1. Business Information System using SAP R/3
Week 02
ERP and SAP

2. Topic Topic : Week 2 Architecture Enterprise System Overview SOA
SAP R/3
Business Intelligence
SAP All products

3. Learning Objective After completing this session you will be able to:
Discuss the evolution and key business benefi ts of enterprise systems.
Explain the architecture of a typical ES.
Explain the role of enterprise systems in supporting business processes.
Differentiate the different categories of data within SAP® ERP.
Identify and analyze the major options for reporting
Describe the different types of enterprise systems (ES) and their roles in managing business processes.

4. Architecture of Enterprise System
The architecture of an enterprise system refers to the technical structure of the software, the ways that users interact with the software, and the ways the software is physically managed on computer hardware.
Most modern ES have either a three-tier client-server architecture or a service-oriented architecture. There are many different ways to deploy ES in these two architectures.

5. Architecture of Enterprise System
The shift to the three-tier client-server architecture dramatically reduced the costs of acquiring, implementing, and using an ES while significantly increasing the scalability of the systems.
Scalability refers to the ability of the hardware and software to support a greater number of users easily over time,
USER PCs
Application
Server
Database

6. Service Oriented Architecture
What is SOA?
Think about a Restaurant
Restaurant provides food: a service
After the order is taken, food is produced, served, …: service may consist of other services
The menu indicates the service provided: a service description
The order is written down, or yelled at, the cook: services communicate through messages
SOA :
Service Oriented Architecture:
SOA is an IT architecture consisting of loosely coupled modular services to support both business and IT requirements.

7. What is SOA SOA – A Definition
By using SOA to integrate and expose the business processes and data inside an ES, companies can now create new composite applications quickly and inexpensively. In essence, SOA enables companies to build composite applications on top of their existing three-tier client-server applications without changing the underlying applications
SOA – A Definition
An IT architecture composed of software that has been exposed as “Services” – i.e. invoked on demand using a standard communication protocol.
“Web Services” – software available as a “service” using Internet protocols.
One software application talking to another using a standards-based (i.e. non-proprietary) language over a standards-based communication protocol.
Universal “Dial Tone” between software applications
An IT architecture that enables “loose coupling” of applications
Source: H. Taylor, “Service-Oriented Architecture (SOA) 101 ‘What’s Hype, What’s Real?’“, Juniper Networks, Inc.,2007.

8. ERP Market
ERP market dominated by SAP, Oracle, Microsoft worth USD 40 billion
SAP is the biggest and most popular
Founded in 1972 by five ex-IBM employees, by 2005, there were 100,600 installations worldwide, with over 25 industry-specific modules in the SAP portfolio. SAP is the world's largest independent software vendor
Founded in 1977, Oracle were first to market a reliable relational database
The second largest software company after Microsoft
Since the 1990s, they have marketed Financial, HR and other solutions and through a series of acquisitions, including PeopleSoft and Siebel is now the second largest ERP vendor after SAP.
Microsoft, also started in 1977
dominate the proprietary software market on the desktop and small to medium servers.
Microsoft were a big Siebel software user but since Oracle acquired Siebel, they have worked hard to build an ERP product suite of their own and are now probably in third place in ERP

9. S A P ystem pplication and roduct in Data Processing What is SAP
Hasso Plattner Hasso Plattner is CEO, co-chairman, and co-founder of SAP AG. He has served as co-chairman since In 1972, he founded SAP together with four IBM colleagues. An electrical engineer, he is responsible for strategy, marketing, corporate communications and development of SAP solutions in the areas of discrete manufacturing and service industries. He is also CEO of SAPMarkets. S A P
ystem
pplication and
roduct in Data Processing

10. What is SAP
SAP was founded in 1972 as System analyse und Programment wicklungi n Mannheim,Baden- Württemberg by following five former IBM engineers:
1.Dietmar Hopp
2.Hans Werner Hector
3.Hasso Plattner
4.KlausTschira
5.Claus Wellenreuther

11. SAP Evolution

12. The most Complete & Integrated ERP Solutions in the Market
What is SAP
The most Complete & Integrated ERP Solutions in the Market
R/3
Client / Server
ABAP/4 FI
Financial
Accounting CO
Controlling PS
Project
System WF
Workflow IS
Industry
Solutions MM
Materials
Management HR
Human
Resources SD
Sales &
Distribution PP
Production
Planning QM
Quality PM
Plant
Maintenance
LES
Logistic
Execution IM
Investment EC
Enterprise
Open System
Integration
Flexibility
Designed for All
Types of Business
Worldwide Usage

13. SAP NETWEAVER
The core capabilities of SAP NetWeaver are the integration of people, information, and process
In people integration, it simply means that it enables you to bring people together and help them work more efficiently
Information integration means you can bring together information from a variety of locations and have it make sense in the context of what your folks do everyday
Process integration means coordinating the flow of work across departments, divisions, and between companies
SAP Enterprise Portal: helps create software that brings together all the data and software tools that a person needs to do her job in one consistent user interface
SAP Mobile Infrastructure: universal translator for mobile devices
SAP Business Intelligence: provides tool for information integration, so what your people see is consistent and accurate
SAP Master Data Management: is a system for harmonizing information that is distributed across a wide variety of applications
SAP Exchange Infrastructure: Integrates processes and help applications talk to one another

14. SAP Platform Hardware Operating Systems Databases Dialog SAP-GUI
UNIX Systems
Data General
HP (Intel)
IBM (Intel)
Hardware
AT&T
Bull/Zenith
Compaq
Sequent
SNI
. . .
Bull
Digital HP
IBM
SNI
SUN
IBM
AS/400
Operating
Systems
AIX
Digital UNIX
HP-UX
SINIX
SOLARS
Windows NT, Windows Server
OS/400
DB2/400
ADABAS D
DB2 for AIX
INFORMIX-OnLine 7
ORACLE 7
MS SQL
ORACLE
DB2
SYBASE
Databases
Dialog
SAP-GUI
Windows 3.11, Windows 95, Windows NT,
OS/2-Warp
Windows 3.11, Windows 95, Windows NT, OSF/Motif,
OS/2-Warp, Macintosh , Linux, Windows 7 / 8,
Languages
ABAP/4, C, C+ +, Java and Object Oriented

15. SAP Users in Indonesia (partial data)
MANUFACTURING
• Asahimas Flat Glass *
• Asian Agri Abadi *
• Astra Mobil (ASMO)*
• APRIL*
• Astra Honda Motor *
• Toyota Astra Motor *
• Berau Coal*
• Belfoods *
• Bentoel *
• Combiphar *
• Conoco Phillips *
• Charoen Phokphand*
• Domusindo Perdana*
• DKSH Tunggal*
• Dynaplast *
• ECCO Indonesia*
• EPSON
• Fuchs Oil *
• Gaya Motors *
• GT Tires *
• GT Petrochem *
• Jakarana Tama *
• KPN
• Lion Wings *
• Multi Bintang Indonesia
• Nestle
• PecTech*
• Perfetti Van Melle
• Procter and Gamble
• Sari Husada*
• Sayap Mas Utama *
• Surya Toto *
• Indofood
• Unilever
• Wings Surya *
DISTRIBUTION
• APL *
• Astra International *
• Bentoel *
• Dos Ni Roha *
• DKSH Tunggal*
• Intraco Penta *
• Kokoh Inti Arebama*
• Lee Cooper *
• Sayap Mas Utama *
• Tigaraksa Satria *
• Wicaksana Overseas *
BANKING & FINANCE
• Bank Rakyat Indonesia *
• Bank Internasional Indonesia
• Bank Niaga *
• Bhakti Securities *
• Ciptadana *
• Pentasena *
• Sinar Mas *
• Trimegah Securities *
• 12 other securities companies*
TELECOMMUNICATION & UTILITIES
• Excelcomindo *
• Bakrie Telecom *
• Telkom Indonesia *
• PLN *
• Thames Pam Jaya *
• PT Wireless Indonesia
RETAIL
• Club Store *
• Valu$ *
• Sri Ratu *
• Mitra 10 *
• Tops Swalayan
• Medicine Shoppe *
• M-Studio *
• Clairmont Bakery *
• Mestronics *
• Mitra Adi Perkasa
• Sogo
• Centro Dept Store *
• Yogya *

16. SAP R/3 : Financials Enterprise Management Capital Budgeting EC EIS
Logistics
Human Resource Management EC
Enterprise
Management
EIS
Consolidation
Budgeting
Profit Centres TR FI CO
Cash Management
Treasury Management
Market Risk Management
Funds Management
General Ledger
Legal Consolidation
Accounts Receivable
Accounts Payable
Asset Accounting
Budgeting
Overhead Cost Controlling
Activity-Based Costing
Product Costing
Profitability Analysis IM
Capital Budgeting
Preparation
Budget release
Execution

17. FI CO SAP R/3 : Financials
Application Module: Financial Accounting (FI)
The FI application module is designed for automated
management of accounts receivable, accounts
payable, and general ledger accounts with a user-
defined chart of accounts
Accounts Receivable w Special Purpose Ledger
Accounts Payable w Consolidation
General Ledger Accounting w Project Systems (PS)
Closing and Reporting w Asset Accounting (AM)
Application Module: Controlling (CO)
The objective of the integrated CO application module
is to represent the company’s flow of cost and revenue
Overhead Cost Management w Unit Costing
Cost Center Planning w Internal Orders
Accounting, Reporting w Activity Based Costing
Cost Object Controlling w Profitability Analysis CO

18. SAP R/3 : Logistics Overview
Basic data SD
Sales planning
Project system
Customer order
processing
Profit planning
Customers
Vendors
Material
Bill of material, CAD
Work plan, plant maintenance plan, inspection plan, CAP
Work center
Equipment
Classification
Network
Projects
Customer requirements
SOP
Planned requirements
Forecasts PP QM
Demand management
Inspection lot
Inspection order
Materials planning
Rough-cut capacity
planning MM
Planned
orders
Direct requisition
Purchasing
Opening
period
Inventory management
Goods receipt
Material valuation
Warehouse management
Order:
- Creation
- Release
- Confirmation
WORKFLOW
Word processing
MAIL
Communication
TELEFAX, EDI, Internet
Invoice verification
Shop floor control Capacity leveling PM
Repair
Maintenance
CAP SD
Product costing
Shipping, billing,
transport

19. SAP R/3 : Logistics Overview
Application Module: Materials Management (MM) MM
The MM application module supports the procurement
and inventory functions occurring in day-to-day
business operations
Material Master Data w Purchasing
Inventory Management w Invoice Verification
Material Valuation w Consumption based MRP
Warehouse Management System SD
Application Module: Sales and Distribution (SD)
The SD application module helps to optimize all the
tasks and activities carried out in sales, shipping, and
billing
Customer Master Data w Pricing / Conditions
Sales Processing w Credit Management
Shipping w ATP / Requirements
Billing

20. Mega Scenario MM SD FI CO E M P L O Y E E REQUEST-TO-PAYMENT FORECAST
Enterprise resource planning (ERP) systems are the world’s largest and most complex ES. ERP systems focus primarily on intra-company processes—and they integrate functional and cross functional business processes. Typical ERP systems support Operations (Production), Human Resources, Finance & Accounting, Sales & Distribution, and Procurement. V E N D O R
REQUEST-TO-PAYMENT
FORECAST
TO-STOCK
ORDER
TO-CASH C U S T O M E R MM SD
Inventory Control and Planning
Vendor Management
Contract Management
Purchase Order Processing
Inbound Warehouse Processing
Supply Planning
Master Production Schedule (MPS)‏
Capacity Planning
Detailed Production Schedule
Shop Floor Control
Assembly and Packing
Demand Forecast
Sales Forecast
Sales Plan
Sales Order Processing
Delivery Planning
Outbound Warehouse Processing
Transportation Planning and Shipment
Planned/Unplanned Maintenance Process
Quality Check Process FI
Business Planning and Performance Measurements (BPPM)‏ CO
Human Capital Management
E M P L O Y E E

21. Business Model ReferenceV E N D O R
VALUE CHAIN MODEL C U S T O M E R
REQUEST-TO-PAYMENT PROCESSES
ORDER/FORECAST-TO-STOCK PROCESSES
ORDER-TO-CASH PROCESSES
Manage Purchase Requisition
Manage Demand Management
Manage Quotation
PO/LC
PO/LC
Process Purchase Order
Master Production Schedule
Process Sales Order
Manage Inbound Delivery
Run MRP – Capacity and Material Plan
Process Outbound Delivery
INV/BL
DO/BL
Verify Invoice
Detailed Production Schedule
Manage Transportation
Process Outgoing Payment (Cash Out)
Shop Floor Control
Process Incoming Payment (Cash In)
Packing
Manage Campaign and Promotion
Raw Material
Finished Goods
WAREHOUSES
Raw Materials, Packaging, etc
Finished Goods
BUSINESS PLANNING AND PERFORMANCE MEASUREMENT (BPPM)

22. ERP Extension or SAP New Dimension
As more companies acquired ERP systems, the next step in the evolution of ES was to connect these systems so they could support inter-company processes—that is, processes that take place between and among companies.
Examples of inter-company systems are supply chain management (SCM) and supplier relationship management (SRM) systems, which connect a company’s ERP system to those of its suppliers. SCM connects a company to other companies that supply the materials it needs to make its products. Typical SCM systems help companies plan for their production requirements and optimize complex transportation and logistics for materials. SRM systems typically manage the overall relationships with the materials suppliers. SRM systems contain functionality to manage the quotation and contracts processes. These systems act as extensions to the procurement and material planning processes of ERP systems.
On the other side of the manufacturing and sales processes, customer relationship management (CRM) systems connect a company’s ERP system to those of its customers. CRM systems provide companies with capabilities to manage marketing, sales, and customer service. These systems are an extension of the fulfi llment process of ERP systems.
Product lifecycle management (PLM) systems help companies administer the processes of Research, design, and product management. In effect, PLM systems help companies take new product ideas from the virtual drawing board all the way to the manufacturing facility.
The collection of these inter-company systems and the underlying intracompany ERP system is called an application suite. Suite vendors, such as SAP and Oracle, provide fairly comprehensive collections of applications that offer an enormous amount o functionality and cover most of the standard business processes.

23. ERP Extention or SAP New Dimension
It is important to note that one of the key benefits of utilizing a complete suite of software is that the data and processes are integrated among the systems in the suite. That is, although they are separate systems, they are designed so that they work together in an integrated manner
A fundamental understanding of the key business processes and ERP systems is a prerequisite to studying advanced topics such as supply chain management and customer relationship management because those processes are extensions of the core ERP-enabled business processes

24. Reporting in Finance
Finance has a major stake in the quality and timeliness of financial information and, to a lesser extent, other operational information as well. It would be a significant source for functional requirements for data to support reporting and analysis. This would include all information required for a number of reporting processes
1. Financial statement preparation.
This includes business unit or product-level P&Ls, operational reports, and key performance indicators
2. Management reporting.
This includes the standard profit and loss (P&L) and balance sheet, but also the cash flow statement and footnotes, which often require data not usually recorded in the ledger or other ERP modules.
3. Planning, budgeting, and forecasting.
In addition to the standard financial statements, these processes often require data related to specific planning drivers, such as commodity prices, interest rates, or other internal and external data .

25. BUSINESS INTELLIGENCE
Business intelligence is a general term that refers to the overall capabilities
a company uses to collect and analyze data from a variety of sources to better
understand its operations and make better managerial decisions. BI
Organisation Hierarchy
Type of Decision
Technology
Low Level
Middle
Level
Top
Operational
Tactical
Strategic
Directive
Expert System
Information System
EIS
Decision Support System
MIS
Database Management System
Electronic Data Processing
[Marimin, 2006]
Source : [WIliams, 2007] from “The Profit Impact of Business Intelligence”, Steve Williams & Nancy Williams
Source: [Marimin,2006] from Prof.Dr.Ir Marimin Msc, Lecturer at Post Graduate programme , University of Budi Luhur

26. Business Intelligence Components
DataWarehouse
Technical Team
Business Users
OLAP
Extract
Transform
Load
Finance
Logistic
Any
Sources
Query
Report
Analyze
Mine
Visualize
Act
Operational
System
Data Warehouse &
Integration environment
Reporting & Analysis
Environment

27. Development for Analysis Reporting
Within Enterprise data warehouse implementation , the Operational User is executing the system, such as create orders, sign up customer, enter new data etc Focus is turn the wheels of the organization:
Executive users are watching the wheels of the organization, count new orders, asked why new customers signed up, or how many more reservations there are this year than last year etc.
The main activity is to build a centralized data warehouse and capture all transactional data from each division in the organization.
Once the information is in the system, the reporting analysis is able to provide analytical information to the top executive within the organization.
Typical Enterprise data warehouse implementation project, 50% -70% of project effort will be spent on data integration, transformation and loads into staging or cube.
Start from analyzing data sources, capture business rules, create master data to provide transaction data which are not in the system, verify and validate transactional data and provide the ETL mechanism per each stage of Enterprise Data Warehouse design concept. Once the Data warehouse design is in place, reporting analysis are able to produce valid information as required by the business users or the management of the organization.

28. Data Warehouse and Business Intelligence
Data Warehouse Server
Business Warehouse
Report Server
Data Sources
Consolidate data for Analysis
Front End Layer
SAP BW Version 7.xx
Transformation
Data Store Objects (DSO)
Data Source
Infocube
Source System
BEx Queries SD MM
Dashboard FI CO
Analytical Report PP

29. OLAP & OLTP
SAP ERP provides two reporting options—simple lists of data and documents and analytics. Before we examine these options, however, we need to distinguish between the transactional environment and the analytic environment of SAP ERP .
The transactional environment of SAP ERP is an online transaction processing (OLTP) system, which, as the name suggests, is designed to capture and store detailed transaction data. The primary function of OLTP is to execute process steps quickly and efficiently;
it is optimized for this purpose. OLTP is not used to generate sophisticated reports because it lacks the computing power to parse through and analyze the vast stores of data that most companies accumulate. Consequently, businesses employ OLTP to generate only simple lists and reports.
For detailed data analysis, SAP ERP includes an online analytic processing (OLAP) environment in the form of information systems. Instead of using detailed transaction data, these systems use information structures to provide analytic capabilities. Information structures capture and store specified transaction data in an aggregated and summarized form that enables users to analyze the data as needed

30. OLAP & OLTP The BI Tools Analyze Plan Act What Will Happen Operational
Decisions
Why is Happening
Why did it happen?
What happened?
Staging
Analyze
Plan
Act
OLTP
Staging
Measure
Decide
Staging
Staging
Operational
Systems
Manage
Users of an OLAP system are watching the wheels of the organization, count new orders, asked why new customers signed up, or how many more reservations there are this year than last year etc ……
User of an OLTP system turn the wheels of the organization: create orders, sign up customer, enter new data etc …
OLTP: Online Transactional Processing
OLAP: Online Analytical Processing

31. Today’s Problem!
Today, companies struggle to bridge the gap between strategy and execution to optimize their business performance
Decisions made without context
Strategy disconnected from operations
Strategy
Information locked in silos
Misaligned action across organization
Execution

32. Connection Strategy and Execution
SAP Business Suite
NetWeaver Integration
NetWeaver Composition
EhP
SRM
PLM
SCM
CRM
ERP
Strategy
Execution
SAP BusinessObjects
Ensure Trusted Information
Proactively Manage
Risk
Create Enterprise Visibility
Enterprise Performance Management
Governance, Risk and Compliance
Business Intelligence
Information Management
Connection Strategy and Execution
Unified information
Instant access
Ensure Business Insight

33. Strategy and Execution
Business objectives
Business areas
Affecting
KPI
Operational Data
Increased customer satisfaction
Sales & Marketing
Sales
ERP
CRM
SCM HR
Sales and Operations Planning
Streamlined order fulfillment
Revenue
growth
Customer service
Order to Cash
Efficient complaints mgmt.
Customer Service & Complaint Mgmt.
Optimized portfolio planning & mgmt.
Development
Innovation Management
Product Development
Accelerated product innovation
Outcome
Action
Knowledge
Information
Increased demand planning accuracy
Supply Chain Planning & Exec.
Procurement
Demand & Supply Planning
Lower material & energy
sourcing costs
Supplier Collaboration
Procure to Pay
Operational efficiency & cost reduction
Profitabilty
growth
Optimized production planning
Manufacturing
Streamlined production processes & asset utilization
Manufacturing Planning
Manufacturing Execution
Production
Higher product quality
Manufacturing Visibility
Efficient inventory management (according to best-before date)
Quality Mgmt. & Compliance
Quality Management
Improved batch traceability, batch size optimization
Supply Chain Planning & Exec.
Distribution
Reduced operating costs & increased efficiency
Warehouse & Inventory Mgmt.
Enterprise Mgmt. & Support
Finance
Efficient accounting activities
Analytics
Enhanced auditability
Financials
Regulatory Compliance
Legal / Compliance
Decreased cost & complexity of regulatory compliance*
Quality Mgmt. & Compliance
Quality Management

34. Integration Business Processes & Complete ERP Solution by SAP
Complete view of data Integration from Transactional Processing data into Strategic direction
ERP
Business Intelligence
Measurement
EPM
Balanced Scorecard
Framework
Finance
Finance
Strategic KPI
Sales
Controlling
Sales & Distribution
Marketing
Data sources
Material Management
Tactical KPI
Logistic
Logistic HR HR
Human Resources
Operational KPI
Production
Others Analytics
Complete view of SAP Product Solutions from ERP ,Business Intelligence Software & Tools
ETL
EDW
CUBE
ERP
タスク
データ フロー タスク
Dashboard
ETL
Scorecard
Analytic Reports
Agnostic