Why Enterprise Architecture

• Why Enterprise Architecture ?

– Numerous disparate information systems
– Integrating the data becomes costly
• Time
• Money
• Resources
– Inconsistencies and duplication of data
– Lack of timely information
– Required: Central enterprise definitions
– Required: Centrally controlled business change

Enterprise Architecture - Benefits

• Eliminates the duplication, discontinuity and redundancy in data

• Increases the return on investment made on IT implementations
• Delivers quality information designed for the Enterprise as a whole
• Faster and cheaper
• Delivers quality information to produce a quality enterprise
• Satisfying Partners/Customers
• Reducing required manpower

• What is the full form of SAP?

Systems Applications and Products in Data Processing
• When was SAP founded?
Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira
– Renamed in 1977
– Before 1977 : Systems Analysis and Program Development (German : Systemanalyse
und Programmentwicklung)
History of SAP
• Systems Applications and Products in Data Processing
– German : Systeme, Anwendungen, Produkte in der Datenverarbeitung

• Founded in 1972 by Wellenreuther, Hopp, Hector, Plattner and Tschira

– Renamed in 1977
– Before 1977 : Systems Analysis and Program Development (German : Systemanalyse
und Programmentwicklung)

• SAP is both the name of the Company as well as their ERP Product

• SAP system comprises of a number of fully integrated modules, which covers virtually every
aspect of the business

• Three systems developed : R/1, R/2, R/3

3 Tier Client / Server Architecture

• The SAP R/3 architecture is based on a 3-tier client/server principle
– Presentation Server
– Application Server
– Database Server
• Dedicated Servers are linked by Communication Networks
 • Perform tasks without sacrificing data integration and processes within the system, as a
whole
Overview of Presentation & Database Servers
• The Presentation Server
– GUI only
– At workstation
– Very light
– Sends requests to application server
– Obtains screens from application server and displays

• The Database Server

– Interface between application server and RDBMS
– Also holds the vendor specific DB driver

SAP Conceptual Areas

Application Area Basis Area Development Area

(Initiate and execute (The technical administration of (1. A developer’s workbench
SAP transactions) the system) 2. Create & Test ABAP/4
programs)
(Functional) (Authorizations/Ids/etc) (Technical)

Platforms and Databases supported by R/3

Operating Supported Supported Front Supported

Systems Hardware ends Databases

AIX SINIX IBM SNI SUN Win 3.1/ 95 / NT DB2 for AIX
SOLARIS HP-UX Digital HP OSF / Motif Informix – Online
Digital Unix Bull OS/2 Oracle 7.1
Macintosh ADABAS D
Windows NT AT&T Compaq Win 3.1 / 95 / NT Oracle 7.1
Bull / Zenith OSF / Motif SQL Server 6.0
HP (Intel) SNI OS/2 ADABAS D
IBM (Intel) Macintosh
Digital (Intel)
Data-General
OS/400 AS/400 Win 95 OS/2 DB2/400

SAP R/3 Application Modules

 • Financial accounting (FI)
• Controlling (CO)
• Asset management (AM)
• Materials management (MM)
• Sales and Distribution (SD)
• Production Planning (PP)
• Quality management (QM)
• Plant maintenance (PM) & Customer Service (CS)
• Project system (PS)
• Human resources (HR)
• Workflow (WF)

MATERIALS MANAGEMENT

Material Procurement
Inventory Management
Batch Management
Goods inspection
Invoice Verification

PRODUCTION PLANNING
BOM/Work Center/Routing
MRP
Capacity Evaluations
Production Orders
QM in production

SALES & DISTRIBUTION

Inquiry processing
Sales Order Processing
Delivery Processing
Billing

FINANCIAL ACCOUNTING
General Ledger
Accounts Payable
Accounts receivable
Cash management

CONTROLLING
Cost Center Accounting
Product Costing
Order Contribution Analysis

FUNCTIONS
Financial Accounting Asset Management & Financial
Reporting
Controlling Profit center Accounting
 Materials Inventory Management
Management
Sales & Distribution Billing
Production Planning Shop Floor Control
Project System Activity monitoring

MODULE FI – FINANCIAL ACCOUNTING

• External reporting of
• General ledger
• Accounts receivable/payable
• Sub-ledger accounts
with a user-defined Chart of Accounts
• Key elements
• General ledger
• Accounts payable
• Accounts receivable
• Asset Management
• Special Purpose Ledger (FI-SL)
• Legal consolidation
• Accounting Information System

MODULE CO – CONTROLLING
• Represents the flow of cost and revenue
• Instrument for organizational decisions
• Key elements of the CO application module include :
• Cost center accounting
• Product cost Planning
• Product Costing
• Profitability analysis
• Profit center accounting
• Activity based costing
• Enterprise controlling

MODULE SD – SALES AND DISTRIBUTION

• Optimize tasks/activities in
• Sales
• Delivery
• Billing
• Key elements of the SD application module include :
• Pre-sales support
• Inquiry processing
• Quotation processing
• Sales order processing
• Delivery processing
• Warehouse management
• Billing
• Credit Management
• Sales Information system

MODULE MM – MATERIALS MANAGEMENT

• Supports
• Procurement
• Inventory
• Key elements
• Materials procurement (purchasing)
• Inventory management
• Invoice verification
• Material valuation
• Vendor evaluation
• External Services management
• Purchasing Information System (PurchIS)
• Inventory Controlling Information system

MODULE PP – PRODUCTION PLANNING

• To plan and control the manufacturing activities
• Key elements
• Bill of Material (BOM)
• Routings
• Work Centers
• Sales and Operations planning (SOP)
• Master Production Scheduling (MPS) – Capacity Planning
• Materials Requirement Planning (MRP)
• Shop Floor Control (SFC)
• Production orders
• Product costing, activity-based costing
• Work in process
• Kanban
• Production planning for process industries (PP-PI)
• Repetitive Manufacturing

MODULE QM – QUALITY MANAGEMENT

• Supports
• Quality planning
• Inspection
• Control for manufacturing
• Costing
• Procurement
• Key elements
• Quality planning
• Quality during procurement, production, distribution
• Quality Management Information - Quality inspection
• Information System (QMIS)

MODULE PS – PROJECT SYSTEM

&
HR – HUMAN RESOURCE
• PS – PROJECT SYSTEMS
• Support planning, control, & monitoring of long term highly complex projects with
defined goals
• Key elements
• Project WBS – Plan
• Budget & Monitor
 • Network Management
• Activity monitoring, Material Planning, Milestones, Capacities Scheduling
• Project Management Information System
• HR – HUMAN RESOURCE
• Key elements
• Recruitment
• Payroll & Time management
• Travel Expense accounting & Benefits
• Workforce planning & Training administration
• Organization management

MODULE WF – WORK FLOW

• To integrate SAP R/3 with cross-applications

• Support tool for all modules
• Automates business process
• As events occur that trigger a process, the Workflow manager initiates a Workflow
item
• Using the process logic, data and documents are incorporated at each step
• Using the processing rules, the Workflow manager routes the item to the appropriate
role (location, person, unit, etc....).
• Example:
• Posting a PO will trigger automated mail to sales support for customer service.

mySAP INDUSTRY SOLUTIONS (SOME EXAMPLES)

• SAP for Aerospace & Defense
• SAP for Media
• SAP for Automotive
• SAP for Mill Products
• SAP for Banking
• SAP for Mining
• SAP for Chemicals
• SAP for Oil & Gas
• SAP for Consumer Products
• SAP for Pharmaceuticals
• SAP for Engineering, Construction & Operations
• SAP for Professional Services
• SAP for Healthcare
• SAP for Public Sector
• SAP for High Tech
• SAP for Retail
• SAP for Higher Education & Research
• SAP for Service Providers
• SAP for Industrial Machinery & Components
• SAP for Telecommunications
 • SAP for Insurance
• SAP for Utilities

SERVICE MODULE WITHIN CRM

• Service Planning
• Proactively engage customers with the correct resources at the most beneficial
times
• Customer Care
• Provide customer with 24/7 accessibility from all communication channels with
precise and consistent informationon
• Installed Base Management
• Maintain an accurate, up-to-date record of a customer’s products and
installations to facilitate service and anticipate customer requirements

INTEGRATION IS THE KEY CHALLENGE

Business Drivers
ƒ Extended Value Network
ƒ Increased Market Dynamics
Integration costs are high
ƒ Long integration projects
ƒ IT environments become increasingly rigid
ƒ Lots of heterogeneous systems
Pressure on IT increases
ƒ Must leverage existing investments
ƒ Must support new business processes quicker
ƒ Must reduce total cost of ownership (TCO)

HOW TO ADDRESS THE INTEGRATION CHALLENGE

Reduce Complexity
• Minimize the number of connections through hubs
• Use only one platform to integrate all people, information, and systems
Reduce Cost Integration
• Deliver .NET and J2EE interoperability
• Deliver adaptors for ISV products
• Deliver products, not projects
Increase company performance
• Increase ease of use, scalability and adaptability
• Increase business process flexibility by using an Enterprise Services Architecture