Business Engineering Blueprint 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) Stages of E-Business E-Commerce E-Business E-Partnering 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 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. 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. ERP and E-Business 1. We assume that all companies need to handle some kind of internal transactions. These are facilitated by ERP 2. E-business is best supported by a well-tuned ERP system. 3. There are many different ERP and e-business strategies. These are determined by technical capabilities, industry position, and willingness to change among other factors. E-Business/ERP Option Matrix No E-Business Capabilities Greenfield Nonintegrated systems Limited/Single Function ERP Integrated BU ERP Integrated Enterprise ERP Channel Enhancement Value-Chain Integration Industry Transformation Convergence E-Business Options 1. No E-Biz Capabilities 2. Channel enhancement – Customer self-service, Web marketing 3. VC Integration – – Begin to implement eCRM and eSCM Personalized customer and supplier portals 4. Industry Transformation – Companies align Inet and with corp. strategy to create new products and services 5. Convergence - Inet enabled partnering of companies in different industries for one stop shopping ERP Options 1. Green field - Can create IS architecture from scratch 2. Nonintegrated Systems – Company has no rapid or meaningful exchange of data between internal systems 3. ERP by Function - company has successfully install one or a few ERP modules across all Bus 4. ERP by BU -fully integrated ERP suite in one or more Bus 5. Fully Integrated ERP -fully integrated ERP suite across the enterprise Cost to Implement Various Ebiz Solutions from ERP Scenarios centralized LEG Cost of E-biz Implementation BU High Func Ent BU Low GF decentralized Slow Rapid Time to Implement E-biz Solution 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 Business Engineer Application Components Enterprise Organization Session Manager Material Management Inventory Management Purchasing Request for Quotation Purchase Requisition Information Systems Warehouse Management Purchase Order Business Objects Process Model Business Process Scenarios Implementation Guide Procedure Model Workflow and Personnel Organization Object Oriented Data Model Purchase requisition Vendor inquiry Vendor quotation Purchase information Shipping notification Purchase order Vendor scheduling agreement Procedure Model Organization and Conceptual Design Detailed Design and System Set-Up Establish Global Settings Set Up System Environment Train Project Team Project Preparation Define Functions and Processes Design Interfaces and Enhancements Quality Conceptual Design Check Establish Company Structure Establish Master Data Establish Functions and Processes Productive Operation Preparations for Going Live Create Interfaces and Enhancements Establish Reporting Establish Archiving Management Quality Application System Create Go-Live Plan Train Users Create User Documentation Establish System Administration Check Establish Authorization Management Quality Production System Check Set Up Production Environment Transfer Data to Production System Perform Final Test Project Management System Maintenance and Release Upgrade Support Productive Operation Optimize System Use Relationship of the Procedure Model to ASAP AcceleratedSAP Roadmap... You Are Here 1 2 3 4 5 6 Project Preparation Business Blueprint Simulation Validation Final Preparation Go Live & Support Procedure Model Realization of Business Benefits The SAP R/3 Reference Model Company solution Company requirements SAP R/3 Reference Model SAP applications System-wide Features Organizational Elements Company code Business area Sales area Division Sales organization Plant Distribution channel Shipping point Loading point Warehouse System-wide Features Organizational Elements Motor Sports International (Production Client) 3000 Motor Sports International, Inc US (Company) 02 Motorcycles (Business Area) 90 Accessories (Business Area) 4000 Motor Sports International, Inc Canada (Company) System-wide Features Organizational Elements Motor Sports International 4000 Motor Sports International, Inc Canada 3000 Motor Sports International, Inc US 3000 US #1 Purchasing Organization Plant 3000 New York 3400 Seattle System-wide Features Organizational Elements Motor Sports International 4000 Motor Sports International, Inc Canada 3000 Motor Sports International, Inc US Sales Organization 3000 US Sales 03 Retail Distribution Channel Division 02 Motorcycles 90 Accessories System-wide Features Organizational Elements Motor Sports International 3000 Motor Sports International, Inc US Business Area 3000 US #1 Purchasing Organization Division/ Plant 02 Motorcycles 3000 New York Sales Organization Distribution Channel Division 90 Accessories 02 Motorcycles 90 4000 Access. Seattle 3000 US Sales 03 Retail 02 Motorcycles 90 Assess. 4000 Motor Sports International, Inc Canada System-wide Features Master Data General Data Master Data (common across client (Customer Data) Accounting Data (unique to company) Sales Data (unique to sales area) System-wide Features Employee Self Service SD FI MM CO PP AM QA PM R/3 HR IS PS WF System-wide Features Classification Do we have a 5/8 inch by 3 inch hex head ASTM bolt? System-wide Features Matchcodes What is the part number for the 1200 cc High Flyer motorcycle? System-wide Features Security: Profiles Objects Authorization 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 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 SAP R/3 Reference Model 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 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 R/3 Transactions R/3 Documentation Basic Elements of Process Modelling Descriptor Symbol Symbol Definition Definition Event An event describes the occurrence of a status that causes an effect. Function A function describes the transformation from an initial status to a target status. Linking operators A linking operator describes the logical connections between events and functions. XOR V ^ Control flow Control flow describes the time/logical dependencies of events and functions. Process path A process path shows the link to/from another process (navigation help). Business Navigator - Component View Project IMG Global Settings Countries Currencies Calendar Project IMG Global Settings Countries Currencies Calendar Sales: Information flows Sources COProduction cost controlling PC EC-PCA Profit Center Accounting LO-MD Basic Logistics data Reduce COResult & market seg.res. PA CP-PC Production cost controlling MM-PUR Purchasing Business Navigator - Process Flow View Event Funct. Event Funct. Standard order processing Standard order processing System organizational units Sales organization Distribution channel Divisions Sales office Sales group Input/Output for process/function Input Shipping point Customer Material Output Material requirements Sales order Integration with 3rd Party Models Business Engineer Graphic/modeling tools ARIS AP I Visio Business Navigator Company-specific adaptation of the R/3 Reference Model using third-party graphics or modeling tools by Event Funct. R/3 Repository • • selecting/deselecting existing objects adding new objects The IMG (Implementation Guide) IMG IMG contains documentation for each activity Global Settings You can carry out activities from within the IMG Project management and documentation functions available Countries Currencies Calendar SAP Documentation Activities Project management Concept Recommendations Requirements Activity Open Customizing transactions Status management Scheduling Resources Content structured by Note types MS Project MS WinWord as Editor WinHelp display. Interface Project documentation The IMG (Implementation Guide) 2a 1 SAP Reference IMG Customizing Projects 2b 3 Generate Enterprise IMG Enterprise Create IMG Customizing Projects Customizing Transactions Project IMG Project Documentation Create views of Project IMG Views of Project IMG Project Management 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 Independent Folders • Each Project IMG generates a componentindependent 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. ABAP/4 Development Workbench