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SAP Business ONE Implementation

By Wolfgang Niefert
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  1. Free Chapter
    Getting Ready to Implement SAP Business ONE
About this book
SAP Business ONE brings the power of the SAP ERP platform to small and mid-size companies. It offers fast-growing companies the same ERP capabilities used in world-wide conglomerates and major corporations. SAP Business ONE is powerful, and to fully harness it takes careful planning. This book will provide you with a guide to install and implement SAP B1 in your business. It starts with the basic tasks of installing and configuring, but moves at a fast pace and goes on to cover topics such as advanced CRM, e-commerce, and modern Distribution Center configurations for inventory optimization and Warehouse Management. The book is divided into two main sections. The case study starts out in section one with an ad-hoc implementation of a simple Lemonade Stand business. This section is focused on getting SAP B1 up and running quickly. In the second section the Ad-Hoc Implementation is taken to the next level , and we professionally expand this idea and develop a Beverage Distribution Center with outsourced production. This includes advanced inventory optimization. The workflow is optimized using existing functionality and also using Add-Ons to expand the standard functionality and transform the generic SAP Business ONE business engine into an Industry Solution. The book is full of examples with detailed step-by-step explanations. We will be implementing a complete SAP Business System including add-ons as part of a case study. Finally we connect SAP to the Web and introduce a solution that presents SAP features in a web interface with real-time integration. The book is completed with a chapter focusing on growth. Franchise architecture for SAP Business ONE is introduced and applied to the case study to help you learn how to get started with this. Each chapter has a section that assists you with applying knowledge for your own project. You will have your business set up and ready to go by the time you complete this book.
Publication date:
May 2009
Publisher
Packt
Pages
320
ISBN
9781847196385

 

Chapter 1. Getting Ready to Implement SAP Business ONE

"That stinks!" I said after I picked up the dirty sock. "No," was the reply "it is the smell of victory." You see, it depends on how you look at things. What appeared to be a dirty sock was indeed a valuable sports artifact worth a lot of money.

"What does this have to do with the SAP Business ONE application?", you may ask. Well, SAP Business ONE helps you separate the unnecessary clutter from the success drivers of your business. The solution does this with real-time data for all departments. In case you thought that the sock example is a bit far-fetched, I would like to counter this and explain that there is a theory in quantum physics called the observer effect. It essentially states that an act of observation changes the phenomenon being observed. In our example, only a closer observation revealed the object's true value. The same thing goes for a business. It is only with the right data that you can observe and make decisions that leads your business in a successful direction. I will provide a list of examples where additional information can change your view on things and impact your decisions. I am not talking about the big picture here, but rather a detailed level where you can easily lose sight, though you shouldn't.

Have you noticed that there are managers who can pretty much run any kind of business and make it a success? How do they do it? Is there a specific way that we can follow to run our business? You may say that it takes a great idea. That's true. However, what about timing and operating the business? One thing is for certain, it is not enough to only have a great idea. You must also be able to develop it from the start to the end.

What do successful business owners have in common? Do they all use SAP Business ONE? No, but they are able to establish metrics and measure performance, which allows them to make the right decisions. This is where SAP Business ONE comes into play. It is designed to help you collect the right information and run reports in real-time.

In this book, I will introduce SAP Business ONE and show you how observing your business data in real time can lead to a multitude of subtle changes that will make the difference between failure and success.

At this point, all you need is a business idea, this book, and SAP Business ONE. This book is for any technically savvy entrepreneur with a vision to make his or her business a success. These entrepreneurs understand that technology can be used as an enablement platform for a business venture. In order to make this venture a success, the technology used must be challenged every day.

 

Setting the stage for the book—how does your business "tick"


This chapter introduces the core idea of looking at SAP Business ONE as a business engine. This business engine is designed to help you collect information about your business, where having the information versus not having the information can make the difference between success and failure. Let's say that a multitude of decisions are made on a daily basis, which can benefit from better information. Look at your own business, for example. I am certain that you have a system that manages your finances and is potentially a lead management solution. Maybe you also have some production that is industry-specific and handled by an industry solution. In this simple example, there are already many potential areas for improvement.

To make the point, I will ask you some questions about your business. You may call this the Observer Effect in Business. The questions range from sales to inventory and service. Basically, I am focusing on the entire value chain. This is a key idea in an integrated software package such as SAP. The added value of having an integrated process versus disparate systems that require synchronization.

Sales leads and follow-up

Do you have a sales process, and is it organized in stages?

Can you run a report and get information about the stages, and thereby forecast the expected sales?

What happens if one of your best sales people leaves? Can you continue the sales and manage the customers?

Are you using Act!, salesforce.com, Microsoft CRM, and need to synchronize with your finance back-end?

Delivery

Can you provide tracking information for customers?

Do customers need to call you to get tracking information, or do they get an updated email once the order leaves your warehouse?

Will you get a notification about a successful delivery that can be opened from the sales order?

Inventory

Do you have excess inventory?

Do you also run into situations where there is not enough inventory for an important order?

Do you manage inventory shortages by overstocking?

Are you using an Excel spreadsheet to manage your inventory reorder times and quantities?

Warehouse

Do you have a method to verify the deliveries before they leave and enter the warehouse?

Do you know the cost of any mistakes?

Service and support

Can you relate a large sales opportunity to incoming service calls? For example, can you manage a service call for a customer with large proposals on the table differently than for a customer who has not ordered in a long time and is behind in payments?

Can customers check the tracking numbers via a web portal?

Can customers review past orders and re-order easily?

Is it possible to place service calls via the Web?

Are sales people aware of the current sales calls for large opportunities?

Manufacturing

Can you easily replace a component in a BOM (Bill of Material) with a new one?

Can you trace any item from the sales to the initial purchase of parts, assembly, and delivery?

E-commerce

Does your e-commerce provider charge an extra fee for taking credit card orders?

Do you have to synchronize your web orders with your accounting system?

Can you track customer activities on the Web?

Can you send customized newsletters to customers based on their buying behavior?

Do you receive an alert once a new web order is placed?

Do you have newsletter tracking information for customers that you can evaluate during the sales process?

Can you contact customers based on their newsletter reading activity and past purchase history?

Is your web intelligence integrated with your customer management system? For example, it would be good if a customer calls and you could see his or her open quotes, open service calls, newsletter activity, and order history.

How long does it take you to start a web site with e-commerce? Just think about it for a second. This should be an automated process. You should be able to have dozens of sites up and running, send out newsletters, track feedback, and measure success. In a later chapter, I will introduce you to the concept that is based on the SAP Business ONE Engine.

Industry

Are you using form fields in your system for different purposes because it does not provide the right naming based on your industry?

Are you using an industry solution for one part of your business and have a standard finance package that does not quite integrate?

ROI and budget for your own system

All of the above questions address common business issues, which result in additional time and money spent. Essentially, by automating the processes and providing the right information where it is needed, you can save money and make better decisions. Therefore, for your own business, you can ask yourself the questions above and assign a monetary value to each one. The monetary value is either a plain number, or a calculation based on the time you spent to get the information. For example, if you indeed manage your inventory re-order quantities in an Excel spreadsheet, imagine this could be done automatically without your manual intervention. Once you add up all the numbers, you have your budget for a potential new system that overcomes these issues.

 

What this chapter will cover


During the course of this chapter, I will cover the following areas and lay the groundwork for the hands-on chapters that are to follow. However, what would all the hands-on exercises be worth if you can't apply them to your own business? That's why I have taken a dual approach to cover this. I will introduce a toolbox that will help you identify the main areas of your business, which may benefit from an integrated system. Then, a case study is used to explain the new features with an example.

  • Toolbox for your business – Wouldn't it be nice if you had a toolbox that could help you improve your business? I will introduce you to a simple concept that will help you create your own toolbox. It's simple, and it works.

  • The case study – What's the simplest entrepreneur-style business out there? It's the Lemonade Stand. Even kids can run it. What if we take it to the next level? In this section, I will explain what your business has in common with the Lemonade Stand.

  • Start with a piece of paper – We will never lose touch with the real world. That's why you will be included in all the chapters as we move along. In this section, you will use the toolset to identify issues with your own business.

  • SAP Business ONE, a business engine – Now you know the issues of your own business and you have a toolset. At this point, SAP Business ONE is introduced as a business engine. What does this mean? Read on and you will see why SAP Business ONE is different.

  • Introducing key terms – Before we continue, some commonly used terms will be introduced. For example, real-time and profitable growth will be explained

  • SAP Business ONE 100-word definition - This will summarize the SAP product message with the official SAP definition for their product.

  • Why projects fail – Did you know that in soccer you need to practice with your left foot if you want to improve your right foot? Let's find out why projects fail and hope we will learn something about doing them the right way.

           
About the Author
  • Wolfgang Niefert

    Wolfgang Niefert studied "Wirtschafts-Informatik" at the European Business School in Oestrich Winkel – Germany. The international management program included programs in London and San Diego with focus on Computer Science and Economics. He has more than 15 years experience with international SAP Implementations. A certification for SAP Production Planning allows him to relate larger SAP solutions to SAP Business ONE. Wolfgang also designed the N2ONE Portal for SAP Business ONE that allows the real-time management of e-commerce functionality.

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