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Enterprise Wide Information Systems

Functionality and theReference Model

Instructor: Richard W. Vawter

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Objectives

Identify the functional and technical integration issuesthat are important in the daily processing activities

performed by an ERP.

Understand the integration between the functional

(application) areas.

Recognize the system tools that describe the

integrated components of the R/3 system.

Understand how the SAP R/3 Reference Model can be

used as a blueprint to display the functionality and

integration of the system.

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What is Meant by Best Business Practices?

Suggested method for conducting business processesthat lead to efficient operation.

Recognized order of steps.

Used as a roadmap by Big 5 consulting firms.

Supported by SAP R/3.

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What is Meant by Integration?

Common organizational structures throughout the

system.

Seamless processing of common data between

applications.

Common reporting features and functionality.

Object and application linking and overall system

communication.

R/3

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Example of Integration Requirements

Customer

Request

Sales

OrderShipping Billing

Cash

ProcessingAnalysis

Logistics Accounting

Business Process Integration: Customer Order Management

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Customer Order Management Process Integration (cont.)

The Three Components of Process Integration

Data

Business

FunctionsOrganizational

Elements

Customer

Request

Sales

OrderShipping Billing

Cash

ProcessingAnalysis

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Customer Order Management Process Integration (cont.)

Integrated Components of a Business Function

Data

Business

Functions

Organizational

Elements

Shipping Point

Customer

Material, etc.

Company Code

Plant

Distribution

Center

Sales Area

Quotation is Valid

Order is Released

Standard

OrderProcessing

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In Summary, The Benefits of Integration

Timely access to common information.

Flexibility and adaptability to growth.

Elimination of duplicate entries.

Visibility of business results across functional

boundaries.

Minimization of systems interfaces and maintenance

requirements while maintaining portability.

Immediate reflection of financial impacts.

Decisions captured at the source for better control and

accuracy.

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The SAP R/3 Reference Model

The SAP R/3

Reference Model

Views SAP R/3System

Functionality

BusinessUser

Data, Functions,

Organizational Elements

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The Reference Model Can:

Help quickly identify required business processes.

Analyze how the required business processes are

provided by the SAP R/3 System and determine

potential gaps.

Identify alternative solutions for optimizing businessprocesses.

Maximize integration throughout the SAP R/3 System

using real world business models.

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The Reference Model Views Help Answer:

What should be done? (i.e., business functions)

Who should do what and where? (i.e., organizational

elements)

Which information is required? (i.e., data)

TheReference

ModelData

Business

Functions

Organizational

Elements

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The

Reference

Model

Reference Model Views

Process Selection

Matrix

Organization

Diagram

Process

EPC

Event

Process

Funct.

Scenario

Process EPC

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Process Selection Matrix

Scenarios

Processes

Standardorder

handling

Contracthandling

Schedulingagreement

handling

Third-partyorder

handling

Delivery

processing

Delivery

processing

Delivery

processing

Delivery

processing

Shipment

planning

Transportation

planningTransportation

planningTransportation

planning

Shipping

Scenario

Process

An index of SAP R/3 Systems functionality in a given area.

Good communication reference point for consultants andteam leaders.

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Scenario Process Event-driven Process Chain

(EPC)

An overview of

existing R/3 Sys-tem processing in

a particular

business scenario

Scenario

Process

Customer

processing

Material master

processing

Std. order

handling

Customer

processing

Material master

processing

Contract

handling

Proc

esses

Scenarios

Process Selection Matrix Std. Order Processing

Mailing

processing

Mailing

carried out

Direct

Mailing

Sales

Processing

Sales

Activity

Scenario Process

Event-driven Process Chain

Openobject

Process

Process EPC

Customer Processing

Partners

determined

Enter

Correspond

Correspond

entered

Determine

partners

Mail

Campaign

Ente

encl

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Process Event-driven Process Chain

Entry

of services

rendered

Services

are to be

entered

Delivery is

urged

Delivery

data is not

exceeded

Serviceis accepted

Invoice posted &released for payment

Invoice processing

with reference

Creditor

subsidiaries office

processing

Vendor

processing

xor

A detailed representation of

SAP R/3 System business

functionality options in a

particular business process.

From here, you can also access

transaction screens and

documentation.

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Organizational Diagram

DivisionSales

organization

Distribution

channel

Shipping

point

Plant

warehouse

Sales area Plant

Business

area

Company

code

Loading

point

A model of the relationships between SAP R/3 System

organizational elements.

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Review of the two views of:

The Business Navigator

The Component View

The Component View 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.

The Process Flow View

The Process Flow View describes the business processes in the

SAP R/3 System.

The control flow is portrayed in terms of events, functions, andlink rules.

ASAP is based upon the Process Flow View.

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In Summary, the Reference Models can help:

Identify customer-required business processes.

Analyze the extent to which the required functions are

provided by the SAP R/3 System.

Identify alternative solutions for optimizing business

processes. Maximize integration throughout the SAP R/3 System

using real world business models.