Enterprise Wide Information Systems

Functionality and the Reference Model

Instructor: Richard W. Vawter

University of Southern California

Objectives
Identify the functional and technical integration issues that 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 processes that 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

Business Process Integration: Customer Order Management

Customer Request

Sales Order

Shipping

Billing

Cash Processing

Analysis

Logistics

Accounting

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Customer Order Management Process Integration (cont.)

The Three Components of Process Integration

Customer Request

Sales Order

Shipping

Billing

Cash Processing

Analysis

Business Functions Data Organizational Elements

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Customer Order Management Process Integration (cont.)

Integrated Components of a Business Function
Business Functions Data
Quotation is Valid Shipping Point Customer Standard Order Processing Order is Released Plant Distribution Center Sales Area

Organizational Elements

Company Code

Material, etc.

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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

Business User Views SAP R/3 System Functionality

Data, Functions, Organizational Elements

The SAP R/3 Reference Model

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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 business processes. Maximize integration throughout the SAP R/3 System using real world business models.

University of Southern California

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)

Business Functions

Data

The Reference Model

Organizational Elements

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Reference Model Views

Process Selection Matrix

Scenario Process EPC

Process EPC
Event
Process

The Reference Model

Organization Diagram

Funct.

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Process Selection Matrix

An index of SAP R/3 Systems functionality in a given area. Good communication reference point for consultants and team leaders.
Scenarios

Scenario
Process

Standard order handling

Contract handling

Scheduling agreement handling

Third-party order handling

Shipping

Delivery processing

Delivery processing

Delivery processing

Delivery processing

Processes

Shipment planning

Transportation

Transportation

Transportation

planning

planning

planning

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Scenario Process Event-driven Process Chain Scenario Process (EPC)

Process Selection Matrix
Scenarios Processes
Scenario Process Customer processing
Material master

Event-driven Process Chain

Std. Order Processing
Mailing carried out Mailing processing

Std. order handling Customer processing Material master processing

Contract handling
Process

Open object
Sales Activity

processing

Direct Mailing

An overview of existing R/3 System processing in a particular business scenario

Customer Processing
Mail Campaign

Sales Processing
Determine partners Partners determined Enter Correspond Correspond entered Ente encl

Process EPC

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Process Event-driven Process Chain

Services are to be entered Delivery is urged
xor

Delivery data is not exceeded

Entry of services rendered Service is accepted

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.

Invoice processing with reference

Invoice posted & released for payment

Vendor processing

Creditor subsidiaries office processing

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Organizational Diagram
A model of the relationships between SAP R/3 System organizational elements.
Company code

Business area

Sales area

Plant

Division

Sales organization

Distribution channel

Shipping point

Plant warehouse

Loading point

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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, and link rules. ASAP is based upon the Process Flow View. University of Southern California

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.

University of Southern California