1. Business Engineering Blueprint

2. Topics Overview of ERP and Ebiz options
Overview of Business Engineering
Overview of Organizational Elements
EPC Tool for describing complex processes
SAP R/3 Reference Model
Implementation Guide (IMG)
Unit Topics
This unit consists of the following main topics and sub-topics:
Overview of the Business Engineer
Procedure Model vs. AcceleratedSAP Roadmap
SAP R/3 Reference Model
Implementation Guide (IMG)
SAPoffice
Transporting of Customizing
ABAP/4 Development Workbench

3. Stages of E-Business
E-Business
E-Partnering
E-Commerce

4. E-Commerce Stage
Leverages an Internet-based sales channel to sell products or services or to make purchasing more efficient
Includes:
e-storefront
e-catalog
e-billing
Rudimentary forms of e-procurement such as EDI

5. E-Business Stage
Business performance is improved by IT and open standards to connect suppliers and customers at all steps along the value chain
EB focus is on effectiveness through reduced costs, improved customer service and streamlined business processes.
Extreme view of EB is the virtual company that only puts together a build plan and a sell plan and outsources the rest.

6. E-Partnering Stage
Companies work together to optimize an overall value chain
More than simply linking business systems, strategic, customer-focused relationship
Companies utilize e-business capabilities to create an environment for shared business improvements, mutual benefits and joint rewards.

7. ERP and E-Business
We assume that all companies need to handle some kind of internal transactions. These are facilitated by ERP
E-business is best supported by a well-tuned ERP system.
There are many different ERP and e-business strategies. These are determined by technical capabilities, industry position, and willingness to change among other factors.

8. E-Business/ERP Option Matrix
No E-Business Capabilities
Channel Enhancement
Value-Chain Integration
Industry Transformation
Convergence
Greenfield
Nonintegrated systems
Limited/Single Function ERP
Integrated BU ERP
Integrated Enterprise ERP

9. E-Business Options No E-Biz Capabilities Channel enhancement
Customer self-service, Web marketing
VC Integration
Begin to implement eCRM and eSCM
Personalized customer and supplier portals
Industry Transformation
Companies align Inet and with corp. strategy to create new products and services
Convergence
- Inet enabled partnering of companies in different industries for one stop shopping

10. ERP Options Green field Nonintegrated Systems ERP by Function
- Can create IS architecture from scratch
Nonintegrated Systems
Company has no rapid or meaningful exchange of data between internal systems
ERP by Function
company has successfully install one or a few ERP modules across all Bus
ERP by BU
-fully integrated ERP suite in one or more Bus
Fully Integrated ERP
-fully integrated ERP suite across the enterprise

11. Cost to Implement Various Ebiz Solutions from ERP Scenarios
centralized
LEG BU
Func
High
Cost of E-biz Implementation
Ent BU
Low GF
decentralized
Slow
Rapid
Time to Implement E-biz Solution

12. Pros and Cons of Business Blueprints
Few businesses can afford to start from zero
Processes are difficult to model
Way of capturing industry knowledge
Can serve as common starting point for process design team
Takes too long and processes are changed by time it is finished

13. Business Engineer Business Engineer Business Engineer consists of:
Application Components
Session Manager
Enterprise Organization
Management
Material
Inventory Management
Purchasing
Information
Systems
Warehouse Management
Request for Quotation
Purchase Requisition
Purchase Order
Business Objects
Process Model
Business Process Scenarios
Implementation Guide
Procedure Model
Object Oriented
Data Model
Purchase
requisition
Vendor
inquiry
quotation
information
Shipping
notification
scheduling
agreement
order
Business Engineer
Business Engineer consists of:
Application Components
Session Manager
Enterprise Organization
Process Model
Business Process Scenarios
Business Objects
Workflow and Personnel Organization
Procedure Model
Implementation Guide
Object Oriented Data Model
Workflow and Personnel Organization

14. Procedure Model Project Management
Organization and
Conceptual Design
Detailed Design
and System Set-Up
Preparations for
Going Live
Productive
Operation
Create
Interfaces
and
Enhancements
Establish
Global
Settings
Set Up
System
Environment
Establish
Reporting
Create
Go-Live
Plan
Train
Users
Train
Project
Team
Establish
Company
Structure
Quality
Quality
Quality
Support
Productive
Operation
Con-
ceptual
Design
Appli-
cation
System
Pro-
duction
System
Project
Preparation
Establish
Archiving
Management
Create User
Documentation
Establish
System
Administration
Define
Functions and
Processes
Design
Interfaces
and
Enhancements
Establish
Master
Data
Optimize
System
Use
Check
Check
Establish
Authorization
Management
Set Up
Production
Environment
Transfer Data
to Production
System
Check
Establish
Functions and
Processes
Procedure Model
The Procedure Model provides the framework to carry out your R/3 implementation
It structures the implementation process as phases, work packages and project activities.
Perform
Final Test
Project Management
System Maintenance and Release Upgrade 7

15. Relationship of the Procedure Model to ASAP
Realization
of Business
Benefits
Go Live &
Support
Project
Preparation 1
Business
Blueprint 2
Simulation
Validation 4
Final 6
You
Are
Here 5 3
AcceleratedSAP Roadmap...
Procedure Model
Relationship of the Procedure Model to ASAP
The Procedure Model was used to create the AcceleratedSAP Roadmap.
However, the Procedure Model is very different from the AcceleratedSAP Roadmap in that it incorporates “as-is” analysis and business process re-engineering, while the AcceleratedSAP Roadmap does not. 8

16. The SAP R/3 Reference Model
Company
solution
SAP
applications
requirements
SAP R/3
Reference
Model
The SAP R/3 Reference Model
Purpose of the SAP R/3 Reference Model
To support the comparison of company-specific business requirements with the functionality of the SAP R/3 System and develop the optimum solution for a company.
To clearly represent the functionality and integration of the SAP R/3 System thereby supporting companies in the decision phase of implementation.

17. System-wide Features Organizational Elements Company code Business
area
Sales
area
Plant
Division
Sales organization
Distribution
channel
Shipping point
Warehouse
System-wide Features
Organizational Elements
The SAP R/3 System Organization Diagram generically represents organizational units and their connections. The arrows indicate one-to-one, one-to-many, and many-to-many relationships. This example shows the sales view.
This diagram is part of the Business Navigator (component view). Refer to Business Navigator for all system models.
Loading point

18. System-wide Features Organizational Elements
Motor Sports International
(Production Client)
3000
Motor Sports International, Inc US
(Company)
4000
Motor Sports International, Inc Canada
(Company)
System-wide Features
Organizational Elements - Financial
A mechanism for hierarchically representing your company’s organizational structure in the SAP R/3 system.
Data in the system is entered, stored, and reported based on your organizational elements. These definitions are critical to an implementation.
Organizational elements can belong to one or more applications. For example, a company code belongs to the Financial Accounting, Materials Management, Human Resources, Sales & Distribution, and other applications.
The financial examples for Motor Sports International, Inc. - US include:
A client which represents a legally and organizationally independent unit at the highest level of the SAP R/3 System (e.g., enterprise).
A company which is an independent legal entity within a client. Motor Sports International has two legal entities, Motor Sports International, Inc. US (3000) and Canada (4000).
Business areas can be used to produce internal balance sheets and profit/loss statement. Cross-company business area reporting is supported. MSI is divided into the motorcycles (02) and accessories (90) business areas. 02
Motorcycles
(Business Area) 90
Accessories
(Business Area)

19. Motor Sports International International, Inc Canada
System-wide Features
Organizational Elements
Motor Sports International
3000
Motor Sports
International, Inc US
4000
Motor Sports
International, Inc Canada
3000
US #1
Purchasing
Organization
System-wide Features
Organizational Elements - Materials Management
A purchasing organization is a unit that negotiates general conditions of purchase for one or more plants.
MSI’s purchasing organization in the US is 3000.
A plant is an organizational unit within a company corresponding to a location, facility, or branch. Plants are used by all Logistics applications.
MSI has two manufacturing locations, plant 3000 located in New York, and plant located in Seattle.
Both plants have been assigned to purchasing organization 3000.
Plants use storage locations to distinguish areas within the plant for inventory use.
3000 New York
3400
Seattle
Plant

20. Motor Sports International International, Inc Canada
System-wide Features
Organizational Elements
Motor Sports International
3000
Motor Sports
International, Inc US
4000
Motor Sports
International, Inc Canada
Sales
Organization
3000
US Sales
System-wide Features
Organizational Elements - Sales & Distribution
A sales organization is responsible for negotiating sales conditions and distributing materials and services.
MSI has one sales organization for the U.S.
A distribution channel is an organizational unit that determines how materials reach a customer.
Retail sales is distribution channel 03.
A division is an organizational unit that serves two purposes:
Logistically, a division manages customer-specific arrangements such as partial deliveries and pricing.
Financially, once products are sold, a division monitors product line profitability by mapping the division/plant combination to a business area.
MSI’s divisions are motorcycles (02) and accessories (90).
Distribution
Channel 03
Retail
Division
02 Motorcycles 90
Accessories

21. Motor Sports International International, Inc Canada
System-wide Features
Organizational Elements
Motor Sports International
3000
Motor Sports
International, Inc US
4000
Motor Sports
International, Inc Canada
Business
Area
02 Motorcycles
90 Accessories
3000 US #1
Purchasing
Organization
Division/
Plant
02 Motorcycles
3000 New York 90
Access.
4000 Seattle
Sales
Organization
3000 US Sales
Distribution
Channel 03
Retail
Division
02 Motorcycles 90
Assess.

22. System-wide Features Master Data Master Data General Data
(common
across client
Master Data
(Customer Data)
Sales Data
(unique to
sales area)
System-wide Features
Master Data
Master data is records that remain in the database over an extended period of time (e.g., Customer Master, Vendor Master, Material Master, Account Master).
Master data is shared across application modules. It is stored and processed centrally to eliminate data redundancy.
For example, one customer master record can be used for a sales order, delivery, invoice, payment, etc.
Master data has an organizational aspect.
A customer master record has client, company, and sales area data.
Accounting
Data
(unique to
company)

23. R/3 System-wide Features Employee Self Service System-wide FeaturesSD MM PP QA PM HR FI CO AM PS WF IS
R/3
System-wide Features
Employee Self Service Transactions
SAP’s Employee Self-Service is a suite of self-service applications that give your employees access to their own HR records using Internet technology. The applications are available with release 3.0D.
Personal Information
Time Entry
Purchase Requisitions
Employee Directory
Benefits
Travel Expenses
Electronic Paystub
Employment & Salary Verification
Change Password

24. System-wide Features Classification
Do we have a 5/8 inch by 3 inch hex head
ASTM bolt?
System-wide Features
Classification
Classification is the assignment of objects to a class.
When an object is assigned to a class, values for the object are assigned to characteristics belonging to the class.
Examples of objects are:
Customers
Materials
Characteristics of objects could be:
Size
Dimension
Industry

25. System-wide Features Matchcodes What is the part
number for the 1200 cc
High Flyer motorcycle?
System-wide Features
Matchcodes
Matchcodes are query tools used to find specific information (a tool for finding a specific record).
Matchcodes are search term characters, such as name, city, description, etc.

26. System-wide Features Security: Profiles Objects Authorization
Security in the SAP R/3 System is administered for objects, profiles, and authorizations:
Objects describe various business and system-related groupings such as accounting documents, customer and vendor accounts, and business areas.
Profiles are a collection of objects used to control system access privileges.
Security authorizations assign profiles to users to determine what privileges they have within an object or group of objects.
You choose relevant profiles for your users from the delivered SAP profiles or from those your company defines. Users may access only the objects assigned to them.

27. The SAP R/3 Reference Model
Benefits of the SAP R/3 Reference Model:
Clear picture of functionality and integration of the SAP R/3 System
Quicker gap and requirements analysis
More efficient R/3 implementation
Continuous business process optimization
Structured business process documentation
The SAP R/3 Reference Model
Benefits of the R/3 Reference Model
The SAP R/3 Reference Model, with the help of cross-application process chains, provides a clear picture of the functionality and integration of the SAP R/3 System.
The SAP R/3 Reference Model facilitates:
Gap and requirements analysis
Efficient R/3 implementations
Business process optimization
Structured business process documentation

28. The SAP R/3 Reference Model
Goals of the SAP R/3 Reference Model:
To provide support for phases 2, 3, and 4 of an AcceleratedSAP implementation
To compare company requirements with the possibilities offered by the SAP R/3 System
The SAP R/3 Reference Model
Goals of the SAP R/3 Reference Model
To provide support for phase 2 (Business Blueprint), 3 (Simulation), and 4 (Validation) of the AcceleratedSAP roadmap.
To compare company requirements with the possibilities offered by the SAP R/3 System.

29. SAP R/3 Reference Model An overview of SAP R/3 System functionality
Uses of the R/3 Reference Model
An overview of SAP R/3 System functionality
A communication tool
A consistent reference throughout the project
A means to identify alternative solutions
The SAP R/3 Reference Model
Uses of the R/3 Reference Model
The SAP R/3 Reference model can be used to give an overview of SAP R/3 System functionality.
This may be during the sales cycle, prior to training for the project team, or for management or users.
The SAP R/3 Reference model can be used as a communication tool:
When introducing a company to the SAP R/3 System.
By your company and consultants when discussing the SAP R/3 System business processes, organizational structures, or communication and information flow.
The SAP R/3 Reference model can be used to as a basis for comparing company requirements with SAP R/3 applications (gap analysis).
The models depict best business practices, and can be used as a basis for defining or evaluating requirements and gaps, as well as interfacing to other systems.

30. The SAP R/3 Reference Model
The R/3 Reference Model
uses various views to describe
the overall functionality of the
R/3 System in graphical models
Access via the Business Navigator
You can access R/3 application
transactions and documentation directly
from the R/3 Reference Model
The SAP R/3 Reference Model
The Business Navigator is part of the SAP R/3 System used for displaying the SAP R/3 Reference Model.
From the Business Navigator you have direct access to other parts of the SAP R/3 System such as Customizing, the Data Model, and business application transactions.
R/3
Transactions
Documentation

31. Basic Elements of Process Modelling
Descriptor
Symbol
Definition
Symbol
Definition
Event
An event describes the occurrence of a status that causes an effect.
A function describes the transformation from
an initial status to a target status.
Function
A linking operator describes the logical
connections between events and functions.
Linking operators
XOR V ^
Control flow
Control flow describes the time/logical dependencies of events and functions.
Basic Elements of Process Modelling
These are the basic symbols used in the SAP R/3 Reference Model process models.
A process path shows the link to/from another process (navigation help).
Process path

32. Business Navigator - Component View
Project IMG
Global Settings
Countries
Currencies
Calendar
Business Navigator - Component View
The Component View of Business Navigator describes the application components in the SAP R/3 System as a static hierarchy.
It is the basis on which you can select the application components to be implemented.
Project IMG
Global Settings
Countries
Currencies
Calendar
Sales: Information flows
Sources
CO-PC
Production cost controlling
EC-PCA
Profit Center Accounting
LO-MD
Basic Logistics data
Reduce
CO-PA
Result & market seg.res.
CP-PC
Production cost controlling
MM-PUR
Purchasing

33. Business Navigator - Process Flow View
Event
Funct.
Event
Funct.
Business Navigator - Process Flow View
The Process Flow View describes the business processes in the SAP R/3 System.
You access the Process Flow View from an Enterprise area.
The control flow of the processes is portrayed in terms of events, functions and link rules.
The ASAP Questionnaire is based on the Process Flow View.
Standard order processing
Input/Output for process/function
Input
Shipping point
Customer
Material
Standard order processing
System organizational units
Sales organization
Distribution channel
Divisions
Sales office
Sales group
Output
Material requirements
Sales order

34. Integration with 3rd Party Models
Business Engineer
Graphic/modeling tools
ARIS
Visio
API
Business Navigator
Company-specific adaptation of the R/3 Reference Model using third-party graphics or modeling tools by
selecting/deselecting existing objects
adding new objects
Integration with 3rd Party Models
The following are third party tools which allow a company to create their own versions of the SAP R/3 Reference Model.
ARIS Toolset by IDS Scheer
Business Modeler by VISIO
LiveModel by Intellicorp
These tools can be used within AcceleratedSAP to document your company’s requirements.
Event
Funct.
R/3 Repository

35. The IMG (Implementation Guide)
Global Settings
Countries
Currencies
Calendar
IMG contains documentation for each activity
You can carry out activities from within the IMG
Project management and
documentation functions available
SAP Documentation
Activities
Status management
Scheduling
Resources
Project management
Content structured by Note types
Project documentation
The IMG (Implementation Guide)
The IMG provides an on-line resource with all the information required to implement an SAP system.
The IMG includes documentation for each activity. These customizing activities are carried out directly from within the IMG.
The IMG offers project management and project documentation functions.
Concept
Recommendations
Requirements
Activity
Open Customizing transactions
WinHelp display.
MS Project Interface
MS WinWord as Editor

36. The IMG (Implementation Guide)
SAP
Reference
IMG
Customizing
Projects 1
Enterprise
IMG 2b 3
Project
IMG
Generate
Enterprise
IMG
Create
Customizing
Projects
Views of
Project
IMG
Create
views of
Project
IMG
The IMG (Implementation Guide)
The SAP Reference IMG includes all Customizing activities for all R/3 applications. 1
Your company generates the Enterprise IMG by selecting the countries and applications you are implementing.
The Enterprise IMG includes all Customizing activities necessary for the applications to be implemented within your organization. It is your version of the IMG.
Customizing transactions can be accessed from both the Enterprise IMG and the SAP Reference IMG.
Cross-project documentation can be created and saved. 2a
Customizing projects can be created to help structure and manage your SAP R/3 implementation.
Customizing
Transactions
Project
Documentation
Project
Management

37. SAPoffice Component-Dependent Folders
ASAP uses templates in SAPoffice for general project documentation.
While generating your Enterprise IMG, the system creates a component-dependent folder structure in SAPoffice.
‘Component dependent folders’ are used to store text documents concerning the functions & processes of the SAP R/3 implementation.
Component dependent folders are independent of a specific project.
SAPoffice
Component dependent folders
SAPOffice is an electronic mail and folder system.
Access is from the main menu under Office.
You can use the mail system to send documents:
Internally to other SAP users in the same system
To SAP users in another system using SAPcomm
Externally to non-SAP users by means of a telematic service such as Internet
SAPoffice stores documents in groups called folders. There are two types of folders:
Private (which are user-specific)
Shared (available to all). Shared folders can also be established for selected group of users.
Documents can be created using both SAP and PC editors. Attachments can be included in a document.
Archived documents and incoming fax documents can be stored.

38. SAPoffice Component Independent Folders
Each Project IMG generates a component- independent folder structure in SAP Office in addition to the component-dependent structure.
Every project creates its own folder structure.
The component independent folder structure stores project-specific information.
SAPoffice
Component Independent Folders
Each Project IMG generates a component independent folder structure in SAPoffice in addition to the component dependent folder structure.
Every project creates its own folder structure.
The component independent folder structure stores project-specific information like:
Status reports
Project standards
System related problems and bugs
Interfaces to be implemented
Enhancements to be developed
Open questions

39. ABAP/4 Development Workbench
The ABAP/4 Development Workbench (DW) is an integrated set of fourth-generation development tools, which facilitate implementation of client/server applications, enhance delivered applications, or modify standard SAP R/3 modules.
ABAP/4 stands for Advanced Business Application Programming.
Key features of the ABAP/4 DW include:
Standardized Access to Databases
Programs are developed and maintained independently of the underlying relational database. This capability is called ABAP/4 Open standard query language (SQL).
Direct Database Access
Programmers can code database specific SQL statements. This capability is called ABAP/4 Native SQL.
Powerful Infrastructure
DW supports all major hardware, operating systems, databases, and graphical user interfaces (GUIs).