New -- now shipping! Discover what SAP is all about and learn how the new products and solutions can improve your business processes. In this completely updated edition, you'll find what you need to really understand where SAP can fit into your operations. Whether you're a decision-maker, consultant, or new SAP professional, this practical guide will take you on a complete journey — from the history of SAP to a detailed look at each solution and the technology that runs them. Everything from the newest solutions for sustainability and the SAP BusinessObjects portfolio to the tried-and-true solutions for small to midsize businesses, financials, CRM, HR, supply chain management, and more are covered.

Discover the Overall SAP Landscape
Get a "big-picture" perspective of SAP and how all of the components work together to give you a complete enterprise solution.

Explore the Core SAP Applications
Learn how you can benefit from SAP applications, including SAP BusinessObjects, SAP ERP Financials, SAP CRM, SAP ERP HCM, SAP SCM, and the small to midsize business offerings (Business All-in-One, Business One, and Business ByDesign™).

Learn How SAP Works in the Real World
Explore in-depth case studies for each core solution to find out how other companies have improved business processes and enhanced efficiency with SAP.

Understand the SAP Technology Platform
Find all the details you need to understand the SAP service-oriented architecture approach, and the technology that enables it — SAP NetWeaver.

Navigate as You Like
Go directly to the chapter that interests you, or read from cover to cover. Plus, benefit from the extensive glossary and detailed list of additional resources.

Highlights

• Business Suite 7
• SAP BusinessObjects
• Supply Chain Management
• Financials
• Human Capital Management
• Customer Relationship Management
• Supplier Relationship Management
• Strategy for Small to Midsize Businesses
• SAP Composite Applications
• Duet™, Alloy™, and SAP Interactive Forms by Adobe®

About the Author(s)

Nancy Muir is a professional author who has written over 50 books on technical and business topics. Ian Kimbell is in charge of solution enablement for small and midsize enterprises for SAP, and he has over 25 years of experience in IT.

Table of Contents

... Preface ... 13

... Who Will Benefit from This Book ... 14
... What You'll Discover ... 14
... Navigational Tools for This Book ... 15
... What's in This Book ... 15
... Part I SAP and Enterprise Computing — The Basics ... 16
... Part II SAP Products ... 16
... Part III Essential SAP Tools ... 17
... Part IV Technology Overview ... 18
... Part V The Solution in Place ... 18
... Appendix ... 19
... Acknowledgments ... 21

1 ... SAP: The Company ... 25
... The Beginnings of SAP ... 25
... Examining the Growth of SAP ... 26
... SAP in the 1980s ... 26
... SAP in the 1990s ... 28
... Entering the New Millennium ... 29
... SAP Today ... 30
... SAP's Approach to Growing Its Business ... 31
... SAP Products: An Overview ... 33
... Conclusion ... 36

2 ... The SAP Approach to Enterprise Software ... 37
... Enterprise Resource Planning (ERP) ... 37
... Information Makes the World Go Round ... 38
... The Origins of Standard Business Software ... 40
... The Challenge of Integration ... 41
... Overview of SAP NetWeaver ... 42
... Uniting IT and Business Requirements ... 44
... Open Application Environment ... 45
... Using Composite Applications ... 45
... Service-Oriented Architectures ... 46
... What Is a Service ... 46
... The SAP Approach to Enterprise Services ... 47
... SAP Support for Business Processes ... 48
... Where Is SAP Headed ... 51
... An Invisible Enabling Technology ... 52
... User-Friendly Access for End Users ... 52
... The Portal as an Interface with Users ... 53
... The Role Concept ... 54
... Self-Services for Increased Efficiency ... 55
... Enhancing Functionality for Small and Midsize Enterprises ... 57
... Benefits Offered by SAP ... 57
... Conclusion ... 59

3 ... Business Suite 7 Overview ... 61
... Overview of Business Suite Solutions ... 62
... SAP ERP ... 62
... SAP Customer Relationship Management ... 64
... SAP Supplier Relationship Management ... 66
... SAP Product Lifecycle Management ... 66
... SAP Supply Chain Management ... 66
... Business Suite 7 Benefits ... 67
... Conclusion ... 69

4 ... SAP ERP Financials ... 73
... How SAP ERP Financials Fits in an Enterprise ... 73
... Optimized Cash Flow ... 74
... Better Business Insight ... 75
... SAP ERP Financials and Analytics ... 77
... 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 1 ... 83
... Phase 1: Cash, Debt, and Investment Management ... 84
... Phase 2: Global Cash Visibility ... 85
... Phase 3: Straight-Through Processing ... 86
... Phase 4: Hedging of Foreign Exchange ... 86
... SAP ERP Financials Case Study 2 ... 87
... The Challenge ... 88
... The Solution ... 88
... Conclusion ... 88

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 Management ... 93
... End User Service Delivery ... 94
... Gaining Insights Through SAP ERP HCM Analytics ... 94
... A Closer Look at SAP ERP HCM ... 95
... Key Features and Functions ... 96
... Talent Management ... 97
... Workforce Process Management ... 99
... Workforce Deployment Management ... 99
... End User Service Delivery ... 100
... SAP ERP HCM Case Study 1 ... 101
... The Challenges ... 102
... The SAP Solution ... 102
... Looking Toward the Future ... 103
... SAP ERP HCM Case Study 2 ... 103
... The Challenge ... 104
... The SAP Solution ... 104
... The Benefits ... 105
... Conclusion ... 105

6 ... SAP ERP Operations ... 107
... SAP ERP Operations Overview ... 108
... Product Development and Collaboration ... 108
... Procurement ... 108
... Operations: Sales and Customer Service ... 109
... Operations: Manufacturing ... 110
... Enterprise Asset Management ... 110
... Operations: Cross Functions ... 110
... Collaborating with Value Chain Partners ... 110
... A Closer Look at SAP ERP Operations ... 112
... SAP ERP Operations Solution Map ... 112
... Overview of SAP ERP Operations ... 112
... Product Development and Collaboration ... 114
... Procurement ... 115
... Operations: Sales and Customer Service ... 118
... Operations: Manufacturing ... 119
... Enterprise Asset Management ... 119
... Operations: Cross Functions ... 120
... SAP ERP Operations Case Study 1 ... 121
... The Challenges ... 121
... The SAP Solution ... 121
... The Benefits ... 122
... SAP ERP Operations Case Study 2 ... 122
... The Challenges ... 123
... The SAP Solution ... 123
... The Benefits ... 124
... Conclusion ... 124

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 ... 134
... Interaction Center ... 136
... Partner Channel Management ... 138
... SAP CRM Technical Details ... 139
... SAP CRM Case Study 1 ... 141
... The Challenges ... 141
... The SAP Solution ... 142
... The Benefits ... 142
... Looking Toward the Future ... 143
... SAP CRM Case Study 2 ... 143
... The Challenges ... 144
... The SAP Solution ... 144
... The Benefits ... 145
... Conclusion ... 145

8 ... SAP Supplier Relationship Management ... 147
... How SAP SRM Fits into an Enterprise ... 147
... Purchasing Governance ... 148
... Sourcing ... 148
... Contract Management ... 149
... Collaborative Procurement ... 149
... Supplier Collaboration ... 150
... Supply Base Management ... 150
... A Closer Look at SAP SRM ... 151
... Key Features and Functions ... 151
... Purchasing Governance ... 151
... Sourcing ... 153
... Contract Management ... 153
... Collaborative Procurement ... 154
... Supplier Collaboration ... 155
... Supply Base Management ... 156
... SAP SRM Case Study 1 ... 157
... The Challenges ... 157
... The SAP Solution ... 158
... Looking Toward the Future ... 158
... SAP SRM Case Study 2 ... 158
... The Challenge ... 159
... The SAP Solution ... 159
... The Benefits ... 159
... SAP SRM Customer Fast Facts ... 160
... Conclusion ... 161

9 ... SAP Product Lifecycle Management ... 163
... How SAP PLM Fits in an Enterprise ... 163
... Support for Discrete and Process Industries ... 164
... SAP PLM Solution Map ... 164
... SAP PLM's Value in Your Enterprise ... 165
... A Closer Look at SAP PLM ... 165
... Overview of SAP PLM ... 166
... SAP PLM and Its Relation to Other SAP Products ... 167
... Product Management ... 168
... Product Development and Collaboration ... 169
... Product Data Management ... 171
... SAP PLM Foundation ... 171
... SAP PLM Case Study 1 ... 173
... The Challenges ... 173
... The SAP Solution ... 173
... The Benefits ... 174
... Looking Toward the Future ... 175
... SAP PLM Case Study 2 ... 175
... The Challenge ... 175
... The Solution ... 176
... The Benefits ... 176
... Conclusion ... 176

10 ... SAP Supply Chain Management ... 177
... How SAP SCM Fits in an Enterprise ... 177
... The Adaptive Supply Chain ... 178
... Visibility of Information ... 180
... Velocity of Response ... 180
... Sharing with Partners ... 181
... SAP SCM Solution Map ... 182
... A Closer Look at SAP SCM ... 183
... Overview of SAP SCM ... 183
... Supply Chain Planning ... 185
... Supply Chain Execution ... 187
... Supply Network Collaboration, Design, and Analytics ... 188
... Using RFID in SAP SCM ... 189
... SAP SCM Case Study 1 ... 190
... The Challenges ... 191
... The SAP Solution ... 191
... The Benefits ... 191
... SAP SCM Case Study 2 ... 192
... The Challenges ... 193
... The SAP Solution ... 193
... The Benefits ... 194
... Conclusion ... 194

11 ... The SAP Strategy for Small to Midsize Enterprises ... 195
... SAP's Support of the Small Business and Midsize Company Market ... 196
... The Challenges Facing Small to Midsize Companies ... 196
... Bringing Enterprise Computing to Smaller Companies ... 197
... The SAP SME Portfolio ... 198
... How SAP Business One Works for Smaller Businesses ... 200
... The SAP Business One Solution Map ... 201
... Managing Accounting and Financials ... 202
... Connecting with Customers ... 204
... Purchasing and Operations ... 205
... Inventory and Distribution ... 206
... Streamlining Reporting and Administration ... 207
... Enabling E-Commerce and Web Stores ... 208
... SAP Business All-In-One ... 209
... Benefits of Using Business All-in-One ... 209
... SAP Business All-in-One is Powered by SAP NetWeaver ... 211
... What Is SAP Business All-In-One Fast-start Program ... 212
... SAP Business ByDesign ... 214
... An Adaptable Suite of Functionality ... 215
... Underlying Technology ... 216
... SAP Business ByDesign Integrated Functionality ... 217
... SAP BusinessObjects Edge BI ... 218
... Small Business and Midsize Company Case Studies ... 220
... SAP Business One Case Study 1 ... 220
... SAP Business All-In-One Fast-Start Program Case Study 2 ... 221
... Conclusion ... 222

12 ... The SAP BusinessObjects Portfolio ... 225
... What Is Business Intelligence ... 226
... Understanding Business Intelligence Tools ... 227
... SAP BusinessObjects Explorer ... 228
... SAP BusinessObjects BI Advanced Analytics ... 229
... SAP BusinessObjects Web Intelligence Manages Information ... 229
... Crystal Reports ... 231
... Xcelsius ... 232
... SAP for Public Sector Solutions to Manage Stimulus Funds ... 233
... SAP BusinessObjects Information Management Solutions ... 234
... Open Hub Services and Data Broadcasting ... 235
... Understanding Enterprise Performance Management ... 237
... The Current Need for GRC ... 239
... Governance ... 239
... Risk Management ... 240
... Compliance ... 240
... The Role of GRC in an Enterprise ... 240
... The Need for an Integrated Approach ... 240
... SAP BusinessObjects Solutions for GRC ... 242
... Four Levels of the SAP BusinessObjects GRC Solution ... 243
... The Horizontal and Vertical Compliance Solutions ... 244
... SAP BusinessObjects Case Study 1 ... 247
... SAP's Solution ... 248
... The Solution in Place ... 248
... SAP BusinessObjects GRC Case Study 2 ... 248
... The Challenge ... 249
... SAP's Solution ... 249
... The Benefits ... 250
... Conclusion ... 250

13 ... Understanding SAP Composite Applications ... 255
... Understanding Composite Applications ... 255
... What Is a Composite Application ... 256
... Where Do Composite Applications Come From ... 257
... Composite Application Benefits ... 258
... SAP Composite Applications ... 258
... SAP Resource and Portfolio Management ... 259
... SAP Sales and Operations Planning ... 260
... SAP Product Definition ... 261
... SAP Cost and Quotation Management ... 261
... SAP Composite Applications for Mobile Business ... 262
... Conclusion ... 263

14 ... User-Friendly SAP — Duet™, Alloy™, and Adobe® Interactive Forms ... 265
... Duet: Providing Information Workers with What They Need ... 266
... Key Functions and Features ... 267
... How Duet Works ... 270
... Examples of Duet in Action ... 271
... Alloy: Joining SAP and Lotus® Notes ... 272
... Alloy's Key Features ... 272
... What Are the Advantages of Alloy ... 274
... An Everyday Example of Alloy ... 275
... The Paperless Office: Adobe Forms ... 276
... The Need to Go Paperless ... 277
... Streamlining Business Processes ... 277
... Interactive Forms in the Workplace ... 279
... Interactive Forms Extend Outside Your Organization ... 280
... Conclusion ... 281

15 ... Sustainability ... 283
... SAP's Dedication to Sustainability ... 284
... 2008 Sustainability Report ... 285
... SAP Sustainability Map ... 287
... How Sustainability Improves Profitability ... 289
... Taking Advantage of Industry-Specific Solutions ... 290
... Sustainability Case Study ... 291
... Conclusion ... 292

16 ... User Productivity Tools for Information Workers ... 293
... Portals and Roles ... 293
... Understanding Portals ... 294
... Understanding iViews ... 295
... Assigning Roles ... 295
... How SAP NetWeaver Supports Portals ... 297
... Collaborative Tools ... 298
... Workspaces ... 298
... Discussion Forums and Wikis ... 298
... Self-Service ... 299
... Employee Self-Service Workspaces ... 299
... Manager Self-Service Workspaces ... 301
... Mobile Productivity ... 303
... Conclusion ... 304

17 ... Service-Oriented Architecture ... 307
... Enterprise Computing Challenges ... 307
... Understanding Web Services ... 308
... What Is a Web Service ... 308
... Service-Oriented Architecture ... 309
... Service-Oriented Architecture in SAP ... 309
... How SAP Has Enhanced SOA ... 309
... The Importance of Business Processes ... 311
... How SOA Fits into a Business Setting ... 311
... Enterprise Services Bundles ... 312
... SOA and SAP NetWeaver ... 314
... Implementing SOA ... 314
... Conclusion ... 314

18 ... SAP NetWeaver as a Technology Platform ... 317
... The Role of SAP NetWeaver in Your Enterprise ... 318
... An Integration Platform ... 318
... A Composition Platform ... 319
... Enterprise Services Repository ... 319
... Management of Information and Reports ... 321
... The SAP NetWeaver Solution Map ... 321
... SAP NetWeaver Components ... 323
... SAP NetWeaver Application Server ... 324
... SAP NetWeaver Business Warehouse ... 325
... SAP NetWeaver Portal ... 327
... SAP NetWeaver Process Integration ... 328
... SAP NetWeaver Master Data Management ... 329
... SAP NetWeaver Mobile ... 330
... SAP Auto-ID Infrastructure ... 331
... SAP Tools for Developers ... 331
... ABAP ... 332
... Java ... 333
... SAP Solution Manager ... 335
... SAP NetWeaver Case Study 1 ... 336
... The Challenge ... 337
... The SAP Solution ... 337
... Outlook ... 338
... SAP NetWeaver Case Study 2 ... 338
... The Challenge ... 339
... The SAP Solution ... 339
... Conclusion ... 340

19 ... Preparing for an SAP Implementation ... 343
... Important Considerations ... 343
... Assessing Your Own Business ... 344
... Understanding Implementation Costs ... 346
... Dealing with Change ... 347
... Planning for Success ... 347
... The SOA Adoption Program ... 348
... SAP and the SAP Community ... 349
... Making the Best of Enhancement Packages ... 350
... Who Can Help You Implement ... 351
... SAP Service Portfolio ... 351
... SAP Services Portfolio: Planning Phase ... 352
... SAP Services Portfolio: Building Phase ... 353
... SAP Consulting ... 355
... SAP Services Portfolio: Running Phase ... 358
... SAP Operations Support Options ... 359
... SAP Services Tools and Programs ... 360
... Getting Information ... 361
... Support in Action: A Case Study ... 362
... Conclusion ... 364

20 ... SAP Solution Manager ... 365
... What Is SAP Solution Manager ... 365
... SAP Solution Manager Overview ... 366
... The SAP Solution Manager Approach ... 367
... SAP Solution Manager Contents ... 368
... Solution Manager Case Study ... 371
... The Challenges ... 371
... The Solution ... 372
... The Benefits ... 372
... Conclusion ... 372
... The Next Step ... 373

21 ... Conclusion ... 375
... Helpful Resources ... 375
... Going Forward ... 376

A ... Glossary ... 379

B ... SAP Resources ... 387
... SAP Communities and Alliances ... 387
... Certification ... 387
... Websites and Blogs ... 388
... Publications ... 388
... SAP Offices ... 389
... Office Directory: United States ... 390
... Branch Offices/Sales Partners ... 390
... Worldwide Country Sites ... 393

C ... SAP Solution Maps ... 395
... SAP ERP ... 395

D ... Bibliography ... 429
... Books ... 429
... Web Resources ... 429
... SAP Presentations and White Papers ... 429
... Relevant Business Legislation ... 430