your top performers through clearly defined career and development plans. Link employees' performance to compensation programs such as variable pay

plans and long-term incentives. Provide immediate access to enterprise information Give employees new ways to access the enterprise information required for their

daily activities.

But the four basic features of SAP which help in attaining above mentioned goals are: 1. Comprehensive – Provides broad and deep business functionality that

leverages industry - specific best practices and streamlines processes. 2. Scalable – Can grow and adapt as your business needs change. 3. Reliable – Is built on a proven foundation of SAP software and

technology. 4. Predictable – Ensures rapid payback with predictable time to value at an

affordable cost.

Why Companies Use SAP?

The reasons a company selects and implements

1. Replacing an out-dated and inefficient IT Architecture- In the beginning, computer systems were developed by individual departments to satisfy the requirements of that particular department. When someone finally realized that benefits could be had by linking these systems together, interface heaven was born. There are some companies today with literally thousands of interfaces, each of which needs to be maintained (assuming of course that there is someone around who understands how they work!). Sweeping them away and replacing them with an integrated system such as SAP can save much money in support. Of course, if you have a burning platform as well the question becomes even easier.

2. Enabling business process change – From the start, SAP was built on a foundation of process best practices. Although it sounds absurd, it is probably easier (and less expensive) to change your companies processes to adapt to SAP than the other way around. Many companies have reported good success from combining a SAP implementation with a BPR project.

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3. Competitive advantage – Due to SAP, companies have a clear view about the following issues hence they have a competitive advantage.

being able to accurately provide delivery promise dates for manufactured products

being able to consolidate purchase decisions from around the globe and use that leverage when negotiating with vendors

individual customers can enter their product specifications and then feed this data directly into it’s production planning process

SAP’s Comparisons with Competitors

SAP is maintaining and increasing their dominance over their competitors through a combination of following aspects:

deepening the functionality on their industry solutions launching business one - for the medium market starting to embrace SOA (Service-Oriented Architecture) with the Netweaver

platform

vs

PeopleSoft, Inc. founded in 1987 by David Duffield and Ken Morris was a software company that provided HRM (human resource management), CRM (customer relationship management), Manufacturing, Financials, EPM (Enterprise Performance Management) and Student Administration software solutions to large corporations, governments, and organizations. In 2003, when PeopleSoft acquired J.D. Edwards, it decided to differentiate its former product line with those of Edwards by renaming both products. In January 2005, PeopleSoft was acquired in a hostile takeover by the Oracle Corporation. SAP’s advantage over Peoplesoft has been mentioned in the following example.Grocery distribution company Metcash will invest in SAP ERP software services to replacement its PeopleSoft core finance system,(reported on 12 th aug,2009). The deal will see SAP’s finance, treasury and risk management, property management and compliance software be deployed at Metcash. Metcash has been using Oracle’s PeopleSoft software for the past eight years and is looking to “improve process efficiencies” and ensure compliance with financial, corporate risk and environmental regulatory requirements, according to the company. According to Metcash SAP will enable it to bring together previously disparate third-party products like fixed assets, real estate and claim-backs

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into an integrated, controlled environment, increasing visibility and financial and operational efficiencies.

vs

JD Edwards a company started in 1977 at Denver was thought to be a key player in 1990s. It was known to owe the middle market while SAP was dealing high-end enterprise resource planning market. In 1998 the company’s profit rose up by an escalating percentage of 156 in a period of nine months. But in June 2003, the J.D. Edwards board agreed to an offer under which PeopleSoft would acquire J.D. Edwards. Further in December 2004, Oracle completed the acquisition of PeopleSoft and has, since then, continued to support products that were created by JD Edwards. But when it comes to enterprise resource planning (ERP) scalability and support, Oracle's JD Edwards doesn’t even compete with SAP anymore. For this we can take the example of Hobby Lobby Creative Centers.

The Oklahoma City-based retailer and manufacturer is making the switch because of SAP's superior ability to handle the company's growing payroll and benefits needs, as well as SAP's incremental enhancements capabilities, according to Hobby Lobby CIO Jeanne Cotter.

Also rather than forcing customers to upgrade to the latest version of its ERP platform in one fell swoop, as JD Edwards requires, SAP allows customers to implement new features when and how they choose. With only 45 IT workers supporting the entire company, this was an especially attractive selling point for Hobby Lobby.

With incremental enhancements, Hobby Lobby can also expand its SAP platform to other parts of the company, like manufacturing, when the time is right

vs

Here is an interesting comparison between the two leaders in the ERP space; SAP and Oracle. A company that is considering moving to an ERP will likely have one or both competing for their business. They have distinctly different approaches to both the software business and to their software architecture.Enterprise Resource Planning system was designed and implemented in more than 20 different industries and all ERP companies together generate every year a $60 billion dollars profit on the global market. The biggest part of this pie is shared by two software giants Oracle and SAP. Although they compete on the same market and target their

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products for common industries, they have very distinguished strategies, corporate culture and distinctive offers.

The world second-largest software supplier Oracle was founded in 1977 in the United States and by 1999 the company was serving 5000 clients in over 140 countries. Oracle is well known for their database systems rather than enterprise resource planning system. It is rating as the second ERP package vendor after SAP on the ERP market. Oracle has a reputation as a company with strong software support, a large financial budget and stable position among the competitors. At the same time the corporate culture of Oracle is conservative on benefits from revenues, which causes such problems as inflexibility and slow implementation of their ERP products. In other words, the company lacks partners and consultants for technical expertise.

Hence the main player on ERP market is the German company SAP (Systems, Application, and Products in Data processing). It was the first time in software history that a company outside of the United States had gained such success. In 1999 SAP had more than twice as many customers as Oracle in 100 countries around the world. Unlike Oracle, SAP decided to work in close collaboration with many other companies. The company’s success derives from the fact that SAP invests 20 percent of the profit on research and shares 80 percent of the total revenues with their alliance partners. Moreover, SAP has many consultants who provide help and training to their customers. And there are even third party developers who supply a large number of add-in programs that can work together with SAPs products. As a result, customers enjoy more flexible and fast implementation of their ERP systems. There is no doubt about why SAP became a leader. Oracle became popular as a manufacturer of developing products that can be easily integrated with other models from other vendors, enabling them to build a best of breed system. As SAP and Oracle, both provide incredible ERP systems which help many companies to operate more efficiently and more effectively these days, choosing the right package among both is not an easy job.If the company is limited in resources and restrained in time the best solution would be to go for SAP products. However the company with distinguished values which creates a competitive advantage would prefer to choose the Oracle to build a unique system that will fit well to their businesses.

In 2006, Forrester analysts noted that both business application vendors had just launched new architectures for a new generation of service-oriented and flexible enterprise applications. SAP's star, in their opinion, was shining much brighter than Oracle's at the time. "SAP was riding high, having kicked into high gear its transition to applications based on the NetWeaver platform," according to Forrester, "while Oracle was still digesting PeopleSoft and figuring out exactly what its Oracle Fusion Applications were to become." The clear victor of the "battle of the architectures," as Forrester termed it, was SAP: It had a larger market presence in applications than Oracle did, plus faster growth. SAP had been able to capitalize on Oracle uncertainty, and it was able to articulate a clearer vision for enterprise applications, the Forrester analysts wrote.

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Much has changed since then. Now, Forrester analysts have done another comprehensive analysis of the fierce competitors' application strategies. The report, "Which Has the Better Apps Strategy: Oracle or SAP?” compares the merits of Oracle's next-generation applications play-Fusion Applications-with SAP's inclusive strategy that seeks to minimize disruptions to large organizations.

This time around, Forrester's nod goes to Oracle. "Oracle's vision for the future of its apps business is now clearer and more compelling than that of archrival SAP," write the analysts. The head-to-head analysis looks at many important areas, including: market penetration, vision for next generation, partnership strategy, middleware and tools, support for openness and standards, industry applications strategy and midmarket strategy. While Oracle doesn't win out in all of those areas, the analysts proclaim Oracle's overall strategy as better than SAP's plan. However, as the analysts point out, Oracle's "biggest test is yet to come-it must deliver the Oracle Fusion Applications system with its associated promises of better flexibility and lower cost of ownership and do it within the next two years to keep the upper hand in apps innovation."

But Fusion needs to arrive not only soon but also in good form. The analysts state that "if Oracle Fusion Applications fall flat, SAP wins by forfeit."

Integration

SAP is an ERP software product that integrates different functions in a business (such as sales, procurement and production). SAP provides rich functionality in each of the business areas without sacrificing the convenience of an integrated system. These applications update and process transactions in real time, allowing effortless integration and communication between areas of business. For example- we can create a billing document and release it to accounting and observe the updated billing values in customer analysis immediately without having to wait for a day end or month end processing. Let us now consider a manufacturing unit where the sale of products will change the company’s total revenue, inventories, profits, accounts payable and accounts receivable. Through an ERP integration by making a change in any one of these accounts, the rest will automatically be updated.

Various companies using SAP integration:

Nestlé Korea Inc ., which produces Taster’s Choice, Nescafé, and other Nestlé brands, implemented the SAP® ERP Human Capital Management and SAP ERP Financials solutions with assistance from SAP Consulting. With SAP ERP they were able to evaluate employee’s performance and control the complex standard cost

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budget reporting far more effectively. This allowed them to better plan there future gross margin on products sold.

Key Challenges • Bring HR and cost control processes in sync with Nestlé’s global standard • Integrate IT system with Nestlé headquarters • Prepare for compliance with international financial reporting standards

Why SAP was selected?• Proven record of fulfilling complex financial reporting requirements• Expertise in implementing solutions• Knowledge of local HR regulations and• requirements• Implementation Highlights

Solutions and Services• SAP® ERP Human Capital Management solution • SAP ERP Financials solution • ASAP Focus methodology • SAP Project Management services

Implementation Highlights• Used global template to integrate with Nestlé headquarters • Used hybrid delivery model to speed implementation, dividing modules between

the SAP global delivery center and SAP Korea• Acquired localization support from SAP Korea to meet Korean HR regulations

Key Benefits• More detailed cost controlling and shorter cost-reporting processing time • Faster, more flexible response to changing organization rules and policies • Preparation for IFRS regulations in the future

Kapci employs 1,300 people and generated revenues of US$ 77 million in 2006. To build on its success in the Egyptian market, the company is planning to expand overseas. Kapci products are already exported across Africa and the Middle East, and are becoming increasingly available in Europe and Asia; the company also plans to open a new site in China in the near future.

Key Challenges• To understand and control the business more effectively,• The Kapci management information system was inflexible• The development costs were high and the IT infrastructure was not able to handle

rapid workload increase.

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• The company wanted to find a system that would be capable of meeting the demands of international growth, help generate economies of scale and manage the business more efficiently.

Solution and Services• IBM Global Technology Services• implemented SAP ERP software on three IBM System i 520 servers, supporting

the SAP applications by taking advantage of the IBM DB2 database built into IBM i5/OS.

• Software: IBM i5/OS®, IBM DB2® for i5/OS• Services: IBM Global Technology Services

Implementation Highlights• SAP® ERP 6.0, including financial accounting, controlling, asset management,

materials management, production planning, sales and distribution, quality management and human capital management

• SAP NetWeaver® Business Intelligence Hardware: IBM System i™ 520

Key Benefits• Centralized SAP software environment enables enterprise-wide view of

operations, enabling 15 per cent reduction in inventory costs• Industry-standard platform facilitates cooperation with multinational suppliers

and reduces development costs• centralized hardware infrastructure and introduction of thin clients increases

business resilience; reduction in batch processing increases speed of reporting• simple interface allows business users to generate reports, saving time for IT staff.

Linfox Logistics is one of the largest suppliers of third-party logistics solutions in the

Asia Pacific region. To provide better service to customers, Linfox has developed a

complete end-to-end supply chain management solution based on SAP® soft-ware for

freight and warehouse management. This solution saves costs and time and provides

both shipper and carrier with visibility into all aspects of the logistics supply chain.

Key Challenges• Increasing complexity of logistics operations • Customer demand for operational excellence • Requirement for timely delivery of perishable products • Greater focus on visibility of freight activities • Need to control logistics costs • Focus on safety and environmental compliance

Why SAP Was Selected

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• Strength of functionality • Integration of different components within the SAP® ERP application • SAP investment in the logistics industry • Prevalence of SAP software in customer base and ease of integration with

custom-er systems • Availability of SAP-related resources • Support for multiple languages and currencies • SAP’s solidity for the future

Implementation• Integrated with customer-owned enterprise resource planning systems • Interfaced with modern technologies including handheld terminals, interactive

voice response software, and global positioning systems • Developed an implementation template to save costs and time on boarding

customers • Ran implementation with a core group of internal resources, supplemented with

professionals from preferred suppliers Benefits

• Empowered end-to-end supply chain management • Increased control over operations • Provided means to interact with customers electronically • Enabled real-time synchronization of orders, inventory movements, and stock

reconciliation • Optimized utilization of storage capacity • Automated tracking of product shelf life and allocation to customer orders • Facilitated the management of product recalls • Improved customer satisfaction • Achieved competitive advantage

Low Total Cost of Ownership• Decommissioned 20 legacy applications • Leveraged previous investments in hard-ware and SAP software skill

development • Simplified integration with internal SAP financials software and with customer-

owned SAP software for lower integration costs

Operational Benefits Key Performance Indicator Impact

• Visibility of orders, shipments, increased and warehouse utilization

• Revenue leakage Reduced

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• Accuracy of asset tracking Increased

• Labor costs Reduced

• Operations efficiency increased

SAP Today

SAP is the biggest ERP supplier with 55% global share, and still rising fast. As the 4th largest independent software supplier in the world it has a huge web of connections with more than 1,000 partners and consulting firms. It has more than 2,500,000 users in over 50 countries and over 21,000 R/3 installations worldwide. Also as the makers of add-on software it has more than 12,000 customers and more than 10 million licensed users. It has tailored 22 versions to specific industries Web offering called “mySAP.com”. SAP on an average spends 25% of revenue in R&D.

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