SAP UNIT 1

UNIT 1 Automation of Business Processes

Lesson 1Explaining Interrelated Business Processes 2

Lesson 2Using SAP Business Suite to Automate Business Processes 6

UNIT OBJECTIVES Identify the primary business processes of an organization Outline the interrelationships between the primary business processes of an organization Explain how SAP ERP automates the interrelated business processes of an organization Explain how SAP ERP fits into SAP Business Suite

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Unit 1Lesson 1

Explaining Interrelated Business Processes

LESSON OVERVIEWThis lesson provides an overview of the integrated business processes in SAP ERP.Business ExampleAs a project team member, you actively participate in discussions regarding the core business processing in your organization. For this reason, you require the following knowledge: An understanding of the integration points between the primary business processes in

your organization

LESSON OBJECTIVESAfter completing this lesson, you will be able to: Identify the primary business processes of an organization Outline the interrelationships between the primary business processes of an organization

Primary Business Processes Purchase to Pay

Figure 1: Purchase to Pay

The purchase-to-pay business process contains the steps that an organization completes to buy goods or services from external vendors.

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The purchase-to-pay business process supports the following activities:1. Request the purchase of goods or services through the use of a purchase requisition.2. Convert the purchase requisition to a purchase order (PO).3. Process POs and perform PO follow-up.4. Accept goods or services by entering a goods receipt referencing the PO.5. Record and verify the vendors invoice.6. Pay the vendor.

Primary Business Processes Plan to Produce

Figure 2: Plan to Produce

The plan-to-produce business process focuses on the activities that are necessary to plan and manufacture an organizations products.The plan-to-produce business process includes the following tasks:1. Forecast product demand.2. Run material requirements planning (MRP).3. Manufacture the products.

Lesson: Explaining Interrelated Business Processes


Primary Business Processes Order to Cash

Figure 3: Order to Cash

The order-to-cash business process involves the activities that an organization performs to sell goods or services to its customers. The order-to-cash business process includes the following tasks:1. Create a sales order that contains customer requirements.2. Fill the order and ship the goods to the customer.

Note:For service orders, provide and complete the service to the customer.

3. Invoice the customer for goods or services rendered.4. Receive the payment from the customer.

Unit 1: Automation of Business Processes


Primary Business Processes Interrelationships

Figure 4: Primary Business Processes Interrelationships

The primary logistics business processes are tightly integrated with each other. The process steps completed in one business process can impact and influence the activities in the other business processes. In addition, integration points exist between these logistics processes and Financial Accounting and Management Accounting.

LESSON SUMMARYYou should now be able to: Identify the primary business processes of an organization Outline the interrelationships between the primary business processes of an organization

Lesson: Explaining Interrelated Business Processes


Unit 1Lesson 2

Using SAP Business Suite to Automate Business Processes

LESSON OVERVIEWThis lesson describes how SAP ERP automates the business processes of an organization. In addition, this lesson discusses SAP NetWeaver, which is part of SAP Business Suite. SAP NetWeaver offers extended functionalities to streamline and automate business processes.Business ExampleAs a member of the IT team, you are responsible for streamlining the operations and facilitating innovation across the company. For this reason, you require the following knowledge: An understanding of the core functionality of the SAP ERP application within SAP Business

Suite An understanding of the SAP NetWeaver platform

LESSON OBJECTIVESAfter completing this lesson, you will be able to: Explain how SAP ERP automates the interrelated business processes of an organization Explain how SAP ERP fits into SAP Business Suite


Overview of SAP ERP

Figure 5: SAP ERP

Accounting, human resources (HR), and logistics are the heart of every enterprise. SAP ERP encompasses all these vital business processes within a company and provides functions for both corporate headquarters and subsidiaries. Every company can benefit from SAP ERP.It is imperative to ensure that the business processes in an organization are integrated, streamlined, and transparent. SAP ERP allows companies to gain better control of their administrative and operations environments, and it increases efficiency and profitability. In addition, the application drives down the cost of integration and deployment by reducing the time to benefit from and leverage existing IT investments.SAP ERP is a combination of components that integrate people, information, and processes comprehensively and flexibly.SAP ERP is designed to allow companies to implement those business functions that they need, when they need them. This design simplifies upgrades and reduces the total cost of ownership.With SAP ERP, SAP has set a new standard for ERP systems.SAP ERP incorporates the following solutions: SAP ERP Financials

The aim of this solution is to utilize a companys funds effectively and, therefore, increase profitability in the long term.

SAP ERP Human Capital Management (SAP ERP HCM)Employees are important resources for every company, and SAP ERP HCM enables you to utilize them effectively toward the success of your company. This solution covers all aspects of human resources, from recruitment and training through payroll.

Lesson: Using SAP Business Suite to Automate Business Processes


SAP ERP OperationsSAP ERP Operations provides extensive solutions for automating and streamlining procurement and logistics execution, product development and manufacturing, and sales and service.

SAP ERP Corporate ServicesSAP ERP Corporate Services introduces service solutions for end-to-end life cycles for travel management; environment, health and safety; and real estate management. SAP ERP Corporate Services also addresses the development of efficient incentive programs.

Evolution of SAP R/3 to SAP ERP

Figure 6: SAP R/3 to SAP ERP

SAP ERP Central Component is the evolutionary successor of SAP R/3 and is one of the main components of the SAP ERP application. For each new release, the functions have been extended, applications have been optimized, and interfaces to other software components have been enhanced. SAP R/3 was developed using ABAP, SAPs own programming language.Since the 1970s, there have been major technology waves from mainframe computing to client server architectures, and from client server technology to service-oriented architecture (SOA).In the past, such shifts in technology caused a complete replacement of the underlying IT infrastructure. Since the release of SAP R/3, however, changes and enhancements have been integrated into the system as extensions; they are now integrated as enhancement packages (EHPs). This accelerates and simplifies the upgrade process and adaptation to industry sectors.



Enhancement Packages

Figure 7: Enhancement Packages

SAP enhancement packages are optional packages that enable companies to take advantage of ongoing innovations while keeping their core software stable, rather than engaging in large upgrade projects. Each SAP enhancement package provides a collection of new or improved business functions.SAP enhancement packages represent a new software delivery strategy that allows you to add innovations on top of SAP ERP 6.0, without the need to completely upgrade your current release. The enhancement packages for SAP ERP simplify the way customers manage and deploy new software functionality.Customers can electively implement these software innovations from SAP and activate the software according to business demand. As a result, customers can isolate the impact of software updates and implement the new online functionality more quickly, through shortened testing cycles.From a content perspective, each enhancement package either focuses on a dedicated set of improved business processes or adds new processes to the SAP ERP solution map. SAP has thematically grouped these improvements, which you can install with a new approach.The new capabilities included in an EHP focus on the following areas: Simplification

New capabilities designed to simplify business processes and user interfaces Generic enhancements

New generic capabilities for financials, human resources, operations, and corporate services

Industry-specific enhancementsNew capabilities delivered for particular industries



Enterprise service bundlesNew enterprise services that illustrate the value of service-oriented architecture SOA along business scenarios and needs, extending the functionality of SAP ERP and enabling innovative composite applications to be developed on top of SAP ERP

With the enhancement package delivery technology, SAP provides customers with new developments and enhancements of applications for their existing SAP installations.Quick Facts Enhancement Packages (EHPs)

Figure 8: Quick Facts EHPs

SAP enhancement packages allow you to update a subset of the software components that are part of your SAP ERP 6.0 implementation. For example, you are now able to update parts of your SAP ERP Central Component server. The selection of software components is driven by the functional enhancements that you plan to implement.



Installation of SAP EHPs

Figure 9: Installing SAP EHPs

The following key points summarize the concepts and the recommendations for installing SAP EHPs: SAP enhancement packages are cumulative, that is, each new enhancement package

includes new innovations and innovations delivered with the previous packages. SAP recommends that you install the latest available enhancement package version. You can install enhancement packages and Support Packages in a single step. SAP enhancement packages have their own Support Packages (starting with Support

Package Version 01), which are equivalent to the Support Package versions for the underlying release.

SAP enhancement packages have the same maintenance period as the underlying core application, SAP ERP 6.0.

You can install only selected parts of the enhancement package. The selection is driven by functional needs from a business point of view.

Installations of enhancement packages, as well as the activation of business functions, are irreversible. Test the installation process and activation of new functions in advance on a sandbox system. Evaluate the runtime, the system behavior, and the system dependencies and impacts. Make sure that the installation is free of errors before going live.

As long as no business function has been activated, installation of an SAP enhancement package has no impact on the existing business processes or user interfaces. Activation of business functions is possible only in ABAP-based systems, not Java-based systems. Enhancement packages in Java- based systems are active after installation.

Enhancement packages of SAP NetWeaver are active after installation. It is not possible to mix the installation of different enhancement package versions in your ABAP system. Only one enhancement package version is allowed.



Overview of SAP Business Suite

Figure 10: SAP ERP is a Solution in SAP Business Suite

When a company grows, processes become more complex and the software requirements change. SAP Business Suite offers additional applications that compliment, enhance, and support the processes executed in SAP ERP.Other applications in SAP Business Suite: SAP Customer Relationship Management (SAP CRM) SAP Product Lifecycle Management (SAP PLM) SAP Supplier Relationship Management (SAP SRM) SAP Supply Chain Management (SAP SCM)SAP NetWeaver is the technical platform that powers SAP Business Suite.



Overview of SAP NetWeaver

Figure 11: SAP NetWeaver A Composite Platform

SAP NetWeaver is a web based open integration and application platform that serves as the foundation for SOA and allows the integration and alignment of people, information, and business processes across business and technology boundaries. SAP NetWeaver utilizes open standards to enable integration with information and applications from almost any source or technology.These advantages mean that the total cost of ownership can be considerably reduced not only for SAP solutions, but also for the entire IT landscape. SAP NetWeaver helps you to use existing IT investments in a way that adds value while creating a foundation for future cross-enterprise processes.



SAP NetWeaver

Figure 12: SAP NetWeaver

With the SAP NetWeaver platform, your organization can implement crucial IT practices in a flexible, step-by-step approach at a low cost. You can address your immediate IT needs first. Since the SAP NetWeaver platform components are tightly integrated, you can expand your practice projects over time within a sustainable cost structure.SAP NetWeaver Capabilities in the User Productivity Area

Figure 13: SAP NetWeaver Capabilities in the User Productivity Area



Besides the functions in the context of mobile business and search functions, as provided by the enterprise search application, the SAP NetWeaver Portal is the central component in the user productivity area.An enterprise portal ensures a central point of access to information, applications, and services in the company. Your SAP and non-SAP systems, data warehouse, desktop documents, web content, and web services are brought together on a single user interface. With a single sign-on, you can benefit from the simplified process of authentication and communication between different IT systems.Knowledge Management in the portal converts unstructured data into important company information. Collaboration facilitates cooperation between people within the company and beyond organizational boundaries. Personalization adapts the portal structure to suit the requirements of individual users.Integration Levels Process IntegrationCompany processes control all the work or procedures in a company. People exchange data within these processes. This exchange can take place manually, without any software support; however, it can also be supported by software. In this case, employees of the company exchange data from applications, which can run on different systems, according to the requirements of the running processes.The term process integration covers a range of requirements that SAP NetWeaver covers with different components.The requirements of process integration are modeling business processes, customizing an application that supports a business process, exchanging data between applications and systems in the context of a business process, and automating business processes.The components that SAP NetWeaver provides in this context range from SAP Solution Manager Customizing to SAP NetWeaver Process Integration (data exchange between applications or systems) to process automation tools such as SAP Business Workflow, ccBPM, and SAP NetWeaver Business Process Management (SAP NetWeaver BPM).SAP NetWeaver BPM is used internally by SAP and used externally as a focused process-modeling tool.Integration Levels Information and Master DataSAP BusinessObjects Business Intelligence (SAP BusinessObjects BI) and SAP NetWeaver Business Warehouse (SAP NetWeaver BW) support you in collecting and evaluating key figures; they also allow you to define objectives and monitor their realization. Analyzing the processes in your company can help you to make them more efficient, thereby reducing costs and increasing customer satisfaction.SAP NetWeaver BW tools and SAP BusinessObjects BI can easily process large volumes of data, and with web reporting, users receive web-based reports quickly and conveniently. With SAP NetWeaver, you can transfer complete analyses to the SAP NetWeaver Portal, where you can execute Knowledge Management functions such as ratings, feedback, notes, and subscriptions.Master data can be stored simultaneously in multiple locations and systems within a company. This multiple-location storage can lead to redundant data and discrepancies, which may interfere with your business process.SAP NetWeaver Master Data Management (SAP NetWeaver MDM) allows you to create cross-company, unified master data and distribute it across various dependent systems.SAP NetWeaver MDM uses the technological foundation of the process infrastructure to distribute the data. However, SAP NetWeaver MDM not only distributes the data; it also



checks new master data to determine whether identical master data objects already exist. In addition, it identifies all duplicates, which can be transferred to SAP NetWeaver and used in analyses. This reduces the cost of data management and eliminates data errors.As part of SAP NetWeaver Portal, Knowledge Management delivers functions that enable corporate information to be managed in a structured manner. These Knowledge Management functions support you in structuring information (knowledge) and providing this information to the relevant target groups. The functions include search, classification, and subscription. Depending on the technical conditions, you can use these functions for all aspects of the integrated data sources.Integration Levels SAP NetWeaver Mobile and Application FoundationSAP NetWeaver Mobile is an SAP NetWeaver technology component that provides the basis for a range of solutions for mobile applications, known as SAP xApps.SAP NetWeaver Mobile represents an enhancement of an existing SAP application. For example, an enhancement to SAP ERP HCM allows you to enter mobile travel data and working times. In the same way, service employees can be directly informed about new orders using a mobile device and they can confirm data directly from the customers instead of writing down the data on sheets of paper and entering them into the back-end system later.The SAP NetWeaver Application Server is the technical basis of the SAP NetWeaver integration platform. The server supports J2EE and ABAP in a shared environment.You can create web services in a development environment that supports all the key standards, such as Simple Object Access Protocol (SOAP), Web Services Description Language (WSDL), and Universal Description, Discovery, and Integration (UDDI). You can create new applications based on Internet standards, such as HTTP, HTTPS, HTML, XML, and JavaScript. SAP NetWeaver is also fully compatible with Microsoft .NET and IBM WebSphere; this increases the potential reusability of software.As of SAP NetWeaver Application Server (SAP NetWeaver AS) 6.40, a web services framework is also provided, which allows customers to create and publish web services and access applications and enterprise services.



IT Practices

Figure 14: IT Practices

IT practices look at the overall SAP NetWeaver platform in ways that focus on key business goals rather than isolated technology components. These include goals familiar to almost any IT organization.Some of these goals are as follows: The need to combine different integration technologies The need to develop composite applications leveraging the existing system investments The desire to build new business processes flexiblySAP NetWeaver Capabilities in ITSAP NetWeaver enables several IT practices. For each IT practice, SAP NetWeaver supports a variety of key activities, all of which are easy to perform using the integrated components of the SAP NetWeaver platform.The following table lists some of the activities:IT Practices Key ActivitiesUser productivity enablement Improve user productivity through enhanced

collaboration, optimized knowledge management, and personalized access to critical applications and data.

Data unification Consolidate, rationalize, synchronize, and manage all master data for improved business processes.



IT Practices Key ActivitiesBusiness information management Increase the visibility, reach, and usefulness

of structured and unstructured enterprise data.

Business event management Ensure that business events from multiple systems are distributed to the appropriate decision makers in the context of the relevant business processes.

End-to-end process integration Make disparate applications and systems work together to perform business processes consistently.

Custom development Rapidly create new enterprise-scale applications that drive the companys differential advantage.

Unified life-cycle management Automate application management processes and optimize all facets of an applications life cycle.

Application governance Maintain an appropriate level of security and quality in intellectual property and information assets.

Consolidation Deploy a consolidated technology platform with the ability to allocate computing power according to changing business needs.

Enterprise services architecture Consolidate and standardize basic processes and leverage existing investments to compose new and distinctive business processes.



IT Scenarios

Figure 15: IT Scenarios

An IT scenario supports a process-oriented implementation approach.IT scenarios enable the following tasks: Develop, compose, and run applications. Build, enhance, and operate an IT infrastructure. Integrate people, information, and processes. Implement a defined IT concept, such as evolving a companys system landscape into a

services-based architecture.IT scenarios break down the IT practices, allowing an incremental approach to implementing SAP NetWeaver functionality. Each practice can be broken into one or more IT scenarios.IT scenarios require the functionality provided by SAP NetWeaver, which is organized into installed units. The installed units are building blocks and are composed of clients (such as SAP NetWeaver Developer Studio, Business Explorer, or SAP GUI for Windows), standalone engines (such as Search and Classification, Job Scheduler, or Content Server), and usage types.Usage types are built from technical software components, which form an installable and configurable unit. Usage types are reusable, installed, and preconfigured units. They can be built upon other usage types as well.SAP NetWeaver ComponentsSAP NetWeaver includes the following components:



Components Key ActivitiesSAP NetWeaver Application Server Supports platform-independent web

services, business applications, and standards-based development, enabling you to leverage the existing technology assets for web-services-oriented solutions

SAP NetWeaver Business Warehouse Enables you to integrate data from the enterprise and transform the data into practical and timely business information to drive sound decision making

SAP NetWeaver Business Process Management

Provides tools to help you model, execute, and monitor business processes based on a single, consistent process model

SAP NetWeaver Process Integration Delivers SOA-based technology that supports process-centric integration across the extended value chain

SAP NetWeaver Master Data Management Ensures cross-system data consistency and helps integrate business processes across the extended value chain

SAP NetWeaver Mobile Provides a future-proof mobile runtime environment based on open and flexible technology standards, and also provides a powerful development environment for building integrated mobile solutions with native or browser-based user interfaces

SAP NetWeaver Portal Unifies critical information and applications to give users role-based views that span the enterprise, enabling you to take full advantage of your information resources

SAP Auto-ID Infrastructure Provides the capabilities you need to integrate all automated sensing devices including radio-frequency identification (RFID) readers and printers, Bluetooth devices, embedded systems, and bar code devices

SAP NetWeaver Identity Management Addresses access and provisioning issues that an enterprise faces, creates a new opportunity for integrating business processes, and helps you to integrate systems in a heterogeneous IT environment

SAP NetWeaver ToolsSAP NetWeaver includes the following tools:



Tool FunctionsAdaptive Computing Controller Provides a central point of control to assign

computing resources and optimize their usage

SAP NetWeaver Composition Environment Provides a robust environment for the design, deployment, and running of composite applications that comply with service-oriented architecture

SAP NetWeaver Developer Studio Offers a convenient user interface and rich functionality for developing J2EE applications

SAP NetWeaver Visual Composer Simplifies the creation of portal content and analytics applications, enabling business analysts to build or customize applications using a visual user interface rather than manual coding

SAP Solution Manager Facilitates technical support for distributed systems with functionality that covers all key aspects of solution deployment, operation, and continuous improvement

Advantages of SAP NetWeaver

Figure 16: Advantages of SAP NetWeaver

The advantages of SAP NetWeaver are as follows: Openness and extendibility



SAP NetWeaver features complete compatibility and extendibility with the IBM WebSphere and Microsoft .NET technologies in which companies have made significant investments. SAP ensures interoperability with IBM and Microsoft solutions and assists in creating development strategies, defining sales activities, and developing competence and support centers. The integration of SAP NetWeaver with IBM and Microsoft solutions spans all levels, and therefore applies to the integration of people, information, and processes. This means that optimal benefits can be gained from existing IT investments in systems and employee qualifications.

Immediate integrationSAP NetWeaver enables complete enterprise integration at all critical levels. SAP NetWeaver also provides valuable preconfigured business content. This ready-to-use content is available at all levels of SAP NetWeaver, drastically reducing the implementation time and therefore speeding up the return on investment.The following business content is provided with SAP NetWeaver:- Preconfigured portal content and predefined roles for better integration of people- Reports and analyses for fast integration of information- Interfaces for linking the business processes in various back-end systems

Lower total cost of ownershipSAP NetWeaver leverages your existing IT investments. It integrates and includes systems that are already used in your company. SAP NetWeaver supports the entire software life cycle of business-critical applications with the lowest total cost of ownership. The technology platform is the result of SAPs 30 years of experience with reliable enterprise solutions. This means that you gain profit from high scalability, continuous uptime, and high security standards.

LESSON SUMMARYYou should now be able to: Explain how SAP ERP automates the interrelated business processes of an organization Explain how SAP ERP fits into SAP Business Suite



Unit 1

Learning Assessment

1. Which of the following are primary logistics business processes?Choose the correct answers.

X A Plan to produce

X B Order to cash

X C Accounting management

2. _____________ is the technical platform that powers SAP Business Suite.Choose the correct answer.

X A SAP NetWeaver

X B SAP NetWeaver Portal

X C SAP BusinessObjects Business Intelligence


Unit 1

Learning Assessment - Answers

1. Which of the following are primary logistics business processes?Choose the correct answers.

X A Plan to produce

X B Order to cash

X C Accounting management

2. _____________ is the technical platform that powers SAP Business Suite.Choose the correct answer.

X A SAP NetWeaver

X B SAP NetWeaver Portal

X C SAP BusinessObjects Business Intelligence


SAP UNIT 1

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Transcript of SAP UNIT 1