Business Engineering Blueprint

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Business Engineering Blueprint
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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)

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Stages of E-Business
E-Business
E-Partnering
E-Commerce
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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

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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.

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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.

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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.

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E-Business/ERP Option Matrix
No E-Business Capabilities
Channel Enhancement
Value-Chain Integration
Industry Transformation
Convergence





Greenfield
Nonintegrated systems
Limited/Single Function ERP
Integrated BU ERP
Integrated Enterprise ERP
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E-Business Options

• No E-Biz Capabilities
• Channel enhancement
• Customer self-service, Web marketing
• VC Integration
• Begin to implement eCRM and eSCM
• Personalized customer and supplier portals
• Industry Transformation
• Companies align Inet and with corp. strategy to
  create new products and services
• Convergence
• - Inet enabled partnering of companies in
  different industries for one stop shopping

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ERP Options

• Green field
• - Can create IS architecture from scratch
• Nonintegrated Systems
• Company has no rapid or meaningful exchange of
  data between internal systems
• ERP by Function
• company has successfully install one or a few ERP
  modules across all Bus
• ERP by BU
• -fully integrated ERP suite in one or more Bus
• Fully Integrated ERP
• -fully integrated ERP suite across the enterprise

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Cost to Implement Various Ebiz Solutions from ERP
Scenarios


centralized
LEG
BU
Func
High
Ent
Cost of E-biz Implementation
BU
Low
GF
decentralized
Rapid
Slow
Time to Implement E-biz Solution
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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

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Business Engineer
Enterprise Organization
Application Components
Material Management
InventoryManagement
Purchasing
Information Systems
WarehouseManagement
Request for Quotation
PurchaseRequisition
PurchaseOrder
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Procedure Model
Preparations for Going Live
Productive Operation
Detailed Design and System Set-Up
Organization and Conceptual Design
Create Interfaces and Enhancements
Establish Global Settings
Set Up System Environment
Train Users
Create Go-Live Plan
Establish Reporting
Establish Company Structure
Support Productive Operation
Train Project Team
Quality
Quality
Quality
Con- ceptual Design
Appli- cation System
Pro- duction System
Project Preparation
Create User Documentation
Establish System Administration
Establish Archiving Management
Establish Master Data
Optimize System Use
Check
Check
Check
Set Up Production Environment
Transfer Data to Production System
Establish Authorization Management
Establish Functions and Processes
Perform Final Test
Project Management
System Maintenance and Release Upgrade
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Relationship of the Procedure Model to ASAP
Procedure Model
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The SAP R/3 Reference Model
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System-wide Features
Organizational Elements
Companycode
Business area
Sales area
Plant
Salesorganization
Distribution channel
Shippingpoint
Division
Warehouse
Loading point
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System-wide Features
Organizational Elements
Motor Sports International (Production Client)
3000 Motor Sports International, IncUS (Company)
4000 Motor Sports International,
IncCanada (Company)
90 Accessories (Business Area)
02 Motorcycles (Business Area)
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System-wide Features
Organizational Elements
Motor Sports International
3000 Motor Sports International, Inc US
4000 Motor Sports International, IncCanada
3000 US 1
Purchasing Organization
3000New York
3400 Seattle
Plant
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System-wide Features
Organizational Elements
Motor Sports International
3000 Motor Sports International, Inc US
4000 Motor Sports International, IncCanada
3000 US Sales
Sales Organization
Distribution Channel
03 Retail
Division
90 Accessories
02Motorcycles
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System-wide Features
Organizational Elements
Motor Sports International
3000 Motor Sports International, Inc US
4000 Motor Sports International, IncCanada
Business Area
90Accessories
02Motorcycles
3000US 1
Purchasing Organization
Division/ Plant
4000Seattle
02Motorcycles
90 Access.
3000New York
Sales Organization
3000US Sales
Distribution Channel
03 Retail
02Motorcycles
90 Assess.
Division
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System-wide Features
Master Data
General Data (common across client
Master Data (Customer Data)
Sales Data (unique to sales area)
Accounting Data (unique to company)
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System-wide Features
Employee Self Service
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System-wide Features
Classification
Do we have a 5/8 inch by 3
inch hex head ASTM
bolt?
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System-wide Features
Matchcodes
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System-wide Features
Security

• Profiles
• Objects
• Authorization

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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

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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

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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

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The SAP 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
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Basic Elements of Process Modelling
Definition
Symbol
An event describes the occurrence of a status
that causes an effect.
Event
A function describes the transformation from an
initial status to a target status.
Function
A linking operator describes the logical
connections between events and functions.
V

Linking operators
Control flow describes the time/logicaldependenci
es of events and functions.
Control flow
A process path shows the link to/from
anotherprocess (navigation help).
Process path
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Business Navigator - Component View
Project IMG
Global Settings
Countries
Currencies
Calendar
Sales Information flows
Sources
Production cost controlling
CO-PC
Profit Center Accounting
EC-PCA
Basic Logistics data
LO-MD
Reduce
Result market seg.res.
CO-PA
Production cost controlling
CP-PC
Purchasing
MM-PUR
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Business Navigator - Process Flow View
Event
Funct.
Event
Funct.
Standard order processing
Input/Output for process/function
Input
Shipping point Customer Material
Output
Material requirements Sales order
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Integration with 3rd Party Models
Business Engineer
Graphic/modeling tools
ARIS
Visio
API
Business Navigator

• Company-specific adaptation of the R/3 Reference
  Model using third-party graphics or modeling
  tools by
• selecting/deselecting existing objects
• adding new objects

Event
Funct.
R/3 Repository
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The IMG (Implementation Guide)
IMG contains documentation for each
activity You can carry out activities from
within the IMG Project management
and documentation functions available
Activities
SAP Documentation

• Concept
• Recommendations
• Requirements
• Activity

• Open Customizing transactions

• WinHelp display.

• MS Project Interface

• MS WinWord as Editor

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The IMG (Implementation Guide)
2a
Customizing Projects
SAP Reference IMG
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2b
Enterprise IMG
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Project IMG
Generate Enterprise IMG
Create Customizing Projects
Views of Project IMG
Create views of Project IMG
Customizing Transactions
Project Documentation
Project Management
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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.

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SAPoffice

• Component Independent Folders
• Each Project IMG generates a component-independen
  t folder structure in SAP Office in addition to
  the component-dependent structure.
• Every project creates its own folder structure.
• The component independent folder structurestores
  project-specific information.

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ABAP/4 Development Workbench