technology with sap nw

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VICTORIA UNIVERSITY

CITY-FLINDERS

Technology Integration through SAP

NetWeaver

Prepared By:

Special Project Team OneOctober 2004

Team Members:

George Kalantzis3045444

Jacquie Zhang1087050

David Knott3651459

Tiago Rosa Mendes

3649993Greg McAllister3671224

Submission Date: 15th

November 2004


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SP1 Technology Integration through SAP NetWeaver V8.02.doc

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Each team member, had tasks to complete and their combined contribution form the basis of

this document.

A summary of major roles per team member follows:

Technologies Jacquie Zhang

NetWeaver Jacquie Zhang

WebAS 6.40 Jacquie Zhang/Greg McAllister

SAPXI 3.0 David Knott

Web Services Tiago Rosa Mendes

Non-SAP (Index) George Kalantzis

Conceptual Integration George Kalantzis

Applying technical integration to business scenarios David Knott

Sales order process David Knott

Purchasing process Tiago Rosa Mendes

Decision support using INDEX Greg McAllister

The remaining contributions were shared as follows:

Introduction Greg McAllister

Conclusion Tiago Rosa Mendes

Structure George Kalantzis

Proof reading Greg McAllister/ David Knott/George Kalantzis

Final editing Greg McAllister/ David Knott/George Kalantzis


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Version Date Author Changes from Previous Version

1 09/09/04 George Kalantzis Structure documentation

1.3 13/09/04 Jacquie Zhang Technologies

2 4/10/04 George Kalantzis Structure for business scenarios

2.1 7/10/04 David Knott Conceptual diagrams added

3 7/10/04 George Kalantzis Prepare draft for review by Wei Dai

4 9/10/04 Tiago Rosa Mendes Integration Technology/Business Process

application

5 25/10/04 George Kalantzis

Tiago Rosa Mendes

Integrate business process sections

Technology updates

6 30/10/04 David Knott /George

Kalantzis / Greg McAllister

Review changes from meeting 27/10/2004

6.1 04/11/04 Jacquie Zhang Technologies:

Review technologies

Prepare Final Draft

6.2 04/11/04 George Kalantzis Conceptual Integration

Prepare Final Draft

6.3 04/11/04 David Knott Applying integration to business scenarios

Review sales order process

Prepare Final Draft

6.4 04/11/04 Tiago Rosa Mendes Applying integration to business scenarios

Review purchase order process

6.5 04/11/04 Greg McAllister Applying integration to business scenarios

Review decision support process

7 8/11/04 All Draft all sections.

7.1 8/11/04 George Kalantzis Final draft

8.0 11/11/04 David Knott Final Edit

8.01 14/11/04 Greg McAllister Final Edit

8.02 14/11/04 Greg McAllister Proof Read and Submit


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CONTRIBUTIONS ............ .............. ............ .............. ............. ............ .............. ............. ............ .............. .............. .....2

REVISION HISTORY............ ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .3

TABLE OF CONTENTS............ ............. .............. ............ ............. .............. ............. ............ .............. ............. .......... 4

TABLE OF FIGURES ............ ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .5

EXECUTIVE SUMMARY.............. ............ .............. ............. ............ .............. ............. ............ .............. ............. ......6

1. INTRODUCTION..............................................................................................................................................7

2. TECHNOLOGIES ............. ............. .............. ............ ............. .............. ............. ............ .............. ............. .......... 8

2.1 SAP PRODUCTS ..............................................................................................................................................8 2.1.1 NetWeaver (overview) ........... .............. ............. .............. ............ .............. ............. .............. ............ ........ 8

2.1.2 Web Application Server (Web AS) 6.40...................................................................................................9

2.1.3 SAP XI 3.0 .............................................................................................................................................12

2.1.4 Web Services .........................................................................................................................................18

2.2 NON-SAP PRODUCT .....................................................................................................................................22 2.2.1 INDEX ............ .............. ............ .............. ............. ............ .............. ............. ............ .............. .............. ...22

3. CONCEPTUAL INTEGRATION............ ............. .............. ............ .............. ............. ............ .............. .......... 24

3.1 ORGANISATION VIEW ...................................................................................................................................243.2 ORGANISATION SYSTEMS, INTERFACES AND CHANNELS ...............................................................................25

4. APPLYING INTEGRATION TO BUSINESS SCENARIOS......................................................................28

4.1 SALES ORDER PROCESS - CRM.....................................................................................................................284.1.1 Business scenario ............. ............ .............. ............. .............. ............ ............. .............. ............. ............ 28

4.1.2 Technical integration description..........................................................................................................29

4.2 PURCHASING PROCESS..................................................................................................................................32 4.2.1 Business scenario ............. ............ .............. ............. .............. ............ ............. .............. ............. ............ 32


4.3 DECISION SUPPORT USING INDEX..................................................................................................................344.3.1 Business scenario ............. ............ .............. ............. .............. ............ ............. .............. ............. ............ 34


5. CONCLUSION.................................................................................................................................................37

REFERENCES ............. ............. ............ .............. ............. .............. ............ .............. ............. ............ .............. .......... 38


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Figure 1 NetWeaver Overview (XI and Web AS).................................................................. 8

Figure 2:Web AS Architecture. ........................................................................................... 10

Figure 3: SAP Web Application Server - key benefits ......................................................... 10

Figure 4 - The capabilities of SAP XI....... ........................................................................... 12

Figure 5 - Integrated systems with "Spider Web" configuration........................................... 13

Figure 6 - Integrated systems with hub architecture............................................................. 14

Figure 7 - The architecture of SAP XI ................................................................................. 15

Figure 8: XI Shared Collaboration............ ........................................................................... 16

Figure 9: Integration repository & Directory ....................................................................... 17

Figure 10: Web service provider ......................................................................................... 21

Figure 11: INDEX within a conventional software environment................... ....................... 23

Figure 12: Conceptual integration: Organization view......................................................... 25

Figure 13: Conceptual integration: Organization systems .................................................... 26

Figure 14: Sales order step 1 ............................................................................................... 30

Figure 15: Sales order step 2 ............................................................................................... 31

Figure 16: Sales order step 3 ............................................................................................... 31Figure 17: Purchase order step 1.......................................................................................... 32

Figure 19: Purchase order step 2.......................................................................................... 33

Figure 19: Purchase order step 3.......................................................................................... 34

Figure 20: Index order step 1............................................................................................... 35

Figure 21: Index order step 2............................................................................................... 35


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6

This special project looks at systems integration between various types of enterprise systems,

from both a technical and business view. As authorised and under the direction of Dr Wei

Dai, the team members were set the task to investigate the NetWeaver product from SAP, and

discover how integration could be achieved using SAP and Non-SAP products.

The team members used a structured methodology whilst researching for this project.

Research areas included: Technologies within SAP NetWeaver; Technology of a Non-SAP

product; Conceptual integration; and the application of integration from a technical and

business perspective. Information sources used by the team members include technical and

business texts, white papers, University literature, presentations and SAP online help facility.

The team members recognise, that existing and future technologies are key factors driving

change within organizations. For these companies technology is a key enabler to facilitate

their information needs. Therefore recognition of the customer, supplier and organization

itself cannot be overlooked when determining the requirements for an integrated system to

ensure information is transparent.


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This project evaluates the feasibility of using NetWeaver to integrate technology in an SAP

environment. To complement the use of NetWeaver for SAP, it was decided to incorporate

INDEX, for use with non-SAP products and applications. INDEX has been used in this

project to demonstrate its capability as a decision support tool to aid in management

reporting. To demonstrate the concept of NetWeaver and SAP integration a fictitious

company was created with supporting business processes.

The company is called Roses Online - an Australian owned company, established in 1995.

Having established the company as one of the leading florist companies in Australia, it did

not have a presence on the Internet. Last year, management made the strategic decision to

expand current business operations by 30% over the next three years. To support this

initiative, a full strategic review of current marketing strategy and customer base was

conducted over a six-month period.

The review highlighted several key business initiatives that management should consider if a

30% increase in sales over the next three years is to be achieved. These include: extendingthe customer base and market share by commitment to a web presence; re-evaluating the

current technology, to provide opportunity for pursuing a larger or more targeted group of

suppliers / trading partners.

By extending existing external channels and integrating existing internal channels we would

be establishing an environment that offered scope to grow in line with future e-commerce and

B2B technologies such as NetWeaver. Adopting this form of technology framework, allows

Roses Online to offer web based business services to potential customers and suppliers.


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SAP NetWeaver is a set of capabilities that are provided by many different SAP products

constructed to work with each other to make applications work together, build new

applications on top of existing applications, and lower the total cost of owning applications.

Because NetWeaver is a pre-packaged integration solution, the cost of ownership and

maintenance fees has been reduced significantly.

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Figure 1 NetWeaver Overview (XI and Web AS)

(Source: IwaySoftware)

NetWeaver is comprised of 2 types of components. They are Integration components and

Development and management components. They are described below:

1. Integration components:


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Software products that help perform the work of enterprise applications by providing a

powerful engine or platform for a specialized type of functionality (Wood, D. & Word, J.

P44). The following components are integration components:

SAP Enterprise Portal;

Mobile Infrastructure;

SAP Business Intelligence;

SAP Master Data Management;

SAP Exchange Infrastructure;

SAP Web Application Server.

2. Development and management components:

These components are the tools to help create and run software.

SAP NetWeaver Developer Studio;

SAP Visual Composer;

SAP Composite Application Framework;

SAP Solution Manager.

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Web AS is the foundation of SAP NetWeaver and provides:

A platform-independent foundation for writing business applications;

A runtime environment for executing business applications;

As much help as possible, in the form of toolkits and utilities to help make scalable

and reliable applications easy to develop and affordable to operate and upgrade;

A means of achieving these goals by using as many widely accepted standards as

possible.

SAP Web AS is a platform for implementing web applications; it is an SAP basis system built

upon proven and stable application server technology and Internet based infrastructure.


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Figure 2:Web AS Architecture.

(Source: Trivelli)

SAP Web AS combines reliability, scalability, multi-language support, remote debugging, and

connection with open Internet standards.

Figure 3: SAP Web Application Server - key benefits

(Source: Trivelli)

SAP Web AS can function as a Web server and a Web client.

As a server, it can accept HTTP requests from a Web client and send a response back

to them.

As a client role, it creates the HTTP request in an ABAP program, sends it to the

server, and then receives the response and processes it on the basis of the response. It

supports both ABAP and Java.


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SAP Web AS works as:

Receive incoming requests come from HTML, using Web Dynpro built pages, from

Web services, from XML messages.

Web AS accepts the information from these requests and passes the data within SAP

Web AS. These programs can then process the data using toolkits that support

workflow, archival, and other common business functions.

Then stores and retrieves information from a database using Open SQL, this allows

users to write programs that support all major databases (e.g. SQL Server, Oracle etc).

SAP Web AS supports various security features such as:

SSL (Secure Socket layer) protocol to secure the connection to and from the server;

User authentication (login ticket or X.509 Client certificates);

Generate individual certificates for each application server or use a server specific

server.

The three components of SAP Web AS are:

Internet Communication Manager (ICM)

ICM is part of the system that receives the HTTP requests from the Internet and ensures the

communication between SAP system and outside the world using HTTP, HTTPS and SMTP

protocols.

Internet Server Cache (ISC)

ISC is used to cache static and dynamic content associated with Web applications. It saves

the HTTP objects before they are sent to the client (eg. on the internet). When the client

requests the page, the ISC saves the page before sent it to the client. When the client request

again, it will be sent directly from cache. It can program data BLOBs in ICM server cache

before the first browser request. This results in quicker response time without adversely affecting

the application server or database.

ICM Server Clipboard (ICM SC)

ICM SC is a service for temporarily storing large data; BLOBs (binary large objects). A key has

been assigned to every data object stored, enabling them be retrieved in sequence in the future.


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SAP Web AS is closely related to mySAP Business Suite and to SAP NetWeaver. For both,

SAP Web AS acts as the run time environment and providing integration when needed.

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One of the greatest issues facing eCommerce is the difficulty faced by enterprises in

integrating their systems, both internal and external, with each other, to enable real-time

communication. SAP XI, is one of the components of SAP NetWeaver that aids in the

integration process. It contains a toolkit that can be used to build interfaces between

disparate systems, storing messages in XML format.

SAP XI is focussed in the information and process integration of NetWeaver. Messages may

be defined; descriptions of these messages can be stored to keep track of where they are to be

sent, fields of dissimilar message formats may be mapped and routed to specific locations,

and data adaptors can be constructed to allow systems to send and receive messages. XI

performs the translation of data formats between SAP or non-SAP applications, so that

messages can be exchanged.

Figure 4 - The capabilities of SAP XI.

(Source: Wood - NetWeaver for Dummies)

The Hub Architecture

XI was developed as a tool to aid in the integration of applications and systems. It also

replaces the need for including, maintaining and updating an interface module in each system

to be integrated, because it is a purpose-built application that acts as the middleware between


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applications. Therefore, systems may be added, removed or altered without affecting those

systems with which it is to be integrated, because they are all integrated via hub architecture.

The diagram below is a simple example of a conglomeration of business systems with

interfaces between each application, not using SAP XI.

System 1 System 2

System 4System 3

System 5

System 1 System 2

System 4System 3

System 5

Figure 5 - Integrated systems with "Spider Web" configuration

Systems 1 4 are existing systems that require interfaces. Each system would have 2

interfaces and incoming and an outgoing one for each system with which it

communicates. For this configuration, there are 12 interfaces, each requiring support and

maintenance. Therefore, to integrate one more system with each of the 4, not only are there 4

interfaces required of System 5, but 1 extra interface is required for each of the existing

systems. The more systems that are added, the harder, more time consuming and more

expensive is the task that confronts the enterprise. Similarly, if a system were to be removed,

the remaining systems interfaces would each require turning off.

The following configuration employs a hub architecture that simplifies and reduces the cost

of development and maintenance what SAP call lowering the Total Cost of Ownership.


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System 1 System 2

System 4System 3

System 5

XI

System 1 System 2

System 4System 3

System 5

XI

Figure 6 - Integrated systems with hub architecture

Each system sends its messages to the XI hub and XI distributes these messages to the target

system. Therefore, individual interfaces between each system are not required. To add a

system to the initial 4-system configuration, one interface between the new system and the

(XI) hub is required. Similarly, to disconnect, one interface, only, requires disconnection

from the hub. The other systems may or may not even need to know that the system has been

removed, such is the work that the XI hub performs.

The financial return on this type of configuration begins to magnify when the above

configuration is extrapolated to a much larger factor the more systems that are attached in a

spider-web fashion will mean more complex integration project and configurations.

Conversely, integrating more systems with a hub architecture can be as simple as connecting

the system to the Hub and configuring XI to distribute messages to and from this systemaccording to defined business rules.

SAP XI and NetWeaver

XI is a general-purpose middleware component that allows integration of more components

than purpose-built middleware. For example, CRM Middleware can only integrate CRM

with other applications. It is optimised to meet the needs of SAP CRM, but is not compatible

with any other components. XI can integrate all components, SAP or non-SAP, both for

current.

The Components of SAP XI

SAP XI has the following components:

Integration Builder (IB)

Integration Repository (IR)

Integration Directory (ID)


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System Landscape Directory (SLD)

Integration Server (IS)

Central Monitoring

Integration Builder (IB) Central MonitoringIntegration Builder (IB) Central Monitoring

Figure 7 - The architecture of SAP XI(Source: Wood - NetWeaver for Dummies)

Integration builder (IB) is a development environment used to define messages and

processes, map message formats, configure business rules (how the different business

systems interact) and store information. The definitions are stored in the Integration

Repository and the configuration details are stored in the configuration directory. IB defined

the format of the messages to be sent by the integration server, called and XML schema. It

also has the tools for business process modelling.

IB, itself, is also made up of a number of components:

Process editor this defines the business processes;

Mapping editor maps the formats of one message to another;

Condition editor creates business rules;

Interface editor defines the messages to be sent between systems;

Scenario editor knits all of the above together.

The outputs of these components (i.e. processes, business rules, scenarios, messages, messageformats) are stored in the Integration Repository (IR). During design time, the message

formats of the 2 systems to be integrated are mapped. The Mapping editor is a graphical user

interface, in which one can drag and drop objects to create relationships between the XML

messages. The integration directory contains a repository of all the interfaces it is a library

of application specific XML documents.


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Figure 8: XI Shared Collaboration

(Source: Trivelli)

During configuration time, the newly created messages are mapped to specific business

processes. IB maps the fields that affect the routing of each message. The rules are then

stored in the integration directory. Protocols, such as HTTP, and other technical information

(i.e. IP addresses, operating systems and versions etc.) are also stored in the integration

directory. Wizards are provided to walk through the configuration process, if required, or a

manual configuration editor allows manual setting of configuration information.

TheIntegration Repository (IR)

is a storage area for all of the systems metadata; the datathat describes the structure of the messages and processes. This includes the data types,

message formats, processes, mappings and connections and the interfaces. The three (3)

basic data types stored in the IR are SAP message, Industry-standard message and Business

Process Templates. There are a number of standard message formats that are used in the

mySAP

Business Suite that may be used without having to create them from scratch. The

objects that are stored in the IR are reusable objects. For example the object Name may be

use in a number of processes (e.g. Create Order, Ship to Notification, Delivery Documents

etc).


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Figure 9: Integration repository & Directory

(Source: Trivelli)

The Integration Directory (ID)is where the messages types and processes, stored in the IR,

are connected to real business processes. It also stores information such as the business rules,

the technical configurations of the systems that are communicating, and naming conventions

(i.e., WHO were talking to, HOW we talk to them and WHY/WHEN).

The System Landscape Directory (SLD) is the library of technical information about the

programs and operating systems connected by XI. This includes IP addresses, software

configurations, software versions, software release dates and operating systems. The details

of each system can be defined in the SLD in a similar manner to how the Internet may be

defined by a directory of DNS and IP addresses. It is, essentially, a system configuration

library. XI can then interrogate the SLD to determine the message routing addresses.

Integration Server (IS)is where all the processing is done. Messages are sent through the

IS and the rules that are defined in the integration directory and integration repository are

processed in the IS. The messages are then routed according to these rules.


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Senders and receivers exchanging messages via the Integration Server are in different places;

however, this actually makes it easier to connect systems using different technologies. Every

system with the ability to exchange messages with the Integration Server, also has the ability

to exchange messages with all other systems connected to the Integration Server. SAP XI

supports the following methods of communication with the Integration Server:

Direct communication using proxies, which are generated in the application systems

using a description in WSDL (Web Service Description Language);

Communication using adapters in this case, interfaces are created for message

exchange in the application system, or use existing interfaces

o IDoc adapter,

o RFC adapter,

o File adapter,

o Database (JDBC) adapter,

o Java Messaging Service (JMS) adapter,

o SOAP adapter,

o Plain HTTP adapter,

o MarketSet adapter,

o Adapter framework for selected partners,

o EDI adapter,

o UCCNET adapter,

o PeopleSoft adapter,

o Oracle adapter,

o JDE adapter,

o Siebel adapter.

Central monitoring then determines if the messages are successfully transmitted between

the systems. Central monitoring is essentially a health monitoring system of the entire

infrastructure.

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A Web service is an application service (i.e. a network accessible function) that can be

accessed using standard Web protocols. Web services are applicable to any type of


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networking environment and can support business-to-consumer, business-to-business,

department-to-department, or peer-to-peer interactions (RogueWave, 2004, p.03).

Web services indicate the set of standards that ensure interoperability between services,

especially when those services are meant to be accessible over standard web protocols.

Core concepts of the Web services(RogueWave,2004, p.03):

Accessible over the Internet, web services communicate through platform-

independent web protocols, facilitating the integration of heterogeneous

environments.

Web services standards define an interface and communication protocol that can be

invoked from an application client or provided through a server.

The Web Services Definition Language (WSDL) adds a layer of abstraction between

implementation and interface, providing a loosely coupled application that results in

future flexibility.

Central to the Web services approach is that it is based on widely accepted technologies and

commonly used standards. This enables companies to transition to a SOA incrementally with

minimal risk and at low cost

The major Web services standards groups are listed below:

W3C (World Wide Web Consortium):The driving force behind the largest number

of highly adopted standards in the web services space including some web building

blocks such as HTML.

OASIS:Source of the original specification from which XML evolved, as well as the

home of the current XML and Universal Description, Discovery and Integration

(UDDI) specification.

WS-I (Web Services Interoperability Organization): WS-I in an industry

consortium that acts as a watchdog group that is focused on ensuring interoperability

between vendor solutions and implementations of Web services standards.

The following core standards are emerging based on (Zia, 2004):

eXtensible Markup Language (XML). XML is a universal syntax for describing and

structuring data, independent from the application logic and is really a "meta-


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language"; a language that describes other languages. XML can be used to define

unlimited languages for specific industries and applications.

Simple Object Access Protocol (SOAP). SOAP is a lightweight, XML-based

protocol for exchange of information in a decentralized, distributed environment. It

functions as a standard envelope for messages passing between different systems.

Web Services Description Language (WSDL). WSDL is the XML grammar for

specifying a public interface for a Web service. This interface describes the functional

and operational requirements for accessing web services, such as protocol binding

requirements and location information.

Universal Description, Discovery and Integration (UDDI).UDDI is the standard

that defines the repository in which available web services are stored, indexed and

organized.

Web Service Extensions. The core standards are being extending to address critical

issues like reliable messaging, security, process orchestration, and long-running

transactions.

Key benefits of the Web services approach (RogueWave, 2004, pp.6-7):

Loosely Coupled

Loose coupling means that each service exists independently of the other services that make

up the application. This allows individual pieces of the application to be modified without

impacting unrelated areas.

Enables Service-Oriented Architectures

Web services represent the convergence between the service-based development of

applications and the Web. In the SOA model, the business processes that make up an

application are separated into independent, easily distributed components known as services.

These processes interoperate across processes and machines to create a complete solution for

a business problem. This loose coupling allows for easy changes to the application by

inserting new and revised services into the application without modifying the unrelated

services.

Ease of Integration


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Web services are becoming widely adopted across the entire software industry. The standards

surrounding Web services are human-readable and publicly available, allowing a developer to

view exactly what is happening in the system.

Easily Accessible

Web services are distributed over the Internet. Web services make use of existing transport

protocols, such as HTTP, leveraging existing infrastructure and allowing information to be

requested and received in real time.

Web Service Provider

Figure 10 below, shows the Web service provider environment in more detail. SAP Web AS

6.40, offers a development and runtime environment for the provision of Web services. The

development environment supports the implementation and configuration of Web services,

along with WSDL generation and the services publication in UDDI. The runtime

environment, offers a SOAP engine capable of executing requests and producing responses

under a given Web service configuration that controls security settings and the behaviour of

different features (Kessler, 2004).

Figure 10: Web service provider

(Source: Kessler, 2004)


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ERP systems (or ES as mentioned) do not fit well within an integration framework (Dai,

W. & Wright, S.L. 1996). To overcome this bad fit, Dai & Wright (1996), introduce the

INDEX architecture as part of an integration strategy. The aim of INDEX is to enable

integration of ERP (or ES) systems within a conventional software environment, depending

on what level (i.e. system, tool, or language) the integration is to occur.

The following integration strategies help visualise the complexity of INDEX layers:

System level integration:

The attempt to join systems at operating system level cannot solve integration. Dai and

Wright (1996) propose that only an integration tool can help to interpret data for each system.

Tool level integration:

Following on from System level integration, Tool level integration enables smaller

granularity to be manipulated. It provides some more strongly coupled systems to enable

integration.

Language level integration:

At this level, Language integration provides most flexibility in so far as available objects and

libraries can be used to link systems. At procedure level one may code a subroutine to access

information from the adjacent system.


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Figure 11: INDEX within a conventional software environment

In the scope of this project, the INDEX layered architecture can sit between ERP systems.

The integration strategies above form the layers of components used in INDEX. System

level, Tool Level and Language level components enables the sharing of knowledge

between disparate systems.


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1! ' "

Davenport (2000) argues that the impact of integration is most prevalent at operation level

with obvious effects on how a company operates within its own organisation, and external to

its organisation. Davenport (2000) describes integration issues as being how a company

goes to market, how the organisation creates its products and services, works with

suppliers, customers and distribution partners. These are examples showing the relevance to

integrate systems internal and external to the organisation.

In order to visualise integration issues, we have split the following sections into organisation

view and organisation systems, interfaces and channels. The first section shows the

organisation and its interactions displayed as a double bell model, typically used in

describing a focal company as part of an integrated supply chain (Sadler 2004).

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Building a framework for integrating systems is a complex task. The number of systems,

interfaces and people involved can only be shown as abstract. Figure 12, provides a

contextual view of our organisation and its business partners, suppliers (i.e. including service

providers) and customers. The assumption is made that the organisation is already established

with each of the organisation units using their own systems.

Setting the scene for integration between organisational units and partners is the desired

effect. Notice firstly that our fictional organisation comprises many organisational units.

This could be applied generally to most organisations. For readability, the supplier side of the

organisation is shown in close proximity to the supplier bell. Conversely, the customer

service department is shown close to the customer bell.

The accounting and knowledge providers within the organisation span several organisational

units. This is because they typically act as a support function to the business. The same

could be argued with human resources, marketing and other departments within an


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organisation. For the sake of our integration concept, we keep the organisation simple and

clear to follow. Therefore, this view of the organisation is shown with systems, interfaces and

channel links.

Figure 12: Conceptual integration: Organization view (Sadler 2004)

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Following on from the organisational view, we look at the next level of abstraction,

comprising: systems, interfaces, and channel links. The systems internal to the organisation

are detailed as being ERP or non-ERP based. The term ERP is used to represent any

enterprise system; either an SAP, Oracle product, or customer specific written package. In

figure 13 below, the SAP R/3 instances for each of the organisational are separate along with

the decision support system as a non-SAP product. The emphasis on the internal systems is

the disparate nature of systems between the organisations. We follow on with the

interactions to the organisation.


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The interaction from the supplier side, as mentioned in the previous section, is shown close to

the Logistics or Operations side of the organisation. A typical business process, such as

purchase and provision of material, typifies how many organisations use information via EDI,

email and fax to communicate. Many larger suppliers, in term of technology advancement,

use EDI and XML as a medium to communicate business process information in an

automated fashion. An example may be, an organisation sends a supplier a request for

quotation. The supplier processes and returns an EDI message with quotation then the

organisation processes and decides to raise a purchase requisition (i.e. from R/3 SCM) and

order via an EDI message.

Figure 13: Conceptual integration: Organization systems (Sadler 2004)

From the customer service side, we show the typical sales channels for one-time customers as

email, phone, fax and order online via a web portal. Account customers may be set up with

web portal access. The sales channels are shown as closely aligned to the customer service

organisational / business unit.


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The concept of integration has been shown from three perspectives; internal and external

suppliers and external customers. Internal to the organisation we have disparate systems.

External suppliers communicate via EDI, XML and other communication mediums. The

following sections aim to show, by way of business scenario, how we can use technology

such as SAP NetWeaver to overcome the integration hurdles.


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/! ''

This section, details the different business processes involved in selling roses over the

Internet and extracting information from our knowledge and information systems. We can

integrate the Web Portal, non-SAP Customers purchasing systems, and email, phone and fax

sales processes with our internal R/3 components using XML, HTML, EDI and manual order

entry.

For ease of analysis, the end-to-end business processes are divided into three (3) the Sales

process, Purchase process (Order Fulfilment) and Reporting. These three (3) processes are

further disseminated, firstly at a transaction level, then each transaction is analysed to

determine the flow of information, what data structure might support such flow of

information, and then how the various components of NetWeaver may be implemented to

reengineer these business processes.

/! # ' , 5

/!!

The business model for selling roses over the Internet has been described in previous

sections. Our sales channels to our customers can be broken down into the ad hoc customers,

who order through email, phone, fax or a web interface, and corporate customers with whom

we have developed business relationships and who purchase regular, large quantities of roses.

These large corporate customers (i.e. supermarket chains, large floral retailers etc.), send

email orders, use the web portal or, for integration into their own purchasing systems, are

able to send orders directly from their ordering system to our purchasing systems. The

following describes the process interaction between their system and our system.


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The sales process can be broken down into several succinct transactions. Each transaction

can be modelled as a single event in the Sales process.

Web Portal customer sends order to CRM system via NetWeaver. Because of the

interface between the Web Portal and our CRM system (NetWeaver), the order is

entered directly into the system.

Email customer sends email to CRM system. Email orders are manually converted

to orders in the CRM system by the customer service department.

Phone and Fax Phone and Fax orders are also manually entered into the CRM

system by the customer service department.

Corporate Customers these customers may use the Web Portal, Email or Phone/Fax

options, but for processing efficiency, our scenario allows for our partners to have

direct connections (via NetWeaver) into our CRM system. Therefore, they are able to

send their orders automatically from within their own purchasing systems. Usually

this would entail them sending us a file containing the order details. These orders are

captured in our CRM system.

Our CRM system validates all received order details. CRM searches the Customer

Master for an existing account and, if found, assigns the order to that account. For

one-time customers (i.e. any customer whose details are not found in the Customer

Master), their orders are allocated to the One-Time Customer account in CRM.

CRM system sends an IDOC (sales order) to SCM

CRM system returns order confirmation to customer. Only orders received from the

Web Portal, email or via from our corporate customers receive this order

confirmation, as the other channels do not support this functionality.

Once all orders are verified, the Purchasing process is triggered

/!!$ % #'

SAP NetWeaver can integrate SAP applications with each other including non-SAP

applications. SAP XI is the component of NetWeaver that simplifies the exchange of data

between applications. NetWeaver can interpret many forms of document, but most easily

XML, HTML or EDIs. Metadata, defining each document type is received for each

document and defined in XI and any document received in this format is easily translated into

an order in the system.


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Orders are submitted, electronically, from two (2) places either a web portal or as an interface

file from our corporate customers. The orders submitted from the web portal are transmitted

to XI as an XML document. Corporate customers can send a file of any format. Provided

that XI can map the fields, it will be able to interpret the file, and translate the order file into

orders in CRM.

/!!$! # 6 '

Figure 14: Sales order step 1

Web Portal order:

A customer submits a transaction form from a web page to create an order;

The Web Portal sends an XI compatible protocol document (XML, HTML etc) to

SAP Web AS.

Non-SAP Corporate order:

Our corporate customers systems are connected to SAP Web AS via our company

firewall.

The customer sends their order file in any format (i.e. XML, HTML, EDI, Flat file

etc), directly to SAP Web AS.


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/!!$!$ # , ' $


SAP Web AS delivers all the orders that arrive from customers to SAP XI in an XIcompatible document. Based on the configuration information defined in SAP XI, these

orders are converted to IDoc and returned to Web AS.

/!!$!1 # , ' 1


Web AS forwards this IDoc to CRM: a purchase order is created in CRM.

CRM validates all orders in real time and responds to SAP XI with confirmation of the

order.

SAP XI routes the order confirmation or rejection to the Web Portal or the Customers

systems based on the routing information stored in the Integration Directory. Orders that

have been manually entered as a result of an email, phone or fax order do not generate

order confirmations because it is a manual process. If the SAP XI order response is to the


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Web Portal, SAP XI sends a pre-formatted HTML document to the user. The order

response is directed to a corporate customer; the order response document is in XML

format.

If the order is valid, CRM creates an IDOC (i.e. sales order) in SCM.

/!$ &% '

/!$!

The Purchasing process is started when demand is created from an internal request, such as

sales order, individual requirements, damaged stock or advanced forecast planning. The

demand triggers a predefined internal process in which a set of messages is exchanged

between our company and a supplier. This interaction is performed through the NetWeaverstructure that provides the communication platform to those transactions.

This process is divided in three (3) main steps. Firstly, R/3 components forward a purchase

order to NetWeaver that processes the information and defines a supplier. The message is

converted to the supplier's format and routed to the supplier's system, based on configuration

information stored in SAP XI. Lastly, the response is received by NetWeaver, processed and

redistributed to the R/3 internal components.

/!$!$ % #'

/!$!$! &% & 6 '

Figure 17: Purchase order step 1


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The first step is the creation of a purchase order within SAP R/3 SCM from CRM. To get the

purchase order out, SAP XI would have provision for the EDI or XML document as part of

its mapping mechanism. The purchase order from SCM would be transferred to NetWeaver

as an IDoc. Subsequently, the IDoc is processed within the SAP XI structure using the

standard routine for purchase orders.

/!$!$!$ &% & 6 ' $


The message is modelled according to a user-defined set of rules stored in the Integration

Repository. The message can be split in case the supplier cannot completely fulfil the order

or even handle fulfilment deadlines. As soon as the supplier is selected, SAP XI maps the

IDoc structure into the supplier's XML message format. Routing information is stored in the

Integration Directory and is handed over to the Web AS, which delivers the message. The

purchase order is transmitted to the supplier for processing.


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/!$!$!1 &% & 6 ' 1


A supplier replies with order fulfilment in an XML message which is received through the

Web AS infrastructure and delivered to SAP XI for further processing. The XML message is

broken down into a number of IDocs. These IDocs are delivered to internal R/3 components

with the relevant data. For example, different information within the IDoc is forwarded to

the CRM, FI and SCM modules.

/!1 3 '' "#

/!1!

The use of INDEX for the purpose of management and enterprise reporting provides a unique

opportunity to explore the decision support capabilities of INDEX in an integrated SAP

environment. Section 4.3.2, Technology Integration Description, aims to demonstrate the use

of INDEX not only as a message request broker between XI and Web AS but also as an

advanced application environment integrating the strengths and processes of knowledge

management and data management.

One of the core technologies from the project is INDEX knowledge management system. Our

team saw the unique strengths of INDEX falling into the domain of integration process. We

attempt to illustrate this concept through the application of business logic. This is illustrated

by passing requests for information from a legacy system to XI via an IDoc which in turn

retrieves sales data for reporting to management. INDEX also provides a low to medium cost


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EAI technology solution, for those companies looking to extract business information from

legacy systems delivered in real-time.

/!1!$ % #'

/!1!$! "#, '

Figure 20: Index order step 1

Using INDEX, to process information is achieved via a two-step process. Firstly, as a

business, Roses Online decided to use INDEX for the purpose of management reporting.

INDEX will process requests for information from multiple sources and act as a brokering

agent to collate and provide a consolidated view of our sales data. The sales data will be

sourced from the R/3 system. The request starts as an XML request to XI in NetWeaver

which creates an IDoc request and passes that data stream to the R/3.

/!1!$!$ "#, ' $

Figure 21: Index order step 2


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Using INDEX, to process information is achieved as a two-step process. The R/3 system

forwards an IDoc data stream back to XI, where it converted into XML. XML being an

Internet open standard format it provides the integration link for non-SAP product

communication is sent back to INDEX. INDEX provides enabling technologies that directly

link with existing information resources and business tasks within users work environments.

This allows INDEX to be used as a product to directly interface to user applications.


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7!

Companies often spend years and considerable resources developing solutions to tackle

individual business problems, solutions that often don't fit into a broader, more strategic

enterprise IT architecture. This narrow approach results in limited interoperability, making it

difficult to leverage these systems and add new business value. Integration can address this

dilemma by enabling existing applications to both interoperate and be orchestrated through

new business logic and process rules.

Todays IT landscapes are increasingly complex and difficult to integrate. A solution is

needed that enables new levels of collaboration and connectivity among all the systems and

applications within your enterprise and across your entire value chain. In addition to

integrating these heterogeneous system environments, it is important to leverage the existing

legacy systems to support the goal of standardising on a services-based architecture.

SAP NetWeaver has been shown as a candidate technology solution for Roses Online.

NetWeaver is a system that is used for various methods of application communication.

Customers demand the product using various methods of communication channels and thissystem fulfils the needs of the company and customers.

In summary, integration is changing and companies cannot avoid looking at the application

platform suites, especially those offered by their core application provider (i.e. SAP

NetWeaver). These technology platforms will be the foundation on which all new

development is based. By creating this open architecture where information can flow freely,

and business content is no longer isolated by boundaries and applications.


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