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What is the history of SAP?


Systems, Applications, Products in data processing or SAP was originally introduced in the 1980’s as SAP R/2 which was a
mainframe system that provided users with a soft-real-time business application that could be used with multiple currencies
and languages. Later when client servers were introduced SAP brought out a server based version of their software called
SAP R/3, henceforth referred to as SAP, which was launched in 1992. They also developed a graphical user interface or GUI
to make it more user friendly and to move away from the mainframe style user interface. For the next 10 years SAP
dominated the large business applications market. It was successful primarily because it was extremely flexible. Because SAP
was a modular system meaning that the various functions provided by it could be purchased piecemeal it was an extremely
versatile system. All a company needed to do was purchase the modules they wanted and customize the processes to match
the company’s business model. SAP’s flexibility, while one of its greatest strengths is also one of its greatest weaknesses. We
will now turn to the audit issues surrounding SAP.
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SAP AG
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SAP AG  
Type: Aktiengesellschaft (FWB:SAP, NYSE: SAP)
Founded: Weinheim (1972)
Headquarters: Walldorf, Germany
Key people: Henning Kagermann, CEO
Shai Agassi, Development
Industry: Computer software
Products: ERP
Revenue: 8.5billion EUR (2005)
Employees: 32,205
Website: www.sap.com
SAP AG (FWB:SAP, NYSE: SAP) is the largest European software enterprise, with headquarters in Walldorf, Germany. SAP was founded in 1972 as
Systemanalyse und Programmentwicklung by five former IBM engineers in Mannheim, Germany. The acronym was later changed to stand for Systeme,
Anwendungen und Produkte in der Datenverarbeitung ("Systems, Applications And Products in Data Processing") and since the 2005 annual general
meeting the company's official name is just SAP AG.

Contents [hide]
1 Reputation
2 Products
3 See also
4 External links



[edit]
Reputation
SAP is the third-largest software company in the world. It ranks after Microsoft and Oracle in terms of market capitalization. SAP is the largest business
application and Enterprise Resource Planning (ERP) solution software provider in terms of revenue.

[edit]
Products
SAP's products focus on ERP, which it helped to pioneer. The company's main product is SAP R/3; the "R" stands for realtime data processing and the
number 3 relates to a 3-tier architecture: database, application server and client (SAPgui). SAP R/3's predecessor was R/2 which ran on a Mainframe
architecture.

Other major product offerings include Advanced Planner and Optimizer (APO), Business Information Warehouse (BW), Customer Relationship
Management (CRM), Supply Chain Management (SCM), Supplier Relationship Management (SRM), Human Resource Management Systems (HRMS),
Product Lifecycle Management (PLM), Exchange Infrastructure (XI), Enterprise Portal (EP) and Knowledge Warehouse (KW).

The APO name has been retired and rolled into SCM. The BW name (Business Warehouse) has now been rolled into the SAP NetWeaver BI (Business
Intelligence) suite and functions as the reporting module.

The company also offers a new technology platform, named SAP NetWeaver. While its original products are typically used by Fortune 500 companies, SAP
is now also actively targeting small and medium sized enterprises (SME) with its SAP Business One and SAP All-in-One.

Reportedly, there are over 100,800 SAP installations at more than 28,000 companies. SAP products are used by over 12 million people in more than 120
countries


Products
SAP's products focus on ERP, which it helped to pioneer. The company's main product is SAP R/3; the "R" stands for realtime data processing and the
number 3 relates to a 3-tier architecture: database, application server and client (SAPgui). SAP R/3's predecessor was R/2 which ran on a Mainframe
architecture.

Other major product offerings include Advanced Planner and Optimizer (APO), Business Information Warehouse (BW), Customer Relationship
Management (CRM), Supply Chain Management (SCM), Supplier Relationship Management (SRM), Human Resource Management Systems (HRMS),
Product Lifecycle Management (PLM), Exchange Infrastructure (XI), Enterprise Portal (EP) and Knowledge Warehouse (KW).

The APO name has been retired and rolled into SCM. The BW name (Business Warehouse) has now been rolled into the SAP NetWeaver BI (Business
Intelligence) suite and functions as the reporting module.

The company also offers a new technology platform, named SAP NetWeaver. While its original products are typically used by Fortune 500 companies, SAP
is now also actively targeting small and medium sized enterprises (SME) with its SAP Business One and SAP All-in-One.

Reportedly, there are over 100,800 SAP installations at more than 28,000 companies. SAP products are used by over 12 million people in more than 120
countries.




SAP Implementation is the whole of processes that defines a complete method to implement SAP software in an organization. The SAP implementation
method described in this entry is a generic method and not a specific implementation method as such. It is based on best practices and case studies
from various literature sources and presents a collection of processes and products that make up a complete implementation method to allow any
organization to plan and execute the implementation of SAP (ERP) software.

Contents [hide]
1 Introduction
2 Overview
3 Table of concepts
4 Activity table
5 Implementation processes
5.1 Project preparation
5.2 Sizing and blueprinting
5.3 Functional development
5.4 Final preparation
5.5 Go Live
6 Critical success factors
7 See also
8 References



[edit]
Introduction
The implementation of SAP software, such as SAP R/3 is almost always a massive operation that brings a lot of changes in the organization. The whole
process can take a few years. Most probably every person in the organization is involved, whether they are part of the SAP technical support organization
(TSO) or the actual end-users of the SAP software. All the changes that the implementation of SAP generates are being made to reach high level goals,
such as improved communication and increased return on information (because people will work with the same information). It is therefore very
important that the implementation process is planned and executed with the usage of a solid method. There are various SAP implementation methods,
such as IBM’s Ascendant. Unfortunately, no information on these methods is freely available and therefore this entry does not describe such a method
but a generic implementation method.

[edit]
Overview

Figure 1: SAP Implementation process-data diagramThe SAP implementation process is made up out of four main phases, i.e. the project preparation
where a vision of the future-state of the SAP solution is being created, a sizing and blueprinting phase where the solution stack is created and training is
being performed, a functional development phase and finally a final preparation phase, when the last tests are being performed before the actual go
live. For each phase, the vital activities are addressed and the deliverables/products are explained.

The process-data diagram that is depicted at the right, gives an overview of all of these activities/processes and deliverables. The four gray boxes depict
the four main implementation phases, which each contain several processes that are in this case all sequential. The boxes at the right show all the
deliverables/concepts that result from the processes. Boxes without a shadow have no further sub-concepts. Boxes with a black shadow depict complex
closed concepts, so concepts that have sub-concepts, which however will not be described in any more detail. Boxes with a white shadow (a box behind it)
depict open closed concepts, where the sub-concepts are expanded in greater detail. The lines with diamonds show a has-a relationship between
concepts.

[edit]
Table of concepts
The data table below provides a summary of all the concepts addressed in the process-data diagram.

Concept Definition
CHANGE MANAGEMENT Activities involved in (1) defining and instilling new values, attitudes, norms, and behaviors within an organization that support new
ways of doing work and overcome resistance to change; (2) building consensus among customers and stakeholders on specific changes designed to
better meet their needs; and (3) planning, testing, and implementing all aspects of the transition from one organizational structure or business process
to another. (www.gao.gov)
CHANGE MANAGEMENT DOCUMENTATION All documentation that is required and being delivered whilst performing change management, e.g. the
functional test cases and all the other documents a new end-user of SAP requires and the various tools and approaches used to manage change by the
TSO. (Anderson, 2003)
COST OF OWNERSHIP ANALYSIS Determination of where and when the costs are inquired within the context of the SAP solution stack and ongoing
operations. The analysis addresses all internal and external costs, both one-time as well as recurring (Anderson, 2003)
CUTOVER The process of transitioning from one system to a new one (Anderson, 2003)
CUTOVER PLAN All documentation related to planning, preparing and executing cutover, describing how to lock down the system from a technical change
management perspective, preparing the TSO for its new role and rolling out the SAP graphical user interface to all future end users. (Anderson, 2003)
DATA CENTER A data center is a facility used for housing a large amount of electronic equipment, typically computers and communications equipment.
(www.wikipedia.org)
DATA CENTER REQUIREMENT A requirement for the SAP data center, i.e. a physical requirement like power requirements, a rack requirement, a network
infrastructure requirement or a requirement to the network server. (Anderson, 2003)
DISASTER RECOVERY (DR) REQUIREMENT Requirement that focuses on downtime that lasts many hours to days or even weeks (Anderson, 2003)
FUNCTIONAL TEST CASE A set of conditions or variables under which a tester will determine if a certain business process works (www.wikipedia.org)
HIGH AVAILABILITY (HA) REQUIREMENT Requirements that describes the amount of time that the system needs to be available to satisfy the needs of
the users. (Anderson, 2003)
INSTALLATION DOCUMENTATION All documentation related to the installation of an end-to-end SAP solution (Anderson, 2003)
OPERATIONS MANUAL The collection of current state system documentation, day-to-day and other regularly scheduled operations tasks, various
installation and operations checklists and how-to process documents. (Anderson, 2003)
SAP SAP AG is the name of the biggest European software company. The head office is in Walldorf, Germany. SAP was founded in 1972 as
Systemanalyse und Programmentwicklung ("Systems Analysis and Product") by five former IBM employees in Mannheim, Germany. (www.wikipedia.org)
SAP IMPLEMENTATION PROJECT PLAN A comprehensive project plan that contains all products that are delivered whilst performing an SAP implementation
project (Anderson, 2003)
SOLUTION STACK Set of software subsystems or components needed to deliver a fully functional solution, e.g. a product or service. (www.wikipedia.org)
SOLUTION STACK PARTNERS LIST A list of all vendors that deliver the products that make up the SAP solution stack (Anderson, 2003)
SOLUTION VISION A vision of the future-state of the SAP solution (Anderson, 2003)
STRESS TEST PLAN A test plan that is focused at determining the stability of a given system or entity. It involves testing beyond normal operational
capacity, often to a breaking point, in order to observe the results. (www.wikipedia.org)
TEST PLAN A detail of how the test will proceed, who will do the testing, what will be tested, in how much time the test will take place, and to what quality
level the test will be performed. (IEEE 829)
TRAINING The acquisition of knowledge, skills, and attitudes as a result of the teaching of vocational or practical skills and knowledge that relates to
specific useful skills (www.wikipedia.org)
TRAINING PLAN Consisting of training units, a training plan is the result of hierarchical decompositions of a training goal, tailored according to the
learning preferences and prior knowledge of the trainee. A plan is the means by which the trainee satisfies the goal. (www.ece.eps.hw.ac.uk/)
TSO Technical Support Organization. The people that are committed to implementation and management of SAP. (Anderson, 2003)
TSO CHART A chart that depicts the structure of the TSO. (Anderson, 2003)
[edit]
Activity table
The following table provides a summary of all of the activities that form the SAP implementation process. These activities will be described with more
detail and elaborated with examples in the rest of this entry.

Activity Sub-Activity Description
Project preparation Craft solution vision Refine and communicate a SOLUTION VISION of the future-state of the SAP solution, to sketch a design that
meets both business and financial requirements. The focus should be on the company’s core business and how the SAP solution will better enable that
core business to be successful.
Design and initially staff the SAP TSO Design and staff the key positions of the SAP Technical Support Organization (TSO), the organization that is
charged with addressing, designing, implementing and supporting the SAP solution.
Sizing and blueprinting Perform cost of ownership analysis Perform a COST OF OWNERSHIP ANALYSIS to determine how to get the best business solution
for the least money i.e. to determine where and when the costs are incurred within the context of the SAP solution stack.
Identify high availability and disaster recovery requirements Determine all HIGH AVAILABILITY and DISASTER RECOVERY REQUIREMENTS, to plan what to
do with later downtime of the SAP system
Engage SAP solution stack vendors Select the best SAP hardware and software technology partners for all layers and components of the SAP SOLUTION
STACK, based on a side-by-side sizing comparison
Staff TSO Staff the bulk of the TSO, i.e. fill the positions that directly support the near-term objectives of the implementation, which are to develop and
begin installation/implementation of the SAP data center.
Execute training Train the various members of the SAP TSO, like data center specialists, high availability specialist and network specialists and train the
end-users to give all the required SAP knowledge and skills
Setup SAP DATA CENTER Build a new SAP DATA CENTER facility or transform the current data center into a foundation capable of supporting the SAP
SOLUTION STACK
Perform installations Install the (My)SAP components and technological foundations like a web application server or enterprise portal.
Round out support for SAP Identify and staff the remaining TSO roles, e.g. roles that relate to help desk work and other such support providing work.
SAP functional development Address Change Management 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.
Address SAP systems and operations management Create a foundation for the SAP systems management and SAP computer operations, by creating a
SAP OPERATIONS MANUAL and by evaluating SAP management applications.
Perform functional, integration and regression tests Test the SAP business processes, by executing functional tests to ensure that business processes
work, integration tests to ensure that the organization’s business processes work together with other business processes and regression tests to prove
that a specific set of data and processes yield consistent and repeatable results.
Final Preparation Perform systems and stress tests 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.
Prepare for cutover Plan, prepare and execute the CUTOVER, by creating a CUTOVER PLAN that describes all cutover tasks that have to be performed
before the actual go-live
Go Live Turn on the SAP system for the end-users
ABAP TECHNICAL

SAP Introduction

sap abap faq

sap Tables

SAP Transaction codes

Internal tables

data dictionary

performance tuning

transports & Requests

Sap scripts

Smartforms

lsmw

reports

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module pool/ dialog
programming

table control

user exits

sap memory

abap memory

alv reports

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IDOC

ALE

BAPI

BADI

RFC


FUNCTIONAL SIDE

Materials Management

FICO

Human Resources

BIW / BW / SEM


Free Documentation
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RFC

Transport

Sales & Distribution Material

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Billing Material

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CATT : Computer Aided Test
Tool

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leveling Material

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Cross Application Material

Countries

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Financial / Controlling (FICO)

Internet Time Sheet

Inspection Material

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Material

Payments Material

Payroll Material

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SAP material

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