Systeme, Anwendungen, Produkte

OR
Systems Applications and Product

By:
Jasmeet
Neha
Supreet
Vrinda
Section A
UBS 2009-11

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Contents:

Topics Page

1. Vision 3

2. SAP History 3
3. Features 5
4. SAP Implementation 7
5. Cost of SAP Implementation 8
6. Benefits Of SAP 8
7. Why Companies Use SAP? 10
8. SAP’s Comparison with competitors 10
• People Soft
• JD Edwards
• Oracle
9. Integration 14
10. 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 Applications

SAP 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)

For Over

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)
9) Project system (PS)
10) Human resources (HR)
11) Workflow (WF)

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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.
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.

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 • 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.
• 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.

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 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.
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

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 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 12th 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
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.

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 • 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
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

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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.

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."

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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
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

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 • 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.
• 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

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 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

• 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

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 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

• 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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