SAP

Introduction

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INTEGRATION OF BUSINESS PROCESSES IN SAP

Overview
Materials Management (MM)
Sales and Distribution (SD)
Production Planning (PP)

PP

MM

SD

LE
PS
Quality Management (QM)
Plant Maintenance (PM)
Logistics Execution (LE)

PM

Project System (PS)

Human Resources (HR)

SAP
HR

QM

FI

CO

FCSM

Financial Accounting (FI)

Financial Supply Chain Management (FSCM)
Controlling (CO)
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INTEGRATION OF BUSINESS PROCESSES IN SAP

Overview
History

SAP R/2 (introduced 1972)

Mainframe

all-in-one

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Overview
History

SAP R/3 (introduced 1992)

Industry Solutions
Application

SAP Basis

Two Level: Basis and Application

Introduction of Industry Solutions
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Overview
Industry Solutions
IS-A
(Automotive)
IS-AD
(Aerospace & Defense)
IS-AFS
(Apparel and Footwear)
IS-Banking
(Banking Industry)
IS-BEV
(Beverage)
IS-DFPS
(Defense Forces & Public Security)
IS-H
(Healthcare)
IS-HER
(Higher Education & Research)
IS-HMED (Clinical System)
IS-M
(Media)
IS-M/AM
(Media / Advertisement & Media-Sales)
IS-M/SD
(Media / Sales & Distribution)
IS-MP
(Mill Products)
IS-OIL
(Oil & Gas)
IS-PS
(Public Sector)
IS-R
(Retail)
IS-RE
(Real Estate)
IS-T
(Telecommunication)
IS-U
(Utilities)
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Overview
History

mySAP ERP (introduced 2003)

Self-Services
Internet Sales
Composite Applications
Strategic Enterprise Mgmt
And more
Industry Solutions
Enterprise Extensions

SAP NetWeaver
People Integration

Information Integration

Process Integration
Application Platform

Life Cycle Mgmt

Composite Applications

SAP ECC Core (5.0)

Several Components easier to enhance

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Overview
History

SAP ERP 6.0

Supplier Relationship Mgmt

Self-Services
Internet Sales
Composite Applications
Strategic Enterprise Mgmt
And more
EhP2

EhP3

EhP2

Switch Framework
Enterprise Extensions Industry Extensions

SAP NetWeaver
People

Processes
Information
Integration

Life Cycle Mgmt

Security and Identification Mgmt

SAP ECC Core (6.0)

Application Base

First BPP Solution from SAP

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INTEGRATION OF BUSINESS PROCESSES IN SAP

Overview
History

Most business applications can be integrated to SAP ERP by

using SAP NetWeaver Technology
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Overview

SAP Business Suite

SAP PLM
Lifecycle Data Management, Project Management,
Quality Management, Asset Management

Customer Order
Management,
Internet Sales

Purchase Requisition

SAP SRM

SAP CRM

Warehouse and Inventory Management

Production and Transport

SAP SCM
SAP NetWeaver
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Overview
Enhancement Packages

EhP Facts
EhP installations and
functional activation
cannot be reversed

Technical Dispatch
EhP are cumulative

Delta Shipment only

Only one EhP-level per
system

Enhancement Packages
for specific NetWeaver
versions

Industry solutions
require installation of
specific EhP
components

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Perspectives
Comparison of
modifications necessary
even without activating a
business function

Regression test mandatory

even without activating a
business function

Higher Effort for installing

EhPs in comparison to
Support Packages

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Overview
History

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New functions that simplify business

processes, as well as user interface

New generic functions for financial

accounting, human capital
management, operational business
and corporate services

New Enterprise Services, which

illustrate the benefit of serviceoriented architecture based on
business szenarios and requirements

New functions for certain

branches (industries)

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Excursion
Enterprise Service Architecture (ESA)
Hierarchie from Services to a complete xApp

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1.

Service simple function

2.

Webservice web compatible function

3.

Application Service: Consists of a webservice, which offers services

from applications

4.

Enterprise Service: Consists of 1:n application services and serves

as a comprehensive webservice to abstract the business

5.

Composite Application: Complex application that consists of

several enterprise services

6.

Packaged Composite Application: Packaged Composite

Applications provided by software manufacturers

7.

xApps: Packaged Composite Applications created by SAP or their

partners
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Excursion
People Integration

Harmonized Landscape for Users

Highest integration layer of SAP NetWeaver

Combines functions on a consistent navigation platform

Allows role specific access to a particular system
NetWeaver Portal as a central access point for information,
applications and services
Consolidation of SAP and other systems, data warehouse, desktop
documents, web content and web services on a single user interface
Knowledge Management in the portal modifies unstructured data
into important information for the organization
Portal structure is adjusted to the requirements of the single user
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Excursion
Process Integration

Software to support process specific data exchange

between people
SAP NetWeaver components support the following requirements of data integration
Modelling of business processes
Customizing of an application which supports a business process
Data exchange between applications and systems within a business process
Automation of business processes

Components offered by SAP NetWeaver

Solution Manager (Customizing)
SAP NetWeaver Process Integration (data exchange between applications and systems)
SAP Business Workflow (process automization)
ccBPM (process automization)
SAP NetWeaver Business Process Management (process automization and modelling)

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Excursion
Information Integration

Supports companies to collect and evaluate operating

figures
Analysis of business processes
Increases efficiency of process flows
Increases customer satisfaction
Cost reduction

Components that enable data collection and reduction of storage needs

SAP Business Objects - BI
SAP NetWeaver Business Warehouse

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SAP NetWeaver
NetWeaver Components

Components
SAP NetWeaver Application Server supports platform independent webservices, applications and their
standardized development, which enables the use of existing technology for webservice oriented solutions
SAP NetWeaver Business Intelligence enables the integration of data throughout the entire companz and
its conversion into practical, time precicely, economical information, which is the base for substantiated
decision making
SAP NetWeaver Process Management offers tools for modelling, execution and monitoring of business
process on the basis od a single, consistent process modell
SAP NetWeaver Process Integration offers SOA-based technology, which support process oriented
integration over the enhanced chain of economic value added
SAP NetWeaver Master Data Management assures data consistency throughout the entire system and
supports the integration of business processes over the entire chain of economic value added

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SAP NetWeaver
NetWeaver Components

Components
SAP NetWeaver Mobile offers a future proof mobile runtime environment on the basis of open, felxible
technology standards. It as well offers an efficient development environment for the set-up of integrated
mobile solutions with system specific and browser based user interfaces.

SAP NetWeaver Portal harmonizes important information and applications to offer the users role based
views, which affect the entire company. That enables the overall use of information sources of a company.
SAP Auto-ID Infrastructure offers all functions which are needed to integrate all automatic data readers,
including RFID-reader and printer, bluetooth equipment, embedded systems and barcode equipment.
SAP NetWeaver Identity Management is responsible for access control. It offers new options for the
integration of business processes and supports the integration of systems in a heterogeneous ITenvironment.

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SAP NetWeaver
NetWeaver Tools

Tools
Adaptive Computing Controller establishes a central base for the assignment of hardware resources and
the optimization of their capacity utilization
SAP NetWeaver Composition Environment offers a robust environment for the development, use and
execution of conglomerate applications, which correspond to service oriented architecture
SAP NetWeaver Developer Studio offers a comfortable user interface with numerous functions to develop
J2EE applications
SAP NetWeaver Visual Composer simplifies the creation of portal content and analysis applications. This
enables analytists to modify applications through a visual user interface instead of development
SAP Solution Manager enables the technical support of distributed systems through functions that cover all
key aspects of an implementing, operation and permanent improvement of solutions.

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Overview
Organizational Structure
Basic elements to describe the structure
and business processes of an organization

Reporting

Transactions

Master Data

Organizational Level

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Overview
Organizational Model

The organizational model

Describes organizational units and their relationship

Is individual from company to company

Is the base for the ERP system

Example:

Management

Sales, Purchasing, Production etc.

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HR, Accounting, Controlling

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Overview
Organizational Structure

IDES
Europe
Germany

North America
France

Customer Service
Manager

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SAP Client

Company Code

Production

Worker

Controlling Area

Organizational Unit

Worker

Position

HAM

Sales Organization

FRA

BER

Pumps

Colors

Medication

Division

FRA

BER

HAM

Plant

0001

0002

INTEGRATION OF BUSINESS PROCESSES IN SAP

Storage Location

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Organizational Units
Financial Accounting
Client
The top level organizational entity in the system
Can describe an enterprise, corporation or firm
Represents an entity, which is enclosed in terms of economic laws, organizational and data wise
Company Code
Central organizational unit of financial accounting
Allows an enclosed accounting for several departments
More than one company code possible per client
Example: Company codes can describe the different companies of an enterprise
Credit Control Area
Monitoring of customer credibility
Can be defined per company code or comprehensive over several
Business Area
Organizational independent, product related cut through the business
Structuring of the company based on products to support external accounting
Controlling Area
Central organizational unit of Management Accounting
Definition of internal cost and revenue structures
A controlling area can be defined to include several company codes

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Organizational Units
Logistics General

Plant
Central organizational unit for logistics processes
structures a company based on logistics views (offices, production, locations)
Differentiation between locations for production, purchasing, plant maintenance and / or disposition
A company code can include more than one plant
Division
Grouping of products, materials and services
(M:N) relation to a sales organization
Customer individual agreements
Part of the sales area

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Organizational Units
Sales

Sales Organization
Basic structure of sales
More than one sales organization per company code possible
(M:N) relation to a plant
Part of the sales area
Distribution Channel
Describes the different sales channels, e.g. retail, direct sales, internet sales
More than on distribution channel per sales organization possible
Part of the sales area
Sales Office (optional)
Describes a sales location

Sales Area
Combination of sales organization, Distribution channel and division
Used for reporting and e.g. price determination

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Organizational Units
Logistics

Storage Location
Allows local differentiation of inventory within a plant
Inventory management / quantity based
Purchasing Organization
Central organizational unit for purchasing
Purchasing activities for more than one company code
Comprehensive over plants

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Overview
Organizational Structure
Basic elements to describe the structure
and business processes of an organization

Reporting

Transactions

Master Data

Organizational Level

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Master Data

Master Data
Static data, established for long-term use
Central creation
Can be used by all processes and authorized users
Assignment to organizational units
Customer Master
General Data: Address, language, contact person
Company Code Data: payment methods, dunning, terms of payment
Sales Organization Data: Partner functions, delivery terms, invoice parameters

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Master Data

Material Master
General Data: Material Number, short description, unit of Measurement
Sales Organization Data: Delivering plant, tax indicator
Disposition Data: Procurement method, planning strategy

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Transactions and Transaction Data

Transactions:
Application program
Execute business transactions in the system
Valid organizational units mandatory
A document is created for each executed transaction
Documents contain predefined, relevant information from master data and organizational units
Transaction Data:
Non durable, activity related data
Related to master data
Documents created from transactions
Basis for reporting

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Overview
Reporting
Reporting Information systems
Online Transaction Processing (OLTP)
Examples within SAP ERP:
Logistics information system
Sales information system
Online update
Data storage with high level of detail

Reporting Data Warehouse

Online Analytical Processing (OLAP)
Multidimensional analysis
Complex reports
Examples Reporting Tools
Business Warehouse
Crystal
Xcelsius
Examples data bases
ERP
CRM
SCM
Data bases
Internet
Offline update
Aggregated data storage

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Example Process
Procurement

Procurement

Order
Requirement

Purchase
Order

Material
Vendor
Supplying Plant
Purchasing
Organization
Purchasing Group

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Goods
Receipt

Invoice
verification

Payment

Payment Method
Bank

Warehouse
Vendor

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Example Process
Sales

Sales Order Management

Order Entry

Material
Customer
Delivering Plant
Prizes
Sales Area
Sales Office

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Transport

Delivery

Billing

Dunning &
Payment

Payment Method
Bank

Shipping Point
Customer

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