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SAP Value of Upgrade mySAP ERP mySAP? ERP 2005 ? Copyright 2006 SAP AG. All rights reserved. The information in this document is proprietary and contains forward-looking statements that reflect SAP’s plans and intentions at this time. No part of this document may be reproduced, copied, or transmitted in any form or for any purpose without the express prior written permission of SAP AG. This document is only a preliminary version and is not subject to customer’s license agreement or any other agreement with SAP. This document contains only intended strategies, developments, and functionalities of mySAP ERP and is not intended to bind SAP to any particular course of business, product strategy, or development. Please note that this document is subject to change and that SAP may change it at any time without notice. SAP assumes no responsibility for errors or omissions in this document. 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Nothing herein should be construed as constituting an additional warranty. 2 Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 New Business Benefits of mySAP ERP 2005. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Adoption of the SAP NetWeaver Platform for Enterprise Services Architecture . . . . . . . . . . . . . . . 6 Analytics for Better Business Insight and Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 People Productivity Through a User-Centric Approach That Drives Proactive Work . . . . . . . . . . 7 Lower Total Cost of Ownership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Business & Functional Value of Upgrade for mySAP ERP 2005 . . . . . . . . . . . . . . . . . . . . . . . 8 End-User Service Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Analytics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Financials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Human Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Procurement and Logistics Execution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Product Development and Manufacturing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Sales and Service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Corporate Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Technical Value of Upgrade for mySAP ERP 2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58 3 CONTENTS 4 This document summarizes key business benefits and new functions of mySAP? ERP 2005. If you are currently using SAP? R/3? Enterprise 1 (now called SAP ERP Central Compo- nent), this document is written specifically for you: it may give you some reasons to consider an upgrade to the new release. If you are currently using a different release of SAP R/3, please contact your SAP sales representative to receive information on the benefits of upgrading from your current release to mySAP ERP 2005. This document may give you some insight into “what’s new” in the latest release. 1. SAP ERP Central Component is the technical successor to SAP R/3 Enterprise; the name is used in this document. There are two things this document does not do: ? This document does not describe the benefits and functions of mySAP ERP in their entirety. It focuses only on the changes from SAP R/3 Enterprise to mySAP ERP 2005. Please refer to www.sap.com/erp for a general description of mySAP ERP. ? This document cannot replace a detailed analysis of the specific value of transitioning to mySAP ERP 2005 for your individual business situation. No matter which release of mySAP ERP or SAP R/3 you are currently using, this docu- ment can only facilitate and support a detailed discussion of your specific business situation and requirements with your SAP consultant. To figure out what services SAP offers to facilitate the value proposition and business case definition, visit the Upgrade Information Center service at: www.service.sap.com/upgradeservices or www.service.sap.com/upgrade-erp. 5 PREFACE The inflexibility of legacy information technology infrastruc- ture is often cited as a problem that slows down the innovation process within an organization. Today, organizations need information technology to support flexible business strategies rather than hold them back. Organizations must sense and respond to customer requirements in real time, gain market insight by extending processes beyond the enterprise, adapt to market changes, and implement new ways of doing business. Enterprise resource planning (ERP) software plays a key role in achieving the business agility today’s organizations need. Once organizations can more easily manage efficiency, productivity, and costs, human and financial resources are freed up to execute on innovation and growth strategies. Recognizing these business necessities and hurdles, SAP introduced the mySAP ERP solution, the successor to SAP R/3 software. Powered by the SAP NetWeaver? platform, mySAP ERP is a comprehensive software solution featuring leading analytics, financials, human capital management, operations, and corporate services functionality. The solution addresses the core and extended business software require- ments of midsize to large organizations, across almost all industries, worldwide. mySAP ERP 2005 is a major release, providing significant benefits to customers in the areas of: ? The enterprise services architecture blueprint 2 and delivered enterprise services to enable flexible and adaptable business processes ? Advanced and embedded analytics to provide strategic business insight ? Dramatically improved user experience and people produc- tivity enhancements ? Increased functionality and significant reductions in total cost of ownership (TCO) Some highlights of the solution are outlined below. Adoption of the SAP NetWeaver Platform for Enterprise Services Architecture Applications in all areas of mySAP ERP are leveraging SAP NetWeaver functionality. Enhanced integration of the SAP NetWeaver plat- form with mySAP ERP 2005 brings measurable benefits to SAP customers as it extends service enablement within mySAP ERP. Following the enterprise services architecture road map, mySAP ERP 2005 delivers the following new functions: ? Enterprise services to support extensible and adaptable business processes, breaking the boundaries of traditional ERP solutions ? Extended use of the exchange infrastructure, allowing a greater degree of automation and tighter integration with shared service centers, outsourcers, and third parties ? Increased flexibility by offering guided procedures and composite applications ? Delivery of preconfigured business content with portal- enabled roles, simplified search functionality, and new Inter- active Forms based on Adobe software, leveraging Adobe tech- nologies to provide an efficient interactive user experience ? Extended analytical functions delivered through the SAP NetWeaver Business Intelligence component, improving user productivity and allowing faster, better-informed decision making Analytics for Better Business Insight and Planning Through the integration of business intelligence in mySAP ERP 2005, users can now benefit from real-time insight into their organizations’ performance. With a single platform, customers are now able to deploy a unified set of analytic applications for all aspects of their organization. Additionally, strategic enter- prise management functions allow users to define, manage, and track organizational goals with real-time accuracy. With NEW BUSINESS BENEFITS OF mySAP ERP 2005 2. A service-oriented architecture is a distributed software model that uses inde- pendent Web services to support business processes. With enterprise services architecture, SAP has enhanced and extended the concept of service-oriented architectures. Enterprise services architecture is the software blueprint that enables innovation and standardization in a single environment, allowing you to deliver new, innovative applications and packaged solutions with the speed and efficiency that the business requires. This IT practice is enabled by all components of SAP NetWeaver. 6 analytical information presented within the context of a business process, the end user can react immediately to the information and take the necessary steps to correct or optimize a work stream. More importantly, the notion of analytics as a tool for only the most advanced users of an enterprise is chang- ing thanks to the ability to embed key performance indicators (KPIs), scorecards, and graphical reports into portals and Web interfaces oriented around individuals and their job responsibil- ities. mySAP ERP 2005 includes over 100 analytical applications that empower business users to better manage their areas of accountability. People Productivity Through a User-Centric Approach That Drives Proactive Work mySAP ERP 2005 enhances business users’ productivity by providing role-based usability and self-services that deliver business processes to the desktops of all employees based on their needs, expectations, and goals, thereby connecting people directly to their tasks. Intuitive design and navigation as well as easy access to applications and services enable people to complete their jobs more quickly. Users are supported by monitors and work lists that help them find their work more rapidly and execute their tasks. They find user interaction patterns that best support their work style and, by providing consistency throughout many applications, they support efficiency while using various applications. The mySAP ERP approach to people productivity supports bottom-line improvements by increasing people’s efficiency and effectiveness as well as increasing the possibility for top-line growth by providing adaptable composite applica- tions. mySAP ERP makes use of enterprise services architecture and SAP NetWeaver technology such as the Web Dynpro development environment, Interactive Forms, and guided procedures to enable all users within an organization to work more efficiently and effectively. Lower Total Cost of Ownership Increasing the flexibility of the solution and lowering total cost of ownership have been major objectives for the development of mySAP ERP 2005. mySAP ERP 2005 offers flexible deployment options to meet different customer requirements, from small organizations 3 with few users, which often look for simple central deploy- ments, up to distributed landscapes for large global organiza- tions. This flexibility facilitates the implementation of shared services and outsourcing intentions. Service-enabled function- ality and an open framework for composite applications simplify the adaptation of business processes, thereby improv- ing the responsiveness to fast-changing business requirements significantly. The SAP Solution Manager tool helps companies reduce total cost of IT ownership and gain faster return on investment by facilitating software deployments 4 (for example, in mapping applications to business requirements and creating templates), optimizing application performance, and managing change during the entire solution life cycle. It enables intensive knowledge transfer through on-site service procedures and access to SAP Best Practices offerings. Industry solution availability is improved significantly with mySAP ERP 2005. With this release, the majority of industry- specific functionality is delivered as extensions in mySAP ERP 2005, released with SAP ERP Central Component 6.0, and in sync with the release cycles of the mySAP Business Suite family of business solutions, thus further improving TCO. 3. New deployment options allow, for example, running SAP ERP Central Component (the technical successor of SAP R/3 Enterprise) and the SAP NetWeaver Business Intelligence component on one server. 3. SAP Solution Manager has proved that it helps to achieve time savings in implementation and upgrade projects, for example, by providing advanced support for business process modeling and by simplifying system testing through its integrated test environment. According to a study conducted by Prof. Dr. Martin Selchert (University of Applied Sciences, Ludwigshafen), organizations can achieve cost savings between 10% and 20% by using SAP Solution Manager to support them in their blueprint, configuration, operation, upgrade, training, and testing efforts. 7 mySAP ERP is the world’s most complete enterprise resource planning solution, providing organizations with the strategic insight, ability to differentiate, increased productivity, and flexibility they need to succeed. With the mySAP ERP solution, SAP has evolved its vision of increasing efficiency within an organization to a next-generation ERP solution, automating end-to-end business processes, and extending those processes beyond the enterprise to the entire business ecosystem by incorporating customers, partners, and suppliers. In addition, mySAP ERP helps drive innovation and supports future growth of your organization, while at the same time improving today’s business processes. This section describes the new and enhanced functions mySAP ERP provides to SAP R/3 customers, following the mySAP ERP solution map. 5 8 BUSINESS & FUNCTIONAL VALUE OF UPGRADE FOR mySAP ERP 2005 Analytics Strategic Enterprise Management Financial Analytics Operations Analytics Workforce Analytics Financial Supply Chain Management Financial Accounting Management Accounting Corporate Governance Financials Talent Management Workforce Process Management Workforce Deployment Human Capital Management Procurement Supplier Collaboration Inventory and Warehouse Management Inbound and Outbound Logistics Transportation Management Procurement and Logistics Execution Product Development and Manufacturing Sales and Services Corporate Services End-User Service Delivery S AP Ne tW ea v er? Production Planning Manufacturing Execution Enterprise Asset Management Product Development Life-Cycle Data Management Sales Order Management Aftermarket Sales and Service Professional Service Delivery Global Trade Services Incentive and Commission Management Real Estate Management Project Portfolio Management Travel Management Environment, Health, and Safety Quality Management Figure 1: mySAP? ERP Solution Map 5. As shown in the solution map, operations includes the following solution areas: procurement and logistics execution, product development and manufacturing, and sales and service. End-User Service Delivery mySAP ERP enhances user productivity by providing role-based portals and self-services that deliver business processes to the desktops of all employees based on their needs, expectations, and goals. And it takes usability to the next level as it greatly facilitates the adaptation of business processes to changing business demands and allows users to perform more proactively. mySAP ERP offers consistent navigation for all self-service functions, making them even more user-friendly and intuitive. It has been designed to improve the usability of applications by means of simple and intuitive user guidance. All self-services have the same “look and feel” and give users more guidance. To simplify complex processes, mySAP ERP now provides road maps to direct users through processes in a step-by-step fashion. Beyond the self-service area, within the new service maps for all roles delivered with mySAP ERP 2005, every application is explained, and users can navigate into the application from explanatory text. Support for role-based access within mySAP ERP ensures that employees can readily access the crucial data, applications, and analytical tools needed to perform their job functions efficiently and effectively. The role-based “control center” is the user’s single access point to all work-related content and tasks that are pushed to the user. It is subdivided into different “work centers,” each one of which represents an individual’s view on a certain area of activity usually referred to as part of a business role or function. Work centers close the loop from being informed about a business situation to the execution of a business decision. They help people to get their job done. 9 Figure 2: SAP? Manager Self-Service – Service Map Within mySAP? ERP 2005 10 End-User Service Delivery New or Enhanced Functionality Business Benefits Self-Service ? A road map guides employees through processes step-by-step. ? Adobe forms integration enables organizations to implement forms more easily and quickly with Print Forms and Interactive Forms based on Adobe software. ? Most self-services are now available based on Web Dynpro, SAP’s new user interface technology. This technology, for example, allows for modification-free screen adaptation. ? Improves employee productivity ? Allows for lower form implementation costs ? Provides easier adaptation at less cost and improved usability The SAP Employee Self-Service Application ? A new home-page concept provides an overview of all areas where employee self-services are offered (work time, for exam- ple) and can also be used to navigate to self-services. ? Area pages (such as the career and job page) can be accessed from the employee self-service home page and contain links to applications as well as a brief description of the respective area. ? Clock-in/out correction allows employees to correct their own time postings and account assignments and provides optional control functions and mass approval for managers and time administrators. ? Improves employee productivity ? Minimizes the administrative burden for time administrators (such as secretaries) Figure 3: Production Supervisor (Work Center for the Work “Overview”) in mySAP? ERP 2005 11 New or Enhanced Functionality Business Benefits Self-Service (continued) ? Equipment card enables employees to monitor their own equipment and allows them to initiate repair requests for their own equipment. ? Employee bank information is extended by the International Bank Account Number. ? Employees can change their own communication and office data within the “who is who” service and select a person directly from an organizational chart to get personal details. ? Reduces the administrative burden to track and maintain working equipment used by employees ? Decreases cost of salary transfers to foreign banking organizations ? Reduces the administrative burden of maintaining personnel data ? Ensures more accurate employee information The SAP Manager Self-Service Application ? The manager self-service tool set has been redesigned to be fully consistent with the role-based control and work center paradigm, providing distinct work centers for team, budget, project, and planning as well as a work overview to sup- port managers in these areas of responsibility. ? For all roles where work centers are offered (including manager self-service), the new portal content directory–based service map offers an intuitive and guided approach for the user – especially when using new applications. ? Team viewer has been extended to support managers in: – Maintaining position requirements – Maintaining a successor for his or her position – Triggering personnel change requests – Performing self-service activities on behalf of their employees – Performing recruiting activities such as initiating requisition requests and assessing candidates (integrates with the SAP E-Recruiting application) – Overseeing the current headcount situation within their areas of responsibility ? Self-service for compensation planning and approval are now available in SAP standard front-end technology (Web Dynpro). ? Equipment management provides information about physical inventory in the area of responsibility as well as monitors to track cost centers and internal orders. ? Approval processes replace paper forms with electronic approval processes for shopping carts, purchase requisitions, purchase orders, and travel requests. ? Express planning is a self-service application where users can work at their own pace with minimal training effort. The plan- ning guidelines are included for reference into this single point of entry for planning, which integrates different applications and services and includes a structured presentation of various tasks in a guided procedure (“road map”). Users can enter this application directly through e-mail or work item. Organizations can integrate their own custom-developed applications and services. ? Supports managers in their proactive role even more effectively ? Provides managers with better control and transparency on overall team, project, and budget situation as well as staffing process ? Improves productivity and reduces training needs ? Helps to significantly accelerate approval processes and lower administrative costs ? Enables easier adaptation at less cost and improved usability ? Supports equipment life-cycle management ? Ensures awareness of equipment assigned to transferred employees ? Supports managers in proactively keeping track of their area of responsibility ? Makes budgeting and planning process more efficient by including a status overview for planners, such as managers, and for planning supervisors, such as business unit analysts ? Increases user productivity by enhanced planning coordination and monitoring ? Supports setting up collaborative planning rounds 12 End-User Service Delivery (continued) New or Enhanced Functionality Business Benefits Self-Service (continued) Project self-service relies on Collaboration Projects (cProjects) suite, providing an appealing, easy-to-use interface for project leads and project team members. Please refer to the end of this table (last paragraph in “Support for Role-Based Access”) for further information. Management of Employee Interactions Employee interaction center (EIC) helps employees and HR staff interact more efficiently through a central point of contact for HR requests. Employees have access to a single, unified source of information, and EIC agents and HR staff can easily access information and tools to deliver consistent, personalized services across multiple communication channels. EIC functionality includes: ? Contact management provides functions that allow HR staff to manage and process all information about employee requests as well as track contact history. ? Activity and case management enables HR staff to record and process each procedural step and follow-up activity for individual employee requests. In addition, it helps HR staff to combine related requests into a single follow-up procedure, which improves overall staff efficiency. ? Knowledge management provides the HR department with enterprise intelligence to improve contact-handling efficiency and expedite resolution of employee requests. ? Analytics provides analytical functions that help managers identify opportunities to increase efficiency and employee satisfaction, optimize the interaction center’s efficiency, evaluate return on investment (ROI), and ultimately reduce costs. ? Workflow management supports escalation and routing rules to help managers define which supervisors, support staff, and departments should receive various incoming requests. This functionality ensures that service commitments are fulfilled as quickly and efficiently as possible. ? Alerts and scripting provide functions that notify HR staff of open requests and guide them through business processes that comply with corporate standards. ? Authentication call of self-services allows EIC agents to execute self-service transactions on behalf of employees. ? Increases employee satisfaction as it makes it easy to ensure that each employee receives prompt, personalized answers to issues or requests, resulting in increased employee satisfaction. It also ensures that HR employees have access to the tools and informa- tion needed to deliver high-quality service. ? Reduces HR costs and increases productivity by providing HR generalists with the tools they need to resolve issues quickly on first contact. As a result, HR employees have more freedom to focus on strategic, value-added initiatives with a greater potential impact on the bottom line. ? Improves service levels as it provides managers with tools to monitor the contact-center environment in real time, allowing them to react immediately to meet business needs and define the way that information requests are routed through the enterprise. This increased insight and responsiveness helps organizations maintain the highest service levels for HR. 13 New or Enhanced Functionality Business Benefits Support for Role-Based Access Business Unit Analyst Role (Financials) ? Provides monitors to track aggregate key figures for a business unit and identify budget overruns, postings that exceed a given threshold, and unusual postings ? Offers hierarchical reports to help visualize the relationships between profit centers, cost centers, and orders in the business unit and to facilitate navigation through large numbers of items, such as information for multiple cost centers Compensation Specialist Role (Human Capital Management) enables: ? Developing, promoting, and administering effective compensa- tion policies aimed at increasing the company’s competitiveness on the labor market ? Administering long-term incentive plans ? Setting up and working on budgets for compensation reviews such as merit increases, bonuses, variable pay, and stock options ? Surveying salary, including participating in salary surveys, importing both job and salary data from different salary survey providers, salary benchmarking by matching internal jobs with external jobs, aging and weighting of market data, and defining market composite results HR Administrator Role (Human Capital Management) ? Provides central point of access to all relevant information and tools that support administration employees ? Offers enhanced master-data maintenance with faster navigation ? Allows customization of the employee profile screen for profes- sional users, granting access to detailed employee information ? Offers fast content search through high volumes of employee data ? Enables collaboration with the entire organization through real integration ? Includes universal work list with work items classified according to specific tasks, priorities, approvals, pending items, or even automatic responses ? Includes a process browser for detailed search on closed and ongoing processes ? Enables monitoring of processes In general, role-based functionality within mySAP ERP enhances usability and employee productivity by providing the following advantages: ? Central point of access based on user roles ? Relevant budget, process, and decision information – always available for faster decision making ? Information “pushed out” to ensure that employees are better informed ? Integrated knowledge management, which helps employees find relevant structured and unstructured information more quickly ? Provides central role for the implementation of a shared-service center concept in HR ? Facilitates work for HR administrators and makes them much more productive through improved user interface ? Provides valuable insight into performance and costs of HR processes ? Allows HR administrators to better support occasional roles, such as manager and employee 14 End-User Service Delivery (continued) New or Enhanced Functionality Business Benefits Support for Role-Based Access (continued) Buyer Role (Procurement and Logistics Execution) ? Provides overview of the current workload ? Provides decision support ? Executes corresponding functions such as source determination, purchase requisition conversion, and creation of requests for quotation ? Supports purchaser’s responsiveness on supplier’s online order acknowledgements in a workflow-driven way ? Offers access to reporting functions Invoicing Clerk Role (Procurement and Logistics Execution) ? Enables monitoring of electronically incoming invoices and associated exceptions (front end of the invoice management application) ? Offers various workflow and communication functions to resolve exceptions that can occur during invoice preprocessing ? Provides access to appropriate reporting functions such as excessive invoice documents or invoice document overview Supplier Access Role (Procurement and Logistics Execution) ? Provides self-service functions to suppliers without their own system, thereby streamlining procurement processes and information exchange ? Gives suppliers instant access to documents, such as requests for quotation, purchase orders, shipping notifications, and confirmations and invoices; supports associated activities and reporting requirements Plant or Production Manager Role and Production Supervisor Role (Product Development and Manufacturing) ? Provides overview of the current status of key performance indicators ? Delivers exception alerts ? Offers real-time event management ? Enables easy access to integrated decision support Maintenance Technician Role (Product Development and Manufacturing) ? Provides overview for orders and notifications, including technical-object details ? Enables technical structure view with the option to access further relevant information and services ? Offers recording of orders, notifications, and confirmations, including after-event order recording for emergency work ? Provides easy access to analyses and reporting ? Shortens lead times and increases supply chain efficiency and delivery quality ? Streamlines invoice verification by delivering a high degree of process automation ? Improves supplier collaboration and speeds up procurement processes even if suppliers do not have an ERP system ? Supports the execution of production plans on time and within budget by providing the means to detect and resolve production problems quickly and proactively ? Reduces time spent for information exchange and improves quality of maintenance work 15 New or Enhanced Functionality Business Benefits Support for Role-Based Access (continued) Development Collaboration Role (Product Development and Manufacturing) ? Provides a work center for collaboration in product development and design ? Supports communication with external partners and suppliers, including data export and import to the Collaboration Folders (cFolders) application and browsing of the product structure ? Integrates cFolders notifications into the work center’s univer- sal work list Internal Sales Representative Role (Sales and Service) ? Provides overview of the actual workload and priority of routine tasks ? Executes corresponding functions such as maintenance of customer master data and additional sales data; preparation and processing of inquiries, quotes, sales orders, and sales contracts; billing process monitoring; and report and analysis preparation ? Pushes critical business processes such as “incomplete sales orders” or “expiring quotations” directly to the desktop ? Enables access to relevant reporting functions Quality Inspector Role (Corporate Services) ? Offers work lists for inspection lots, notifications, tasks, and production orders, including technical object details ? Allows recording of results, defects, notifications, and confirmations ? Provides easy access to analyses and reporting Project Self-Service Work Center (Corporate Services) for project leads and project team members: ? Provides an overview of relevant project-related information and key figures ? Offers work lists for projects, tasks, checklist items, and issues; enables triggering of relevant self-services; and grants direct access to cProjects ? Covers most common cProjects processes with self-service functions, such as maintaining project tasks and open issues, assigning persons to projects and tasks, and confirming tasks and checklist items or issues ? Enables easy access to project evaluations and financial reports ? Improves partner and supplier relationships ? Improves customer service ? Minimizes cost of defects and product recalls by significantly improving the visibility of quality exceptions and enabling a rapid and appropriate response ? Reduces cost of quality compliance due to integrated functions for corrective and preventive action and documentation ? Increases transparency of project performance and issues ? Speeds up administrative work around projects Analytics Analytical functions within mySAP ERP are a major reason for upgrading from SAP R/3 to mySAP ERP: ? Strategic enterprise management is part of mySAP ERP, extending the ERP scope to deliver strategic insight for more assured decision making. ? Analytics are embedded into ERP processes, shortening cycle times and increasing process quality. ? New analytical applications allow for better decision support by providing simulation, planning, and forecasting functions. ? New deployment options allow running SAP ERP Central Component (the technical successor of SAP R/3 Enterprise) and the SAP NetWeaver Business Intelligence component on one server, thereby reducing total cost of ownership for the system landscape. Besides the new and enhanced analytical functions described below, mySAP ERP 2005 takes advantage of enterprise services architecture by desegregating analytics and embedding analytical tools and dashboards within actual applications. This approach lets organizations eliminate any delay between insight and action. By presenting analytical information within the context of business processes, users can react immediately to the information and take the necessary steps to correct or optimize a work stream. As one result of this approach, all roles described in section “End-User Service Delivery” now contain actionable analytics. 16 Figure 4: HR Administrator (Work Center Overview) in mySAP? ERP 2005 17 Strategic Enterprise Management New or Enhanced Functionality Business Benefits Strategy Management The balanced scorecard briefing book in mySAP ERP is a new balanced scorecard tool that makes it easy to create custom reports that summarize specific balanced scorecard data for different audiences: ? Users simply drag and drop desired data from the balanced scorecard into the briefing book, tailoring contents for particular audiences as needed while keeping other balanced scorecard data confidential. ? Briefing book data can be downloaded onto a PC and forwarded to the relevant parties either as a PDF file or as a printout. ? Options for formatting the contents professionally use standard data transfer protocol software to process the XML data. ? An easy-to-use intuitive environment helps users create the briefing book structure. ? Users can structure the contents flexibly to meet unique requirements. ? Users can create different briefing books quickly and easily by copying an existing briefing book and adding the required adjustments. ? Enables readers to see only what is of interest to them as knowledge workers or managers, even when they are offline ? Combines data from different balanced scorecards to meet the individual demands of the recipient Strategic Statutory and Management Consolidation Integration of Statutory and Management Consolidation ? Delivers time- and version-dependent assignment validity from statutory and managerial consolidation units ? Provides specific definition of first consolidation or divestiture accounting dates through consolidation unit combinations ? Supports customer-defined attributes of consolidation unit combinations Consolidation of Investments ? Supports goodwill in local currency ? Provides automatic treatment of method change between equity method and purchase method ? Supports organizational changes ? Enables amortization and write-up of investments ? Provides enhanced flexibility regarding the treatment of differences in acquisitions ? Allows automatic activation and depreciation of hidden reserves and contingencies ? Delivers new alternative posting logic for divestitures The new functions and enhancements to statutory and management consolidation provide business value in a number of ways: ? Support is increased for the full-integration approach to statutory and management consolidation. ? Usability is enhanced significantly with new ease-of-use features, such as an ergonomic user interface for manual posting system; the ability to personalize the consolidation workbench; clear definitions of options when customizing; and where-used lists for consolidation units and financial statement items when customizing selections. ? TCO is reduced because time-consuming reconciliation processes can be omitted, and new data collection techniques provide links to SAP and non-SAP systems without the need for custom programming. ? New functions in consolidation of investments enable an increased level of automation during the creation of consolidated financial statements on the basis of international accounting standards or international financial reporting standards (IAS or IFRS) or U.S. GAAP, resulting in reduced closing times. ? Improved usability and simplified system configuration result in higher user acceptance and faster implementations. 18 Strategic Enterprise Management (continued) New or Enhanced Functionality Business Benefits Strategic Statutory and Management Consolidation (continued) Interunit profit elimination in inventory and fixed assets enables elimination of interunit profit in: ? Transferred assets, including the treatment of transfer chains ? Inventory supply chains, considering all interunit profit along the supply chain within a consolidation group ? Inventory in upstream, downstream, and horizontal transactions, also distinguishing between “real” at-equity units (affiliated companies) and nonconsolidated subsidiaries Data Collection Functions ? Enable users to read data from a business warehouse data matrix ? Provide support for reading master data from a so-called InfoObject (the smallest information objects in the SAP Business Information Warehouse (SAP BW) component), either from its physical storage in SAP BW or through a remote connection from its original location in SAP R/3 or SAP ERP Central Component ? Support conversion of data from business warehouse data matrix or flat file ? Provide business add-in in uploads (Note: This means that in addition to pure mapping, customers can use their own logic to examine or modify data records that have been read before they are written to the system.) ? Offer copy functionality to take over reported financial data and standardizing entries from a given version or group currency within a data collection task ? Deliver improved ease of use and functionality for manual data entry Reporting features provide: ? Configurable task logs ? Simpler configuration of reporting for data matrices ? Database list with report logic ? Extensible Business Reporting Language (XBRL) outbound interface (support for multiple periods) 19 New or Enhanced Functionality Business Benefits Migration Support for Business Consolidation Improved migration support from the enterprise control- ling component for consolidation (referred to as EC-CS) to the SAP Strategic Enterprise Management (SAP SEM?) application is provided by three migration features that support a smooth data update procedure: ? Enterprise Controlling – Consolidation (EC-CS) provides download reports to create flat files for chart of accounts, financial statement items and hierarchies, subassignments and consolidation units, consolidation groups, and hierarchies that can be uploaded with standard methods for master-data file upload in SEM-BCS. ? The posting logic for statistical items in SAP SEM differs from the one in EC-CS. Consolidation of investments – used to pre- vent the overstatement or duplication of assets in consolidated financial statements by eliminating investments against equity – features a recalculation of statistical items in SAP SEM based on historical data from EC-CS. Therefore, it will be possible to process consolidation continuously in SAP SEM after migration. ? Flexible file upload of SEM-BCS is enhanced to read transaction data files in formats created by periodic extract or special ledger rollup. Reduces migration effort and cost Financial Analytics New or Enhanced Functionality Business Benefits Cost Center Planning and Budgeting Express planning is a self-service composite application combining various services into an easy-to-use planning framework for occasional users such as line managers: ? Supports the technical preparation of planning, communica- tion, execution of planning, and review and release of planning details ? Includes planning guidelines for reference ? Provides status overview for planners and planning supervisors ? Replaces currently used reports, presentations, e-mails, workflow, planning tools, and specialized transactions Planning Coordination and Monitoring ? Supports planning process organization through collaboration rooms ? Provides monitor with status information on the progress of planning tasks ? Offers links to directly jump into a single planning task of a single planning user, for example, for inserting comments or approving certain parts of the planning ? More efficient budgeting and planning process ? Increased productivity mySAP ERP 2005 comes with more than 100 analytical applications in all solution areas that utilize a rich and highly interactive user interface to deliver information required by business users in roles throughout the organization. In addition, 20 Operations Analytics New or Enhanced Functionality Business Benefits Maintenance Cost Budgeting Maintenance Cost Budgeting ? Allows definition of a maintenance budget based on data residing in the ERP system ? Enables automated and standardized budgeting processes ? Supports in planning the budget on appropriate levels, based on the desired budget strategy ? Allows to approve or reject budget proposals, trigger workflows, and perform reporting tasks ? Automates and standardizes budgeting processes ? Helps businesses reduce maintenance costs Incentive and Commission Management Compensation Results Analysis ? Provides a variety of data analysis tools (including drill-down reports) that allow employees to perform comprehensive analyses of compensation programs and their results ? Offers additional business warehouse extractors for enhanced analytical reporting through SAP NetWeaver Business Intelligence, thus enabling better compliance to organizational compensation policies ? Commission administrators benefit from an immediate overview of changes to incentive compensation plans and their impact on financial calculations. ? Management groups gain insight into the financial impact of incentive plans and their effect on the performance of commission recipients. easy-to-use design environments provided with mySAP ERP through SAP NetWeaver empower business users in their respective lines of business to create, modify, and deploy analytical applications. New or Enhanced Functionality Business Benefits Credit Management Credit Limit Management and Control ? Offers a portal for credit managers to view, analyze, and change current credit limits for customers ? Enables access and visibility to customer credit scores according to externally or internally created standards ? Delivers intuitive view of customer credit-risk levels and order limits ? Triggers notification process if an exception is needed ? Provides list of documents that are blocked due to their credit status as well as automated work lists for credit limit checks triggered by sales orders and delivery documents Credit information support helps credit managers in determining and managing the external and internal credit information on customers – information used primarily to set up input parameters for the credit rules engine in mySAP ERP, which can make credit decisions or automatically calculate credit limits. Credit Rules Automation ? Allows organizations to apply or change credit rules to groups of customers ? Enables automated calculations of credit limits based on new standards or changes to external standards Credit Decision Support ? Helps credit managers visualize customer credit risks and limits ? Allows credit managers to make decisions faster and with greater certainty through improved reporting and scoring functions. ? Greater productivity of credit department ? Improved ability to monitor credit risks along the entire logistical supply chain ? Improved ability to tailor credit policies to individual customers ? Enables companies to generate credit standards using external data ? Supports development of industry-specific credit rating system ? Enables credit department to change standards and react to market conditions more quickly ? Enhanced customer care ? Reduced customer credit risks ? Reduced levels of bad debt or default accounts Financials mySAP ERP Financials provides organizations of any size and in any industry a complete platform for effective financial management. The solution is an essential building block of your enterprise software business strategy – providing a solid founda- tion to expand your business, gain insight into every aspect of the enterprise, and ensure that you practice compliant and transparent accounting and financial reporting. 21 Financial Supply Chain Management Many organizations are exploring new business processes to reduce inefficiencies in their finance operations, particularly in the area of financial supply chain management. mySAP ERP supports the following set of collaborative financial processes. 22 Financial Supply Chain Management (continued) New or Enhanced Functionality Business Benefits Collections Management Collections Management ? Enables greater productivity through a single view of customer accounts-receivable status ? Permits individual collections managers to set promise-to-pay flags that include automatic workflow triggers if dates have passed ? Offers an improved invoice history overview ? Simplifies the task of applying credits to open invoices or splitting payments to multiple invoices ? Enables the definition of organization-specific rules for collecting receivables and determining the selection and prioritization of customers to be contacted ? Presents a work list with prioritized accounts to collections specialists automatically, based on defined collection rules and strategies ? Permits collections specialists to remove customers from their work list until the resubmission date ? Allows collections specialists to document customer contacts and provides an overview of past contacts to facilitate contact preparation and optimize contact results ? Reduced days sales outstanding ? Improved liquidity and liquidity forecasting ? Flexibility to collect receivables using different collection methods ? Increased efficiency in collecting receivables that must be handled in special ways ? Improved customer relationships resulting from customer- oriented receivables management ? Ensured collection strategy execution with automatic creation of work lists ? Improved user productivity as collections specialists are freed from the manual selection and prioritization of customers to be contacted ? Reduced preparation time for customer contacts In-House Cash Management In-House Cash ? Provides integration with cash management and treasury management features ? Offers new payment orders, flexible routing, and new currency conversion functions ? Supports international payments with real-time exchange-rate information ? Enterprise services architecture–enabled payments and account statements between subsidiaries and in-house cash center ? Reduced complexity of intercompany netting and payments ? Accurate current accounts forecasting for cash managers ? Easy integration of intercompany payments with the treasury management platform ? Flexible payment-routing functions that can be adapted to business needs ? Reduced TCO by helping organizations to easily integrate non-SAP systems and convert other payment formats Dispute Management Dispute Management ? Enables enterprises to process receivables-related disputes ? Supports restructuring and streamlining the dispute resolution process and reduces processing time with an electronic communication process ? Integrates with accounts receivable, sales and distribution, the mySAP Customer Relationship Management (mySAP CRM) solution, and the SAP Business Workflow tool (including e-mail notification) ? Reduced days sales outstanding ? Reduced days deduction outstanding ? Improved liquidity and liquidity forecasting ? Accelerated processes through automation ? Improved customer relationships through targeted inquiries and fast processing of complaints ? Reduced costs with early identification and notification about possible problems in the logistics value chain or internal processes 23 New or Enhanced Functionality Business Benefits Dispute Management (continued) ? Supports automatic creation of dispute cases for underpayments generated by the electronic account statement ? Offers a correspondence function that enables standard letters, faxes, and e-mail to be sent automatically ? Supports various communication channels including the SAP Biller Direct application and the SAP Collections Management application Electronic Bill Presentment and Payment Electronic Bill Presentment and Payment ? Enables companies to deploy Web-based billing, invoicing, account management, and payment services over Internet portals ? Supports the complete communication process from bill presentation to discrepancy handling and final reconciliation ? Enables collaboration with customers and trading partners without requiring paper-based and EDI-based payment methods ? Provides a portal for suppliers to view invoices and payments ? Supports Internet-based authorization of automatic payment debits ? Provides integration with the SAP Dispute Management application, thereby allowing users to upload or download business documents ? Offers various options for filtering invoices, such as by sold-to party ? Provides a company administrator mode that allows company administrators to create and maintain their users themselves ? Reduced billing and settlement transaction costs ? Improved payment and exception processing ? Improved cash flow ? Integrated data both in accounts receivable and accounts payable, eliminating the need to reenter information ? Reduced accounting errors on the customer side ? Reduced processing time on the supplier side ? Improved dispute resolution procedure Treasury and Risk Management Treasury and Risk Management ? Improves compliance with IFRS and financial accounting standards (FAS), including hedge accounting, and supports the U.S. Sarbanes-Oxley Act and German regulations ? Adds new products for foreign exchange trading ? Offers new instruments for debt management and asset-backed securities ? Provides significantly improved reporting and hedge-accounting functions ? Improved corporate controls by integrating treasury reporting with finance and accounting ? Greater array of transaction support ? Elimination of need to support separate treasury management system from finance and accounting New or Enhanced Functionality Business Benefits Financial and Managerial Accounting New and enhanced features of the new general ledger include the following. Data Structure Standardization ? Provides single data structure across various ledgers ? Offers simplified approach to extend general ledger as needed ? Lowers the cost of expanding general ledger and training accounting staff ? Smoothes transition path from existing general ledger General Ledger Extensions ? Allows organizations to add dimensions to general ledger as business evolves ? Offers extensible general ledger that uses standard data structure ? Maintains existing functionality from current general ledger Online Splits ? Simplifies the generation of financial statements and reports on segments or dimensions that are unique to an industry ? Eliminates the need for businesses to create new or special ledgers for each view of the company by allowing documents to be balanced online automatically for any desired “view” of the company ? Offers functionality to simulate the result of an online split, which can be previewed and analyzed before a document is posted ? Allows posted documents to be analyzed with regard to the configuration that led to the resulting split Real-time integration automatically reflects any postings from management accounting (cost center allocations, for example) in the general ledger at the appropriate level of detail. With its new technical architecture, the general ledger enables enterprises to do the following: ? Improve financial reporting transparency ? Reduce reconciliation and internal communication expenses ? Have more time for analysis with support for legal, segment, and management reporting using one consistent, multidimensional database It enables finance departments to meet regulatory and compliance rules and to adapt accounting practices according to industry requirements. Financial and Managerial Accounting Rising demands for stringent corporate governance and accu- rate financial statements have forced organizations to improve the efficiency and effectiveness of their financial and managerial accounting practices. To help customers achieve these goals, mySAP ERP includes the following new functions. 24 New or Enhanced Functionality Business Benefits Financial and Managerial Accounting (continued) Parallel Accounting ? Provides additional functionality for parallel ledgers to reduce costs ? Enables organizations to use identical interfaces and functions to process all ledgers in the general ledger and update ledgers individually or simultaneously Period-End Closing Fast-Close Support ? Provides a simplified overview of the entire closing process through a closing cockpit for period-end closing of individual financial statements ? Offers intuitive user interface to schedule and begin the closing process ? Enables reconciliation of open items and intercompany balances in general ledger accounts ? Supports loading of intercompany data from non-SAP systems through a new interface The reporting tools available in the audit information system support the new general ledger. ? Reduced costs through automated processes, user collaboration support, and easy access to all closing activities ? Improved employee productivity and reduced costs ? Significantly reduced time to reconcile intercompany activities ? Reduced errors through transparency and support for compliance through a concise overview of closing status and remaining tasks ? Improved business and tax audit capability Asset Accounting Depreciation of Fixed Assets Offers a completely automated depreciation of fixed assets, even for customers from countries with special requirements in this area, such as Japan and Russia Greater flexibility and easier compliance for customers in Japan and Russia Financial Accounting Period-End Close – General Ledger Supports the migration from “classic” general ledger to “new” general ledger Reduced migration effort and cost 25 New or Enhanced Functionality Business Benefits Management of Internal Controls Management of Internal Controls ? Supports documentation, assessment, and testing of internal controls needed to fulfill the requirements of sections 302 and 404 of the Sarbanes-Oxley Act as well as the Committee of Sponsoring Organizations of the Treadway Commission (COSO I) framework and other internal control initiatives ? Provides scheduling functionality and workflow-supported issue-remediation functions ? Includes predefined and easily customized management reports, ranging from a high-level overview of the status of internal control to detailed analyses ? Supports customer-defined fields for reporting purposes Import of Third-Party Tests ? Supports the direct import of third-party test results of control effectiveness (from a separately licensed testing tool) to support the testing required by the Sarbanes-Oxley Act ? Enables authorized users to document the results of their control-effectiveness tests, following a predefined testing procedure ? Provides master data structures that facilitate data mapping with dedicated control testing environments Upload of Master Data Supports upload of process- and control-related documentation, which is required for Sarbanes-Oxley section 404 compliance, from other applications, such as Microsoft Excel, using a standardized XML interface Mass Assignment of Testers Supports mass assignment of testers to controls (test objects) ? Reduced internal communication and administration expenses related to compliance documentation ? Streamlined assessment procedures and tracking of issue remediation, which reduces costs and improves service levels ? Improved management reporting that highlights issues prior to legal and regulatory reporting deadlines to reduce the risk of noncompliance ? Decreased cost of compliance since test logs are automatically created and filled ? Lowered TCO by providing standardized integration support to dedicated testing environments ? Reduced implementation time as available master-data elements can be reused ? Reduced migration costs by providing a standardized XML interface for legacy integration ? Decreased cost of compliance since the time-intensive manual assignment of testers can be avoided Corporate Governance One of the challenges finance organizations are facing today is complying with an increasing number of national and interna- tional legal requirements for financial reporting and corporate governance. Statutes like the Revised International Capital Framework, known as Basel II, and the Sarbanes-Oxley Act increase workloads and operational costs in finance organiza- tions. mySAP ERP provides comprehensive functions that reduce the overall cost of managing internal controls and ensure adherence to standards and corporate governance laws. 26 27 New or Enhanced Functionality Business Benefits Management of Internal Controls (continued) Audit Information System (AIS) Interface Enables authorized testers to document the results of their control effectiveness tests ? Lowered cost of testing-control effectiveness, a Sarbanes-Oxley Act requirement ? Reduced time and effort required by testers due to preconfigured link to AIS that eliminates lengthy navigation Audit Support Audit information support offers new roles that support two different business audit approaches: ? An account-oriented approach provides a balance sheet, an income statement, and segment reporting as well as internal activity allocation and a consolidated financial statement. ? A process-oriented approach supports both order-to-cash and purchase-to-order processes. ? Accelerated auditing by providing functionalities for system and business audits ? Reduced risk of noncompliance by including a drill-down audit trail to the document level, which enables the identification of exceptions ? Enhanced user productivity by displaying structured reporting controls ? Significantly reduced costs associated with auditing SAP software Whistle-Blowing Support (Sarbanes-Oxley Act) Support for Whistle-Blower Complaints ? Helps companies comply with section 301 of the Sarbanes-Oxley Act by supporting the complete whistle-blowing process ? Provides a comprehensive complaints form that customers can configure according to their specific requirements and internal policies as well as U.S. federal laws Provides a low-cost way for companies to fully address the legal requirements of the Sarbanes-Oxley Act and reduce the risk of noncompliance New or Enhanced Functionality Business Benefits Recruiting Talent Relationship Management ? Supports talent management with functions for sourcing, evaluation, hiring, reassignment, and retention ? Enables recruiters to proactively cultivate specific pipelines of talents suitable for particular roles within the organization ? Provides candidate questionnaires allowing recruiters to collect valuable information about the qualification of talents ? Offers enhanced search-and-match functions ? Supports clear classifications of candidates by ranking ? Includes active talent-bonding features such as event invitations and newsletters Applicant Tracking Provides comprehensive functionality supporting: ? Candidate rankings ? Candidate and application administration ? Handling of unsolicited applications Includes self-service functions for managers allowing them to: ? Create and submit job requirement profiles for approval supported by automatic entry suggestions for qualifications and position data ? View candidate short lists, profiles, and application data ? Respond to questionnaires about candidates Analytics ? Provides a broad range of reports and analyses, including standard reports, ad hoc reporting, and evaluations based on key performance indicators as well as important figures such as time to hire and time to offer versus acceptance rate ? Enables the analysis of various sourcing strategies and alternative recruitment concepts ? Sophisticated talent relationship management that helps organizations find the staff they need quickly and maintain long-term relationships ? Enhanced insight into optimized recruiting processes ? Faster and more efficient hiring processes ? Reduced administrative and operational costs ? Improved internal and external corporate image that attracts higher-quality candidates and helps retain talented employees ? Automated, streamlined processes that make it easy to outsource specific recruitment tasks or the entire recruitment function ? Reduced paperwork and duplicate efforts through self-services and workflow-supported processes ? Increased ROI through ability to evaluate the success of recruitment activities ? Greater ability to demonstrate the contribution of the recruiting function to the organization’s success Human Capital Management The mySAP ERP Human Capital Management (mySAP ERP HCM) solution delivers leading-edge HCM functions that provide human resources professionals, executives, and line managers – at organizations of all sizes and in all industries – with comprehensive functionality. It combines strategic HCM features with workforce analytics, allowing organizations to benefit fully from human-capital strategies and programs and to measure their contribution to the bottom line. Talent Management mySAP ERP provides functions that automate and optimize all strategic employee-development processes “from hire to retire,” including recruitment, education, career management, succession management, performance management, and compensation management. As a result, organizations can find the best people, develop and leverage their talent, align their efforts with corporate objectives, maximize the impact of training efforts, and retain and promote top performers. 28 29 New or Enhanced Functionality Business Benefits Recruiting (continued) Integration Within mySAP ERP ? Enables quick import of new-hire data into mySAP ERP HCM ? Integrates job boards using the SAP NetWeaver Exchange Infrastructure component to quickly generate postings to multiple Web-based external channels Managing Succession Planning Web-based support for succession planning enables the identification of key positions and the targeting of specific employees as potential successors based on a variety of criteria. ? Minimized business disruption by prompt filling of key positions ? Increased user productivity through new Web-based interface Managing Enterprise Learning Integration with the SAP NetWeaver platform: ? Provides enhanced collaboration features for online learning – Synchronous collaboration, including instant messaging, chat, shared contact lists, application, and desktop sharing – Asynchronous collaboration, including team news, team calendar, team tasks, and document sharing ? Enables structured searches in the Knowledge Management component of SAP NetWeaver Content Integration ? Provides enhanced options for integrating services from external service providers, such as: – Receiving learning progress information from external content providers – Using synchronous learning events delivered by third-party conferencing and classroom applications. Learners can register for and participate in externally hosted online events directly through the learner portal. ? Enables training administrators to coordinate, integrate, and communicate with external and internal content providers through a Web-based interface ? Greater employee value to the business by linking development plans and employee learning objectives with strategic business objectives ? Increased employee motivation with extended learner collaboration and value-added services such as online learning events that make learning more effective ? Lower total cost of ownership with a complete, comprehensive solution for blended learning that integrates all components into a single product 30 Talent Management (continued) New or Enhanced Functionality Business Benefits Managing Enterprise Learning (continued) ? Allows training administrators to customize teaching and learning activities by using Web services to integrate external functions and services into the learning platform Content Authoring ? Simplifies authoring processes and includes separate views for subject matter experts and instructional designers ? Speeds the development of new course material via a learning strategy preview and wizards, including a configuration wizard and an import wizard ? Enables authors to perform searches in Knowledge Management to easily find and reuse content New portal layout for people with disabilities is compliant with section 508 of the U.S. Americans with Disabilities Act. It offers intuitive navigation and fast response speed. Correspondence management provides enhanced functions such as multiple delivery methods (sending notifications in PDF format, for example) and enhanced process support for follow-up activities More flexible curriculum management allows sequencing of Web-based training, for example. ? Greater productivity with targeted authoring processes ? Faster development of new course materials ? Greater ROI by facilitating the reuse of content 31 New or Enhanced Functionality Business Benefits Managing and Aligning Employee Performance Deepened integration with employee development applications links business objectives and employee objectives directly to employee development and training management applications. Performance Appraisal Management ? Allows appraisal documents to reflect organizational changes such as new managers or changes to the validity period of the appraisal document ? Allows defining mandatory-process participants ? Allows restricting access to objectives per appraiser, enabling refined access control on appraisal documents that involve multiple appraisers; allows restricting access to elements the appraised employee is not supposed to see before final evalua- tion and calibration have been performed, such as potential ratings ? Enables users to draft notes to appraisal document contents during the performance review process, which can be marked as “private” to prevent other users from seeing them ? Allows, or even requires, the entry of explanatory notes when changing the status of a document, for example, from “review” to “final,” thereby enabling organizations to enforce business rules, such as requiring documentation to support compensa- tion changes resulting from an appraisal ? Offers offline functions for objective setting and appraisal document editing, enabling users to work on those documents offline, such as when traveling, and then synchronizing their entries when online again Attachment processing ensures that documents associated with employee appraisals, such as documentation of a certain achievement or notes taken during a performance feedback session, can be added, displayed, and deleted in a Web-based environment. Appraisal calibration displays comparative overviews of appraisal results as reports and graphics. Template Management ? Allows linking of different appraisal templates to different groups of employees ? Provides appraisal templates that can be customized depending on the job, personnel area, subarea, or home country (in the case of global companies) of the employee being appraised ? Improved employee performance by integrating team and individ- ual goals with corporate goals and strategies ? Greater ROI on employee training ? Increased employee motivation and greater employee satisfaction through standardized employee reviews and appraisals, improved quality of appraisals, and performance-oriented compensation New or Enhanced Functionality Business Benefits Employee HR Data Administration Standardization of HR Processes and Services ? Provides new preconfigured templates for the most important HR processes such as hiring, organizational change, maternity leave, birth of a child, and termination, which can be adapted easily to an organization’s individual business practices (as they are based on Adobe Interactive Forms) ? Supports cross-role processing, approval handling, attachment handling, automatic transfer of process data to digital personnel file, and adaptation to user type, such as occasional, professional, and so on ? Includes process browser for detailed search on ongoing and closed processes ? Integrates with SAP Employee Self-Service, SAP Manager Self-Service, and the SAP Interaction Center application ? Includes new portal role for HR administrator (see section “End-User Service Delivery”) ? Increased user productivity due to very flexible process flows, very flexible user interfaces, and preconfigured templates ? Processes can easily be adapted to the needs, expectations, and goals of the organization and the user by providing the user with a small process-specific form that contains only the relevant fields. ? Increased responsiveness to changing business demands Time and Attendance Management New team view for time manager’s workplace shows multiple employees’ time data over the selected period in a list-oriented view Simplified planning of shifts and vacation by providing the time administrator with a quick overview of all important time information for the entire team Managing Payroll and Legal Reporting United States Payroll Tax Reporting Previous solution is replaced by an Adobe Form Designer tax form configuration. Russian payroll is now an integral part of mySAP ERP HCM. ? Easier creation and modification of standard tax forms, including the W-2, state unemployment, and all local forms, thereby significantly reducing the need for IT support ? Support for local Russian requirements for payroll accounting without additional enhancements or modifications Workforce Process Management mySAP ERP handles complex payroll processes and supports current legal regulations for more than 50 countries worldwide, ensuring compliance with regulatory requirements for report- ing purposes. The solution is based on one uniform architecture that provides the flexibility to cover local legal, regulatory, and business requirements, enabling a truly global business. 32 New or Enhanced Functionality Business Benefits Requisition Management Self-service requisitioning empowers employees throughout the enterprise to create and manage routine requisitions by themselves, including self-service requisitions for maintenance, repair, and operations material and services. Catalog content management in mySAP ERP helps accelerate ordering for frequently ordered services, projects, and materials, and improves compliance with company purchasing rules. ? Improved procurement speed and responsiveness ? Reduced administrative burden to enable purchasing department to focus on strategic tasks Management of External Resources Service procurement covers the management of external resources, starting from the initial requisition until the monitor- ing of progress and cost of service. It supports line managers or project managers in their job to fill in temporary staff by enhanc- ing the mySAP ERP roles for manager self-service, purchasing agent, supplier order collaboration, and invoice clerk with support for the following process steps: ? Request for external staff A manager can send a request to the supplier before actually ordering the service or external staff and can request further information, for example on availability, skill information, or curriculum vitae. The request can be based on existing contracts. ? Order management This includes the standard purchase order management functionality offered by mySAP SRM, including purchase order processing and purchase order responses by the supplier and monitoring. ? Confirmation and service entry Once the services have been performed, the supplier records times worked and additional costs. These must be approved by the requesting manager. ? Invoice processing There are various ways to manage invoices. Documents can either be received electronically, manually, or created by the supplier in self-service mode. Three-way match is supported for all categories. Previous documents like purchase orders or confirmations are leveraged to propose defaults to simplify data entry for users. ? Complete procure-to-pay process for temporary labor and consulting services, based on enterprise services and SAP NetWeaver Exchange Infrastructure ? Improved manager productivity by providing an easy-to-use self-service for managing the procurement of external resources ? Seamless integration of suppliers into the service procurement process ? Saved time in purchasing department by shifting operational tasks to the actual requesters (managers) and suppliers, enabling the purchasing department to concentrate on strategic work Procurement and Logistics Execution With support for procurement and logistics execution, delivered through the mySAP ERP Operations solution, organizations can manage end-to-end logistics for complete business cycles, including self-service requisitioning, management of material flows, and supplier collaboration. Procurement and Supplier Collaboration Selected key functions of the mySAP Supplier Relationship Management (mySAP SRM) solution are now available with the mySAP ERP license, recognizing the increased awareness that effective supply management is a key contributor to profitability. 33 34 Procurement and Supplier Collaboration (continued) New or Enhanced Functionality Business Benefits Invoice Processing Invoice Verification Preprocessing ? Allows customers to manage incoming invoices on top of their existing invoice verification ? Maps incoming invoices automatically against existing documents like purchase orders or receiving documents. If no exceptions occur, invoices are posted automatically; in case of exceptions, various workflow and monitoring activities will be initiated, including notification of vendors about the exception. ? Supports managing and monitoring of invoices with no relation to other documents, for example, by assigning internal approvers and contact persons to confirm correctness of invoice data Vendor invoice information is available for SAP NetWeaver Business Intelligence. ? Less manual processing ? Streamlined invoice verification ? Enhanced insight into the status of invoices throughout the verification process Design Collaboration Design Collaboration with Suppliers Based on cFolders cFolders address the need for exchanging product documentation with suppliers and partners by supporting the collaboration on product structure data (such as bills of material or product variant structures) and product-related documents (such as technical drawings and CAD models). See “Product Development: Collaboration with Partners and Suppliers” for more information. More effective external collaboration with partners and suppliers during the product design phase Inventory and Warehouse Management New or Enhanced Functionality Business Benefits Warehousing and Storage Warehouse Transactions with radio frequency identification (RFID) Comprehensive and integrated portfolio of auto-ID-enabled applications and infrastructure functions to: ? Receive and process RFID and auto-ID data streams from readers ? Write data to RFID tags ? Enable RFID data processing in shipping, receiving, and packing ? Handle RFID automatically ? Minimized hands-on processing by decreasing the need for human intervention in outbound order processing, resulting in improved accuracy, shorter fulfillment cycles, and reduced employee workload ? Instant stock verification as support for RFID can help businesses verify that product stock is available to meet fulfillment requirements by ensuring that accurate, up-to-date stock information is available throughout the enterprise. ? Improved stock and order accuracy by using RFID information to verify the contents of an order before it leaves the warehouse, improving order accuracy and significantly reducing losses Product Development and Manufacturing Product development and manufacturing, delivered through mySAP ERP Operations, covers end-to-end processes from the engineering and design of products to the planning and execution of manufacturing operations. These processes include creating relevant product data, maintaining connectivity to shop-floor systems, and complying with relevant regulations and standards. 35 Manufacturing Execution New or Enhanced Functionality Business Benefits Batch Management Documentary Batch ? Supports batch tracking, eliminating the need to manage batch inventory ? Manages all required data, such as material-tracking numbers, to support legal regulations ? Helps address the most important legal requirements by providing comprehensive search features that facilitate the traceability of products ? Reduces complexity of internal logistic processes by fulfilling the tracking requirements of many industries without the need to manage inventory in batches Enterprise Asset Management New or Enhanced Functionality Business Benefits Asset Management Mobile Asset Management ? Delivers access to critical, role-based information and services, meeting the needs of plant maintenance and customer service field engineers to manage orders, notifications, technical objects, business partners, contracts, and inventories as well as to take measurements and counter readings ? Allows employees to use either a laptop or a standard personal digital assistant device ? Includes a push alert for technicians and improved search functions Flexible maintenance work order enables flexible customiza- tion of the maintenance order layout comparable to what can already be done with the maintenance notification layout. The layout of screen areas and fields can now be adjusted to each user’s needs. ? Faster problem resolution by field technicians ? Reduced costs per work order ? Elimination of paper-based orders ? Simplified access to usage-related stock information ? Increased data entry accuracy (for example, notification or counter-reading data) ? Reduced administrative time spent reentering field information in the back office ? Improved usability and efficiency in the processing of maintenance work orders 36 Enterprise Asset Management (continued) New or Enhanced Functionality Business Benefits Maintenance Cost Budgeting Maintenance Cost Budgeting ? Allows definition of a maintenance budget based on data residing in the ERP system ? Enables automated and standardized budgeting processes ? Supports in planning the budget on appropriate levels, based on the desired budget strategy ? Allows to approve or reject budget proposals, trigger workflows, and perform reporting tasks ? Automated and standardized budgeting processes ? Reduced maintenance costs Product Development New or Enhanced Functionality Business Benefits Product Development Collaboration with Partners and Suppliers (cFolders) ? Offers new bill of material (BOM) comparisons (single level) and tracking of changes ? Integrates product structure management with integrated product and process engineering (iPPE) (see next section on “Life-Cycle Data Management”) by allowing the following functions: – Export a filter or focus in iPPE to cFolders – Change attributes of iPPE nodes and variants in cFolders – Import changed data back to the ERP system ? Allows the export of CAD assemblies from CAD desktop to cFolders ? Provides WebDAV-based connectivity between Knowledge Management and cFolders ? Simplifies access for occasional users through integration with Microsoft Windows Explorer ? Offers a work center for development collaboration (see “End- User Service Delivery” and “Development Collaboration Role”) ? Introduces a “business partner” user type to restrict user infor- mation visibility based on organization membership, such as supplier company, and the user administration for organizations by external users ? Supports manufacturer part numbers and reference designators as objects in cFolders (both mainly used in the high-tech industry) ? Better and more effective external collaboration for product development and engineering ? Increased ROI through an extended set of object types that can be managed by cFolders (such as improved collaboration on CAD and product structure data) ? Support of high-tech industry requirements ? Reduced costs for training, user administration, and software integration 37 Life-Cycle Data Management New or Enhanced Functionality Business Benefits Document Management Easy Document Management ? Extended authorization concept with authorizations on folder and document level ? Thumbnails ? Extendable user interface for customer-specific enhancements ? Mass change of document status by setting a common status to a list of documents ? Mass check-in of documents ? Document localization with ability to get a list of folders in which a document is referenced ? Digital signature on reaching a certain document status ? Enhanced offline access with ability to create documents and folders offline; more metadata available offline ? Enhanced search function ? Viewing and redlining with the engineering client viewer Document Management ? Extended authorization concept with authorizations on folder and document level ? Management of folder and document structures ? Thumbnails with integration of thumbnail viewing within search function Internal and External Document Access ? Enhanced sharing features in the document management system (DMS) for documents such as design drawings, contracts, and original application files ? Document management and knowledge management functions connected through a DMS knowledge-management connector CAD Integration (CAD Desktop) ? Offers enhanced viewing options including tabbed pages for different views, the ability to view 2D and 3D files (such as drawings and CAD models) in a single view, and digital mock-up (DMU) viewing with interaction between BOM and DMU (selecting a component in the BOM highlights the part in the DMU and vice versa) ? Provides ease of use through automatic document structure, visual version control, and mass check-in/check-out ? Easy-to-use, intuitive authorization handling ? Simplified and fast document management and maintenance ? Reduced access times and labor costs for routine tasks ? Better support for critical work areas through digital signatures ? More flexibility for customer-specific implementations ? Easy-to-use, intuitive authorization handling ? Simplified and fast document management and maintenance ? Reduced access times and labor costs for routine tasks ? More transparent document collaboration for internal and external users ? Faster access to documents in separate repositories through improved search functionality ? Simplified handling of CAD documents through single point of access to all CAD documents ? Reduced need for multiple interfaces by enabling viewing of files from different CAD systems ? Increased user productivity with faster and more efficient access to CAD documents 38 Life-Cycle Data Management (continued) New or Enhanced Functionality Business Benefits Document Management (continued) ? Supports a variety of industry-standard CAD systems, including Pro/Engineer, CATIA, Inventor, and others ? Provides preview functionality (thumbnails) ? Offers CAD data export to cFolders, Microsoft Excel, and XML ? Allows display of SAP Easy Document Management structures and assignment of CAD documents ? Supports working with folder structures, facilitating team and group work ? Offers a “delete assistant” to delete a full work directory ? Provides a new function “replace component” in the CAD view to replace one component by another component, which can be found through an integrated search functionality Change and Configuration Management (ECM) Engineering Change Management ? Offers extended undo functionality by including BOMs and variant configuration objects ? Provides increased flexibility for change processes – engineering change requests (ECRs) and engineering change orders (ECOs) ? Supports new object creation for ECRs and ECOs ? Provides customer screens and customer appends for the object management record ? Faster correction of errors ? Faster processing of change requests and change orders ? More flexibility for customer-specific implementations Product Structure Management Integrated Product and Process Engineering (iPPE) ? cFolders integration with export of product structures to cFolders and import of product structures from cFolders ? Integration with project management software ? Archiving of iPPE objects ? Improved reporting, variance scheme, and dependency editor, as well as filter and sorting functionality ? Use of release management framework Recipe Management ? More powerful change management functions, including a new mass-change framework and a mass status change function ? Enhanced process parameter management, including improved technical architecture and new calculation functionalities ? Improved tools for developing formatted reports in Microsoft Word, such as embedded if-then logic and master-document includes ? Better collaboration on product structure data with external users ? New scenarios like project manufacturing and prototype manufacturing ? Improved productivity through enhanced usability ? Easier setup and control of release processes ? Faster and more efficient update to the status of multiple data objects related to a change number ? Improved performance and simpler setup for managing recipe process parameters ? Simplified design of large reports in Microsoft Word and reduced complexity and risk of maintaining these large documents ? Ability to create sophisticated document templates with less need for customer coding Sales and Service Sales and service, delivered through mySAP ERP Operations, addresses customer-focused processes, from selling products and professional services to providing aftermarket processing of warranty claims, service orders, and returns. It also supports the calculation of incentives and commissions and the delivery of services for internal assets to improve uptime, yield, and productivity. 39 Sales Order Management New or Enhanced Functionality Business Benefits E-Commerce Quotation and Order Management ? Allows lock of sales documents to avoid concurrent access during the order change process ? Enables order creation with reference to a contract that has been displayed User and shop management allows a super user within an organization to maintain user records of Internet users through a Web-based user management functionality, to be enabled within shop management. Web crawler allows the registration of products in Web crawler product catalogs, such as Google, to enable users to directly order the product they have searched for from the page they have been forwarded to by the Web crawler’s product catalog. Selling over eBay ? Allows the creation and management of product listings on eBay ? Leverages the e-commerce order management and fulfillment functions of mySAP ERP by easily tying existing tax, pricing, shipping, and payment configurations to post-auction processing ? Reduced errors and better data consistency ? Faster, more accurate order creation process ? More up-to-date user information ? Enhanced visibility of the Web shop offering, which directs additional traffic to the Web shop ? Increased Web shop revenues ? Increased Web-based revenues ? Streamlined and efficient integration that leverages existing order management and fulfillment functions Product Pricing Internet pricing and configurator supports product configura- tion throughout all mySAP ERP sales documents by reusing existing model data. Reduced TCO by using one configurator across mySAP ERP and mySAP CRM scenarios, including Internet sales scenarios Order Entry ? Offers a new user interface for inquiries, quotations, and orders that is easy to learn, easy to use, and easy to adjust ? Provides new productivity features such as an order cockpit for quick access, flexible and reusable search, and adaptable layouts ? Enables every employee with direct or indirect customer contact to enter or update relevant sales order information Improves user productivity by offering better usability, adaptability, and integration into the “internal sales representative” role 40 Professional-Service Delivery New or Enhanced Functionality Business Benefits Professional-Service Billing Resource-Related Down Payments and Billing ? Supports creation of down-payment requests analogous to the functions offered by resource-related billing ? Enables organizations to bill the requesting company code for services provided through a resource-related billing document Simplifies billing of services between different organizational units Incentive and Commission Management New or Enhanced Functionality Business Benefits Incentive and Commission Management Management of Incentive Compensation Plans ? Includes commission recipient database listing all personnel eligible for commissions ? Provides standard commission contracts in which changes to the standard contract are updated automatically to individual commission contracts ? Supports modification of individual commission contracts to meet any unique requirements ? Allows employees to automatically derive the recipient of the respective indirect commission (such as a manager) from the recipient of a direct commission (such as a sales representative) through an organizational hierarchy ? Provides an enhanced automated team management functionality associated with commissionable events to determine entitled commission recipients and corresponding splits Portfolio Management ? Offers functions to store, update, and maintain data regarding the relationship between a sales contract and entitled commission recipients for historical reference and transfer, including the transfer of open entitlements and liabilities ? Allows multilevel relationships of all participants ? Enables target agreements in support of commission or bonus plans ? Greater consistency in incentive compensation plans ? Reduced administrative burden for commission analysts when implementing new guidelines throughout the enterprise ? Enables tracking of any commission transaction ? Simplified configuration of commission contracts ? Ensures determination of all entitled commission recipients and associated splits for appropriateness of payments ? Improves compliance to an organization’s compensation policy 41 New or Enhanced Functionality Business Benefits Incentive and Commission Management (continued) Calculation of Variable Compensation ? Supports calculation of both direct sales commissions and incentive compensation ? Provides participation determination, which creates incentive calculations for multiple recipients within a single calculation process ? Supports the alignment of individual compensation with corporate goals through a valuation calculation feature ? Determines the amount of individual commissions to be paid through a remuneration calculation feature ? Defines due dates and commission periods through a posting feature ? Offers retroactive calculations to enable the recalculation of commissions based on changes in the contract or commission case Compensation Results Analysis ? Provides a variety of data analysis tools (including drill-down reports) that allow employees to perform comprehensive analyses of compensation programs and their results ? Offers additional business warehouse extractors for enhanced analytical reporting through SAP NetWeaver Business Intelligence ? Streamlined administrative processes with extensive calculation support ? Better alignment of compensation with corporate goals ? Greater employee satisfaction with more transparency in compensation calculations ? Improved decision making through insight into the financial impact of incentive plans and their effect on the performance of commission recipients ? Better compliance to organizational compensation policies through enhanced analytics Real Estate Management New or Enhanced Functionality Business Benefits Space Management Space management provides enhanced maintenance of the linkage that connects objects in the architectural view (physical structure of a building) and rental objects in the usage view (the different rental spaces to lease) to the real estate contract. ? Shorter vacancy durations and reduced frequency of vacancies through more effective property management ? Improved and accelerated reporting and accounting due to a clearer framework for diverse service charges and costs ? Simplified data management and reduced complexity, which supports better decision making and business insight ? Increased efficiency through automated processes ? Flexible space and room management by leveraging integration with computer-aided facilities management systems ? More efficient management of condominium ownership associations ? Better compliance with (local) legislation and taxation requirements in the area of real estate Rental Vacancy Management Rental vacancy management enables managers to assign the reasons why a vacancy has occurred (and the date on which it occurred). Rental Request and Offer Management Real Estate Search ? Allows searching for offered objects (vacant objects) based on the prospect’s property requirements and general prospect data ? Facilitates the creation of a contract offer, when a fitting real estate object is found, by copying all relevant prospect and rental object data to the offer document ? Enables property managers to monitor contract offer approvals or rejections and create the accompanying correspondence Land Use Management Land use management allows the management and viewing of public law–related information found in cadastral and property registers about parcels of land and properties as well as related rights and encumbrances, such as rights of ways and contracts for usage and sales (according to German law). Rent Adjustments Rent Adjustments ? Allows adjustments to be made according to representative lists of rents and comparable objects ? Provides calculation of new rent amounts and update of contract clauses based on costs of modernization for properties Corporate Services The mySAP ERP Corporate Services solution supports and streamlines administrative processes in the areas of real estate management; project portfolio management; travel management; environment, health, and safety; and quality management. These processes can provide great opportunities to improve the efficiency and effectiveness of operations. 42 43 New or Enhanced Functionality Business Benefits Service Charge Settlements Service Charge Settlements ? Supports metered consumption for the apportionment of service charges if meters are assigned to settlement units or pooled spaces ? Allows the inclusion of the apportionment loss risk within the service charge settlement process Management of Condominium Ownership Associations Condominium Ownership Association (COA) Management ? Provides real estate managers with a separate book of accounts per real estate and enables real estate managers to manage various COAs on their behalf ? Allows the viewing of specific master data such as mandates and management contract ? Supports regularly scheduled processes, such as the calculation of event-driven fees, the creation of a proposal for next year’s annual budget, and the final settlement of costs to the owners Reporting and Correspondence Reporting and Correspondence ? Includes new reports for plant maintenance (costs on maintenance orders), asset accounting (depreciation of real estate objects), and controlling (costs on internal orders for real estate objects) ? Allows rent invoices to be printed from the periodic postings function and dispatched to tenants (Note: Line items on the invoice are grouped together, and the invoice number is based on the real estate document.) Financial Accounting Integration to Financials ? Enables easier retrieval of related open times by using the real estate contract number in the incoming payment transaction ? Enables open items to be distributed easily into multiple installments ? Allows assets to be created and assigned directly from buildings and properties ? Facilitates reporting, revenue, and cost planning on real estate objects by allowing real estate master data to be easily assigned to sets ? Permits input tax distribution in accounting objects for real estate to meet taxation requirements, thereby avoiding time-intensive manual checks and transfer postings ? Adapts one-time posting transactions and templates to standard financial accounting interfaces to better meet the needs of the real estate manager 44 Real Estate Management (continued) New or Enhanced Functionality Business Benefits Financial Accounting (continued) ? Offers tax summarization for the summarization of tax lines, which is required in some countries, such as Italy and Austria. This compresses all tax postings sharing certain criteria into one line. ? Integrates with public sector contract accounting (PS-CD/FI-CA) to allow for unified open-item accounting in the public sector using real estate processes, while being able to transfer these documents to general ledger accounting ? Utilizes, as part of period-end closing, the accrual engine to post accruals and deferrals to the correct periods for expenses and revenues from real estate contracts Localization Support Germany ? DART/GDPDU compliance (reporting support for tax authorities) Italy ? Imposta Comunale sugli Immobili (local property taxes and fees) ? Imposta di Registro (registration tax) ? Imposta di Bollo (stamp tax) Austria ? Condition adjustments (Austrian real estate, 1/15 adjustment) ? Service charge settlement (current occupancy principle) ? Correspondence (according to Austrian real estate template) Switzerland ? Creation of ESR-reference numbers in credit postings of vendor contract (ESR = “Einzahlungsscheine mit Referenznummer”) ? Service cost settlement (calculation of heating material con- sumption; refer management fee to vendor and invoice/docu- ment printing; exchange of data tapes in individual heating cost settlement; results of meter reading for consumption of energy) ? Correspondence (including forms that are released by the state of Switzerland) Migration Support Migration from Classical to Flexible Real Estate ? Provides migration support for organizations wanting to leverage real estate functionality that offers more flexibility in management of property portfolios ? Includes transfer of master and contract data as well as customizing settings and all relevant data to execute subsequent processes such as service charge settlement, condition adjustments, and sales-based rent settlement ? Provides easy-to-use tools to ensure high quality in all necessary migration decisions ? Reduces migration effort and cost ? Supports customers in a safe transition to the new, flexible real estate management solution ? Lowers TCO for migrating organizations New or Enhanced Functionality Business Benefits Project Planning Management of Collaborative Projects with cProjects ? Offers support for collaborative product development processes from the planning phase to product (or process) validation using phase-based process methodology ? Offers flexibility to share information with partners through cFolders integration, to create project snapshots and simulation versions, and to assign substitutes for tasks when someone is on vacation ? Allows the creation of tasks and checklists directly below project definition level, enhancing flexibility in project planning ? Includes a new Java-based Gantt chart, offering additional features such as printing ? Provides bottom-up scheduling functions that include all types of relationships, such as cross-phase relationships and the setting of constraint dates ? Allows sharing of information during bidding scenarios by setting up collaboration folders and linkage to single folders within a collaboration Project Planning with Project System ? Allows the linking of network structures in project management software to the iPPE workbench ? OpenPS now offers the ability to upload and download customer-specific fields on work breakdown structure elements, activities, and activity elements and to prevent download of networks that are marked for deletion ? Faster product development resulting from improved project modeling, scheduling, and visualization ? Reduced costs for training and software integration ? Support for industry scenarios such as new product development and introduction ? Enhances flexibility and integration of PS, thereby leveraging existing investments Project and Portfolio Management SAP offers a complete suite of components that enable organi- zations to manage all aspects of project and portfolio manage- ment. With cProjects, the project system (PS) solution, and the SAP xApp? Resource and Portfolio Management (SAP xRPM) composite application, the customer is empowered to set up a comprehensive project and portfolio management process. This solution supports various industry scenarios such as new- product development and introduction as well as enterprise IT portfolio management. cProjects, which is an integral part of mySAP ERP, is powerful and easy to use. It enables operational project management with a phase-based approach focusing on resources, project roles, documents, and collaboration, whereas SAP xRPM delivers the foundation for strategic portfolio management by combining financial, strategic, and operational aspects of the entire portfolio (projects, products, assets, services, and so on). Customers benefit from a complete solution, including all aspects of integration into mySAP ERP (logistics, human resources, and financials) and collaboration with internal and external partners, thus promoting project visibility at all stages. 45 46 Project and Portfolio Management (continued) New or Enhanced Functionality Business Benefits Resource and Time Management Resource and Time Management with cProjects ? Allows assignment of multiple resources to one role, even in overlapping time intervals, and to have more than one responsible person per project element ? Optimizes the structured resource planning process by reconciling resource demands between the strategic layer (SAP xRPM) and cProjects, which permits planning of resource demands in SAP xRPM and distributing them to single projects. The resources can then be allocated to projects based on their availability. Both top-down and bottom-up resource planning is possible. ? Enables the procurement of external services for projects in cProjects, using the “service procurement” scenario (see also “Procurement and Logistics Execution: Service Procurement”), which is extremely important for service projects. It enables the control of the process through the relevant cProjects elements such as role, task, and phase. The costs and confirmed times will be accounted to the relevant accounting object or the cProjects object worked on. ? Integrates with time recording (computer-aided time sheets (CATS)), enabling online and offline capturing of project- related efforts ? Integrates with the SAP Travel Management application, thereby facilitating the settlement of travel expenses for a project element ? Improved resource planning and allocation ? Better support for service and consulting projects due to integrated functions for external service procurement Project Execution Project Execution with cProjects ? Provides a new project dashboard, enabling a quick overview on “my projects” and relevant key figures ? Allows the use of collaboration rooms to share project informa- tion with all stakeholders, provided that cProjects is running in an SAP NetWeaver Portal environment ? Includes new standard object links, for example, to production orders ? Offers issue lists to facilitate tracking and delegating of issues that come up during a project More effective and transparent project execution due to integration with other business processes, such as time confirmation, and improved communication between project members 47 New or Enhanced Functionality Business Benefits Project Accounting Project Accounting with cProjects ? Enables multilevel accounting using work breakdown structure (WBS) hierarchies from project system for flexible accounting of projects in cProjects. As accountants and project members may have different views on a project, this can now be reflected by using different structures in cProjects and the project system. A WBS structure optimized solely for accounting can be created and linked to the operational project structure in cProjects. ? Offers new functions based on multilevel structures such as bottom-up planning and top-down budgeting, and billing and results analysis aggregating values and quantities along the hierarchy ? Allows the assignment of multiple tasks, phases, or roles from cProjects to a WBS element serving as a cost collector ? Enables the flexible assignment and allocation of different types of costs in mySAP ERP, either by: – Manually creating WBS hierarchies in project system and assigning WBS elements to tasks, phases, or roles – Automatically creating WBS hierarchies and assignments based on cProjects structures, where assignments can be changed afterwards ? Provides calculation services to create cost estimates based on the assigned cProjects structure (while costs are stored on WBS elements) ? Allows the settlement of costs originating from various sources: – Actual costs derived from recorded and confirmed time on cProjects tasks using CATS integration – Costs derived from procured services – Costs derived from project-related travel ? Better transparency and insight with more flexible functions to control project-related costs ? Increased efficiency by simplifying the settlement of project-related costs through enhanced integration 48 Travel Management New or Enhanced Functionality Business Benefits Travel Planning, Booking, and Expense Reimbursement Employee Self-Service for Travel and Expenses Managers and Travel Preparers Offers enhanced process support for managers (instant access to most important travel data and one click-approval function) and travel assistants (such as handling of employees by “name list” and simplified checking of open activity items) as well as redesigned work centers to support customer-specific areas Travel Request and Pretravel Approval Offers enhanced integration with funds management to allow for exact commitment items based on estimated costs or real anticipated costs from online booking Travel Planning and Online Booking ? Includes generic SAP NetWeaver XI–based interfaces to hotel providers’ computer reservation systems and low-cost carriers or Web fare consolidators to facilitate integration with preferred low-cost providers ? Offers new service entry function with complete process integration to support the booking of items such as taxis that are not initiated by global distribution systems ? Provides several options, including country-specific versions and interfaces, such as support for Lufthansa’s “Pay as you fly,” or provider programs such as SAS Travel Pass and Air France/KLM Card Blue ? Integrates maps to support hotel and airport searches, indicating exact distances to destination addresses ? Integrates airline and car rental logos, hotel images, and amenities information in availability searches ? Integrates external Web content regarding up-to-date visa, health, and security information as well as important travel news ? Integrates company-specific texts about and links to important policy information ? Maintains personal traveler profiles through new self-service functions ? Enables the setting of different statuses in travel planning, there- by improving workflow and integration with travel agencies ? Reduced administrative costs by decreasing manual data entry and reducing processing and reimbursement cycles ? Increased flexibility to use different reservation systems in the booking process ? Lower TCO and implementation costs through service provider–specific integration support ? Lower direct purchasing costs based on access to a wider range of low-price offers ? Improved user acceptance as employees are more likely to readily adopt the new services due to an easy-to-use interface and comprehensive access to employee travel information and tools. This, in turn, improves compliance and reduces burdens for travel managers. ? Minimized training costs and decreased help-desk calls as intuitive navigation and new features help to ensure that employees can use travel self-service functions without requiring significant training or additional support ? Improved usability for online and offline travel management scenarios ? Significantly reduced costs for modifications 49 New or Enhanced Functionality Business Benefits Travel Planning, Booking, and Expense Reimbursement (continued) Expense Reporting and Reimbursement ? Offers new print forms as Adobe PDF forms, facilitating the configuration and adaptation of the look and feel (including the option for bar codes and company logos) using Adobe forms technology ? Enables automatic distance calculations between start-of-trip and end-of-trip locations based on geocoding services, simplify- ing audit-proof and tax-proof mileage calculations ? Enables credit card feeds via generic SAP NetWeaver XI interface that capture itemized hotel folio statements to populate expense reports ? Supports automated assignment of imported credit-card data to expense reports ? Provides audit workflow table to increase auditability for Sarbanes-Oxley, including type of expense, level of employee, known violator, and so on Mobile Travel Expenses (SAP Mobile Time and Travel) ? Enables offline users to attach credit card receipts directly to expense reports ? Offers receipt itemization functions for offline users to break down complex receipts, such as hotel bills, into individual components ? Adopts the new mySAP ERP self-service user interface for mobile usage, improving the usability for offline travel expense entry ? Offers additional preference settings and customer-specific tool-tip functionality ? Allows completion of expense reports for out-of-pocket receipts coupled with electronic receipts using a BlackBerry device ? Significantly reduced effort for entering travel and expense data as well as associated administration efforts, as paper receipts become obsolete ? Reduced cost of Sarbanes-Oxley compliance by deploying standard, fast-to-implement compliance-relevant workflows ? Increased user productivity due to ability to enter expense information offline using laptops or online using a BlackBerry (PDA) device 50 Environment, Health, and Safety (EH&S) New or Enhanced Functionality Business Benefits Basic Data Management Basic data and tools now offers enhanced WWI, a modified version of Microsoft Word that is called from the SAP system to edit a document template, for more flexible document creation and generation. Reduces administrative efforts for managing basic data documents Product Safety Management Data Import from External Content Providers ? Provides XML-based open interface for loading content to the EH&S application ? Enables a defined interface syntax and semantics to be made available to interested providers ? Ensures seamless integration with third-party content providers through SAP content-provider certification Helps organizations from all types of industries improve compliance with regulations Dangerous Goods Management Dangerous Goods Management ? Allows the release of packaged products during the product definition process ? Extends dangerous checks for packaging and product release in sales, shipping, and transportation processes ? Simplifies handling of the product release process ? Supports compliance with packaging regulations throughout the main business processes Waste Management Waste Management Supports flexible data collection based on disposal data and facilitates the creation of country-specific waste life-cycle analysis report variants, including error handling for unconsidered disposal documents Reduces administrative efforts to comply with country-specific regulations by simplifying data collection for waste life-cycle analysis Management of Industrial Hygiene and Safety Industrial Hygiene and Safety Allows the definition of customer-specific information fields to record all relevant data in projects that measure and verify regulatory compliance Better and easier compliance with national laws and customer- specific regulations 51 New or Enhanced Functionality Business Benefits Occupational Health Management Occupational Health ? Allows the triggering of the proposal of health surveillance protocols based on multiple parameters, extensible by customer-specific definitions ? Supports the flexible adjustment of appointments between the organization’s medical health center and employees by integrating the SAP calendar in the scheduling process ? Speeds data entry for physicians (during diagnoses) and health center staff (during repetitive brief consultations and examina- tions) due to several user interface enhancements ? Enables the assignment of any kind of documents (physician letters, laboratory results, x-ray pictures, and so on) to employees, medical services, or examinations, utilizing the document management system ? Supports flexible and customer-specific reporting based on a new business add-in for document generation ? Allows organizations to run a preventive medical management system with less administrative effort and more transparency ? Enhanced process flexibility facilitates legal compliance and enables a customer-specific healthcare engagement Emissions Management The SAP xApp Emissions Management (SAP xEM) composite application delivers comprehensive, easy-to-use role-based functionality that helps employees and managers execute environmental compliance- and emissions-related tasks. Inte- grated Web dialogs make it easy for users to support compliance and emissions processes required for effective data and process maintenance. SAP xEM also helps organizations to: ? Exercise risk management responsibilities ? Control interactive processes ? Identify any deviation from defined compliance scenarios and manage counteractive measures directly ? Evaluate actual emissions data and generate forecast scenarios to assess the effects of process modifications ? Monitor compliance- and emissions-related key performance indicators ? Reduces cost of compliance by aligning compliance processes with existing business processes ? Decreases risk of costly fines ? Enables taking advantage of incentives built into emissions regulations that provide for generating significant revenue through emissions trading ? Helps to maintain competitive advantages 52 Quality Management New or Enhanced Functionality Business Benefits Quality Assurance and Control Quality Assurance and Control ? Allows users to archive the physical samples related to inspection lots with their sample-drawing information ? Offers flexible selection of samples for archiving as well as various display functions for archived samples ? Extends the sample master record with new fields ? Enables creation of sample-oriented work lists Trial-Specific Stability Studies (Laboratory Information Management System (LIMS)) ? Handles inspection characteristics related to trials and trial-specific stability studies ? Allows direct access of trial-related quality inspection data from the recipe management workbench ? Allows initiation of stability studies by using building blocks with fixed planning parameters such as time intervals, storage conditions, or testing plans ? Supports current good manufacturing practice (GMP) guidelines and industry standards such as ISO TS 16949 Multiple Specifications (LIMS) ? Enables different inspection specifications for an inspection characteristic, such as customer-specific requirements or requirements specified by pharmacopoeia, authorities, or country-specific legal requirements. Such specifications, for example, may consist of different tolerances or characteristic attributes (for qualitative characteristics). ? Allows the determination of the suitability or admissibility of a batch based on multiple specifications. The overall valuation of a batch for each object indicates whether the batch can be deliv- ered to a specific customer or used under certain conditions. ? Supports the entire process from inspection planning and test- ing to batch classification and determination and certificate processing Operation Completion (LIMS) ? Allows the planning and performance of a decision or opera- tion completion for an inspection by laboratory personnel. The operation completion comprises the assignment of textual information and a valuation to an inspection lot. ? Enables triggering of follow-up actions after operation completion ? Makes operation completion information available for usage decisions ? Improved sample management functions ? Better system performance by removing mass data from the system ? Improved user acceptance and productivity ? Integrates quality-relevant information into the product development process ? Simplifies and accelerates the planning of stability studies ? Improves operational efficiency in industry scenarios requiring quality inspections based on multiple specifications ? Facilitates the allocation of production batches to customer orders, as it also integrates with inventory and batch management as well as sales and distribution ? Increased visibility of quality data throughout the organization ? Improved control mechanism – also with regard to GMP and FDA regulations (Note: This is especially important for companies with commercial and industrial laboratories, such as those in regulated industries like pharmaceuticals or consumer products.) 53 New or Enhanced Functionality Business Benefits Reporting and Analytics Flexible reporting functions enable the creation of reports and analytics on quality management data combined with meaningful graphical representation, which can be adjusted individually, including: ? Selection of inspection lots, inspection characteristics, and inspection results ? Evaluation of actual and archived data ? Comparison of results for several characteristics ? Representation of results as table view or graphic, where several tables or graphics can be viewed in one screen ? Definition of table and graphical layouts in customizing ? Determination and display of key figures (customer specific) ? Control charts without detailed planning ? Export of selected data and integrated visualization of external statistical results (for example, from a statistical subsystem) ? Increases visibility of quality data throughout the organization ? Enables implementation of improved quality control mechanisms ? Decreases TCO in terms of providing the relevant information without having the need to export quality management data to other components like SAP NetWeaver Business Intelligence Quality Improvement Quality Improvement ? Enables quality manuals to be maintained with SAP Easy Document Management ? Uses SAP NetWeaver Business Intelligence to analyze stability studies Simplifies updates, document management, and analysis of stability studies Audit Management Audit Management ? Supports the entire audit process for all types of audits, includ- ing planning and processing audits, grading audit objects, mon- itoring corrective and preventive actions that are based on the findings, and analyzing audit data from different points of view ? Integrates with SAP Business Information Warehouse and mySAP ERP quality notifications Decreases TCO by providing the relevant functionality as part of the SAP NetWeaver platform, which is included in the mySAP ERP license 54 mySAP ERP, powered by SAP NetWeaver, allows customers and their business partners to seek greater efficiency and differentia- tion by implementing new business strategies with less IT complexity, lower TCO, and increased agility to change. mySAP ERP enables organizations to increase efficiency and growth by: ? Connecting the entire business ecosystem of customers, suppliers, and partners, thus extending real-time operations beyond the enterprise ? Leveraging economies of scale and eliminating redundancies through consolidation of IT systems ? Supporting “model-driven” application composition for next practices more efficiently ? Delivering role-based user interfaces, which can be adapted easily to meet individual needs ? Reducing effort and cost associated with the integration of external applications This section provides an overview of major technical enhance- ments and the associated business benefits resulting from a migration to mySAP ERP. TECHNICAL VALUE OF UPGRADE FOR mySAP ERP 2005 ERP-Related Enhancements New or Enhanced Functionality Business Benefits Service-Orientation in mySAP ERP Seamless Integration of SAP NetWeaver Features in mySAP ERP ? Access through enterprise portal with enhanced features ? Embedded analytics and integrated analytical applications ? Web Dynpro–based user interfaces ? Transparent service definition in SAP NetWeaver Exchange Infrastructure ? Guided procedures that integrate Adobe Interactive Forms ? Master data search with SAP search engine ? Increased efficiency, automation, and productivity while improving IT asset utilization saves time and money and supports the reduction of errors and the number of process steps ? Higher flexibility, allowing easier optimization and integration to support the growth of end-to-end business processes reusing existing assets ? Faster innovation with support for new processes that benefit from collaboration inside and outside the organization 55 New or Enhanced Functionality Business Benefits Business Analytics More Powerful Analytical Functions Based on SAP NetWeaver SAP NetWeaver, the foundation of analytics in mySAP ERP, pro- vides the following new key functions that increase the value of analytics: ? Offers high performance analytics by utilizing indexing technology to significantly enhance query performance ? Allows the conversion of new insights directly into revised plans – in the same user interface – as business planning is fully integrated into the SAP NetWeaver Business Intelligence environment leveraging the same tools, objects, and engines (variables, calculated key figures, OLAP engine, and so on) ? Facilitates the creation and deployment of completely new analytical applications using the SAP NetWeaver Visual Composer tool, the new model-driven design environment that provides Microsoft .NET–based tools for the design of queries and SAP NetWeaver BI Web applications and allows the design of formatted reports, information broadcasting, and PDF printing ? Lowers TCO for migrating organizations Strategic enterprise management has been integrated into SAP ERP Central Component. ? Empowers business users to quickly and locally create attractive analytical applications that serve their needs – without programming ? Reduces TCO by enhancing existing business intelligence implementations with business planning functions ? Reduces training effort for users as they can now use the same user interface for analysis and planning ? SEM functions may be deployed without installing additional software components, thus facilitating implementations for testing purposes. Industry Consolidation Industry Consolidation ? Integrates most industry add-ons into SAP ERP Central Component using “industry extensions,” thus making industry-specific functionality (business function sets) directly available without the need to apply an additional add-on ? Allows activation of industry extensions through business function sets from within the switch framework – an SAP NetWeaver technology feature. Either an entire business func- tion set (for example, oil and gas) or a subset of functionality (for example, oil revenue accounting or oil production) can be activated. Reduced TCO resulting from simplified installation and maintenance as well as synchronized industry release cycles 56 ERP-Related Enhancements (continued) New or Enhanced Functionality Business Benefits Procurement and Supplier Collaboration System Consolidation in Procurement and Supplier Collaboration ? Includes mySAP SRM as an add-on to SAP ERP Central Component 6.0. This means that SAP SRM Server 5.5 will run in the same client as SAP ERP Central Component 6.0 in a one-to-one deployment between mySAP SRM and SAP ERP Central Component. ? Holds objects that are common to mySAP ERP and mySAP SRM centrally: business partner/vendor and product/material/ service master. Communication between objects is based primarily on enterprise services. ? Reduced TCO by providing flexible deployment options ? Significantly reduced effort for master data synchronization between mySAP ERP and mySAP SRM, also enabling solid and smooth system operations and maintenance Form-Based Self-Service Workflows Adobe Forms Integration ? Offers new Adobe form technology as a simple way to trigger form-based workflows for self-service applications as part of process-driven activities ? Simplifies the creation of customized interactive forms and document services ? Provides preconfigured collaborative business scenarios that are delivered through different applications such as SAP Manager Self-Service ? Improved productivity as document changes can be done by design team in minutes with no programming skills required ? Reduced cost for business forms definition by allowing collection of existing PDF files and import for use with SAP applications 57 For further and more detailed information on the new and enhanced functions of SAP NetWeaver 2004s, which is available with mySAP ERP edition 2005, please refer to service.sap.com/netweaver. General Technical Enhancements New or Enhanced Functionality Business Benefits Development of Web-Based User Interfaces Web Dynpro Development Environment ? Includes the Web Dynpro development environment for easy adaptation of services ? Allows use of Web Dynpro to develop user interfaces directly in the application’s ABAP? development system Improves ease-of-use by implementing ABAP-based applications according to SAP’s new user interface paradigm, even for existing applications that are not fully enterprise services architecture enabled System Deployment Flexible deployment options enables the fulfillment of customer requirements, from small organizations with only a few users, which often look for simple central deployments, up to large organizations using distributed system landscapes Reduces TCO by providing appropriate deployment options for organizations of all sizes and their preferred system landscapes (for example, “one instance” deployments for small organizations) System Upgrade System Switch Upgrade Technology as of SAP R/3 Enterprise ? Installation of a shadow instance is done in parallel with the production system within the same database. ? Support packages and add-ons included in the upgrade, as well as customer modifications, are integrated into the target release during uptime. Furthermore, the adjustment of modi- fications is done during uptime. Significantly reduced downtime, ensuring smooth transition Solution Life-Cycle Management SAP Solution Manager ? Offers a central platform for managing applications in a system landscape, enabling organizations to improve implementation, operations, monitoring, and support for SAP applications ? Comprises tools and content as well as a gateway to the SAP Active Global Support organization ? Faster implementation and support for more efficient systems operation ? Simplified technical support of distributed systems and streamlined the continuous improvement of solutions ? Reduced operating risks and TCO Mobile Devices Configuration Management Mass Setup and Maintenance of Mobile Devices Enables device setup (software installation and initial data distribution) and maintenance for a high number of mobile devices and users based on templates (software, configuration settings, and so on) ? Faster and simpler setup of high numbers of devices ? Reduces TCO by facilitating the management of a high number of devices Global Portal Federated Portal Allows sharing of content among portals, thereby creating a virtual, single content pool Improved overall performance and reduced bandwidth requirements through content sharing in distributed back-end systems 58 Increased competition and globalization, coupled with new legislation in many countries, are forcing organizations to make detailed evaluations as to how their businesses are performing and how they can improve productivity and profitability through the introduction of new business processes or the modification of existing ones, while leveraging the investment they have made in their existing ERP solutions. To meet these expectations, SAP has launched a new-generation ERP solution: mySAP ERP. Its service-oriented architecture provides greater flexibility, seamless business integration, and an increased capacity for innovation across the enterprise – all of which represent significant competitive advantages. In addition, tighter integration functions enable more streamlined business processes, as well as better integration with third parties for more effective information exchange and greater transparency among organizations. A new user-centric approach improves people productivity as users are provided with role-based functionality and embedded analytics, thereby allowing them to work more proactively and get their jobs done more quickly. Powerful analytical functions based on SAP NetWeaver take advantage of enterprise services architecture by desegregating analytics and embedding analytical tools and dashboards within actual business applications. And they enable users to convert new insights directly into revised plans – in the same user interface – because business planning is now fully integrated into the SAP NetWeaver Business Intelligence environment. Moreover, an implementation of mySAP ERP allows your organization to lower total cost of ownership by providing flexible deployment options for organizations of all sizes, simplified delivery of industry solutions, and optimized solution life-cycle management. In general, the following benefits can be expected with mySAP ERP: ? Productivity and efficiency for bottom-line growth by increasing user productivity with specific roles, automation, and standardization of routine business processes, delivery of shared services to consolidate common business functions, and out-tasking as a next possible step of off-loading non- strategic activities ? Differentiation for top-line growth by providing application support for innovative new business processes and models on the same platform as for the established business activities ? Strategic business insight that enables you to identify business areas where you are able to differentiate yourself from the competition and areas where you need to have a close eye on efficiency. And you can use embedded analytical content to constantly assess your business performance. ? Flexibility to act today with the paradigm of enterprise services architecture resulting in available products. IT has finally reached a state where it can provide the flexibility required to change business models, processes, applications, and organizational structures more easily and more quickly than in the past. SAP provides a comprehensive set of documents, tools, and services to support customers in the planning, preparation, and execution of an upgrade to mySAP ERP, ensuring maximum ROI and a smooth transition. Please refer to service.sap.com/upgrade-erp or contact your SAP sales representative for more information. CONCLUSION www.sap.com/contactsap 50 076 399 (06/03)