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- Herausgeber: Packt Publishing
- Kategorie: Wissenschaft und neue Technologien
- Sprache: Englisch
SAP Business ONE brings the power of the SAP ERP platform to small and mid-size companies. It offers fast-growing companies the same ERP capabilities used in world-wide conglomerates and major corporations. SAP Business ONE is powerful, and to fully harness it takes careful planning.
This book will provide you with a guide to install and implement SAP B1 in your business. It starts with the basic tasks of installing and configuring, but moves at a fast pace and goes on to cover topics such as advanced CRM, e-commerce, and modern Distribution Center configurations for inventory optimization and Warehouse Management.
The book is divided into two main sections. The case study starts out in section one with an ad-hoc implementation of a simple Lemonade Stand business. This section is focused on getting SAP B1 up and running quickly. In the second section the Ad-Hoc Implementation is taken to the next level , and we professionally expand this idea and develop a Beverage Distribution Center with outsourced production. This includes advanced inventory optimization. The workflow is optimized using existing functionality and also using Add-Ons to expand the standard functionality and transform the generic SAP Business ONE business engine into an Industry Solution.
The book is full of examples with detailed step-by-step explanations. We will be implementing a complete SAP Business System including add-ons as part of a case study.
Finally we connect SAP to the Web and introduce a solution that presents SAP features in a web interface with real-time integration. The book is completed with a chapter focusing on growth. Franchise architecture for SAP Business ONE is introduced and applied to the case study to help you learn how to get started with this.
Each chapter has a section that assists you with applying knowledge for your own project. You will have your business set up and ready to go by the time you complete this book.
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Seitenzahl: 388
Veröffentlichungsjahr: 2009
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SAP® Business ONE Implementation
Wolfgang Niefert
SAP® Business ONE Implementation
Copyright © 2009 Packt Publishing
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Every effort has been made in the preparation of this book to ensure the accuracy of the information presented. However, the information contained in this book is sold without warranty, either express or implied. Neither the author, Packt Publishing, nor its dealers or distributors will be held liable for any damages caused or alleged to be caused directly or indirectly by this book.
Packt Publishing has endeavored to provide trademark information about all the companies and products mentioned in this book by the appropriate use of capitals. However, Packt Publishing cannot guarantee the accuracy of this information.
First published: May 2009
Production Reference: 1220509
Published by Packt Publishing Ltd.
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Olton
Birmingham, B27 6PA, UK.
ISBN 978-1-847196-38-5
www.packtpub.com
Cover Image by Wolfgang Niefert (<[email protected]>)
Credits
Author
Wolfgang Niefert
Reviewers
Adrijan Tkalec
Søren Holm Poulsen
Dr. Pradeep Tapadiya
Acquisition Editor
David Barnes
Development Editor
Swapna V. Verlekar
Technical Editor
Dhiraj Bellani
Copy Editor
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Indexer
Rekha Nair
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Project Team Leader
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Project Coordinator
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Proofreader
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Cover Work
Adline Swetha Jesuthas
About the author
Wolfgang Niefert studied Wirtschafts-Informatik at the European Business School in Oestrich-Winkel, Germany. The international management program focused on Business Management, Information Systems, and Economics. He has more than fifteen years of experience with international SAP implementations. With a certification for the SAP Production Planning PP module with the SAP academy in London, he is able to relate larger SAP solutions to SAP Business ONE. Wolfgang has worked in Germany, Switzerland, UK, USA, Poland, Russia, and Saudi Arabia.
A certification for the Aris Toolset by IDS Scheer in Switzerland completes his system-independent perspective on processes and modern business engineering. In Europe, his work with NIEFERT GmbH has lead to multiple project solutions, including quality control systems with SAP integration. These systems are live today with 24x7 worldwide operation. As part of high-availablity projects, he acquired certifications in Hewlett-Packard Cluster Design. Wolfgang provided training for cluster systems with Oracle Failsafe in Europe and the USA.
Wolfgang is the managing director of NIEFERT Certified Solutions (NCS, LLC) in San Diego, CA.
NCS LLC is an SAP Channel Partner and recognized SSP (Software Solutions Partner) for SAP.
He designed the N2ONE Portal solution which integrates with SAP Business ONE in real time. NCS LLC is also a Microsoft Certified Solution Partner and publishes the Momentum Reporter for Excel. This solution allows the visual design of database queries and retrieves query results directly in Excel.
As a true renaissance consultant with a broad knowledge and skillset in multiple fields, Wolfgang provides a 360-perspective on modern business solutions. Orchestrating project areas, and translating visions into realities, is his core competency. Keeping complex tasks simple and down-to-earth can be a challenge. However, Wolfgang's key philosophy is that only simplicity holds the power for growth. A solution that starts out simple has a chance to be simple in the end.
In his spare time, Wolfgang has established a recognized portfolio of Black and White Large Format landscape and portrait photography.
I want to personally thank my dad, Kurt Niefert, who provided guidance and business insight throughout my career. A special thanks goes to my wife, Rami, who manages time like no other. Her uplifting personality makes my every day. A great thanks to Skyler and Chiara for their amazing friendship and fresh outlook on life. Finally, a big kiss goes to my mother in Germany for her true love. The last thank you goes to my family and Nasser.
You will not be forgotten.
About the reviewers
Adrijan Tkalec has more than ten years of experience in the software development industry. He maintains a network of international consultants who work on highly innovative software development projects. Namely, a dynamic document management solution and an industry-independant forms generator have gained international attention.
He personally manages complex data migration projects for SAP Business ONE and other related ERP solutions. The migration of data for financial systems requires the understanding of underlying business logic and financial valuation methods. Adrijan is an expert who seamlessly bridges the gap for financial consulting expertise and the technical data layer. Thereby, potentially complex projects appear simple when working with such an expert.
Adrijan is currently employed with the leading software company that provides services for lease- and financing-related industries. They are covering 75% of the lease market in Eastern Europe. He has been involved with management consulting and corporate finance consulting. This included the industry-specific process documentation for customers in the financial services business.
When time allows, Adrijan is an active photographer. His panoramic images capture local landscapes that exceed your vision.
Søren Holm Poulsen has a long and documented track record of a superb ability to understand process and convey highly technical information to customers and partners . Lately, this has been within the ERP market. The focus of his work has been to find the optimal solution to the present and future needs of the customer from a customer value perspective.
His educational background is a marketing degree from Aarhus Business School (Best in Denmark), and most recently as a certified SAP Business One Implementation consultant.
Throughout his career , Søren Holm Poulsen has had a strong international focus and speaks four languages.
His public resume can be found on http://www.linkedin.com.
In the future, Søren Holm Poulsen would be interested in facilitating ERP companies (VAR's and ISV's) to expand and grow their business in a leadership role as an employee, consultant, or partner.
Finally, Søren Holm Poulsen greatly appreciates the opportunity to work with Wolfgang Niefert on this interesting project.
Dr. Pradeep Tapadiya has twenty years of experience developing commercial software applications. He was the chief architect of HP OpenVIew ManageX, an award-winning software application. Dr. Tapadiya has authored two books: NET Programming and COM+ Programming. He is also a contributing editor for technical articles. In 2009, he was selected as "Pros to Know" by Supply Chain Magazine. Dr. Tapadiya holds a doctoral degree in Computer Science from Texas A&M.
Preface
Simplicity is a key success factor in today's complex business world. The new SAP Solution, called SAP Business ONE, promises a simple, yet powerful feature set for fast-growing companies. In this book, you will find the answers to help you separate the marketing promise from the real-world features.
What this book covers
Section 1 – SAP Express Implementation
The first section is focused on quickly getting SAP Business ONE up and running. You will learn about the essential configuration steps that you need to undergo. We will leave nothing behind and you will see all the steps. Upon completion, you will be equipped with the required skills and tools to tackle the SAP system without fear. Section 1 - SAP Express Implementation comprises three chapters:
Using a step-by-step implementation approach, we will configure a simple system, and then expand the configuration to match state-of-the-art business methodologies.
The Lemonade Stand case study showcases the key value an integrated system like SAP Business ONE can provide, even at a very simple business level. We will collect data as the Lemonade Stand operates, and view dashboard reports to better understand the business. Even experienced users may find the tips and tricks in this section beneficial.
Section 2 – Implementing SAP Business ONE in your own Company
The second part of the book will take a different approach and show you what an implementation looks like if you first undergo a thorough analysis to identify potential improvements in the way you run your business. The second section naturally is a bit longer. I have adopted the concept to introduce a specific functionality organized in sections. For example, I will talk about sales, inventory, and service in separate chapters. Each chapter will also include a proven add-on that enhances the standard functionality. This way, you will see that SAP Business ONE is a business engine. This engine can be used by industry experts to plug in their industry-specific know-how seamlessly.
Learning by example is a good way to understand new concepts and technologies. Therefore, we will be implementing a complete SAP Business system, including add-ons, as part of the case study. The case study starts out in section one with an ad hoc implementation of a Lemonade Stand. In the second section, we will professionally expand this idea and develop a beverage distribution center with outsourced production. This will include advanced inventory optimization. The workflow will be optimized using existing functionality, and proven add-ons that significantly improve the standard features.
Finally, we will connect SAP to the Web and introduce the N2ONE Portal solution. This solution presents SAP features in a web interface with real-time integration. The book will be completed with the chapter focusing on growth. I will introduce a franchise architecture for SAP Business ONE. This architecture will be applied to the case study to help you learn how to get started with this concept. Each chapter has a section that assists you with applying knowledge for your own project. Ideally, you will be in business with the completion of this book.
What you need for this book
Who this book is for
This book is written for technically savvy business owners, entrepreneurs, and departmental managers. Making decisions with the right information is a competitive success factor. SAP Business ONE can be seen as the business engine that helps drive your business towards success. In today's economic climate, the implementation of guerrilla-style business units, based on SAP Business ONE, is crucial. The information in this book can be used for new implementations and also existing systems that need improvement. If you have SQL skills, you can leverage your knowledge and connect to SAP tools and features that are built on queries. If you are a departmental sales manager, you can benefit from the advanced sales stages and workflow concept in this book. The seasoned inventory and warehouse manager can immediately utilize the inventory optimization and warehouse management concepts. Your web technicians will benefit from the e-commerce information and will see how your web strategy can be aligned with SAP Business ONE. As a business owner, your key players from sales to fulfillment can gain back control and you can grow your business to the next level using modern franchising concepts.
Conventions
In this book, you will find a number of styles of text that distinguish between different kinds of information. Here are some examples of these styles, and an explanation of their meaning.
New terms and important words are shown in bold. Words that you see on the screen, in menus or dialog boxes for example, appear in our text like this: "clicking the Next button moves you to the next screen".
Note
Warnings or important notes appear in a box like this.
Tip
Tips and tricks appear like this.
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Chapter 1. Getting Ready to Implement SAP Business ONE
"That stinks!" I said after I picked up the dirty sock. "No," was the reply "it is the smell of victory." You see, it depends on how you look at things. What appeared to be a dirty sock was indeed a valuable sports artifact worth a lot of money.
"What does this have to do with the SAP Business ONE application?", you may ask. Well, SAP Business ONE helps you separate the unnecessary clutter from the success drivers of your business. The solution does this with real-time data for all departments. In case you thought that the sock example is a bit far-fetched, I would like to counter this and explain that there is a theory in quantum physics called the observer effect. It essentially states that an act of observation changes the phenomenon being observed. In our example, only a closer observation revealed the object's true value. The same thing goes for a business. It is only with the right data that you can observe and make decisions that leads your business in a successful direction. I will provide a list of examples where additional information can change your view on things and impact your decisions. I am not talking about the big picture here, but rather a detailed level where you can easily lose sight, though you shouldn't.
Have you noticed that there are managers who can pretty much run any kind of business and make it a success? How do they do it? Is there a specific way that we can follow to run our business? You may say that it takes a great idea. That's true. However, what about timing and operating the business? One thing is for certain, it is not enough to only have a great idea. You must also be able to develop it from the start to the end.
What do successful business owners have in common? Do they all use SAP Business ONE? No, but they are able to establish metrics and measure performance, which allows them to make the right decisions. This is where SAP Business ONE comes into play. It is designed to help you collect the right information and run reports in real-time.
In this book, I will introduce SAP Business ONE and show you how observing your business data in real time can lead to a multitude of subtle changes that will make the difference between failure and success.
At this point, all you need is a business idea, this book, and SAP Business ONE. This book is for any technically savvy entrepreneur with a vision to make his or her business a success. These entrepreneurs understand that technology can be used as an enablement platform for a business venture. In order to make this venture a success, the technology used must be challenged every day.
Setting the stage for the book—how does your business "tick"
This chapter introduces the core idea of looking at SAP Business ONE as a business engine. This business engine is designed to help you collect information about your business, where having the information versus not having the information can make the difference between success and failure. Let's say that a multitude of decisions are made on a daily basis, which can benefit from better information. Look at your own business, for example. I am certain that you have a system that manages your finances and is potentially a lead management solution. Maybe you also have some production that is industry-specific and handled by an industry solution. In this simple example, there are already many potential areas for improvement.
To make the point, I will ask you some questions about your business. You may call this the Observer Effect in Business. The questions range from sales to inventory and service. Basically, I am focusing on the entire value chain. This is a key idea in an integrated software package such as SAP. The added value of having an integrated process versus disparate systems that require synchronization.
Sales leads and follow-up
Do you have a sales process, and is it organized in stages?
Can you run a report and get information about the stages, and thereby forecast the expected sales?
What happens if one of your best sales people leaves? Can you continue the sales and manage the customers?
Are you using Act!, salesforce.com, Microsoft CRM, and need to synchronize with your finance back-end?
Delivery
Can you provide tracking information for customers?
Do customers need to call you to get tracking information, or do they get an updated email once the order leaves your warehouse?
Will you get a notification about a successful delivery that can be opened from the sales order?
Inventory
Do you have excess inventory?
Do you also run into situations where there is not enough inventory for an important order?
Do you manage inventory shortages by overstocking?
Are you using an Excel spreadsheet to manage your inventory reorder times and quantities?
Warehouse
Do you have a method to verify the deliveries before they leave and enter the warehouse?
Do you know the cost of any mistakes?
Service and support
Can you relate a large sales opportunity to incoming service calls? For example, can you manage a service call for a customer with large proposals on the table differently than for a customer who has not ordered in a long time and is behind in payments?
Can customers check the tracking numbers via a web portal?
Can customers review past orders and re-order easily?
Is it possible to place service calls via the Web?
Are sales people aware of the current sales calls for large opportunities?
Manufacturing
Can you easily replace a component in a BOM (Bill of Material) with a new one?
Can you trace any item from the sales to the initial purchase of parts, assembly, and delivery?
E-commerce
Does your e-commerce provider charge an extra fee for taking credit card orders?
Do you have to synchronize your web orders with your accounting system?
Can you track customer activities on the Web?
Can you send customized newsletters to customers based on their buying behavior?
Do you receive an alert once a new web order is placed?
Do you have newsletter tracking information for customers that you can evaluate during the sales process?
Can you contact customers based on their newsletter reading activity and past purchase history?
Is your web intelligence integrated with your customer management system? For example, it would be good if a customer calls and you could see his or her open quotes, open service calls, newsletter activity, and order history.
How long does it take you to start a web site with e-commerce? Just think about it for a second. This should be an automated process. You should be able to have dozens of sites up and running, send out newsletters, track feedback, and measure success. In a later chapter, I will introduce you to the concept that is based on the SAP Business ONE Engine.
Industry
Are you using form fields in your system for different purposes because it does not provide the right naming based on your industry?
Are you using an industry solution for one part of your business and have a standard finance package that does not quite integrate?
ROI and budget for your own system
All of the above questions address common business issues, which result in additional time and money spent. Essentially, by automating the processes and providing the right information where it is needed, you can save money and make better decisions. Therefore, for your own business, you can ask yourself the questions above and assign a monetary value to each one. The monetary value is either a plain number, or a calculation based on the time you spent to get the information. For example, if you indeed manage your inventory re-order quantities in an Excel spreadsheet, imagine this could be done automatically without your manual intervention. Once you add up all the numbers, you have your budget for a potential new system that overcomes these issues.
What this chapter will cover
During the course of this chapter, I will cover the following areas and lay the groundwork for the hands-on chapters that are to follow. However, what would all the hands-on exercises be worth if you can't apply them to your own business? That's why I have taken a dual approach to cover this. I will introduce a toolbox that will help you identify the main areas of your business, which may benefit from an integrated system. Then, a case study is used to explain the new features with an example.
Toolbox for your business
Maybe you have a toolbox in your garage which is filled with many different tools. You never use most of them. However, once you need a tool, you are likely to find the right one in there. In order to establish a toolbox for your business, we first need to identify the required tasks that need to be completed. Based on the tasks at hand, the tools will be designed. Basically, we will follow this sequence:
Based on the previously mentioned observer effect, I would like to call this concept the Business Observer Toolbox for Operational Xcellence—in short, BOTOX. Many successful businesses are already using it. However, nobody will admit to it.
Identify the problem areas—asking the right questions
Before we can fix a problem, we first need to identify it. It sounds obvious. However, it's easier said than done if it's your own business. You may be tangled up in a series of competing interests that need to be balanced. Or, maybe you are just blind. Asking the right questions is the key element to bring problem areas to light. Therefore, the first element in our BOTOX system is a set of questions. Please review the questions I asked in the beginning of the chapter. They are focused on identifying a potential disconnect. As you go through the questions, make a note every time you have to access more than one system. Be aware of the repetitive steps and synchronizations that you need. You need to be demanding! Demand a solution that can do it all in a simple workflow.
Solutions for problem areas—paper and pencil
Based on the questions asked, you may find surprising answers that will reveal the problem areas. How do you think these problems can be solved? As a business owner, you are the expert. Write down your ideas. The second element in our toolbox is a piece of paper and a pencil. Your goal should be a simple, integrated solution. That's why you should document all the different systems you are using. Make a circle for each system and create an arrow connecting it to the next system. For example, create a circle for your web site, CRM, finance system, email, newsletters, and so on. I will help you a bit more later in this chapter.
Proven examples—case study
Using the example provided in this book, you can select proven techniques and workflows that will help you achieve end-to-end processes. End-to-end essentially means that all the information is integrated and transparent. The case study serves as a platform to present how you use the tools and techniques introduced in each chapter. Therefore, an important aspect of our toolbox is a structured set of examples. Alongside the case study, I will also provide some tips and tricks which you can use for your own project.
Fix It—project plan and tips
The final elements in our toolbox will help you translate the concepts and ideas into action. Namely, a template-style project plan is used as a step-by-step instrument to move forward with the implementation. As the implementation is organized into sections that represent common departments, the project plan is also structured into sections. Therefore, you can take the parts you need for your own project.
The case study—why your company is like the "Lemonade Stand"
The purpose of the case study is to provide an easy-to-understand example for the new techniques that are presented in each chapter. In order to challenge the simple aspect of SAP Business ONE, which is advertised as simple yet powerful, I choose what is commonly known as The Lemonade Stand as our case study. During the course of the case study implementation, this simple example reveals surprising challenges that are similar to those that most small- and mid-sized businesses are facing on a daily basis. Basically, your business may have surprising parallels with The Lemonade Stand.
Here are the main characteristics of the Lemonade Stand that may also be a driving factor for your business:
If you think about it, many of the above factors can be found with small- and mid-sized businesses. After all, you need to make money and cannot focus on long-term strategies.
It is interesting to note that in today's economy, short-term profitability and seasonal flexibility are important success factors. However, short-term profits need to be made not only today, but also in a year, and maybe in five years.
Therefore, we will use the case study to overcome these issues. We will essentially implement the SAP Business ONE system for the Lemonade Stand and wrap the entire thing into a long-term strategy.
Start with a piece of paper
At this point, I would like to engage you a bit. As you know, the case study serves as an example for the information that is presented in each chapter. Therefore, we can take the characteristics of the Lemonade Stand listed above and see if you can find them in your business. Take a piece of paper and a pencil to write down the different departments you have in your business. For example, write down Sales and make a circle around it. Start with Sales on the top left of your paper and arrive at Purchasing at the bottom left. You can use arrows to connect the circles. For example, from Sales to Inventory, Delivery and Purchasing. On the right side of the paper, write down the main functions that each circle performs. For example, next to Sales write down what needs to get done in your business as a part of the sales process. You may have a list such as the following: sales stages, forecast, pipeline, inventory check, proposal, order entry, and so on.
The idea is to establish a circular flow-type representation of your business where one department provides information to the next department.
Now that you have the main components of your business written down, you can identify where the actual data is stored. For example, is all of the data in one system with access for the department that needs the data? You potentially have multiple systems that need to interact and synchronize data. Those will be the aspects that we will target as they hold the greatest potential for improvement.
SAP Business ONE—a business engine
At this point, you may argue that there was sufficient reason to establish specialized systems for a dedicated purpose. Indeed, this approach is called the best-of-breed implementation. However, it is the very reason for the disconnected enterprise. In this book, SAP Business ONE will be used to overcome this challenge by means of industry-specific add-ons that are fully integrated with the software. Essentially, SAP Business ONE is a business engine which provides the most common business management and financial features. This engine can be transformed to seamlessly represent industry-specific requirements.
Introducing key terms and concepts
In this section, I will introduce the key terms and concepts related to the SAP world. The following areas will be covered in the process:
Real-time information instead of islands of data
The SAP Business ONE system provides better information in real time. Therefore, it helps to minimize the risk involved with the daily decisions the entrepreneur or business owner has to make.
Many business owners have taken a don't-fix-it-if-it-is-not-broken approach and stay put with their solutions that are already in place. The solutions are most often a combination of a small accounting package and some home-grown software to fix a business need. As their business evolves, new solutions are added, which will lead to a patch-worked solution. In order to make the right decisions, usually Excel reports are created to analyze data for reporting. You may also consider license requirements, different platforms, and programming languages that ultimately lead to a scattered environment with a high cost.
In this environment, manual steps are often required to synchronize data. Extra effort is needed to prepare the reports and they are never 100% accurate. This is not exactly a 360-degree view of a business. However, a complete view of the key performance indicators of a business is precisely what is required to make the best decisions.
The patchwork approach of managing a small business facilitates the status quo environment. However, in today's business world, change is a permanent factor. The scenario mentioned above most commonly leads to islands of data and inadvertently tends to paralyze the business as key information is not obtained. This happens because the existing system produces not enough or too much information in multiple locations.
The aforementioned scenario, which is described as islands of data, also surfaces in the best-of-breed approach. The best-of-breed, also known as the best-in-class approach, is a valid strategy for larger companies where software solutions are selected on a departmental level in order to meet the needs of every individual in a department.
The departmental level that contributes to the value chain of a business is described as an enterprise resource. Traditionally, enterprise resources were highly specialized and disparate systems. Companies were faced with systems that could not easily communicate. It was virtually impossible to obtain real-time reports because the information was hard to integrate and analyze. On the one hand, the systems produced a massive amount of information, and on the other hand, the information could not be used as it was impossible to integrate the data with the other information sources.
SAP is founded with the vision to overcome the disparate islands of data, and therefore, enable the analysis of the right
