1. Architecture of the R/3 System Chapter 14

2. Problems of Enterprise-Wide Computing Slow response time during peak traffic loads Different time zones, systems, upgrades Heterogeneous database problem Multiple platforms

3. R/3 and Enterprise Computing Development of “middleware” enables portability across platforms –Technologies include: Db replication, messaging, XML, remote procedures R/3 supports: –TCP/IP –RFC –SQL & ODBC –OLE, MAPI, EDI

4. R/3 Server Installations 3-tier C/S preferred –Homogeneous - same OS on one or more platforms –Heterogeneous - a variety of platforms ex. UNIX, NT, Windows on application server UNIX with Oracle, Informix, DB2 on db server –R/3 solves the distributed multiple heterogeneous platform problem with “middleware”

5. Benefits of Multiple Application Servers An alternate server can be automatically selected if one is unavailable “Load balancing” of clients to least busy server Can optimize queries and reduce load on db server to improve response time Because it is scalable, servers can be added as more processing capability is needed

6. C/S Scenarios Centralized host computer performs all tasks including db, applications, and presentation 2-tier C/S - db server is separate from “thick client” which processes apps and presentation 3-tier C/S - separate systems for db, apps, and presentation (preferred by R/3) N-tier C/S – extension using servers on Internet

7. SAP R/3 Basis System

8. R/3 Middleware Transfer Protocols Front-end (presentation tier) –R/3 GUI uses resident OS resources to cut flow of data to 1-2 KB –whole screens are not passed but only logical control information and user inputs DB interface (between app and db servers) –SAP SQL within ABAP/4 environment –then translates queries into “native” SQL

9. More Middleware Functions Interprogram communications –synchronous vs. asynchronous Synchronous uses CPI-C, from IBM in the late ’80s –RFC/RPC libraries and DLLs to call R/3 functions/modules –SAP is closely aligned with COM from MS Transaction management –ALE -distributes db availability to several sites routes data, maintains security creates IDOC master which contains info about the data SAP experimenting with XML for internal messaging

10. Application Linking & Enabling (ALE) Allows users to set up applications and databases at distributed locations Not only routes data, but knows what data are needed in given situations; “intelligent middleware” –ALE checks for consistency of data, updates –uses IDOCS to send message between loosely coupled systems, with possibly dif. R/3 ver. –Asynchronous RFC means if system is down on target it will retry again

11. R/3 Distribution Scenarios Initially, R/3 was designed with one centralized db in mind (from late ’80s) ALE technology was developed to enable different integration scenarios –Contained in Business Blueprint Centralized, integrated DB and application server Centralized by module on servers Completely decentralized R/3 with central db “Next Generation” architecture

12. System Landscape for SAP R/3 Implementation CUST DEV QASPRD TESTSANDQTSTTRNGQTST

13. Next Generation ERP Architecture What is Internet ERP? –N-tier –EC, K Mgt, CRM, data mining, DSS, BI functionality on top of back office –Integrated tools include BW with OLAP APO Sales Force Automation CRM B2B SCM

14. Enterprise Application Integration (EAI) EAI Server DW environments Visual Basic MS Office Java Legacy Applications ERP ApplicationsCRM, etc

15. NetWeaver Adoption SAP anticipates that NetWeaver will redefine the company in a global manner –About 3000 of more than 24,000 potential companies have put some portion of NetWeaver into play –Early stage of maturity –IBM and MicroSoft supporting NetWeaver –SAP committed heavily to grow this in 2004 and 2005

16. NetWeaver Components SAP NetWeaver 2004 Synchronized Release as a single package –SAP WAS 6.4 –SAP EP 6.0 –SAP XI 3.0 –SAP BW 3.5 –SAP MI 2.5 (SAP MDM limited usage at this point) All sold and shipped together and can be installed in one procedure –Still possible to run individually –Ramp up was April 2004

17. … SAP NetWeaver™ INFORMATION INTEGRATION Master Data Management Bus. IntelligenceKnowledge Mgmt Composite Application Framework PEOPLE INTEGRATION Multi channel access PortalCollaboration APPLICATION PLATFORM J2EE DB and OS Abstraction ABAP Life Cycle Mgmt PROCESS INTEGRATION Integration Broker Business Process Management SAP EP SAP MI SAP BI SAP XI SAP MDM SAP WAS

18. Evolution of SAP App development ABAP & SAP Basis Open SQL RFCs/BAPIs ALE & IDocs Report Writer/Query Dynpro, SAP GUI ABAP Workbench WAS and Java Open SQL for ABAP & Java Web Services/WSDL XI, MDM, and XML SAP BI Web Dynpro, EP, MI NetWeaver Developer Studio

20. mySAP.com Application Hosting Alternative Application Service Providers (ASPs) integrate and combine Evaluation Implementation Operation Service & Support Service offering for all kinds of outsourcing levels such as Business Operation Services Application Management Services Platform Services

21. mySAP.com Application Hosting Applications Management Enterprise ASP Spending Source: IDC, 1999 0 500 1000 1500 2000 2500 $ Million 19992003 $150 MILLION $2 BILLION 0.0 5.0 10.0 15.0 20.0 25.0 30.0 19962001 $ Billion Source: G2 Analysts expect explosive growth in both sectors over next four years Primary Lead Market: US Secondary Lead Market: Europe

22. mySAP.com Application Hosting Test Drive Your Solution Online Compose Your Solution Online We Implement Your Solution Online Financial Application Services HR Application Services Evaluation Implementation Continuous Improvement We Host Your Solution Online Industry Marketplaces Enterprise-specific Marketplaces We Build And Host Your Business Community / Marketplace Online SAPPartners + SAP AHSAP & Partners Evaluation Implementation Cont. Improvement

23. SAP’s Portal Play 3rd party services More than 40 partners Added value for business professionals Highly Personalizable

25. Growing Importance of CRM Based on a recent GartnerGroup survey (Aug 2000) on customer service e-tailing sites, there are many potential areas for improvements. Some are simple; others require significant investments in people, processes and technology. Here are the top-10 pitfalls: 1. Requiring a password to access customer service 2. Lack of a customer service tab 3. Lack of search engines for general customer service 4. Lack of a site map 5. Lack of internationalization 6. Lack of agent support for new channels 7. Lack of working channels 8. Lack of good customer service on the phone 9. Lack of coordination between click and brick 10. Requiring software download for access

26. Sales Force Automation Customer Care Relationship Marketing Marketing Automation Customer Data Warehousing Enterprise Relationship Front Office Technology Enabled Relationship Direct Mail Telemarketing One to One Marketing Database Marketing Customer Intimacy Customer Segmentation & Analytics CRM Has Many Components

27. Migrating to a New Model Transaction Driven 1-800 Access Limited Availability Stand Alone Units Technology Constrained Limited Capabilities Cost Centers Call Centers Customer Driven Multi-Media Access Anytime Availability Fully Integrated Technology Enabled Enterprise Capabilities Profit Centers CRM Centers Prior ViewFuture View

28. Sales Workbench Opportunity Management Proposal Generation Marketing Encyclopedia Configuration & Pricing Tele Sales Management Analytics Service Workbench Case Management Help Desk Dispatch Management Analytics Routing Scheduling Spare Parts Inventory Business Applications Data Stores Customer/ Prospect/ Employee Touchpoints Marketing Workbench Database Marketing Data Mining Campaign Management Content Management Interactive Marketing Management Analytics FRONT OFFICE DATA WAREHOUSE & OPERATIONAL DATA STORES BACK OFFICE LeadsOpportunitiesCustomersInteractions Order Management Distribution & Logistics Manufacturing Procurement Finance, Accounting, HR Billing MAIL Paper Electronic Fax FACE-TO-FACE SELF SERVICE TELEPHONY Handhelds Tablets Web Kiosks ACD VRU Integrated Touchpoints FRONT OFFICE BACK OFFICE eCRM Technology Architecture

29. eCRMLive Located in PricewaterhouseCoopers’ CRM Solution Centers, Rosemont, IL, and Philadelphia, PA, eCRMLive demonstrates the successful deployment of best-in-class multi-media customer contact solutions. Customer Telephone Call E-mail Web Self-service & Collaboration Internet Switch/ACD CTI Middleware VRUAvailable CSR Case Management Specialist Queue and Capacity Monitoring Workforce Management Supervisory Functions Call Routing Relationship Marketing SFA Customer Database Content Management Legacy Database Call Escalations

30. eCRM Vendors Vendor Demonstrated Functionality BroadVisionWeb Personalization CenterCoreCall Center Furniture CNTLegacy Middleware Integration Compaq NT servers and Desktop PCs Genesys Computer Telephony Integration, E-Mail Grahl Ergonomic Call Center Seating Avaya Switch/ACD, Internet Telephony Gateway,Internet Call Center, Call Management Server, Telephones & Headsets MicrosoftMicrosoft ASP Nuance CommunicationsSpeech Recognition Siebel SystemsCustomer Service and Support Application, Sales ForceAutomation Sun Microsystems Unix Servers Symon Communications Reader Board Messaging VignetteWeb Content Management CiscoWeb Collaboration/Integration Xchange Campaign Management Aspect CommunicationsWorkforce Management