Discover SAP

Nancy Muir, a professional author, has written over 50 books on technical and business topics covering e-commerce, distance learning, project management, enterprise computing, and SAP. Previously Nancy was a senior manager in the publishing industry and taught technical writing at the university level. Nancy holds a Bachelor of Arts in English from Drew University and a certificate in Distance Learning from the University of Washington. She currently co-teaches a distance learning course on Internet Safety at Washington State University. Ian Kimbell is a seasoned software professional with over 25 years' experience in IT. He is Vice President in charge of solution enablement for small and midsize enterprises for SAP and regularly presents at SAPPHIRE conferences. Ian's unique ability to present and demonstrate complex concepts so that they can be easily understood has earned him much respect, especially within the analyst community. Many of these principles have been applied while writing this book.

Who This Book is For ... 21 What You'll Discover ... 22 Navigational Tools for This Book ... 23 What's In This Book? ... 23 PART I SAP and Enterprise Computing The Basics 1 SAP: The Company ... 31 The Beginnings of SAP ... 31 Examining the Growth of SAP ... 32 ... SAP in the 1980s ... 33 ... SAP in the 1990s ... 34 ... Entering the New Millennium ... 36 SAP Today ... 36 ... SAP's Approach to Growing Its Business ... 38 ... SAP's Products: An Overview ... 39 Conclusion ... 43 2 The SAP Approach to Enterprise Computing ... 45 What Is an Enterprise? ... 46 It All Starts with Information ... 47 Early Days of Enterprise Computing ... 47 ... How ERP Grew ... 48 ... The Integration Challenge ... 49 ... Connecting the Dots ... 49 Growing Products Based on Best Practices ... 50 ... Matching Products to Business Processes ... 50 How SAP Connects with Business ... 52 Where SAP Is Headed ... 53 ... Making the Underlying Technology Invisible ... 53 ... Adding Functionality to Midsize Companies ... 54 ... Providing User-friendly Access to Business Applications ... 55 What's Behind the Benefits? ... 56 Conclusion ... 57 3 Enterprise Computing Basics ... 59 When Applications Are Built On Services ... 60 ... What Is a Service? ... 60 ... SAP's Blueprint for Services ... 61 An Overview of SAP NetWeaver ... 62 ... What SAP NetWeaver Does ... 62 ... Connecting IT and Business Requirements ... 63 ... Keeping Things Open ... 64 ... Using Composite Applications ... 64 Portals, Roles, and Self-Service ... 65 ... Reaching Users Through Portals ... 65 ... Everybody Plays a Role ... 66 ... Getting More Efficient with Self-Service ... 67 Conclusion ... 69 PART II SAP Products 4 SAP ERP Financials ... 73 How SAP ERP Financials Fits in an Enterprise ... 74 ... Optimized Cash Flow ... 74 ... Better Business Insight ... 75 ... SAP ERP Financials and Analytics ... 76 ... Improved Compliance ... 77 A Closer Look at SAP ERP Financials ... 79 ... Key Features and Functions ... 79 ... Industry-Specific Financial Management ... 82 SAP ERP Financials Case Study Number One ... 83 ... Phase 1: Cash, Debt, and Investment Management ... 84 ... Phase 2: Global Cash Visibility ... 86 ... Phase 3: Straight-Through Processing ... 86 ... Phase 4: Hedging of Foreign Exchange ... 87 SAP ERP Financials Case Study Numbers Two ... 88 ... The Challenge ... 88 ... The Solution ... 89 Conclusion ... 89 5 SAP ERP Human Capital Management ... 91 How SAP ERP HCM Fits in an Enterprise ... 92 ... Workforce Process Automation to Improve Efficiency ... 92 ... Improving Talent Management ... 93 ... More Efficient Workforce Deployment ... 93 ... Gaining Insights through Workforce Analytics ... 93 A Closer Look at SAP ERP HCM ... 94 ... Key Features and Functions ... 95 ... Talent Management ... 96 ... Workforce Process Management ... 98 ... Workforce Deployment ... 99 ... Self-Services and HCM ... 100 SAP ERP HCM Case Study Number One ... 101 ... The Challenges ... 102 ... The SAP Solution ... 102 ... Looking Toward the Future ... 103 SAP ERP HCM Case Study Number Two ... 104 ... The Challenge ... 104 ... The SAP Solution ... 104 ... The Benefits ... 105 Conclusion ... 105 6 SAP ERP Operations ... 107 SAP ERP Operations Overview ... 108 ... Procurement and Logistics Execution ... 108 ... Product Development and Manufacturing ... 109 ... Sales and Service ... 109 ... Collaborating with Value Chain Partners ... 110 A Closer Look at SAP ERP Operations ... 111 ... SAP ERP Operations Solution Map ... 111 ... Overview of SAP ERP Operations ... 112 ... Procurement and Logistics Execution ... 113 ... Product Development and Manufacturing ... 116 ... Sales and Service ... 117 SAP ERP Operations Case Study Number One ... 119 ... The Challenges ... 119 ... The SAP Solution ... 120 ... The Benefits ... 120 SAP ERP Operations Case Study Number Two ... 121 ... The Challenges ... 121 ... The SAP Solution ... 122 ... The Benefits ... 122 Conclusion ... 122 7 SAP Customer Relationship Management ... 125 How SAP CRM Fits in an Enterprise ... 126 ... SAP CRM Solution Map ... 126 ... SAP CRM in an Enterprise ... 127 A Closer Look at SAP CRM ... 128 ... SAP CRM Overview ... 128 ... Marketing ... 130 ... Sales ... 131 ... Service ... 133 ... E-Commerce ... 135 ... Interaction Center ... 137 ... Channel Management ... 139 ... SAP CRM Technical Details ... 141 SAP CRM Case Study Number One ... 142 ... The Challenges ... 143 ... The SAP Solution ... 143 ... The Benefits ... 144 ... Looking Toward the Future ... 145 SAP CRM Case Study Number Two ... 145 ... The Challenges ... 146 ... The SAP Solution ... 146 ... The Benefits ... 146 Conclusion ... 147 8 SAP Supplier Relationship Management ... 149 How SAP SRM Fits into an Enterprise ... 150 ... Sourcing ... 150 ... Contract Management ... 151 ... Procurement ... 151 ... Supplier Management and Collaboration ... 152 A Closer Look at SAP SRM ... 152 ... Key Features and Functions ... 153 ... Purchasing Governance. ... 153 ... Sourcing ... 155 ... Contract Lifecycle Management ... 155 ... Collaborative Procurement ... 156 ... Supplier Collaboration ... 157 ... Supply Base Management ... 158 SAP SRM Case Study Number One ... 159 ... The Challenges ... 160 ... The SAP Solution ... 160 ... Looking Towards the Future ... 160 SAP SRM Case Study Number Two ... 161 ... The Challenge ... 161 ... The SAP Solution ... 162 ... The Benefits ... 162 SAP SRM Customer Fast Facts ... 162 Conclusion ... 163 9 SAP Product Lifecycle Management ... 165 How SAP PLM Fits in an Enterprise ... 165 ... Support for Discrete and Process Industries ... 166 ... SAP PLM Solution Map ... 167 ... SAP PLM's Value in Your Enterprise ... 167 A Closer Look at SAP PLM ... 168 ... Overview of SAP PLM ... 168 ... SAP PLM and Its Relation to Other SAP Products ... 169 ... Product and Project Portfolio ... 170 ... Lifecycle Process Support ... 172 ... Lifecycle Data Management ... 174 ... Corporate Services ... 174 SAP PLM Case Study Number One ... 176 ... The Challenges ... 176 ... The SAP Solution ... 177 ... The Benefits ... 178 ... Looking Towards the Future ... 178 SAP PLM Case Study Number Two ... 178 ... The Challenge ... 179 ... The Solution ... 179 ... The Benefits ... 179 Conclusion ... 180 10 SAP Supply Chain Management ... 181 How SAP SCM Fits in an Enterprise ... 182 ... The Adaptive Supply Chain ... 182 ... Visibility of Information ... 184 ... Velocity of Response ... 185 ... Sharing with Partners ... 185 ... SAP SCM Solution Map ... 187 A Closer Look at SAP SCM ... 187 ... Overview of SAP SCM ... 188 ... Supply Chain Planning ... 190 ... Supply Chain Execution ... 192 ... Supply Network Collaboration, Design, and Analytics ... 194 ... Using RFID in SAP SCM ... 195 SAP SCM Case Study Number One ... 195 ... The Challenges ... 196 ... The SAP Solution ... 197 ... The Benefits ... 197 SAP SCM Case Study Number Two ... 198 ... The Challenges ... 199 ... The SAP Solution ... 199 ... The Benefits ... 200 Conclusion ... 200 11 SAP's Strategy for Small to Midsize Enterprises ... 201 SAP's Support of the Small Business and Midsize Company Market ... 202 The Challenges Facing Small to Mid-Size Companies ... 202 Bringing Enterprise Computing to Smaller Companies ... 203 ... The SAP SME Portfolio ... 204 How SAP Business One Works for Smaller Businesses ... 205 ... The SAP Business One Solution Map ... 205 ... Managing Accounting and Financials ... 208 ... Connecting with Customers ... 209 ... Handling Operations and Distribution ... 211 ... Streamlining Administration and Reporting ... 213 ... Enabling E-Commerce ... 214 SAP Business All-In-One Overview ... 215 ... What Is SAP Business All-In-One? ... 215 ... What Comes with SAP Business All-in-One? ... 216 ... The SAP Business All-in-One Adoption Experience ... 217 The New Solution: SAP Business ByDesign ... 218 ... An Adaptable Suite of Functionality ... 220 ... Underlying Technology ... 221 Small Business and Midsize Company Case Studies ... 222 ... SAP Business One Case Study Number One ... 222 ... SAP Business All-In-One Case Study Number Two ... 224 Conclusion ... 225 PART III Essential SAP Tools 12 Understanding SAP xApps and Composite Applications ... 229 Understanding Composite Applications ... 229 ... What Is a Composite Application? ... 230 ... Where Do Composite Applications Come From? ... 231 ... Composite Application Benefits ... 232 SAP xApps ... 233 ... SAP xApp Resource and Portfolio Management ... 233 ... SAP xApp Sales and Operations Planning ... 234 ... SAP xApp Product Definition ... 235 ... SAP xApp Cost and Quotation Management ... 236 ... SAP xApps for Mobile Business ... 237 Conclusion ... 238 13 User Friendly SAP Duet and Adobe(r) Interactive Forms ... 239 Duet: Providing Information Workers with What They Need ... 240 ... Key Functions and Features ... 241 ... How Does Duet Work? ... 244 ... Examples of Duet in Action ... 245 The Paperless Office: Adobe Forms ... 246 ... The Need to Go Paperless ... 246 ... Streamlining Business Processes ... 247 ... Interactive Forms in the Workplace ... 249 ... Interactive Forms Extend Outside Your Organization ... 251 Conclusion ... 251 14 Addressing Governance, Risk, and Compliance Management ... 253 The Current Need for GRC ... 254 ... Governance ... 254 ... Risk Management ... 254 ... Compliance ... 254 The Role of GRC in an Enterprise ... 255 ... How Businesses View GRC ... 255 ... The Need for an Integrated Approach ... 256 SAP Solutions for GRC ... 258 ... Four Levels of SAP GRC Software ... 258 ... The Horizontal and Vertical Compliance Solutions ... 260 ... SAP GRC Access Control and Process Control ... 260 ... SAP GRC Global Trade Services ... 261 ... SAP Environment, Health and Safety (SAP EH&S) ... 261 ... SAP Risk and Sustainability ... 262 The GRC Maturity Model ... 262 ... Phase I: Informal Ad-Hoc Phase ... 264 ... Phase II: Reactive, Fragmented, Implementation Phase ... 264 ... Phase III: Consolidation Phase ... 264 ... Phase IV: Operational Excellence Phase ... 265 Where SAP GRC Is Headed ... 265 SAP GRC Case Study Number One ... 267 ... SAP's Solution ... 268 ... The Solution in Place ... 268 SAP GRC Case Study Number Two ... 269 ... The Challenge ... 269 ... SAP's Solution ... 270... ... The Benefits ... 270 Conclusion ... 271 15 User Productivity Tools for Information Workers ... 273 Portals and Roles ... 273 ... Understanding Portals ... 274 ... Understanding iViews ... 275 ... Assigning Roles ... 276 ... How SAP NetWeaver Suppots Portals ... 277 Collaborative Tools ... 279 ... Workspaces ... 279 ... Discussion Forums and Wikis ... 279 Self-Service ... 280 ... Employee Self-Service Workspaces ... 280 ... Manager Self-Service Workspaces ... 282 Mobile Productivity ... 284 Conclusion ... 285 PART IV Technology Overview 16 Enterprise Service-Oriented Architecture ... 289 Enterprise Computing Challenges ... 289 Understanding Web Services ... 290 ... What Is a Web Service? ... 290 ... Service-Oriented Architecture ... 291 Enterprise Service-Oriented Architecture ... 291 ... How SAP Has Enhanced SOA ... 292 ... The Importance of Business Processes ... 293 ... How Enterprise SOA Fits In To a Business Setting ... 294 ... Enterprise Services Bundles ... 294 ... Enterprise SOA and SAP NetWeaver ... 296 ... Implementing Enterprise SOA ... 297 Conclusion ... 297 17 SAP NetWeaver as an Enterprise Platform ... 299 Role of SAP NetWeaver in Your Enterprise ... 299 ... An Integration Platform ... 300 ... A Composition Platform ... 301 ... Repository of Enterprise Services ... 302 ... A Data and Analytics Manager ... 302 Providing an IT Roadmap ... 303 SAP NetWeaver Components ... 305 ... SAP NetWeaver Business Intelligence ... 305 ... SAP NetWeaver Application Server ... 307 ... SAP NetWeaver Portal ... 308 ... SAP NetWeaver Exchange Infrastructure ... 309 ... SAP NetWeaver Master Data Management ... 309 ... SAP NetWeaver Mobile ... 310 ... SAP Auto-ID Infrastructure ... 311 SAP Tools for Developers ... 312 ... SAP Composite Application Framework ... 312 ... SAP NetWeaver Developer Studio ... 313 ... Web Dynpro ... 313 ... SAP NetWeaver Visual Composer ... 314 ... SAP Adaptive Computing Controller ... 314 ... SAP NetWeaver Solution Manager ... 314 The Future of SAP NetWeaver ... 316 ... Helping Users Get Things Done ... 316 ... Providing More Tools for Developers ... 316 ... Improving Enterprise SOA Governance ... 317 SAP NetWeaver Case Study Number One ... 317 ... The Challenge ... 318 ... The Solution ... 318 ... Looking Ahead ... 319 SAP NetWeaver Case Study Number Two ... 319 ... The Challenge ... 320 ... The SAP Solution ... 320 ... The Benefits ... 321 Conclusion ... 321 PART V The Solution in Place 18 Preparing for an SAP Implementation ... 325 Important Considerations ... 325 ... Assessing Your Own Business ... 326 ... Understanding Implementation Costs ... 327 ... Dealing with Change ... 328 Planning for Success ... 329 ... The Enterprise SOA Adoption Program ... 330 ... SAP and the SAP Community ... 332 Who Can Help You Implement? ... 333 ... SAP Service Portfolio ... 333 ... SAP Service Portfolio: Planning Phase ... 334 ... SAP Service Portfolio: Building Phase ... 336 ... SAP Consulting ... 338 ... SAP Service Portfolio: Running Phase ... 340 ... SAP Operations Support Options ... 341 ... SAP Services Tools and Programs ... 343 Getting Information ... 344 Support in Action: A Case Study ... 345 Conclusion ... 346 19 SAP Solution Manager ... 349 What Is SAP Solution Manager? ... 349 ... SAP Solution Manager Overview ... 350 ... The SAP Solution Manager Approach ... 352 SAP Solution Manager Contents ... 353 Solution Manager Case Study ... 356 ... The Challenges ... 356 ... The Solution ... 357 ... The Benefits ... 357 Conclusion ... 357 The Next Step ... 358 20 Conclusion ... 359 Helpful Resources ... 359 Going Forward ... 360 Appendix ... 361 A Glossary ... 363 B SAP Resources ... 371 ... SAP Communities and Alliances ... 371 ... Certification ... 372 ... Websites and Blogs ... 372 ... Publications ... 372 ... SAP Offices ... 374 ... Office Directory: United States ... 374 ... Branch Offices/Sales Partners ... 374 ... Worldwide Country Sites ... 378 C SAP Solution Maps ... 379 ... SAP ERP ... 379 ... SAP Customer Relationship Management ... 388 ... SAP Supplier Relationship Management ... 392 ... SAP Product Lifecycle Management ... 401 ... SAP Supply Chain Management ... 404 ... SAP Business One ... 411 D Bibliography ... 419 ... Books ... 419 ... Web Resources ... 419 ... SAP Presentations and White Papers ... 419 ... Relevant Business Legislation ... 420 Index ... 421