Database Reference
In-Depth Information
are handed over to the next department for further processing. At every stage, this generates
the need for inwarding, reconciliation, negotiations, and follow-up with upstream and down-
stream activities along the process path, and so forth. All this merely adds more overheads,
elapsed time, manpower effort, information overload, and, therefore, costs. The inherent integra-
tion provided by SAP eliminates all such overheads and non-valued-added activities. Reduced
time cycles encourage various operational decision makers not to pad heavily plans, projections,
estimates, requisitions, material and purchase orders, production orders, etc., to accommodate
contingencies. Overall, implementing SAP makes companies to become more lean and efficient.
However, one cannot discount the possibility of an organization under some misguided zeal for
accountability may enforce highly restrictive authorization and access profiles that may essen-
tially negate the advantages arising out of basic transparency, real-time interfaces, and integra-
tion provided by SAP.
7.3.3 Changeability Embedded in SAP
While perusing the various steps of a BPR methodology presented earlier, it becomes evident
that SAP can play a critical role in enabling and assisting any BPR effort in an organization in a
major way.
7.3.3.1 SAP Reference Model
SAP's Business Blueprints that are available in the SAP reference model successfully integrate
business re-engineering with information technology. The reference model can help companies
define their needs and develop solutions; business solutions are already built into the reference
model eliminating the need for organizations to start from scratch. The components of the refer-
ence model not only cover the functional model but also process model, data model, organization
model, information flow model, and communication and distribution model. SAP strategy is to
integrate all business operations in an overall system for planning, controlling, optimizing, and
monitoring a given business. SAP has included over 800 best-business practices or scenarios that
could help a company to restructure its processes. These scenarios provide logical models for the
optimization of the specific business processes and can be modeled around primary and support
business activities. SAP guides a company to automatically integrate all primary and support func-
tions of logistics like customer order, production, procurement, packaging, warehousing, delivery,
service, and accounting. Companies can simply print out the relevant process models and analyze
the most critical processes quickly and efficiently. The customizing features of SAP can then help
in implementing the required changes.
7.3.3.2 Relevant Significant Concepts of SAP
Three significant components that concern the basic functions and applications of SAP NetWeaver
as well as the SAP Business Suite are
1. The client concept
2. The ability to establish organizations
3. The adaptation of the systems to customer-specific business processes (called Customizing
using the Implementation Guide (IMG) in the SAP system)
