1. University of Southern California Enterprise Wide Information Systems Functionality and the Reference Model Instructor: Richard W. Vawter

2. 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.

3. University of Southern California 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.

4. University of Southern California 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.

5. University of Southern California Example of Integration Requirements Customer Request Customer Request Sales Order ShippingBilling Cash Processing Analysis Logistics Accounting Business Process Integration: Customer Order Management

6. University of Southern California Customer Order Management Process Integration (cont.) The Three Components of Process Integration Data Business Functions Business Functions Organizational Elements Organizational Elements Customer Request Customer Request Sales Order ShippingBilling Cash Processing Analysis

7. University of Southern California Customer Order Management Process Integration (cont.) Integrated Components of a Business Function Data Business Functions Business Functions Organizational Elements Organizational Elements Shipping Point Customer Material, etc. Company Code Plant Distribution Center Distribution Center Sales Area Quotation is Valid Order is Released Standard Order Processing Standard Order Processing

8. University of Southern California 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.

9. University of Southern California The SAP R/3 Reference Model The SAP R/3 Reference Model Views SAP R/3 System Functionality Business User Data, Functions, Organizational Elements

10. University of Southern California 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.

11. 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) The Reference Model Data Business Functions Business Functions Organizational Elements Organizational Elements

12. University of Southern California The Reference Model The Reference Model Reference Model Views Process Selection Matrix Organization Diagram Process EPC Event Process Funct. Scenario Process EPC

13. University of Southern California Process Selection Matrix “Scenarios” “Processes” Standard order handling Contract handling Scheduling agreement handling Third-party order handling Delivery processing Delivery processing Delivery processing Delivery processing Shipment planning Transportation planning Transportation planning Transportation planning Shipping Scenario Process Scenario Process An index of SAP R/3 System’s functionality in a given area. Good communication reference point for consultants and team leaders.

14. University of Southern California Scenario Process Event-driven Process Chain (EPC) An overview of existing R/3 Sys- tem processing in a particular business scenario Scenario Process Scenario Process Customer processing Material master processing Std. order handling Customer processing Material master processing Contract handling Processes Scenarios “Process Selection Matrix” Std. Order Processing Mailing processing Mailing carried out Direct Mailing Sales Processing Sales Activity “Scenario Process Event-driven Process Chain” Open object Open object Process “Process EPC” Customer Processing Partners determined Enter Correspond entered Determine partners Mail Campaign Ente encl

15. University of Southern California Basic Elements of Process Modeling DescriptorSymbolDefinition Event Function Linking operators Control flow Process path An event describes the occurrence of a status that causes an effect. A function describes the transform- ation from an initial status to a target status. A linking operator describes the logical connection between events and functions. Control flow describes the time/logical dependency of events and functions A process path shows the link to/from another process. XOR XOR AND OR

16. University of Southern California Process Event-driven Process Chain Entry of services rendered Services are to be entered Delivery is urged Delivery data is not exceeded Service is 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.

17. University of Southern California Organizational Diagram Division Sales organization Distribution channel Shipping point Plant warehouse Sales areaPlant Business area Company code Loading point A model of the relationships between SAP R/3 System organizational elements.

18. University of Southern California 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.

19. 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.