SAP ERP Overview

Nitin Joshi,

General Manager (Services ), SAP India

Integrated Application Framework

About SAP

Summary and Outlook

SAP ERP - Solution Overview

SAP Strategy Fundamentals – Our Commitment

Focus on performance

Deliver on expectations

Become the Trusted

Innovator Move toBest of Suite

SAP will be the Greatest Independent Provider

of Innovative Business Solutions

Summary of SAP Today

SAP AG in 2006 revenues: €9.4 billion More than 38,000 companies run SAP software

Providing more than 28 industry solutions

39,355 SAP employees (December, 2006)

12 million users in 120+ countries team with us to… Integrate their business processes

Extend their competitive capabilities

Get a better return on investment at a lower total cost of ownership

Unique partner ecosystem More than 2,200 partners

Overall more than 180,000 SAP partner certificates

North AmericaPalo Alto and satellites

IndiaBangalore,Gurgaon

BulgariaSofia

CanadaMontréal

ChinaShanghai

IsraelRa’anana

GermanyWalldorf and satellites

SAP's Global R&D Organization

HungaryBudapest

SAP in India – Glorious 11 years

SAP SALES OFFICE

SAP SALES OFFICE, MUMBAI

SAP SALES OFFICE, CALCUTTA

SAP SUPPORT OFFICE

SAP LABS, GURGAON

SAP SALES OFFICE

SAP GLOBAL DELIVERY CENTER

SAP LABS

SAP INDIA HEADQUARTERS

Accelerated Investments ($ 1 b) in Operations & Localization – VAT, Best Practices..

More than 4000 people strong Development team in India

1800+ customer installations

32 Leading IT companies in India are SAP partners

400+ new customer wins with 20 competitive Win Backs in 2006

High Rankings by Leading Industry Analysts - IDC, GS, Gartner, AMR etc

NEW

ESTABLISHED IN 1996

Best Run Businesses Run on SAP…

SME and mid-market partnerships…

Discrete Manufacturing flagship partnerships…

Process Manufacturing flagship partnerships…

Consumer & Retail flagship partnership…

Services industries flagship partnerships…

Solid Penetration … Hallmark of the Leader

Oil & Gas E&C Telecom IT ServiceAuto CPG

Integrated Application Framework

About SAP

Summary and Outlook

SAP ERP - Solution Overview

Integration Concept

InventoryManagement

Vendor Management Purchase Costing Accounting Treasury

... Cross Country ... Cross Department ... Cross Organization

Indent

Tender andEvaluation

Goods Receipt

Invoicing& Payment

Integration of previously off-line functions into the operational flow is a key enabler for competitive advantageIntegration of previously off-line functions into the operational flow is a key enabler for competitive advantage

ForexMatching

CurrencyRisk

Budget Check

Purchase Order

VendorMaster

CashManagement

StockUpdate

MaterialValuation

StockAvailable

AccountUpdation

Cost Control Cash

Outflow

Solution - An integrated system design

Finance

EnterpriseManagement

Asset Management

Budgetary Control

Human Resources

MaintenanceManagement

ManagementInformation

System

ProjectManagement

MaterialManagement

INOUT

VisibilityUncertainty

Common Data ModelData Redundancy

Real-time DecisionsMonthly Reports

Performance MeasuresExcel Reporting

Predictive AnalysisEducated Guesses

Benefits of Integrated Application

Process Oriented Function Oriented

Integrated Application Framework

About SAP

Summary and Outlook

SAP ERP - Solution Overview

One Platform Strategy, But Different Markets

DIFFERENTPRODUCTS

DIFFERENTSALES MODELS

VOLUME Volume business Lead generation Channel partners

RELATIONSHIP Enterprise licenses 1/1 marketing ISVs ecosystem

One strategy One goal

CUSTOMER VALUE

mySAP

SAP Business One

SAP All-in-One

LARGE

MIDSIZE

SMALL

mySAP SCM

mySAP PLM

mySAP SRM

mySAP CRM

mySAP ERP

SAP NetWeaver

SAP ERP - Comprehensive Solution

mySAP ERP provides the most comprehensive ERP functionality allowing the achievement of business strategies in an integrated but open and extendable architecture

Employee and Manager Self-Services

AnalyticsStrategic Enterprise

ManagementFinancial Analytics Workforce Analytics Operations Analytics

Financials Financial Accounting Management Accounting Corporate GovernanceFinancial Supply Chain

Management

Human Capital Management

Employee Relationship Management Employee Lifecycle Management Employee Transaction Management

Operations PurchasingInventory

ManagementProduction

Project

ManagementMaintenance

Quality

ManagementDistribution

Sales Order Management

Corporate Services

Travel Management Environment, Health & Safety Incentives & Commissions Corporate Real Estate

SAP NetWeaver™

People Integration Information Integration Process Integration Application Platform

FinanceDepartment

Accelerate Close Legal Requirements Companies Act Requirements Parallel Closings External Reporting

Today’s Business Challenges in Financials

Improve

Corporate Governance Efficient Process Controls Risk Management Audit Support

Drive Efficiency in Finance

Streamline Financial Processes Free-up Working Capital Decrease Cost of Finance Centralize Finance Operations

Increase Business Insight for

Management Reporting Measure Profitability Control Costs Management Consolidation Analysis and Reporting

Enhance Performance Management

Strategy Management Budgeting and Planning Consolidate Plan Data Corporate Scorecards Benchmarks and KPI’s

The responsibilities of Finance expand well beyond Financial and Management Accounting

Efficiency– One Solution Covering all Financial Processes

Issue

InvoiceReconcileSettle

& Pay

Collect

Cash

Resolve

Disputes

Finance Working

Capital

Forecast

Cash

ProcureForecast

CashReconcileSettle

& Pay

Approve

Invoice

Resolve

Exception

Receiving

Invoice

Financing working Capital

Valuation for Accounting

Close Preparation

Audit Support

Group

CloseLocal Close

Purchase to Pay

Order to Cash

Account to Report

Share best-practice process standards with more than 25.000 customers Seemless integration with SAP‘s Industry SolutionsFlexible enhancement with other components of the mySAP Business Suite

CheckCredit

Worthiness

Performance Management

Define Strategy

Setup Targets

Align with execution

Measure success

Adjust Strategy

Scope & Setup

Document Process &

Control

Attest & Report

Signoff, Certify & Report

Test Effective

ness

Assess Design &

Remediate

Management of Internal Control

Report

Controlling

Purchasing

Accounting

Treasury

Purch.req. Commit-

ment

Purch.ord. Commit-

ment

ProvisionActual Actual

Purchase request

Purchaseorder

GoodsReceipt

Cashforecast

Cashforecast

GL Receiving Invoice

Approve Post Invoice

ResolveException

Cashforecast

CashPosition

SettlePayment

ElectricBanking

Reconcile

FinancingWorkingCapital

Efficiency – One Integrated Approach for Logistics and Finance

Example 1: Purchase to Pay process

The Five Key Capabilities of SAP ERP Financials

Financial Accounting

ManagementAccounting

Financial Supply ChainManagement

Corporate Governance

CorporatePerformance

Mgmt

Customer Quote

“With the GL in mySAP ERP we are able to master all requirements for parallel valuation—including local GAAP and US-GAAP.”

Dieter Bankosegger, HDI International

Financial Accounting - General Ledger

Keep and balance multiple ledgers faster and more accurately

Use one unified database for financial and managerial accounting data

Improve user productivity with uniform user interface and functionality

Reconcile reports easily

Eliminate many period-end activities

Support multiple reporting requirements Use parallel accounting; segment reporting;

cost of sale accounting; or profit center accounting as needed

Multi-dimensional balancing

Debit

6040

Accnt / SEG

---------- A---------- B---------- A---------- B

Credit

6040

Companies Act

US GAAPxxx xxx xxx

Document entry

Debit

100

Accnt / SEG

---------- ---------- A---------- B

Credit

6040

Split Logic

Managementxxx xxx xxxxxx xxx

Multi-dimensional

Multi-ledger update

Mu

ltiple

va

lua

tion

Effectively record and manage accounting data for all vendors

Speed up and improve the customer accounting process

Better manage bank master data and cash balances

Improve cash journal accounting

AccountsReceivable

BankAccounting

AccountsPayable

Cash JournalAccounting

Financial Accounting – Subledger

Manage the value and quantity of material stock

Proactively manage asset lifecycle from acquisition to retirement

Accurately account for taxes according to the legal requirements of a country/region

Streamline accounting accruals

Fixed AssetAccounting

TaxAccounting

InventoryAccounting

AccrualAccounting

ERP Principles and Applications supporting Controls

ERP Principles Inherent Controls Configurable Controls Security Controls Reporting Controls

ERP Applications Management of Internal Controls Whistle Blower Audit Information System Business Consolidation Risk Management Management Cockpit Balanced Scorecard Business Planning and Simulation

How Does ERP Handle the Challenges?

mySAP Business Suite

SAP NetWeaver

Technology People

Inh

ere

nt

Contr

ols

Configura

ble

Contr

ols

Secu

rity

Contr

ols

Report

ing

Contr

ols

Manual &

Pro

ced

ura

lC

ontr

ols

Business Objectives (Control Objectives & Risk)

AUDIT INFORMATION SYSTEM

Rationalize auditing with built-in controls and credibility

Improve audit quality Select and prepare individual pieces of data with

revision-specific analysis

Enhance collaboration with external auditors Download critical information for further revision Meet auditing requirements of standard revision

tools, such as ACL, IDEA, AuditAgent

Use built-in auditing Seamlessly integrate with mySAP ERP Utilize role-specific SAP reporting

Auditor’s Quote

“AIS is the result of many years of intensive collaboration between SAP and auditors concerning auditing requirements. That collaboration has achieved an excellent tool for supporting auditing in SAP systems.”

W. Storm, PwC Germany, 2004

Overview – Audit Management in SAP

Processing

Valuation

Corrective andPreventive Actions Documentation

Evaluation

PlanningAudit Cycle

CLOSING COCKPIT

Accelerate and standardize your closing process

Use standard closing templates for consistency across closing periods and subsidiaries

Accelerate the closing process and improve user productivity

Bundle and automate closing activities Use interactive processing for quick error correction Automate collaboration via workflow

Create transparency and support compliance Provide a perfect overview of the closing status Drilldown to all details

Customer Quote

“We decided to use SAP because our controllers can execute the period-end closing within the SAP ERP environment more efficiently. We achieved a time reduction of 25% in the closing process.” Zeiss Optronik

Management Accounting

Cost CenterAccounting

Internal OrderAccounting

Activity-BasedCosting

Product Costing

Profit CenterAccounting

InvestmentManagement

ProfitabilityAnalysis

Managerial Managerial AccountingAccounting

Managerial Managerial AccountinAccountin

gg

SAP structures management accounting processes through a dedicated, best-of-breed module suite

Performance Measurement Financial, Workforce &

Operations Analytics Corporate KPI

catalogue

Business Consolidation Legal Consolidation Management

Consolidation

LOB EXECUTIVES(Strategic)

Marketing

FinanceSales

Operations

Mid-Term Plan Sales Headcount Budget Maintenance

Cost …

MID-MANAGERS(Operational)

Long-Term Plan Financial

Statements Cash Flow

Strategy Management

Balanced Scorecard

Value Based Management

CEO & Board

Roles Manager Self Service Business Unit Analyst

Corporate Performance Management Enabled by SAP

What is a Balanced Score Card ?

Balanced Score Card (BSC) is a management system

to model strategies, deploy them and measure

their execution by linking them to the right KPI.

Corporate Governance - mySAP ERP and SAP GRC

Audit information system

Corporate Performance Management - Consolidations- Risks- Scorecards (analytics)

Whistle-blower complains

- Inherent controls - Configurable controls - Reporting controls - Security controls

SAP Solutions for Governance, Risk and Compliance*

* SAP solutions for GRC are delivered and licensed separate from SAP ERP2005

mySAP ERP Stack for Sustaining Compliance:

What SAP’s Solution does for you

Today’s Business Challenges

Summary and Outlook

mySAP ERP Financials – Solution Overview

Accelerate Close Subledger and General Ledger Integrated Segment Reporting Closing Cockpit Intercompany Reconciliation Business Consolidation

SAP’s Answer to todays Business Challenges in Financials

Improve Corporate

Governance Inherant or configurable controls Reporting Controls Security Controls Audit Information System Whistle Blower SAP Solutions for GRC

Drive Efficiency in Finance

Best-Practice Process Standards End-to-end Integrations Financial Supply Chain Mgmt. to optimize individual bottle necks

Increase Business Insight for

Management Reporting Profitability Analysis Cost-Center Accounting Activity-based Costing Management Consolidation

Enhance Performance Management

Fin, Operations and HCM Analytics Balanced Scorecard Value Driver Tree Business Planning Business Consolidation xAPP Analytics

One integrated system to gain efficiency and effectiveness:

SAP Education

SAP Education Welcomes you to a whole new, learner-centric approach to training

A range of highly interactive Web-based courses

delivering effective knowledge transfer

wherever and whenever it’s needed …

SAP Online Education – Details

Why online education?

Candidates can start their training as per their convenience and don’t need to wait for a scheduled batch.

Candidates can allocate time for their training at their convenience.

No additional cost in terms of travel and accommodation since contact centers available in almost all the cities.

SAP Online Education – Details

How does the learning happen?

Through SAP authorized contact centers in various cities.

Why this mode of learning will be effective ?

No difference in an ILT and an Online course

Certification similar to that of the ILT courses

Infrastructure in sync with the SAP Education ILT centers

E-Learning Course Fee per Module for ICAI ONLY

Rs.70,000/Module*

* Tax – 12.36%

Questions