1. Enterprise Systems Modeling EGN 5620 Enterprise Systems Configuration Professional MSEM Fall, 2012

2. Enterprise Systems Modeling
Concepts and Tools
EGN Enterprise Systems Integration

3. Information systems modeling tools
IDEF
IDEF0 (activities)
IDEF1x (information)
IDEF2x (dynamics)
OMT
Functional model
Object model
Dynamic model

4. IDEF Concept (1) IDEF (ICAM Definition) ICAM Objective
Developed by the US Air Force Integrated Computer Aided Manufacturing (ICAM) Programs in 1981
ICAM Objective
To develop structured methods for applying computer technology to manufacturing and to better understand how best to improve manufacturing productivity

5. IDEF Concept (2) IDEF0 IDEF1 IDEF2
An activity model of a manufacturing system and environment
IDEF1
An informational model of the system and environment
IDEF2
A dynamic model to describe time-varying system behavior

6. IDEF Concept (3) IDEF Methodology Commercial IDEF software tools
Modeling process and tools, leading to creation of the three IDEF models
IDEF0 (activities)
IDEF1x (information)
IDEF2x (dynamics)
Commercial IDEF software tools
Design/IDEF by Meta Software Company
AI0WIN by Knowledge Based Systems Inc.

7. OMT Concepts (1) Object modeling technique (OMT)
“Object-oriented” means:
Software organized as a collection of discrete objects that incorporate both data structure and behavior, in contrast to conventional programming in which data structure and behavior are only loosely connected.
OMT Methodology (in stages):
system analysis,
system design,
Object (implementation) design, and
implementation.

8. OMT concepts (2) - common themes
Synergy (i.e., shifting focus from coding technique to packaging, based on consistent
identity,
classification,
polymorphism, and
inheritance
Abstraction,
Encapsulation,
Combining data and behavior,
Sharing (inheritance of data structure & behavior among subclasses)
Emphasis on object structure (not procedure structure),

9. OMT Concepts (3) - Synergy
Identity
Data is quantized into discrete, distinguishable entities called objects
Classification
Objects with the same data structure (attributes) and behavior (operations) are grouped into a class
An operation is an action or transformation that an object performs or is subject to.
polymorphism
The same operation may behave differently on different classes.
A specific implementation of an operation by a certain class is called a method. Each operation may have multiple methods implementing it.
inheritance
The sharing of attributes and operations among a hierarchy of object classes

10. OMT Models (4) 3 OMT models used to describe a system: Object model
describing the objects in the system and their relationships;
Dynamic model
describing the interactions among objects in the system; and
Functional model
describing the data transformation of the system.
Their relationship
The object model describes what changes (or transforms) before when (dynamic model) or how (functional model) it changes.

11. OMT Functional Model (5)
It describes the data value transformations within a system.
The functional model contains data flow diagrams.
A data flow diagram is a graph whose nodes are processes (activities) and whose arcs are data flows.

12. OMT Object Model (6)
It describes the static structure of the objects in a system and their relationships.
The object model contains object diagrams.
An object diagram is a graph whose nodes are object classes and whose arcs are relationships among classes.

13. OMT Dynamic Model (7)
It describes the aspects of a system that change over time and is used to specify and implement the control aspects of a system.
The dynamic model contains state diagrams.
A state diagram is a graph whose nodes are states and whose arcs are transitions between states caused by events.

14. Relationship between the two techniques & among the three models
IDEF0/functional model
The input to an activity is usually through a user interface for data entry
The output from an activity is usually a user interface for a report, though the output may be a write/update to a database. IDEF0’s
ICOM
Material is an input object.
Product/process data are output objects.
Rules/regulations and SOPs are constraints. Technical precedence is a constraint
Resources/tools and methods are a mechanism.
IDEF1/object model
The collection of the ICOM of an IDEF activity model constitutes an inclusive foundation for the object model.
IDEF2/dynamics model
Each object requires a state diagram to define/govern its life-cycle behavior.
A triggering event is associated with each transition from one state to another. One state may transform to multiple states, depending on the triggering event.

34. SAP System Modeling Design EGN 5622 Enterprise Systems Integration

35. SAP R/3 Enables a company to link it’s business processes
ECC 6.0
January 2008
SAP R/3
Enables a company to link it’s business processes
Ties together disparate business functions (integrated business solution)
Helps the organization run smoothly
Real-time environment
Scalable and flexible
The real benefit of ERP is a single point of data entry.
Linked everything that we were trying to teach students.
Students finally understood why they had to take the classes they had to take. It put it all together.
Nay sayers were saying only large enterprises only use SAP. If the students got hired in a large company they would be in a silo. The students who really benefited are the ones who worked in small companies because they understood the whole business process and their jobs have a broader range of duties.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

36. Architecture Central relational database Client/Server – three-tiered
ECC 6.0
January 2008
Architecture
Central relational database
Oracle, Informix, Microsoft SQL, etc.
Client/Server – three-tiered
ERP Components – Oriented towards common identifiable business modules:
MM, SD, PP, FI, CO, HR, WM, QM, PM
Add-ons:
Customer Relationship Mgmt (CRM)
Supply Chain Mgmt (SCM)
Product Lifecycle Mgmt (PLM)
Business Intelligence (BI)
Multiple database options
ERP components are standard business functions: FI (finance), MM (Materials Management), SD (Sales & Distribution), CO (Controlling), PP (Production Planning), HR (Human Resources)
Many add-ons
Add on focus on specific market niches or business functions. Two of the most popular are CRM and SCM
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

37. ECC 6.0
January 2008
Relational Database
Tables: Defines and links a couple of tens thousands of tables of information (25,000+)
Advantages
Consistent and accurate data
Common definitions for terms
Shared, but restricted usage (e.g., profiles)
Eliminates data redundancy
3.0d had 7,000 tables
,000 tables
,000 tables
If you know everything about SAP, your lying. It is just too big.
Your profiles dictates what you can see. This is the only time you will have access to the complete system. You can do anything, including take the system down.
Audit trail – You can tell which student took it down, and they will take care of it themselves.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

38. Client/Server Environment
ECC 6.0
January 2008
Client/Server Environment
Client
Software/hardware combination that can make a request for services from a central repository of resources
Server
Software/hardware combination that can provide services to a group of clients in a controlled environment
What is Client-server Computing?
The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines.
What is a Client process?
The client is a process (program) that sends a message to a server process (program), requesting that the server perform a task (service). Client programs usually manage the user-interface portion of the application, validate data entered by the user, dispatch requests to server programs, and sometimes execute business logic. The client-based process is the front- end of the application that the user sees and interacts with. The client process contains solution-specific logic and provides the interface between the user and the rest of the application system. The client process also manages the local resources that the user interacts with such as the monitor, keyboard, workstation CPU and peripherals. One of the key elements of a client workstation is the graphical user interface (GUI). Normally a part of operating system i.e. the window manager detects user actions, manages the windows on the display and displays the data in the windows.
What is a Server process?
A server process (program) fulfills the client request by performing the task requested. Server programs generally receive requests from client programs, execute database retrieval and updates, manage data integrity and dispatch responses to client requests. Sometimes server programs execute common or complex business logic. The server-based process "may" run on another machine on the network. This server could be the host operating system or network file server; the server is then provided both file system services and application services. Or in some cases, another desktop machine provides the application services. The server process acts as a software engine that manages shared resources such as databases, printers, communication links, or high powered-processors. The server process performs the back-end tasks that are common to similar applications.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

39. Three-Tier SAP Structure
ECC 6.0
January 2008
Three-Tier SAP Structure
GUI – Graphical User Interface or Web Interface
Application server (one or many)
Database server (one single location)
World wide companies have redundant servers that back up real time.
What is a Two-Tier Architecture?
A two-tier architecture is where a client talks directly to a server, with no intervening server. It is typically used in small environments (less than 50 users). A common error in client/server development is to prototype an application in a small, two-tier environment, and then scale up by simply adding more users to the server. This approach will usually result in an ineffective system, as the server becomes overwhelmed. To properly scale to hundreds or thousands of users, it is usually necessary to move to a three-tier architecture.
What is a Three-Tier Architecture?
A three-tier architecture introduces a server (or an "agent") between the client and the server. The role of the agent is manyfold. It can provide translation services (as in adapting a legacy application on a mainframe to a client/server environment), metering services (as in acting as a transaction monitor to limit the number of simultaneous requests to a given server), or intelligent agent services (as in mapping a request to a number of different servers, collating the results, and returning a single response to the client.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

40. SAP Enterprise System Network Presentation Application Database
ECC 6.0
January 2008
SAP Enterprise System
Database
Application
Presentation
Browser Client
PCs, Laptops, etc.
Network
Application Servers
Internet Transaction Server
Web Server
3-tier client server system
Web server
Internet transaction server
Brings it to a single database across the world.
What is Client-server Computing?
The short answer: Client/server is a computational architecture that involves client processes requesting service from server processes. The long answer: Client/server computing is the logical extension of modular programming. Modular programming has as its fundamental assumption that separation of a large piece of software into its constituent parts ("modules") creates the possibility for easier development and better maintainability. Client/server computing takes this a step farther by recognizing that those modules need not all be executed within the same memory space. With this architecture, the calling module becomes the "client" (that which requests a service), and the called module becomes the "server" (that which provides the service). The logical extension of this is to have clients and servers running on the appropriate hardware and software platforms for their functions. For example, database management system servers running on platforms specially designed and configured to perform queries, or file servers running on platforms with special elements for managing files. It is this latter perspective that has created the widely-believed myth that client/server has something to do with PCs or Unix machines.
What is a Client process?
The client is a process (program) that sends a message to a server process (program), requesting that the server perform a task (service). Client programs usually manage the user-interface portion of the application, validate data entered by the user, dispatch requests to server programs, and sometimes execute business logic. The client-based process is the front- end of the application that the user sees and interacts with. The client process contains solution-specific logic and provides the interface between the user and the rest of the application system. The client process also manages the local resources that the user interacts with such as the monitor, keyboard, workstation CPU and peripherals. One of the key elements of a client workstation is the graphical user interface (GUI). Normally a part of operating system i.e. the window manager detects user actions, manages the windows on the display and displays the data in the windows.
What is a Server process?
A server process (program) fulfills the client request by performing the task requested. Server programs generally receive requests from client programs, execute database retrieval and updates, manage data integrity and dispatch responses to client requests. Sometimes server programs execute common or complex business logic. The server-based process "may" run on another machine on the network. This server could be the host operating system or network file server; the server is then provided both file system services and application services. Or in some cases, another desktop machine provides the application services. The server process acts as a software engine that manages shared resources such as databases, printers, communication links, or high powered-processors. The server process performs the back-end tasks that are common to similar applications.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

41. R/3 SAP ERP Modules Client / Server Integrated Business Solution FI CO
ECC 6.0
January 2008
SAP ERP Modules
R/3 FI
Financial
Accounting CO
Controlling PS
Project
System WF
Workflow IS
Industry
Solutions MM
Materials
Mgmt. HR
Human
Resources SD
Sales and
Distribution PP
Production
Planning QM
Quality PM
Plant Maintenance SM
Service
Client / Server
Integrated Business
Solution EC
Enterprise AM
Fixed Assets
Green ones (and blue): Logistics
Blue: Separated for this course even though it is in logistics
Start out with sales and distribution
Yellow HR was added later in SAP’s life (1990)
Red: Tracking side of house. (Financials)
Purple:Workflow is the least understood by faculty and students
Allow the movement of information in the enterprise to the people who need it.
(e.g. Credit limit – s, updates)
Industry Solutions: Each install is tracked by SAP and the configuration is monitored by industry. This way SAP knows the whole set of answer of how industries works with their best business practices.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

42. ECC 6.0
January 2008
Business Modules
Collections of logically related transactions within identifiable business functions
MM (“Buy”)
PP (“Make”)
SD (“Sell”)
FI and CO (“Track”)
HCM (“People”)
These are the basics, or fundamentals of how a company runs.
We make, buy, sell, track, and manage the employees
We teach this to graduate, undergraduate, and the high school level
The concept of commerce is very easy for the students to understand.
Start with the basics and then you can make it more and more complex as you go along
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

43. ECC 6.0
January 2008
SAP R/3 Basics
Instance – each install of the SAP R/3 software on an individual application server
Configurable – each instance can be distinctively configured to fit the needs and desires of the customer (within limits)
Most of the infrastructure decisions, including configuration decisions, occur during project implementation
Configurable – Not a single line of code to set this up. Change options in configuration
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

44. SAP Business Processes Integration (Overview)
ECC 6.0
January 2008
SAP Business Processes Integration (Overview)
Draw picture of stool
Seat – Transactions
Supported by
Leg 1 – Organizations data
Leg 2 – Master data
Vendor, customer, material
Leg 3 – Rules
Govern how a transaction is used in the system
SAP is an erector set
You can create anything you want with it, the problem is converting it to something else
is not easy. You can’t readily dismantle it too easily.
Did you define what you wanted it to do before you started.
One is the biggest problem is people do not define what you want before they start.
EGN Enterprise Systems Integration
© SAP AG and The Rushmore Group, LLC 2008

45. Business Process Integration (II)
ECC 6.0
January 2008
Business Process Integration (II) MM PP SD
Transactions
Org Data
Master Data MM PP SD
Rules MM PP SD FI FI FI MM
In the Business Process Integration class we use the stool as a metaphor for the SAP structure. There are four basic components needed to run execute SAP. Three of these are the legs of the stool: org data, master data, and rules. These ‘hold up’ the transactions. Transactions cannot be run unless these are setup.
The legs are typically configured during the implementation process.
During BPI 1 we will setup the stool for Finance, Materials management and Sales and Distribution. PP SD
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

46. Learning Approaches Cross business functions
ECC 6.0
Learning Approaches
January 2008
Cross business functions
Understand business processes and their relationships to SAP's organizational structure
Highlight integration/configuration!!
Levels are SAP Training:
Level one: Introductory
Level Two : Focus on transactions
Level three: how we set up the system to work the way we want it to
ww.sap.com/usa/education/cirriculum/cirriculum.asp?rid
SAP teaches it from a very functional perspective. Consultant or a silo perspective. This works well in everyday business, but we want to teach students/executives how it all works together.
We are going across the functional areas.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

47. Learning by Creating a Model Business
ECC 6.0
January 2008
Learning by Creating a Model Business
Understanding business processes and their integrative nature
Understanding SAP organizational structures
Combining business processes and SAP organizational structure (i.e., configuration)
Test the newly configured system
View system outputs - statistics, reports, and graphics
You are actually going to start from scratch.
Financial Organizational Structures
Material Master Org. Structures
Sales and Distribution structures
Rules then run transactions
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

48. PEN, Inc. System Modeling Design EGN 5622 Enterprise Systems Integration

49. Pen Inc. Start-up company in the promotional pen business
ECC 6.0
January 2008
Pen Inc.
Start-up company in the promotional pen business
Initially buys and re-sells different lines of promotion pens
Sells to both wholesale and retail – procure and distribute
Later acquires a production facility to manufacture its own product – produce and distribute
We will setup and execute the 3 major processes an organization
We created a pen because it was very easy to setup and understand. The IDES has a motorcycle, but that is more complex than we need to teach the system.
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

50. Pen Incorporated Procure for Sales Order
ECC 6.0
January 2008
Pen Inc. Business Module I for Selling Trading products
Pre-Sales Activity
Sales Order
Delivery
Billing
General Ledger Accounts
Purchase Requisition
Purchase Order
Goods Receipt
In Inventory
Plant or Warehouse
Invoice Receipt
Availability Check NO
YES
Goods to Delivery
Goods from Purchase Order
Inventory
Postings
Accounts
Receivable
Payable
Can start out with a pre-sales activity
Then to Order processing
Became an order
Check inventory – If not…
Buy
Receive Goods
Assign to sales order
Send to customer
Bill customer
Pay Vendor
Account for all activities
General ledger either the balance sheet or income statement
Pen Incorporated Procure for Sales Order
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

51. Pen Inc. Business Module II for Selling Finished Goods by Production
ECC 6.0
January 2008
Pen Inc. Business Module II for Selling Finished Goods by Production
Pre-Sales Activity
Sales Order
Delivery
Billing
Planned Order
Production Order
Completion Confirmation
In Inventory
Plant or Warehouse
Availability Check NO
YES
Goods Issued to Delivery
Goods from Production Order
General Ledger Accounts
Inventory
Postings
Accounts
Receivable
Issue Goods to Production Order
Purchase Requisition
Purchase Order
Goods Receipt
Invoice Receipt
Accounts
Payable NO
Can start out with a pre-sales activity
Ended up in Order processing
Became an order
Make
Plan
execute production order
Issue goods
Complete to inventory
Cost
Assign to sales order
Send to customer
Bill customer
Account for all activities NO
January 2008
© SAP AG - University Alliances and The Rushmore Group, LLC All rights reserved.
© SAP AG and The Rushmore Group, LLC 2008

52. Exercises: 1 Display chart account
2 Review a listing of the general ledger (G/L) accounts
3 Create general ledger account
4& 4A Post transfer of funds to alternate bank account
5 Post purchase of operating supplies
6 Display general ledger account balance
7 Display multiple general ledger account balances
8 Display individual items while displaying general ledger account balances
9 Change financial accounting document
10 Display change to financial accounting documents
11 Create invoice receipt for rent expense
12 Display and review general ledger account balances and individual line items
13 Display and review accounts payable balances and individual line items

53. Exercises: 14. Post payment to landlord
15. Display and review general ledger account balances and individual line items
16. Display and review accounts payable balances and individual line items
17. Run balance sheet/profit and loss statements
18 Create sales order
19 Create delivery note for sales order
20 Pick materials on delivery note
21 Post goods issue
22 Create billing for customer
23 Post receipt of customer payment
24 Review document flow
25 Run balance sheet/profit and loss statements