KELOMPOK 2

AHNAFVIAN THIRZA NIADI / 1202164008

FAATHIR MUHAMMAD / 1202164032
GHINA NADIAH / 1202160096
HENNRY SYAHREZAARIFIN / 1202164193
MOHAMMAD FAHRUL DATU / 1202160169
SANG PUTU SANTIKA WIRANATHA / 1202160185

DEFINITION
SAP, started in 1972 by five former IBM employees in Mannheim, Germany, states that it is the
world's largest inter-enterprise software company and the world's fourth-largest independent software
supplier. The original name for SAP was German: Systeme, Anwendungen, Produkte, German for
"Systems Applications and Products."
The original SAP idea was to provide customers with the ability to interact with a common corporate
database for a comprehensive range of applications. Gradually, the applications have been assembled and
today many corporations, including IBM and Microsoft, are using SAP products to run their own
businesses.
SAP applications, built around their latest R/3 system, provide the capability to manage financial,
asset, and cost accounting, production operations and materials, personnel, plants, and archived
documents. The R/3 system runs on a number of platforms including Windows 2000 and uses the
client/server model. The latest version of R/3 includes a comprehensive Internet-enabled package.
SAP has recently recast its product offerings under a comprehensive Web interface, called mySAP.com,
and added new e-business applications, including customer relationship management (CRM) and supply
chain management (SCM).
As of January 2007, SAP, a publicly traded company, had over 38,400 employees in over 50
countries, and more than 36,200 customers around the world. SAP is turning its attention to small- andmedium sized businesses (SMB). A recent R/3 version was provided for IBM's AS/400 platform.

MODULES
1. FINANCIAL ACCOUNTING ( FI )
An important core module, designed for meeting all the accounting and financial needs of an
organization. Within this module Financial Managers as well as other Managers within your
business can review the financial position of the company in real time.
2. CONTROLLING ( CO )
Represents the companys flow of cost and revenue, offers all the support information needed by
Management for the purpose of planning, reporting and decision making. Basically It is a
management instrument for organizational decisions
3. SALES & DISTRIBUTION ( SD )
The SAP sales and distribution is part of the logistics module that support your customers, starting
from quotations, sales order and all the way towards billing the customer. It is tightly integrated
with the MM (Material Management) and PP (Product Planning) functional modules. It allows
companies to input their customer sales price, check for open orders and forecast etc.
4. MATERIAL MANAGEMENT ( MM )
Is the materials management module of the SAP. This module is used for Procurement Handling
and Inventory Management. Materials management (MM) is integrated with other modules such
as SD (Sales & Distribution), PP (Product Planning) and QM (Quality Management). Materials
management is used for procurement and inventory management.
5. PRODUCT PLANNING ( PP )
The purpose of PP&C (Production Planning and Controlling) is to ensure that manufacturing runs
effectively and efficiently and produces products as required by customers. The Production
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Planning module of SAP takes care of Master data needed like Bill Of Materials, Routings and
Work Centers and stores it in one separate component.
6. QUALITY MANAGEMENT ( QM )
Quality management is a method for ensuring that all the activities necessary to design, develop
and implement a product or service are effective and efficient with respect to the system and its
performance. Quality management is the comprehensive solution that supports the company
throughout the product life cycle and along the supply chain.
7. PLANT MAINTENANCE ( PM )
oriented to cover all maintenance activities, supporting the Planning, Programming and
Implementation, with emphasis on the availability of equipment, staff costs and Assurance,
guaranteeing so the state of the art of database and optimization. SAPs Plant Maintenance
comprises of the following activities such as inspection, to measures and establishes the actual
condition of a technical system, preventive maintenance to measures and maintain the ideal
condition of a technical system, repair to measures and restore the ideal condition of a technical
system and other measures that need to be taken using the maintenance organization.
8. HUMAN RESOURCE ( HR )
It deals with various activities done in the human resource department of an organization, such as,
Personal administration, personnel development, training and event management, payroll etc. This
module enables customers to effectively manage information about the people in their
organization, and to integrate that information with other SAP modules and external systems.
9. PROJECT SYSTEM ( PS )
Created to support the planning, control and monitoring of long-term, highly complex projects
with defined goals .Projects are generally part of the internal processes of a company. To be able
to control all tasks in project execution, you need an organizational form that is specific to the
project and which is shared by all departments involved.

ADVANTAGES & DISADVANTAGES - Advantages

1. MARKET SHARE LEADERSHIP
SAP is marquee brand that is arguably the ERP software market share leader. For reference,
Oracle would take that argument and would point to different criterion to measure market share.
Nonetheless, SAP is a very sophisticated marketer and able to retain most of its customer base,
thereby suggesting it is likely to retain its leadership position.
2. CORPORATE VIABILITY
With over 65,00 employees, 232,000 customers, 16,22 billion in revenues and an impressive four
decade history, the company shows no signs of going away anytime soon.
3. COMMUNITY
Despite a lack of transparency with regard to ERP software pricing, the company has developed a
very collaborative customer and partner portal called the SAP Community Network. The
engineering-oriented portal leverages social tools such as a Wiki, gamification concepts such as
granting points for contributions and generally supports candid comments and conversations.
4. A GLOBAL SOLUTION
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SAP supports global functionality with 45 standard country versions and eight add-on country
editions. The application is also scalable to support thousands of concurrent users across multiple
locations.
5. EXPANDIBILITY
SAP business applications can be procured modularly for individual functions such as CRM or
SCM, or customers can acquire the SAP Business Suite to integrate all or most of their business
processes. Similarly, the financial applications can be operated stand-alone or as a part of a
broader suite.

ADVANTAGES & DISADVANTAGES Disadvantages

1. COMPLEX PRICING
SAP pricing is unnecessarily complex and lacks transparency which facilitates sales
gamesmanship. Further, new SAP software maintenance models have been very controversial
with the customer base. Even after getting past the hurdle of understanding the software
acquisition costs, customers are required to then track multiple licensing metrics, such as rolebased and named user categories, licensing use based on operating metrics and hardware
utilization metrics for certain products.
2. DEPLOYMENT RISK
Continuing one of the prior points a step further, ERP buyers must recognize SAP ERP software is
broad, deep and complex, thereby rendering the conditions for a perfect storm and a very
challenging and costly deployment.
3. VERY HIGH TCO ( TOTAL COST of OWNERSHIP )
SAP comes with a very high Total Cost of Ownership (TCO), consisting of high acquisition costs,
very high deployment costs, reasonably priced but recurring maintenance costs and very high
internal support costs. Its incumbent upon ERP buyers to identify, calculate, analyze and optimize
their investment in each of these categories prior to making a purchase decision.
4. USER EXPERIENCE
The application is intuitive and usability is straight-forward, but the User Experience (UX) lacks
when compared to more modern user interfaces which take advantage of rich presentations, social
paradigms and consumer technologies. The SAP user interface is based on several presentation
technologies and tools, some of which are on the way out (Flash, Silverlight) and several of which
are seemingly becoming more harmonized, but not more consumer-like or rewarding for the user.
5. RECURRING UPGRADES
Also adding to TCO and budget considerations are the recurring nature of new version releases.
As is typical of complex on-premise ERP systems, new version releases are regarded as Fork Lift
upgrades with deployment costs that often exceed the purchase price of the original ERP software.

COST OF SOFTWARE ( LICENSING )

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STARTER PACKS - $1,178 / each

Starter Packs are limited to a maximum of 5 users. If you need more than 5 users in your
organization, then youll need to upgrade each of the starter pack licenses to Professional Licenses
and add whatever other licenses they need (Pro or Limited)

PROFESSIONAL USER - $2,975 / user

One time fee. Calculated based on how many users need access to your SAP software.
Professional Users can have as much access to the system as you determine.

LIMITED USERS - $1,488 / user

Limited User Licenses offer specific access to the system. Limited licenses include: Limited
CRM, Limited Logistics, and Limited Financials.

MAINTENANCE - %18 of total software cost

Annual fee. Includes security and software upgrades and covers regular maintenance.

INSTALL & CONFIG - $195 / hour

The cost and timeline of implementation varies depending on the specific needs of each business.

REVIEW

IMO, the best ERP suite for medium and big enterprises.
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1. WHAT DO YOU LIKE BEST ?

For me, SAP is a beast, is the most complete ecosystem in the world for managing entirely
your big company. It offers a lot of products that integrates quite well with the ERP itself, the
CRM, and a whole bunch of modules. it feels like a stable-as-a-rock product. Seems that SAP
is a long-term player in this kind of software
2. WHAT DO YOU DISLIKE ?
Perhaps a little outdated, but per-se, it's not a bad thing. The licenses are expensive, though.
3. WHAT BUSINESS PROBLEM ARE YOU SOLVING? WHAT BENEFIT HAVE YOU
REALIZED ?
SAP ERP allows my company to solve all sort of things. It's a multinational one, and it can
manage all the sub-companies in all the countries in the world.
4. FOR WHICH PURPOSES DO YOU USE SAP ERP ?
Accounting

Javi P
Android / IOS Developer
Works for GuadalTech Solutions Technology
company in the Information Technology and Services Industry