Chapter 2Introduction to Enterprise Systems
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Learning Objectives1. Discuss the evolution and key business
benefits of enterprise systems 2. Explain the role of enterprise systems in supporting business processes 3. Differentiate the different categories of data within SAP ERP 4. Understand the major options for reporting
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Enterprise Systems (ES) Complex and powerful information systems
SAP Enterprise Resource Planning (ERP) system
is the worlds most popular
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Architecture of Enterprise Systems Client-Server
Service-Oriented
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Three layers of the Client-Server Architecture
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Client-Server Internet uses a three-tier architecture Advantages: 1) Reduced costs and 2) Scalability Scalability refers to the ability of software and
hardware to support a greater number of users over time
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Service-Oriented Architecture Web services Used to expose ES (and other system) functionality Standard interface input and output
Composite applications Connect multiple applications via Web services
(including mashups or composite applications) Build new capabilities without changing the underlying applications Main advantages: 1) Standardization is easy; 2)
Lower costs & complexity of integration; 3) Reuse; and 4) Flexibility7 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Enterprise Resource Planning Systems Focus primary on internal operations of an
organization Integrate functional and cross-functional business processes SAP is a fully integrated, global ERP system Supports multiple languages and currencies
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The SAP ERP Solution Map
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SAP ERP Modules
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Enterprise Systems Application Suite Collection of inter-company systems and intra-
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company ERP system is called an application suite Enterprise Resource Planning (ERP) Supply Chain Management (SCM) and Supplier Relationship Management (SRM) production planning, transportation, logistics, quotation, contracts Product Lifecycle Management (PLM) research, design, and product management Customer Relationship Management (CRM) Magal and Word | sales, service marketing,Integrated Business Processes with ERP Systems | 2011
The ES Architecture Suite
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Applications Platforms Enterprise Operating System
SAP NetWeaver introduced in 2003 Integral part of SAP ERP and SAP Business Suite Toolset for composite application and plug-in
software Has SOA capabilities to integrate non-SAP applications SAP Business Suite includes SAP ERP, CRM,
SCM, PLM, and SRM, and runs on SAP NetWeaver13 Magal and Word | Integrated Business Processes with ERP Systems | 2011
SAP NetWeaver
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Data in an Enterprise System Organizational data (levels, elements)
Master data Transaction data Associated with process steps
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Organizational Data/Level/Element Defines the structure of the enterprise in terms of
legal or business purposes. Examples include: Legal entities, plants, storage areas, sales
organizations, profit centers, subsidiaries, factories, warehouses Client, Company, and Plant Data rarely changes
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Organizational Level - Client Client: Highest organizational level Represents the enterprise; comprised of many
companies
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Organizational Level Company Code Central organizational element in financial
accounting Books are maintained at this level for legal reporting
Identifies legal entities in an enterprise (Client) Legally independent from other companies in the
enterprise Client can have multiple company codes Company code must belong to only one client
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Organizational Level - Plant Performs multiple functions
Used by many processes Represents factory, warehouse, office, distribution
center, etc. Following functions are typically performed: Products/services are created Materials are stored and used for distribution Production planning is carried out
Service or maintenance is performed
See Coca-Cola example on page 3119 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Organizational Data
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GBI Organizational Data
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Master Data Long-term data that typically represent entities
associated with various processes? Customer Vendor Material
Typically include General data (across company codes) Financial data (CC specific) Area-specific data (Sales, Purchasing, Plant)
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Material Master Material master data is used in numerous
processes Procurement who and how much Fulfillment product availability and shipping
conditions Production Material planning Asset management Project systems Lifecycle data managementMagal and Word | Integrated Business Processes with ERP Systems | 2011
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Material Master Materials data may be grouped into views
relevant to one or more processes Basic data (materials number, description, weight) are relevant to almost all processes Data are grouped based on Process Material type Organization element
Material type can impact screens,
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department/function data to be maintained, material numbers, appropriate procurement, and Magal and Word | Integrated Business Processes with ERP Systems | 2011 general ledger accounts
Material Master Data
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Material Types Raw materials (ROH) Purchased, not sold, used in production Purchasing- and production-related views No sales-related view
Semi-finished goods (HALB) Produced using other materials (ROH, HALB) Used in the production of other materials (HALB,
FERT) Not purchased or sold
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Material Types (Continued) Finished goods (FERT) Produced using other materials (ROH, HALB) Sold to customers
Trading goods (HAWA) Purchased and resold without additional processing
Numerous other types
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Material Groups Materials with similar characteristics For example, materials used in production or in
sales In retail, we may have categories such as
footwear, clothing, beverages Materials are grouped so that they can be
managed collectively (e.g., planning)28 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Organizational Level Same material can be used differently by different
organizational levels Different company codes HALB in one, FERT in another Different plants Only exports or imports in specified plants, not all Different sales-related organizational elements Wholesale vs. retail
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GBI Product Structure
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Demo 2-1: Review Material Types Review some of the material types included in the
material master.
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Demo 2-2: Review Material Master Data Review some of the data provided in the material
master.
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Transaction Data Data generated during execution of process steps
Requires Organizational data Master data Situational data
Who, what, when and where.. Example: Sales order creation Organizational elements: Client, Company Code,
Sales Area Master Data: Customer, Material Situational data: Date, Time, Person33 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Transaction Data
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Documents Record of transactions Transaction documents Requisition, purchase order, invoice, delivery document, etc. FI documents Record the impact on financial accounting CO documents Record the impact on management accounting Material documents Record the impact on material status (value, location)
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Purchase Order
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Demo 2-3: Review a Purchase Requisition or Order Review some of the items that are contained in a
purchase requisition or purchase order.
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Reporting Transactional system (OLTP) vs. informational
system (OLAP) Types of reporting (options) Work lists in SAP ERP Online lists in SAP ERP Analytics in SAP ERP Analytics in SAP BW
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Transactional vs. Informational OLTP (transactional) Detailed, transactional data
Data warehouse Data aggregation and reduction using Qualitative reduction by aggregating by time period Quantitative reduction by selecting key figures (KPI) In ERP: Information structures In BW: Infocubes, info providers, etc.
OLAP (informational) Various analysis tools In ERP: Information systems (OLAP lite) In BW: Various reporting tools39 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Reporting Options within SAP ERP
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Components of Information Structures
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Work Lists List of work to be completed Picking due list Billing due list Delivery due list
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Work List Picking Due List
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Demo 2-4: Review a Work List Review the items that are contained in a work list.
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Online Lists Displays lists of master data and documents (FI,
CO, Materials) Contents and appearance depend on selection parameters and scope-of-list parameters Selection parameters determine documents to be included Scope-of-list parameters define what data will be included Two formats may be used for display SAP list viewer or ABAP list viewer grid controlMagal and Word | Integrated Business Processes with ERP Systems | 2011
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Online Lists List Display for Documents
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Report Using SAP List Viewer
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Online Lists Report Using ALV Grid Control
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Functions of the List Viewer and Grid Control
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Demo 2-5: Review an Online List Review the items contained in an online list
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Demo 2-6: Review ERP Reports Review the reports provided by ERP
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Information Systems Logistics information systems Purchasing IS - acquisition Sales IS - selling Inventory control IS - storing Shop floor IS - production
Financial information systems GL reporting (B/S, I/S, Cash flows) Receivables, payables
Human resource information systems Personnel, positions, payroll52 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Information Systems Information Structures (characteristics, key
figures, period definition) Standard (predefined) User-defined information structures Standard analysis (predefined analytics)
Flexible analysis (user-define content and format)
OLAP provides reporting based on aggregated
data in information structures SAP BW receives data from SAP ERP, SAP Business Suite, and non-SAP systems53 Magal and Word | Integrated Business Processes with ERP Systems | 2011
Reporting Using SAP BW
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