Technology With SAP NW

VICTORIA UNIVERSITY
CITY-FLINDERS

Technology Integration through SAP
NetWeaver

Prepared By:
Special Project Team One
October 2004

Team Members:
George Kalantzis 3045444
Jacquie Zhang 1087050
David Knott 3651459
Tiago Rosa Mendes 3649993
Greg McAllister 3671224

Submission Date: 15
th
November 2004
SP1 Technology Integration through SAP NetWeaver V8.02.doc
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Contributions
Each team member, had tasks to complete and their combined contribution form the basis of
this document.

A summary of major roles per team member follows:
Technologies Jacquie Zhang
NetWeaver Jacquie Zhang
WebAS 6.40 Jacquie Zhang/Greg McAllister
SAPXI 3.0 David Knott
Web Services Tiago Rosa Mendes
Non-SAP (Index) George Kalantzis
Conceptual Integration George Kalantzis
Applying technical integration to business scenarios David Knott
Sales order process David Knott
Purchasing process Tiago Rosa Mendes
Decision support using INDEX Greg McAllister

The remaining contributions were shared as follows:
Introduction Greg McAllister
Conclusion Tiago Rosa Mendes
Structure George Kalantzis
Proof reading Greg McAllister/ David Knott/George Kalantzis
Final editing Greg McAllister/ David Knott/George Kalantzis
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Revision History
Version Date Author Changes from Previous Version
1 09/09/04 George Kalantzis Structure documentation
1.3 13/09/04 Jacquie Zhang Technologies
2 4/10/04 George Kalantzis Structure for business scenarios
2.1 7/10/04 David Knott Conceptual diagrams added
3 7/10/04 George Kalantzis Prepare draft for review by Wei Dai
4 9/10/04 Tiago Rosa Mendes Integration Technology/Business Process
application
5 25/10/04 George Kalantzis
Tiago Rosa Mendes
Integrate business process sections
Technology updates
6 30/10/04 David Knott /George
Kalantzis / Greg McAllister
Review changes from meeting 27/10/2004
6.1 04/11/04 Jacquie Zhang Technologies:
Review technologies
Prepare Final Draft
6.2 04/11/04 George Kalantzis Conceptual Integration
Prepare Final Draft
6.3 04/11/04 David Knott Applying integration to business scenarios
Review sales order process
Prepare Final Draft
6.4 04/11/04 Tiago Rosa Mendes Applying integration to business scenarios
Review purchase order process
6.5 04/11/04 Greg McAllister Applying integration to business scenarios
Review decision support process
7 8/11/04 All Draft all sections.
7.1 8/11/04 George Kalantzis Final draft
8.0 11/11/04 David Knott Final Edit
8.01 14/11/04 Greg McAllister Final Edit
8.02 14/11/04 Greg McAllister Proof Read and Submit

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TABLE OF CONTENT8
CONTRIBUTIONS ..................................................................................................................................................... 2
REVISION HISTORY................................................................................................................................................ 3
TABLE OF CONTENTS ............................................................................................................................................ 4
TABLE OF FIGURES ................................................................................................................................................ 5
EXECUTIVE SUMMARY......................................................................................................................................... 6
1. INTRODUCTION.............................................................................................................................................. 7
2. TECHNOLOGIES............................................................................................................................................. 8
2.1 SAP PRODUCTS .............................................................................................................................................. 8
2.1.1 NetWeaver (overview) ............................................................................................................................. 8
2.1.2 Web Application Server (Web AS) 6.40................................................................................................... 9
2.1.3 SAP XI 3.0 ............................................................................................................................................. 12
2.1.4 Web Services ......................................................................................................................................... 18
2.2 NON-SAP PRODUCT ..................................................................................................................................... 22
2.2.1 INDEX................................................................................................................................................... 22
3. CONCEPTUAL INTEGRATION.................................................................................................................. 24
3.1 ORGANISATION VIEW ................................................................................................................................... 24
3.2 ORGANISATION SYSTEMS, INTERFACES AND CHANNELS............................................................................... 25
4. APPLYING INTEGRATION TO BUSINESS SCENARIOS...................................................................... 28
4.1 SALES ORDER PROCESS - CRM..................................................................................................................... 28
4.1.1 Business scenario .................................................................................................................................. 28
4.1.2 Technical integration description.......................................................................................................... 29
4.2 PURCHASING PROCESS.................................................................................................................................. 32
4.3 DECISION SUPPORT USING INDEX.................................................................................................................. 34
5. CONCLUSION................................................................................................................................................. 37
REFERENCES .......................................................................................................................................................... 38

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Table of figures
Figure 1 NetWeaver Overview (XI and Web AS).................................................................. 8
Figure 2:Web AS Architecture. ........................................................................................... 10
Figure 3: SAP Web Application Server - key benefits ......................................................... 10
Figure 4 - The capabilities of SAP XI.................................................................................. 12
Figure 5 - Integrated systems with "Spider Web" configuration........................................... 13
Figure 6 - Integrated systems with hub architecture............................................................. 14
Figure 7 - The architecture of SAP XI ................................................................................. 15
Figure 8: XI Shared Collaboration....................................................................................... 16
Figure 9: Integration repository & Directory ....................................................................... 17
Figure 10: Web service provider ......................................................................................... 21
Figure 11: INDEX within a conventional software environment.......................................... 23
Figure 12: Conceptual integration: Organization view......................................................... 25
Figure 13: Conceptual integration: Organization systems .................................................... 26
Figure 14: Sales order step 1 ............................................................................................... 30
Figure 17: Purchase order step 1.......................................................................................... 32
Figure 20: Index order step 1............................................................................................... 35
Figure 21: Index order step 2............................................................................................... 35

6
Executive 8ummary
This special project looks at systems integration between various types of enterprise systems,
from both a technical and business view. As authorised and under the direction of Dr Wei
Dai, the team members were set the task to investigate the NetWeaver product from SAP, and
discover how integration could be achieved using SAP and Non-SAP products.

The team members used a structured methodology whilst researching for this project.
Research areas included: Technologies within SAP NetWeaver; Technology of a Non-SAP
product; Conceptual integration; and the application of integration from a technical and
business perspective. Information sources used by the team members include technical and
business texts, white papers, University literature, presentations and SAP online help facility.

The team members recognise, that existing and future technologies are key factors driving
change within organizations. For these companies technology is a key enabler to facilitate
their information needs. Therefore recognition of the customer, supplier and organization
itself cannot be overlooked when determining the requirements for an integrated system to
ensure information is transparent.

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1. ntroduction
This project evaluates the feasibility of using NetWeaver to integrate technology in an SAP
environment. To complement the use of NetWeaver for SAP, it was decided to incorporate
INDEX, for use with non-SAP products and applications. INDEX has been used in this
project to demonstrate its capability as a decision support tool to aid in management
reporting. To demonstrate the concept of NetWeaver and SAP integration a fictitious
company was created with supporting business processes.

The company is called Roses Online - an Australian owned company, established in 1995.
Having established the company as one of the leading florist companies in Australia, it did
not have a presence on the Internet. Last year, management made the strategic decision to
expand current business operations by 30% over the next three years. To support this
initiative, a full strategic review of current marketing strategy and customer base was
conducted over a six-month period.

The review highlighted several key business initiatives that management should consider if a
30% increase in sales over the next three years is to be achieved. These include: extending
the customer base and market share by commitment to a web presence; re-evaluating the
current technology, to provide opportunity for pursuing a larger or more targeted group of
suppliers / trading partners.

By extending existing external channels and integrating existing internal channels we would
be establishing an environment that offered scope to grow in line with future e-commerce and
B2B technologies such as NetWeaver. Adopting this form of technology framework, allows
Roses Online to offer web based business services to potential customers and suppliers.

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2. Technologies
2.1 8AP products
2.1.1 NetWeaver {overview}
SAP NetWeaver is a set of capabilities that are provided by many different SAP products
constructed to work with each other to make applications work together, build new
applications on top of existing applications, and lower the total cost of owning applications.
Because NetWeaver is a pre-packaged integration solution, the cost of ownership and
maintenance fees has been reduced significantly.
2. 1. 1. 1 NetWeaver - Tool ki t

Figure 1 NetWeaver Overview (XI and Web AS)
(Source: IwaySoftware)

NetWeaver is comprised of 2 types of components. They are Integration components and
Development and management components. They are described below:
1. Integration components:

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Software products that help perform the work of enterprise applications by providing a
powerful engine or platform for a specialized type of functionality (Wood, D. & Word, J.
P44). The following components are integration components:
SAP Enterprise Portal;
Mobile Infrastructure;
SAP Business Intelligence;
SAP Master Data Management;
SAP Exchange Infrastructure;
SAP Web Application Server.

2. Development and management components:
These components are the tools to help create and run software.
SAP NetWeaver Developer Studio;
SAP Visual Composer;
SAP Composite Application Framework;
SAP Solution Manager.
2.1.2 Web Application 8erver {Web A8} 6.40
Web AS is the foundation of SAP NetWeaver and provides:
A platform-independent foundation for writing business applications;
A runtime environment for executing business applications;
As much help as possible, in the form of toolkits and utilities to help make scalable
and reliable applications easy to develop and affordable to operate and upgrade;
A means of achieving these goals by using as many widely accepted standards as
possible.

SAP Web AS is a platform for implementing web applications; it is an SAP basis system built
upon proven and stable application server technology and Internet based infrastructure.

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Figure 2:Web AS Architecture.
(Source: Trivelli)

SAP Web AS combines reliability, scalability, multi-language support, remote debugging, and
connection with open Internet standards.

Figure 3: SAP Web Application Server - key benefits
(Source: Trivelli)

SAP Web AS can function as a Web server and a Web client.
As a server, it can accept HTTP requests from a Web client and send a response back
to them.
As a client role, it creates the HTTP request in an ABAP program, sends it to the
server, and then receives the response and processes it on the basis of the response. It
supports both ABAP and Java.

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SAP Web AS works as:
Receive incoming requests come from HTML, using Web Dynpro built pages, from
Web services, from XML messages.
Web AS accepts the information from these requests and passes the data within SAP
Web AS. These programs can then process the data using toolkits that support
workflow, archival, and other common business functions.
Then stores and retrieves information from a database using Open SQL, this allows
users to write programs that support all major databases (e.g. SQL Server, Oracle etc).

SAP Web AS supports various security features such as:
SSL (Secure Socket layer) protocol to secure the connection to and from the server;
User authentication (login ticket or X.509 Client certificates);
Generate individual certificates for each application server or use a server specific
server.

The three components of SAP Web AS are:
Internet Communication Manager (ICM)
ICM is part of the system that receives the HTTP requests from the Internet and ensures the
communication between SAP system and outside the world using HTTP, HTTPS and SMTP
protocols.

Internet Server Cache (ISC)
ISC is used to cache static and dynamic content associated with Web applications. It saves
the HTTP objects before they are sent to the client (eg. on the internet). When the client
requests the page, the ISC saves the page before sent it to the client. When the client request
again, it will be sent directly from cache. It can program data BLOBs in ICM server cache
before the first browser request. This results in quicker response time without adversely affecting
the application server or database.

ICM Server Clipboard (ICM SC)
ICM SC is a service for temporarily storing large data; BLOBs (binary large objects). A key has
been assigned to every data object stored, enabling them be retrieved in sequence in the future.

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SAP Web AS is closely related to mySAP Business Suite and to SAP NetWeaver. For both,
SAP Web AS acts as the run time environment and providing integration when needed.
2.1.3 8AP X 3.0
One of the greatest issues facing eCommerce is the difficulty faced by enterprises in
integrating their systems, both internal and external, with each other, to enable real-time
communication. SAP XI, is one of the components of SAP NetWeaver that aids in the
integration process. It contains a toolkit that can be used to build interfaces between
disparate systems, storing messages in XML format.
SAP XI is focussed in the information and process integration of NetWeaver. Messages may
be defined; descriptions of these messages can be stored to keep track of where they are to be
sent, fields of dissimilar message formats may be mapped and routed to specific locations,
and data adaptors can be constructed to allow systems to send and receive messages. XI
performs the translation of data formats between SAP or non-SAP applications, so that
messages can be exchanged.

Figure 4 - The capabilities of SAP XI.
(Source: Wood - NetWeaver for Dummies)

The Hub Architecture
XI was developed as a tool to aid in the integration of applications and systems. It also
replaces the need for including, maintaining and updating an interface module in each system
to be integrated, because it is a purpose-built application that acts as the middleware between

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applications. Therefore, systems may be added, removed or altered without affecting those
systems with which it is to be integrated, because they are all integrated via hub architecture.
The diagram below is a simple example of a conglomeration of business systems with
interfaces between each application, not using SAP XI.

System 1 System 2
System 4 System 3
System 5
System 1 System 2
System 4 System 3
System 5

Figure 5 - Integrated systems with "Spider Web" configuration

Systems 1 4 are existing systems that require interfaces. Each system would have 2
interfaces and incoming and an outgoing one for each system with which it
communicates. For this configuration, there are 12 interfaces, each requiring support and
maintenance. Therefore, to integrate one more system with each of the 4, not only are there 4
interfaces required of System 5, but 1 extra interface is required for each of the existing
systems. The more systems that are added, the harder, more time consuming and more
expensive is the task that confronts the enterprise. Similarly, if a system were to be removed,
the remaining systems interfaces would each require turning off.
The following configuration employs a hub architecture that simplifies and reduces the cost
of development and maintenance what SAP call lowering the Total Cost of Ownership.

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System 1 System 2
System 4 System 3
System 5
XI
System 1 System 2
System 4 System 3
System 5
XI

Figure 6 - Integrated systems with hub architecture

Each system sends its messages to the XI hub and XI distributes these messages to the target
system. Therefore, individual interfaces between each system are not required. To add a
system to the initial 4-system configuration, one interface between the new system and the
(XI) hub is required. Similarly, to disconnect, one interface, only, requires disconnection
from the hub. The other systems may or may not even need to know that the system has been
removed, such is the work that the XI hub performs.
The financial return on this type of configuration begins to magnify when the above
configuration is extrapolated to a much larger factor the more systems that are attached in a
spider-web fashion will mean more complex integration project and configurations.
Conversely, integrating more systems with a hub architecture can be as simple as connecting
the system to the Hub and configuring XI to distribute messages to and from this system
according to defined business rules.

SAP XI and NetWeaver
XI is a general-purpose middleware component that allows integration of more components
than purpose-built middleware. For example, CRM Middleware can only integrate CRM
with other applications. It is optimised to meet the needs of SAP CRM, but is not compatible
with any other components. XI can integrate all components, SAP or non-SAP, both for
current.
The Components of SAP XI
SAP XI has the following components:
Integration Builder (IB)
Integration Repository (IR)
Integration Directory (ID)

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System Landscape Directory (SLD)
Integration Server (IS)
Central Monitoring

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

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

Integration builder (IB) is a development environment used to define messages and
processes, map message formats, configure business rules (how the different business
systems interact) and store information. The definitions are stored in the Integration
Repository and the configuration details are stored in the configuration directory. IB defined
the format of the messages to be sent by the integration server, called and XML schema. It
also has the tools for business process modelling.
IB, itself, is also made up of a number of components:
Process editor this defines the business processes;
Mapping editor maps the formats of one message to another;
Condition editor creates business rules;
Interface editor defines the messages to be sent between systems;
Scenario editor knits all of the above together.

The outputs of these components (i.e. processes, business rules, scenarios, messages, message
formats) are stored in the Integration Repository (IR). During design time, the message
formats of the 2 systems to be integrated are mapped. The Mapping editor is a graphical user
interface, in which one can drag and drop objects to create relationships between the XML
messages. The integration directory contains a repository of all the interfaces it is a library
of application specific XML documents.

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Figure 8: XI Shared Collaboration
(Source: Trivelli)

During configuration time, the newly created messages are mapped to specific business
processes. IB maps the fields that affect the routing of each message. The rules are then
stored in the integration directory. Protocols, such as HTTP, and other technical information
(i.e. IP addresses, operating systems and versions etc.) are also stored in the integration
directory. Wizards are provided to walk through the configuration process, if required, or a
manual configuration editor allows manual setting of configuration information.

The Integration Repository (IR) is a storage area for all of the systems metadata; the data
that describes the structure of the messages and processes. This includes the data types,
message formats, processes, mappings and connections and the interfaces. The three (3)
basic data types stored in the IR are SAP message, Industry-standard message and Business
Process Templates. There are a number of standard message formats that are used in the
mySAP
Business Suite that may be used without having to create them from scratch. The
objects that are stored in the IR are reusable objects. For example the object Name may be
use in a number of processes (e.g. Create Order, Ship to Notification, Delivery Documents
etc).

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Figure 9: Integration repository & Directory
(Source: Trivelli)

The Integration Directory (ID) is where the messages types and processes, stored in the IR,
are connected to real business processes. It also stores information such as the business rules,
the technical configurations of the systems that are communicating, and naming conventions
(i.e., WHO were talking to, HOW we talk to them and WHY/WHEN).

The System Landscape Directory (SLD) is the library of technical information about the
programs and operating systems connected by XI. This includes IP addresses, software
configurations, software versions, software release dates and operating systems. The details
of each system can be defined in the SLD in a similar manner to how the Internet may be
defined by a directory of DNS and IP addresses. It is, essentially, a system configuration
library. XI can then interrogate the SLD to determine the message routing addresses.

Integration Server (IS) is where all the processing is done. Messages are sent through the
IS and the rules that are defined in the integration directory and integration repository are
processed in the IS. The messages are then routed according to these rules.

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Senders and receivers exchanging messages via the Integration Server are in different places;
however, this actually makes it easier to connect systems using different technologies. Every
system with the ability to exchange messages with the Integration Server, also has the ability
to exchange messages with all other systems connected to the Integration Server. SAP XI
supports the following methods of communication with the Integration Server:
Direct communication using proxies, which are generated in the application systems
using a description in WSDL (Web Service Description Language);
Communication using adapters in this case, interfaces are created for message
exchange in the application system, or use existing interfaces
o IDoc adapter,
o RFC adapter,
o File adapter,
o Database (JDBC) adapter,
o Java Messaging Service (JMS) adapter,
o SOAP adapter,
o Plain HTTP adapter,
o MarketSet adapter,
o Adapter framework for selected partners,
o EDI adapter,
o UCCNET adapter,
o PeopleSoft adapter,
o Oracle adapter,
o JDE adapter,
o Siebel adapter.

Central monitoring then determines if the messages are successfully transmitted between
the systems. Central monitoring is essentially a health monitoring system of the entire
infrastructure.
2.1.4 Web 8ervices
A Web service is an application service (i.e. a network accessible function) that can be
accessed using standard Web protocols. Web services are applicable to any type of

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networking environment and can support business-to-consumer, business-to-business,
department-to-department, or peer-to-peer interactions (RogueWave, 2004, p.03).
Web services indicate the set of standards that ensure interoperability between services,
especially when those services are meant to be accessible over standard web protocols.

Core concepts of the Web services (RogueWave, 2004, p.03):
Accessible over the Internet, web services communicate through platform-
independent web protocols, facilitating the integration of heterogeneous
environments.
Web services standards define an interface and communication protocol that can be
invoked from an application client or provided through a server.
The Web Services Definition Language (WSDL) adds a layer of abstraction between
implementation and interface, providing a loosely coupled application that results in
future flexibility.
Central to the Web services approach is that it is based on widely accepted technologies and
commonly used standards. This enables companies to transition to a SOA incrementally with
minimal risk and at low cost

The major Web services standards groups are listed below:
W3C (World Wide Web Consortium): The driving force behind the largest number
of highly adopted standards in the web services space including some web building
blocks such as HTML.
OASIS: Source of the original specification from which XML evolved, as well as the
home of the current XML and Universal Description, Discovery and Integration
(UDDI) specification.
WS-I (Web Services Interoperability Organization): WS-I in an industry
consortium that acts as a watchdog group that is focused on ensuring interoperability
between vendor solutions and implementations of Web services standards.

The following core standards are emerging based on (Zia, 2004):
eXtensible Markup Language (XML). XML is a universal syntax for describing and
structuring data, independent from the application logic and is really a "meta-

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language"; a language that describes other languages. XML can be used to define
unlimited languages for specific industries and applications.
Simple Object Access Protocol (SOAP). SOAP is a lightweight, XML-based
protocol for exchange of information in a decentralized, distributed environment. It
functions as a standard envelope for messages passing between different systems.
Web Services Description Language (WSDL). WSDL is the XML grammar for
specifying a public interface for a Web service. This interface describes the functional
and operational requirements for accessing web services, such as protocol binding
requirements and location information.
Universal Description, Discovery and Integration (UDDI). UDDI is the standard
that defines the repository in which available web services are stored, indexed and
organized.
Web Service Extensions. The core standards are being extending to address critical
issues like reliable messaging, security, process orchestration, and long-running
transactions.

Key benefits of the Web services approach (RogueWave, 2004, pp.6-7):
Loosely Coupled
Loose coupling means that each service exists independently of the other services that make
up the application. This allows individual pieces of the application to be modified without
impacting unrelated areas.

Enables Service-Oriented Architectures
Web services represent the convergence between the service-based development of
applications and the Web. In the SOA model, the business processes that make up an
application are separated into independent, easily distributed components known as services.
These processes interoperate across processes and machines to create a complete solution for
a business problem. This loose coupling allows for easy changes to the application by
inserting new and revised services into the application without modifying the unrelated
services.

Ease of Integration

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Web services are becoming widely adopted across the entire software industry. The standards
surrounding Web services are human-readable and publicly available, allowing a developer to
view exactly what is happening in the system.

Easily Accessible
Web services are distributed over the Internet. Web services make use of existing transport
protocols, such as HTTP, leveraging existing infrastructure and allowing information to be
requested and received in real time.

Web Service Provider
Figure 10 below, shows the Web service provider environment in more detail. SAP Web AS
6.40, offers a development and runtime environment for the provision of Web services. The
development environment supports the implementation and configuration of Web services,
along with WSDL generation and the services publication in UDDI. The runtime
environment, offers a SOAP engine capable of executing requests and producing responses
under a given Web service configuration that controls security settings and the behaviour of
different features (Kessler, 2004).

Figure 10: Web service provider
(Source: Kessler, 2004)

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2.2 Non-8AP product
2.2.1 NDEX
ERP systems (or ES as mentioned) do not fit well within an integration framework (Dai,
W. & Wright, S.L. 1996). To overcome this bad fit, Dai & Wright (1996), introduce the
INDEX architecture as part of an integration strategy. The aim of INDEX is to enable
integration of ERP (or ES) systems within a conventional software environment, depending
on what level (i.e. system, tool, or language) the integration is to occur.

The following integration strategies help visualise the complexity of INDEX layers:
System level integration:
The attempt to join systems at operating system level cannot solve integration. Dai and
Wright (1996) propose that only an integration tool can help to interpret data for each system.

Tool level integration:
Following on from System level integration, Tool level integration enables smaller
granularity to be manipulated. It provides some more strongly coupled systems to enable
integration.

Language level integration:
At this level, Language integration provides most flexibility in so far as available objects and
libraries can be used to link systems. At procedure level one may code a subroutine to access
information from the adjacent system.

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Figure 11: INDEX within a conventional software environment

In the scope of this project, the INDEX layered architecture can sit between ERP systems.
The integration strategies above form the layers of components used in INDEX. System
level, Tool Level and Language level components enables the sharing of knowledge
between disparate systems.

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3. Conceptual ntegration
Davenport (2000) argues that the impact of integration is most prevalent at operation level
with obvious effects on how a company operates within its own organisation, and external to
its organisation. Davenport (2000) describes integration issues as being how a company
goes to market, how the organisation creates its products and services, works with
suppliers, customers and distribution partners. These are examples showing the relevance to
integrate systems internal and external to the organisation.

In order to visualise integration issues, we have split the following sections into organisation
view and organisation systems, interfaces and channels. The first section shows the
organisation and its interactions displayed as a double bell model, typically used in
describing a focal company as part of an integrated supply chain (Sadler 2004).
3.1 Organisation view
Building a framework for integrating systems is a complex task. The number of systems,
interfaces and people involved can only be shown as abstract. Figure 12, provides a
contextual view of our organisation and its business partners, suppliers (i.e. including service
providers) and customers. The assumption is made that the organisation is already established
with each of the organisation units using their own systems.

Setting the scene for integration between organisational units and partners is the desired
effect. Notice firstly that our fictional organisation comprises many organisational units.
This could be applied generally to most organisations. For readability, the supplier side of the
organisation is shown in close proximity to the supplier bell. Conversely, the customer
service department is shown close to the customer bell.

The accounting and knowledge providers within the organisation span several organisational
units. This is because they typically act as a support function to the business. The same
could be argued with human resources, marketing and other departments within an

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organisation. For the sake of our integration concept, we keep the organisation simple and
clear to follow. Therefore, this view of the organisation is shown with systems, interfaces and
channel links.

Figure 12: Conceptual integration: Organization view (Sadler 2004)
3.2 Organisation systems, interfaces and
channels
Following on from the organisational view, we look at the next level of abstraction,
comprising: systems, interfaces, and channel links. The systems internal to the organisation
are detailed as being ERP or non-ERP based. The term ERP is used to represent any
enterprise system; either an SAP, Oracle product, or customer specific written package. In
figure 13 below, the SAP R/3 instances for each of the organisational are separate along with
the decision support system as a non-SAP product. The emphasis on the internal systems is
the disparate nature of systems between the organisations. We follow on with the
interactions to the organisation.

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The interaction from the supplier side, as mentioned in the previous section, is shown close to
the Logistics or Operations side of the organisation. A typical business process, such as
purchase and provision of material, typifies how many organisations use information via EDI,
email and fax to communicate. Many larger suppliers, in term of technology advancement,
use EDI and XML as a medium to communicate business process information in an
automated fashion. An example may be, an organisation sends a supplier a request for
quotation. The supplier processes and returns an EDI message with quotation then the
organisation processes and decides to raise a purchase requisition (i.e. from R/3 SCM) and
order via an EDI message.

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

From the customer service side, we show the typical sales channels for one-time customers as
email, phone, fax and order online via a web portal. Account customers may be set up with
web portal access. The sales channels are shown as closely aligned to the customer service
organisational / business unit.

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The concept of integration has been shown from three perspectives; internal and external
suppliers and external customers. Internal to the organisation we have disparate systems.
External suppliers communicate via EDI, XML and other communication mediums. The
following sections aim to show, by way of business scenario, how we can use technology
such as SAP NetWeaver to overcome the integration hurdles.

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4. Applying integration to Business
8cenarios
This section, details the different business processes involved in selling roses over the
Internet and extracting information from our knowledge and information systems. We can
integrate the Web Portal, non-SAP Customers purchasing systems, and email, phone and fax
sales processes with our internal R/3 components using XML, HTML, EDI and manual order
entry.
For ease of analysis, the end-to-end business processes are divided into three (3) the Sales
process, Purchase process (Order Fulfilment) and Reporting. These three (3) processes are
further disseminated, firstly at a transaction level, then each transaction is analysed to
determine the flow of information, what data structure might support such flow of
information, and then how the various components of NetWeaver may be implemented to
reengineer these business processes.
4.1 8ales order process - CRM
4.1.1 Business scenario
The business model for selling roses over the Internet has been described in previous
sections. Our sales channels to our customers can be broken down into the ad hoc customers,
who order through email, phone, fax or a web interface, and corporate customers with whom
we have developed business relationships and who purchase regular, large quantities of roses.
These large corporate customers (i.e. supermarket chains, large floral retailers etc.), send
email orders, use the web portal or, for integration into their own purchasing systems, are
able to send orders directly from their ordering system to our purchasing systems. The
following describes the process interaction between their system and our system.

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The sales process can be broken down into several succinct transactions. Each transaction
can be modelled as a single event in the Sales process.
Web Portal customer sends order to CRM system via NetWeaver. Because of the
interface between the Web Portal and our CRM system (NetWeaver), the order is
entered directly into the system.
Email customer sends email to CRM system. Email orders are manually converted
to orders in the CRM system by the customer service department.
Phone and Fax Phone and Fax orders are also manually entered into the CRM
system by the customer service department.
Corporate Customers these customers may use the Web Portal, Email or Phone/Fax
options, but for processing efficiency, our scenario allows for our partners to have
direct connections (via NetWeaver) into our CRM system. Therefore, they are able to
send their orders automatically from within their own purchasing systems. Usually
this would entail them sending us a file containing the order details. These orders are
captured in our CRM system.
Our CRM system validates all received order details. CRM searches the Customer
Master for an existing account and, if found, assigns the order to that account. For
one-time customers (i.e. any customer whose details are not found in the Customer
Master), their orders are allocated to the One-Time Customer account in CRM.
CRM system sends an IDOC (sales order) to SCM
CRM system returns order confirmation to customer. Only orders received from the
Web Portal, email or via from our corporate customers receive this order
confirmation, as the other channels do not support this functionality.
Once all orders are verified, the Purchasing process is triggered
4.1.2 Technical integration description
SAP NetWeaver can integrate SAP applications with each other including non-SAP
applications. SAP XI is the component of NetWeaver that simplifies the exchange of data
between applications. NetWeaver can interpret many forms of document, but most easily
XML, HTML or EDIs. Metadata, defining each document type is received for each
document and defined in XI and any document received in this format is easily translated into
an order in the system.

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Orders are submitted, electronically, from two (2) places either a web portal or as an interface
file from our corporate customers. The orders submitted from the web portal are transmitted
to XI as an XML document. Corporate customers can send a file of any format. Provided
that XI can map the fields, it will be able to interpret the file, and translate the order file into
orders in CRM.
4. 1. 2. 1 8al es Order - 8tep 1

Figure 14: Sales order step 1
Web Portal order:
A customer submits a transaction form from a web page to create an order;
The Web Portal sends an XI compatible protocol document (XML, HTML etc) to
SAP Web AS.
Non-SAP Corporate order:
Our corporate customers systems are connected to SAP Web AS via our company
firewall.
The customer sends their order file in any format (i.e. XML, HTML, EDI, Flat file
etc), directly to SAP Web AS.

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4. 1. 2. 2 8al es Order - 8tep 2


SAP Web AS delivers all the orders that arrive from customers to SAP XI in an XI
compatible document. Based on the configuration information defined in SAP XI, these
orders are converted to IDoc and returned to Web AS.
4. 1. 2. 3 8al es Order - 8tep 3


Web AS forwards this IDoc to CRM: a purchase order is created in CRM.
CRM validates all orders in real time and responds to SAP XI with confirmation of the
order.
SAP XI routes the order confirmation or rejection to the Web Portal or the Customers
systems based on the routing information stored in the Integration Directory. Orders that
have been manually entered as a result of an email, phone or fax order do not generate
order confirmations because it is a manual process. If the SAP XI order response is to the

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Web Portal, SAP XI sends a pre-formatted HTML document to the user. The order
response is directed to a corporate customer; the order response document is in XML
format.
If the order is valid, CRM creates an IDOC (i.e. sales order) in SCM.
4.2 Purchasing process
The Purchasing process is started when demand is created from an internal request, such as
sales order, individual requirements, damaged stock or advanced forecast planning. The
demand triggers a predefined internal process in which a set of messages is exchanged
between our company and a supplier. This interaction is performed through the NetWeaver
structure that provides the communication platform to those transactions.
This process is divided in three (3) main steps. Firstly, R/3 components forward a purchase
order to NetWeaver that processes the information and defines a supplier. The message is
converted to the supplier's format and routed to the supplier's system, based on configuration
information stored in SAP XI. Lastly, the response is received by NetWeaver, processed and
redistributed to the R/3 internal components.
4. 2. 2. 1 Pur chase Pr ocess - 8t ep 1

Figure 17: Purchase order step 1

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The first step is the creation of a purchase order within SAP R/3 SCM from CRM. To get the
purchase order out, SAP XI would have provision for the EDI or XML document as part of
its mapping mechanism. The purchase order from SCM would be transferred to NetWeaver
as an IDoc. Subsequently, the IDoc is processed within the SAP XI structure using the
standard routine for purchase orders.


The message is modelled according to a user-defined set of rules stored in the Integration
Repository. The message can be split in case the supplier cannot completely fulfil the order
or even handle fulfilment deadlines. As soon as the supplier is selected, SAP XI maps the
IDoc structure into the supplier's XML message format. Routing information is stored in the
Integration Directory and is handed over to the Web AS, which delivers the message. The
purchase order is transmitted to the supplier for processing.

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A supplier replies with order fulfilment in an XML message which is received through the
Web AS infrastructure and delivered to SAP XI for further processing. The XML message is
broken down into a number of IDocs. These IDocs are delivered to internal R/3 components
with the relevant data. For example, different information within the IDoc is forwarded to
the CRM, FI and SCM modules.
4.3 Decision support using ndex
The use of INDEX for the purpose of management and enterprise reporting provides a unique
opportunity to explore the decision support capabilities of INDEX in an integrated SAP
environment. Section 4.3.2, Technology Integration Description, aims to demonstrate the use
of INDEX not only as a message request broker between XI and Web AS but also as an
advanced application environment integrating the strengths and processes of knowledge
management and data management.

One of the core technologies from the project is INDEX knowledge management system. Our
team saw the unique strengths of INDEX falling into the domain of integration process. We
attempt to illustrate this concept through the application of business logic. This is illustrated
by passing requests for information from a legacy system to XI via an IDoc which in turn
retrieves sales data for reporting to management. INDEX also provides a low to medium cost

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EAI technology solution, for those companies looking to extract business information from
legacy systems delivered in real-time.
4. 3. 2. 1 ndex- 8t ep 1

Figure 20: Index order step 1
Using INDEX, to process information is achieved via a two-step process. Firstly, as a
business, Roses Online decided to use INDEX for the purpose of management reporting.
INDEX will process requests for information from multiple sources and act as a brokering
agent to collate and provide a consolidated view of our sales data. The sales data will be
sourced from the R/3 system. The request starts as an XML request to XI in NetWeaver
which creates an IDoc request and passes that data stream to the R/3.
4. 3. 2. 2 ndex- 8t ep 2

Figure 21: Index order step 2

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Using INDEX, to process information is achieved as a two-step process. The R/3 system
forwards an IDoc data stream back to XI, where it converted into XML. XML being an
Internet open standard format it provides the integration link for non-SAP product
communication is sent back to INDEX. INDEX provides enabling technologies that directly
link with existing information resources and business tasks within users work environments.
This allows INDEX to be used as a product to directly interface to user applications.

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5. Conclusion
Companies often spend years and considerable resources developing solutions to tackle
individual business problems, solutions that often don't fit into a broader, more strategic
enterprise IT architecture. This narrow approach results in limited interoperability, making it
difficult to leverage these systems and add new business value. Integration can address this
dilemma by enabling existing applications to both interoperate and be orchestrated through
new business logic and process rules.

Todays IT landscapes are increasingly complex and difficult to integrate. A solution is
needed that enables new levels of collaboration and connectivity among all the systems and
applications within your enterprise and across your entire value chain. In addition to
integrating these heterogeneous system environments, it is important to leverage the existing
legacy systems to support the goal of standardising on a services-based architecture.

SAP NetWeaver has been shown as a candidate technology solution for Roses Online.
NetWeaver is a system that is used for various methods of application communication.
Customers demand the product using various methods of communication channels and this
system fulfils the needs of the company and customers.

In summary, integration is changing and companies cannot avoid looking at the application
platform suites, especially those offered by their core application provider (i.e. SAP
NetWeaver). These technology platforms will be the foundation on which all new
development is based. By creating this open architecture where information can flow freely,
and business content is no longer isolated by boundaries and applications.

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References
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