Enterprise resource planning (ERP)

Introduction
Enterprise resource planning (ERP) solution, mySAP™ ERP,
has been designed to provide a comprehensive solution to
today's changing demands on ERP. While leveraging existing
IT assets, mySAP ERP allows companies to regain active
control of their whole administrative and operations
environment and thereby increase efficiency and
profitability. mySAP ERP enables new levels of business
process and technology integration while laying the
foundation for incremental evolution. In the past, ERP
systems were wholly designed with an internal back-end
business focus; however, an increasing number of companies
are beginning to see the need for efficiency in the
administrative and operative environment that today extends
to almost every employee's desktop. Therefore, there is a
growing requirement for expandable ERP solutions that will
allow companies to collaborate and extend their ERP
processes.

Powered by SAP® NetWeaver™, the comprehensive integration

and application platform, mySAP ERP combines traditional
ERP functionality with portal-based collaboration across
the extended enterprise. mySAP ERP gives companies better
control of their assets as well as business processes such
as financial supply chain management, e-recruiting, and
profitability assessments of employees, departments, and
customers.

Business Benefits of ERP

 New efficiencies in integrated end-to-end business

processes. mySAP ERP provides completely integrated
business processes to handle the full scope of
financials, human resources, corporate services and
operations. Powered by SAP NetWeaver, mySAP ERP
extends ERP into a truly collaborative environment,
accessible to the organization as well as customers,
partners, and suppliers. mySAP ERP effectively
streamlines business process from end to end while
providing tight integration and transparency of
information. The breadth, depth and flexibility of
mySAP ERP is unsurpassed making it the world's
premiere ERP solution.
  Incremental upgrade path. Building on SAP® R/3®
Enterprise, mySAP ERP allows companies to upgrade in
incremental steps as business requirements change and
permits companies to upgrade by simply adding new
"snap-on" solutions and business functionality as
needed. Companies no longer need to manage costly big-
bang implementation and replacement projects. mySAP
ERP optimally leverages existing IT assets allowing
tremendous savings in the evolution and modernization
of the customer's environment.
 Greater control of extended enterprise assets. mySAP
ERP helps companies gain greater control over extended
enterprise assets, offering greater depth and breadth
of functionality, including for example operations
management, consolidation, commission management, real
estate, and travel management-all outside of the scope
of competitor ERP solutions.
 Lower Total Cost of Ownership (TCO). mySAP ERP offers
improved performance plus greater resilience and
scalability through the incorporation of SAP
NetWeaver. The solution is also fast and easy to
deploy and offers flexible upgrade options, which
simplify implementation and upgrades and reduce total
cost of ownership. In addition, SAP helps
organizations to protect current IT investments by
making solutions interoperable with third-party
technologies, such as J2EE and Microsoft .NET. Since
mySAP ERP is based on SAP NetWeaver, it is designed to
be fully interoperable with various standards, third-
party and legacy applications, and it enables
organizations to conduct all ERP business processes
both within and beyond the organization.

Key Functional Areas of ERP

 Analytics

Strategic enterprise management – Enables companies to

execute strategies quickly and successfully while
managing business performance throughout the entire
organization; supports integrated strategic planning,
performance monitoring, business consolidation, and
effective stakeholder communication, thus enabling
value-based management.

Business analytics – Allows managers and knowledge

 workers within an integrated framework to identify and
exploit value-adding opportunities within the daily
business-enabling optimization of operational
performance, accurate forecasting, and business
planning; identifies opportunities to create
additional value through better exploitation of
tangible and intangible assets, such as customer
value, human capital, or the R&D pipeline value.
 Financials

Financial accounting – The most comprehensive, robust

and tested financial accounting package available
today helps companies to not only monitor real-time
all values from financially relevant transactions out
of value-creation processes but also maintains a
consistent, reconciled, and auditable set of books for
statutory reporting, management support, and as a
source for analytic applications.

Managerial accounting – Helps companies optimally

monitor and control all performance relevant
information in an environment that is completely
integrated with all operative transactions throughout
the company. Managerial accounting helps a company
take control of its profitability.

Financial supply chain management – Enables financial

collaboration within the enterprise and its business
networks using defined corporate policies and shared
services to handle all customer- and supply chain-
related financial processes; helps automate the
financial supply chain using the Web and other new
electronic service models.

Manager self-service – Provides business managers with

access to all relevant business information as well as
related services through financial portal solutions.
Additionally, this capability helps manage financial
shared service centers. Content and application
services that facilitate better, faster decision
making and increased productivity through manager-
centric portals. HR content and processes empower
anyone who manages and makes decisions about finance,
management and human capital. Multiple interaction
platform technologies such as browser, voice, and
mobile to enable access anytime and anywhere. The
portals provide convenient Web-based access to
 internal and external applications, business content,
and services that may be key to tasks, processes, or
business decisions.
 Human Resources

Employee transaction management – Streamlines a

comprehensive range of HR services and processes
necessary to efficiently run the Human Resource
environment. This includes a global system meeting the
needs of local regulatory compliance requirements as
well as international best practices.

Employee lifecycle management – Provides automation

and optimization of the following phases of the
employee life cycle-attract/hire, deploy, influence,
develop, and retain-resulting in increased human
capital efficiency through better hiring practices,
more efficient deployment, focused employee
development, and increased employee retention and
loyalty.

E-recruiting – Helps locate the best people and

coordinate team collaboration to identify and evaluate
candidates. Some elements are talent warehouse,
recruiter, service center, and analytics. Advanced
portal and collaboration technology enable the
solution to allow efficient collaboration between
business partners.

Employee relationship management – Provides companies

with the ability to enable employees throughout the
company to build collaborative relationships with
fellow employees, managers, third-party suppliers, and
the company itself. Knowledge management and portal
technology are utilized to significantly change the HR
service delivery model and efficiency of the
workforce.

Employee self-service – Content and application

services offer a multitude of ready-to-use individual
ESS services available in thirty-two languages for
thirty-two countries, giving employees control over
multiple administrative tasks.With life-and-work
events capabilities, individual transactions are
seamlessly combined with expert content and knowledge
so that the employee experience is efficient and
enjoyable.
 HCM analytics – Provides data analysis and reporting
tools as well as strategic enterprise management
capabilities to support informed HR policy and
decision-making. The solutions enable the company to
analyze and optimize the current workforce, to
implement and monitor the corporate strategy, and to
continuously evaluate how different scenarios will
affect business goals.
 Operations – Enables a company to efficiently
streamline the logistic operations for the optimal
execution of all orders resulting from purchasing,
sales, production and change management environments.
This part of the mySAP ERP solution optimally prepares
a company to evolve and integrate into extended
collaborative areas such as supply chain, customer
relationship, product life cycle and supplier
relationship management

Purchase order management – enables the efficient

handling and execution of Purchase Orders integrated
within the entire logistics process.

Inventory management – allows a company an integrated

management of stock and inventories in an integrated
operative environment.

Production management – enables the efficient

management and execution of the enterprise production
process.

Maintenance & quality – allows a company to

efficiently handle the plant maintenance and quality
control process within the company.

Delivery management – executes the delivery and

transportation processes to efficiently support a
sales environment.

Sales order management – enables the sales order

fullfilment process allowing for fast and efficient
execution of customer sales orders.
 Corporate services – Enables the efficient provision
of central and decentral corporate services to the
organisation.

Real estate management – Provides a complete solution

 with capabilities to support every stage of the real
estate portfolio life cycle and streamlines business
processes allowing companies to optimally utilize and
manage their real-estate assets.

Incentive and commission management – Processes all

types of variable remuneration for employees, sales
forces and partners, such as incentives, commissions,
and brokerage fees, etc.

Travel management – Provides applications for business

travel management that support and optimize travel
processes; includes travel manager's marketplace,
which supports procurement of travel services. With
seamless integration to expense reporting travel
management allows for the optimal management of the
entire business travel cycle.

SAP R/3 Enterprise

After a very successful Ramp-up, SAP® R/3® Enterprise has
been available to all customers since January 2003. It has
already been ordered by over 4,000 customers worldwide and
live customer experiences attest to the high quality and
stability of this software component.

SAP® R/3® Enterprise, the newest version of SAP R/3,

extends the functionality of SAP R/3 4.6C using a newly
designed open technical platform that ensures an easy
transition to collaborative business. At the same time, SAP
R/3 Enterprise delivers the reliability, scalability, and
operability that SAP customers expect.

Business Benefits of SAP R/3 Enterprise

SAP has gathered input from a large number of customers and
user groups about their requirements for the next version
of SAP R/3. The feedback primarily concentrates on
continuously improved functions; a simpler, more flexible
upgrade path; and an easy transition to collaborative
business processes. This was built into the plan and design
for the next versions of SAP R/3 and has resulted in three
new areas of focus: continuity and new functionality,
flexibility and optimization, and innovative technology.

SAP R/3 Enterprise Architecture

SAP R/3 Enterprise consists of the SAP R/3 Enterprise Core,
the SAP R/3 Enterprise Extensions, and the SAP Web
Application Server.
  SAP R/3 Enterprise Core. The functionality of SAP R/3
Enterprise Core is based on the previous SAP R/3
release SAP R/3 4.6C. Enhancements include
optimization and stabilization of existing processes
as well as legal changes and limited functional
developments. SAP R/3 Enterprise Core has been
assigned the release number 4.70. This signifies its
similarity to SAP R/3 4.6C.
 SAP R/3 Enterprise Extensions. Functional enhancements
are included in the SAP R/3 Enterprise Extensions,
which are grouped by application area-Financials, SCM,
PLM, HR, and Travel Management-and are selectively
deployable. SAP R/3 Enterprise Extensions are
delivered in an SAP R/3 Enterprise Extension Set,
release number1.10. The next release 2.00 of the SAP
R/3 Enterprise Extensions is planned for September
2003.
 SAP Web Application Server (SAP Web AS). SAP R/3
Enterprise is built on the SAP Web Application Server
and integrates seamlessly with the enterprise portal
and exchange infrastructure. SAP Web AS is a scalable
and reliable component platform that supports the
development, implementation, and provisioning of easy-
to-use Web applications and Web services. SAP Web AS
is the common infrastructure for all mySAP Business
Suite components, including SAP R/3 Enterprise. The
first release of SAP R/3 Enterprise is delivered on
SAP Web AS 6.20. SAP Web AS provides a homogeneous
infrastructure for both Java 2 Enterprise Edition
(J2EE) and ABAP-based applications. This brings the
benefits of SAP 's proven infrastructure-reliability,
scalability, software logistics, change management,
platform independence and business knowledge-to the
J2EE world. It provides integration services and
connectivity to both the portal infrastructure and the
exchange infrastructure.

SAP R/3 Enterprise is fully compatible and incorporated

within mySAP ERP. SAP R/3 Enterprise provides the core of
mySAP ERP making it a logical first step in an upgrade
project.

Customers can convert their existing SAP R/3 contract into

a mySAP ERP contract and leverage their existing investment
in SAP R/3. No technology upgrade is necessary to move from
SAP R/3 Enterprise to mySAP ERP-companies can simply
incrementally add the benefits of mySAP ERP to their
installation as they go.