Introduction to SAP

What is SAP R/2

R/2 is SAP AG mainframe solution and was the first compact software package for the whole spectrum of business applications. SAP R/2 runs on mainframes, such as IBM, Siemens, Amdahl. The current version of R12 is 6.1. This mainframe solution is not open, although with the help of ALE (Application Link Enabled) technology. R/2 call be linked to R/3 systems and share online data. 

R/2 is a set of consolidated business application from SAP, a German company that introduced the product in 1979. R/2 gained popularity until the mid- 1990s, when it was superseded by the more capable R/3 product, later updated by mySAF.com. To some extent, R/2 is still in use. 

Now more than 20 years old, R/2 continues to be supported by SAP, although support- is expected to decline. Using Application Link Enabled (ALE) technology, R/2 systems can share data with R/3 and mySAP.com-equipped systems. However, SAP says that it may more cost-effective to migrate to R/3 rather than to stay with R/2, because of the improved support and expanded features available with the current product. 

SAP R/2 is the name given to SAP'S first ERP solution that was designed for the mainframe  It comprises of a number of modules: RS (Basis), RF (Financial Accounting). RA (Asset Accounting), RK (Cost Accounting), RK-P (Project Costing), RM-INST (Plant Maintenance), RM-MAT (materials Management), RM-PPS (Production Planning and Control), RM-QSS (Quality Assurance), RP (Human Resources) and RV (Sales and Distribution). 

What is the Purpose of R/3

The sole purpose of an R/3 system is to provide a suite of tightly integrated. large scale business applications. 

The standard set of applications delivered with each R/3 system are the following : 

• PP (Production Planning) 
• MM (Materials Management) 
• SD (Sales and Distribution) 
• FI (Financial Accounting) 
• CO (Controlling) 
• AM (Fixed Assets Management) 
• PS (Project System) 
• WF (Work Flow) 
• IS (Industry Solutions) 
• HR (Human Resources) 
• PM (Plant Maintenance)
• QM (Quality Management) 

These applications are called the functional areas, or application areas, 0r at times the functional modules of R/3. All of these terms are synonymous with each other. 

Traditionally. businesses assembles a suite of data processing applications by evaluating individual products and buying these separate products from multiple software vendors. Interfaces are then needed between them. For example, the materials management system will need links to the sales and distribution and to the financial systems, and the work flow system will need a feed from the HR system. A significant amount of IS time and money is spent in the implementation and maintenance of these interfaces.

R/3 comes prepackaged with the core business applications needed by most large corporations. These applications coexist in one homogenous environment. They are designed from the ground up to run using a single database and one (very large) set of tables. Current production database sizes range from 12 gigabytes to near 3 terabytes. Around 8,000 database tables are slipped with the standard delivery R/3 product. 

SAP R/3  overview

SAP R/3 is SAP's integrated software solution for client server and distributed open systems. SAP's R/3 is the world's most-used standard business software for client/server computing. R/3 meets the needs of a customer from the small grocer with 3 users to the multi-billion dollar companies The software is highly customizable using SAP'S proprietary programming language, ABAP/4. R/3 is scalable and highly suited for many types and sizes of organizations. 

The R/3 architecture is comprised or application and database servers. The application servers house the software and the database servers handle document updates and master file databases. The system call support an unlimited numbers of servers and a variety of hardware configurations. For more info. see SAP R/3 Architecture at SAP home page. 

           E - Enterprise

           R - Resource or Departments

           P - Planning

ERP : Is a continuous activity in each enterprise to make sure that every thing is going properly and efficiently. 

i.e. the purchasing department has to plan 

• What to purchase
• When to purchase
• How much to purchase
• From where to purchase 

To make sure that they can get the quality material for the right price and in right time because many other departments waits for this material to start their activities such as production, sales etc..

And similarly each department has to plan their activates properly as the success of the enterprise depends on how best the departments plan their activities. 

Conclusion

• ERP is directly proportional to Quality of output.
• Quality of out is directly proportional to the shape of the organization.
• Shape of the organization is directly proportional to the earnings of the company 

So that each enterprise has to plan their resources as efficiently as possible. 

 SAP : Three-Tier Architecture