Manual Systems Analysis and Design

SAP Business One
Guide to Systems Analysis and Design
G/F King's Court II Building, 2129 Pasong Tamo corner Dela Rosa Street, Makati City
Tel. Nos. 822-7120,759-4348 Taken from Dr. Jawahar 1
(http://www.ddegjust.ac.in/studymaterial/msc-cs/ms-04.pdf)
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Table of Contents
Introduction 4
Over View of System Analysis and Design 4
Business System Concepts 6
Characteristics of a System 7
Elements of a System 9
Types of Systems 11
Systems Models 14
Categories of Information 15
Computer Hardware and Software 16
Business Applications 19
SAP 37
SAP in the Global Market 41
SAP in the Philippine Market 43
SAP Basics 45
SAP Marketing Documents 54
SAP Business Process 54
SAP Master Data 63
Stages of System Development Life Cycle 64
Project Selection 65
Feasibility Study 66
Analysis 67
Design 67
Implementation 68
Post – Implementation and Maintenance 69
Considerations for candidate system 70
Political considerations 71
Planning
nning and control for system success 72
SAP Business One Accelerated Implementation Program 72
Project Preparation 74
Business Blueprint 77
Project Realization 79
Final Preparation 83
Go- Live and Support 85
Installation and Administration 92
Installation and Upgrade 93
Licensing 93
Creating a Company 95
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Paths to Templates 97
SAP Business One Service Manager 99
User and Authorization Manager 100
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Introduction
In business, System Analysis and Desi

Design
gn refers to the process of examining a
business situation with the intent of improving it through better procedures and methods.
System analysis and design relates to shaping organizations, improving performance and
achieving objectives for profitabil
profitability
ity and growth. The emphasis is on systems in action,
the relationships among subsystems and their contribution to meeting a common goal.
Looking at a system and determining how adequately it functions, the changes to

be made and the quality of the outp
output are parts of system analysis.
Organizations are complex systems that consist of interrelated and interlocking

subsystems. Changes in one part of the system have both anticipated and unanticipated
consequences in other parts of the system. The syst
systems
ems approval is a way of thinking
about the analysis and design of computer based applications. It provides a framework for
visualizing the organizational and environmental factors that operate on a system. When
a computer is introduced into an organiza
organization,
tion, various functions’ and dysfunction’s
operate on the user as well as on the organization. Among the positive consequences are
improved performance and a feeling of achievement with quality information. Among the
unanticipated consequences might be a possible threat to employees job, a decreased
morale of personnel due to back of involvement and a feeling of intimidation by users
due to computer illiteracy. The analyst’s role is to remove such fears and make the
system a success.
System analysis and design focus on systems, processes and technology.
Over View of System Analysis and Design
Systems development can generally be thought of as having two major

components: Systems analysis and Systems design. System design is the process of
planning a new business system or one to replace or complement an existing system.
But before this planning can be done, we must thoroughly understand the old system
and determine how computers can best be used to make its operation more effective.
System
em analysis, then, is the process of gathering and interpreting facts, diagnosing
problems, and using the information to recommend improvements to the system.
This is the job of the systems analyst.
Consider, for example, the stockroom operation of a clothing store. To better

control its inventory and gain access to more up – to – date information about stock levels
and reordering, the store asks a system analyst, to “computerize” its stockroom
operations. Before one can design a system to captur
capturee data, update files, and produce
reports, one needs to know more about the store operations: what forms are being used to
store information manually, such as requisitions, purchase orders, and invoices and what
reports are being produced and how they aarere being used. To proceed, you then seek out
information about lists of reorder notices, outstanding purchase orders, records of stock
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on hand, and other reports. You also need to find out where this information originates,
whether in the purchasing depa
department,
rtment, stockroom, or accounting department. In other
words, you must understand how the existing system works and, more specifically, what
the flow of information through the system looks like.
You also must know why the store wants to change its cur
current
rent operations. Does
the business have problems tracking orders, merchandise, or money? Does it seem to fall
behind in handling inventory records? Does it need a more efficient system before it can
expand operations?
Only after you have collected tthese

hese facts can you being to determine how and
where a computer information system can benefit all the users of the system. This
accumulation of information, called a systems study, must precede all other analysis
activities.
Systems analysts do more than solve current problems. They are frequently
called upon to help handle the planned expansion of a business. In the case of the
clothing store, the systems study is future oriented, since no system currently exists.
Analysts assess as carefully as pos
possible
sible what the future needs of the business will be and
what changes should be considered to meet these needs. In this instance and in most
others, analysts may recommend alternatives for improving the situation. Usually more
than one strategy is possible.
Working with managers and employees in the organization, systems analysts

recommend which alternative to adopt, based on such concerns as the suitability of the
solution to the particular organization and setting, as well as the employee support the
th
solution is likely to have. Sometimes the time required to develop one alternative,
compared with others, is the most critical issue. Costs and benefits are also important
determinants. In the end, management, which will pay for and use the result, actually
ac
decides which alternative to accept.
Once this decision is made, a plan is developed to implement the

recommendation. The plan includes all systems design features, such as new data capture
needs, file specifications, operating procedures, eequipment
quipment and personnel needs. The
systems design is like the blueprint for a building: it specifies all the features that are to
be in the finished product.
Designs for the stockroom will provide ways to capture data about orders and
sales to customers
rs and specify the way the data will be stored, whether on paper forms or
on a computer – readable medium, such as magnetic tape or disk. The designs will also
designate work to be performed by people and by computers. Designs vary in their
division of human and computer tasks.
The stockroom personnel will also need information about the business. Each
design describes output to be produced by the system, such as inventory reports, sales
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analyses, purchasing summaries, and invoices. The systems aanalysts

nalysts will actually decide
which outputs to use, as well as how to produce them.
Analysis specifies what the system should do. Design states how to accomplish
the objective. Notice that each of the processes mentioned involves people. Managers and
employees have good ideas about what works and what does not, about what flows
smoothly and what causes problems, about where change is needed and where it is not,
and especially about where change will be accepted and where it will not. Despite
technology,
ology, people are still the keys that make the organizations work. Thus,
communicating and dealing with people are very important parts of the systems analyst’s
job.
Business System Concepts
The word system is widely used. It has become fashionable to attach the word
system to add a contemporary flair when referring to things or processes. People speak of
exercise system, investment system, delivery system, information system, education
system, computer system etc. System may be referred to any ssetet of components, which
function in interrelated manner for a common cause or objective.
Definition:
The term system is derived form the Greek word systema, which means an
organized relationship among functioning units or components. A system exists
exist because
it is designed to achieve one or more objectives. We come into daily contact with the
transportation system, the telephone system, the accounting system, the production
system, and, for over two decades, the computer system. Similarly, we talk of the
business system and of the organization as a system consisting of interrelated
departments (subsystems) such as production, sales, personnel, and an information
system. None of these subsystems is of much use as a single, independent unit. When
they are properly coordinated, however, the firm can function effectively and profitably.
There are more than a hundred definitions of the word system, but most seem to
have a common thread that suggests that a system is an orderly grouping of
interdependent
pendent components linked together according to a plan to achieve a specific
objective. The word component may refer to physical parts (engines, wings of aircraft,
car), managerial steps (planning, organizing and controlling), or a system in a multi level
lev
structure. The component may be simple or complex, basic or advanced. They may be
single computer with a keyboard, memory, and printer or a series of intelligent terminals
linked to a mainframe. In either case, each component is part of the total sys
system
tem and has
to do its share of work for the system to achieve the intended goal. This orientation
requires an orderly grouping of the components for the design of a successful system.
The study of systems concepts, then, has three basic implications

implications:
1. A system must be designed to achieve a predetermined objective.
2. Interrelationships and interdependence must exist among the components.
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3. The objectives of the organization as a whole have a higher priority than the
objectives of its subsystems.
s. For example, computerizing personnel
applications must conform to the organization’s policy on privacy,
confidentiality and security, as will as making selected data (e.g. payroll)
available to the accounting division on request.
Characteristics of a System
Our definition of a system suggests some characteristics that are present in all
systems: organization (order), interaction, interdependence, integration and a central
objective.
Organization
Organization implies structure and orde

order.
r. It is the arrangement of components that
helps to achieve objectives. In the design of a business system, for example, the
hierarchical relationships starting with the president on top and leading downward to the
blue – collar workers represents the organization structure. Such an arrangement portrays
a system – subsystem relationship, defines the authority structure, specifies the formal
flow of communication and formalizes the chain of command. Like – wise, a computer
system is designed around an input device, a central processing unit, an output device and
one or more storage units. When linked together they work as a whole system for
producing information.
Interaction
Interaction refers to the manner in which each component functions with

wit other
components of the system. In an organization, for example, purchasing must interact with
production, advertising with sales and payroll with personnel. In a computer system, the
central processing unit must interact with the input device to solv
solvee a problem. In turn, the
main memory holds programs and data that the arithmetic unit uses for computation. The
interrelationship between these components enables the computer to perform.
Interdependence
Interdependence means that parts of the org

organization
anization or computer system depend
on one another. They are coordinated and linked together according to a plan. One
subsystem depends on the input of another subsystem for proper functioning: that is, the
output of one subsystem is the required input for another subsystem. This
interdependence is crucial in systems work.
An integrated information system is designed to serve the needs of authorized

users (department heads, managers, etc.) for quick access and retrieval via remote
terminals. The interdependence
terdependence between the personnel subsystem and the organization’s
users is obvious.
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In summary, no subsystem can function in isolation because it is dependent on the

data (inputs) it receives from other subsystems to perform its required tasks.
Interdependence
erdependence is further illustrated by the activities and support of systems analysts,
programmers, and the operations staff in a computer centre. A decision to computerize an
application is initiated by the user, analyzed and designed by the analyst, pr
programmed
ogrammed
and tested by the programmer, and run by the computer operator. None of these persons
can perform property without the required input from others in the computer center
subsystem.
Figure 1-1:
1: Organization Structure – An Example
Integration
Integration refers to the holism of systems. Synthesis follows analysis to achieve

the central objective of the organization. Integration is concerned with how a system is
tied together. It is more than sharing a physical part or location. It means tthat
hat parts of the
system work together within the system even though each part performs a unique
function. Successful integration will typically produce a synergistic effect and greater
total impact than if each component works separately.
Central objective
The last characteristic of a system is its central objective. Objectives may be real
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or stated. Although a stated objective may be the real objective, it is not uncommon for
an organization to state one objective and operate to achieve another
another.
Elements of a System
In most cases, systems analysts operate in a dynamic environment where change

is a way of life. The environment may be a business firm, a business application, or a
computer system. To reconstruct a system, the following key elements must be
considered:
1. Outputs and inputs.

2. Processor(s).
3. Control.
4. Feedback.
5. Environment.
6. Boundaries and interface.
Outputs and Inputs
A major objective of a system is to produce an output that has value to its user.
Whatever the nature of the output (goods, services, or information), it must be in line
with the expectations of the intended user. Inputs are the elements (material, human
resources, and information) that enter the system for processing. Output is the outcome
o of
processing. A system feeds on input to produce output in much the same way that a
business brings in human, financial, and material resources to produce goods and
services. It is important to point out here that determining the output is a fir
first
st step in
specifying the nature, amount, and regularity of the input needed to operate a system. For
example, in systems analysis, the first concern is to determine the user’s requirements of
a proposed computer system – that is, specification of the output
utput that the computer is
expected to provide for meeting user requirements.
Processor(s)
The processor is the element of a system that involves the actual transformation
of input into output. It is the operational component of a system. Processors may modify
the input totally or partially, depending on the specifications of the output. This means
that as the output specifications change so does the processing. In some cases, input is
also modified to enable the processor to handle the transformati
transformation.
Control
The control element guides the system. It is the decision – making subsystem that
controls the pattern of activities governing input, processing, and output. In an
organizational context, management as a decision – making body controls the inflow,
handling and outflow of activities that affect the welfare of the business. In a computer
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system, the operating system and accompanying software influence the behaviour of the
system. Output specifications determine what and how much input iiss needed to keep the
system in balance.
In systems analysis, knowing the attitudes of the individual who controls the area
for which a computer is being considered can make a difference between the success and
failure of the installation. Management support is required for securing control and
supporting the objective of the proposed change.
Feedback
Control in a dynamic system is achieved by feedback. Feedback measures output

against a standard in some form of cybernetic procedure that incl
includes
udes communication and
control. Output information is fed back to the input and / or to management (Controller)
for deliberation. After the output is compared against performance standards, changes can
result in the input or processing and consequently, the output.
Feedback may be positive or negative, routing or informational. Positive feedback

reinforces the performance of the system. It is routine in nature. Negative feedback
generally provides the controller with information for action. In sys
systems
tems analysis,
feedback is important in different ways. During analysis, the user may be told that the
problems in a given application verify the initial concerns and justify the need for change.
Another form of feedback comes after the system is implem
implemented.
ented. The user informs the
analyst about the performance of the new installation. This feedback often results in
enhancements to meet the user’s requirements.
Environment
The environment is the “suprasystem” within which an organization operates. It

is the source of external elements that impinge on the system. In fact, it often determines
how a system must function. For example, the organization’s environment, consisting of
vendors, competitors, and others, may provide constraints and, consequent
consequently, ly, influence
the actual performance of the business.
Boundaries and interface
A system should be defined by its boundaries – the limits that identify its
components, processes and interrelationship when it interfaces with another system. For
example,
ample, a teller system in a commercial bank is restricted to the deposits, withdrawals
and related activities of customers checking and savings accounts. It may exclude
mortgage foreclosures, trust activities, and the like.
Each system has boundarie

boundariess that determine its sphere of influence and control.
For example, in an integrated banking – wide computer system design, a customer who
has a mortgage and a checking account with the same bank may write a check through
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the “teller system” to pay the ppremium

remium that is later processed by the “mortgage loan
system.” Recently, system design has been successful in allowing the automatic transfer
of funds form a bank account to pay bills and other obligations to creditors, regardless of
distance or location.. This means that in systems analysis, knowledge of the boundaries of
a given system is crucial in determining the nature of its interface with other systems for
successful design.
Types of systems
The frame of reference within which one views a sysystem

stem is related to the use of
the systems approach for analysis. Systems have been classified in different ways.
Common classifications are: (1) physical or abstract, (2) open or closed, and (3) “man –
made” information systems.
Physical or abstract systems
Physical systems are tangible entities that may be static or dynamic in operation.
For example, the physical parts of the computer center are the officers, desks, and chairs
that facilitate operation of the computer. They can be seen and coun
counted;
ted; they are static. In
contrast, a programmed computer is a dynamic system. Data, programs, output, and
applications change as the user’s demands or the priority of the information requested
changes. Abstract systems are conceptual or non non-physical entities.
ntities. They may be as
straightforward as formulas of relationships among sets of variables or models – the
abstract conceptualization of physical situations. A model is a representation of a real or a
planned system. The use of models makes it easier for the analyst to visualize
relationships in the system under study. The objective is to point out the significant
elements and the key interrelationships of a complex system.
Open or Closed Systems
Another classification of systems is based on th their

eir degree of independence. An
open system has many interfaces with its environment. It permits interaction across its
boundary; it receives inputs from and delivers outputs to the outside. An information
system falls into this category, since it must adapt to the changing demands of the user. In
contrast, a closed system is isolated from environmental influences. In reality, a
completely closed system is rare. In systems analysis, organizations, applications and
computers are invariably open, dynami
dynamicc systems influenced by their environment.
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Figure: 1.3 Gantt Chart – An Example
A focus on the characteristics of an open system is particularly timely in the light

of present – day business concerns with computer fraud, invasion of privacy, security
se
controls, and ethics in computing. Whereas the technical aspects of systems analysis deal
with internal routines within the user’s application area, systems analysis as an open
system tends to expand the scope of analysis to relationships between the user area and
other users and to environmental factor that must be considered before a new system is
finally approved. Furthermore, being open to suggestions implies that the analyst has to
be flexible and the system being designed has to be respon
responsive
sive to the changing needs of
the user and the environment.
Five important characteristics of open systems can be identified.
1. Input from outside: Open systems are self – adjusting and self-regulating.
regulating.
When functioning properly, an open system rreaches
eaches a steady state or equilibrium.
In a retail firm, for example, a steady state exists when goods are purchased and
sold without being either out of stock or overstocked. An increase in the cost of
goods forces a comparable increase in prices or decdecrease
rease in operating costs. This
response gives the firm its steady state.
2. Entropy: All dynamic systems tend to run down over time, resulting in
entropy or loss of energy. Open systems resist entropy by seeking new inputs or
modifying the processes to return to a steady state. In our example, no reaction to
increase in cost of merchandise makes the business unprofitable which could
force it into insolvency – a state of disorganization.
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3. Process, output and cycles: Open systems produce useful output and operate in
cycles, following a continuous flow path.
4. Differentiation: Open systems have a tendency toward an increasing

specialization of functions and a greater differentiation of their components. In
business, the roles of people aand
nd machines tend toward greater specialization and
greater interaction. This characteristic offers a compelling reason for the
increasing value of the concept of systems in the systems analyst’s thinking.
5. Equifinality: The term implies that goals are achieved through differing courses
of action and a variety of paths. In most systems, there is more of a consensus on
goals than on paths to reach the goals. Understanding system characteristics helps
analysts to identify their role and relate thei
theirr activities to the attainment of the firm’s
objectives as they undertake a system project. Analysts are themselves part of the
organization. They have opportunities to adapt the organization to changes through
computerized application so that the system does not “run down.” A key to this process is
information feedback from the prime user of the new system as well as from top
management.
The theme of the process of designing information systems borrows heavily from
a general knowledge of systems theo
theory.
ry. The objective is to make a system more efficient
by modifying its goals or changing the outputs.
Man – Made Information Systems
Ideally, information reduces uncertainty about a state or event. For example,

information that the wind is calm red
reduces
uces the uncertainty that the boat trip will be
pleasant. An information system is the basis for interaction between the user and the
analyst. It provides instruction, commands and feedback. It determines the nature of the
relationships among decision
decision-makers.
akers. In fact, it may be viewed as a decision center for
personnel at all levels. From this basis, an information system may be defined as a set of
devices, procedures and operating systems designed around user based criteria to produce
information and communicate it to the user for planning, control and performance. In
systems analysis, it is important to keep in mind that considering an alternative system
means improving one or more of these criteria.
Many practitioners fail to recognize that a business has several information

systems; each is designed for a purpose and works to accommodate data flow,
communications, decision making, control and effectiveness. The major information
systems are formal, informal and computer based.
Formal Information system
A formal information system is based on the organization represented by the

organization chart. The chart is a map of positions and their authority relationships,
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indicated by boxes and connected by straight lines. It is concerned wit

with
h the pattern of
authority, communication and workflow. Information is formally disseminated in
instructions, memos, or reports from top management to the intended user in the
organization. This structure also allows feedback up the chain of command for fo follow –
up. In Figure 1-11 input form the environment provides impetus for policy decision by top
management. Policies are generalizations that specify what an organization ought to do.
Policies are translated into directives, rules and regulations and transmitted to lower-level
lower
management for implementation. The output represents employee performance.
Systems Models
In no field are models used more widely and with greater variety than in systems
analysis. The analyst beings by creating a model of the reality (facts, relationships,
procedures, etc.) with which the system is concerned. Every computer system deals with
the real world, a problem area, or a reality outside itself. For examples, a telephone
switching system is made up of subscriber
subscribers,
s, telephone handsets, dialing, conference calls,
and the like. The analyst beings by modeling this reality before considering the functions
that the system is to perform.
Various business system models are used to show the benefits of abstracting
complex
mplex system to model form. The major models are schematic, flow, static and
dynamic system models.
Schematic Models.
A schematic model is a two – dimensional chart depicting system elements and

their linkages. Different arrows are used to depict iinformation
nformation flow, material flow and
information feedback. Various elements of the system are depicted in boxes.
Flow system Models.
A flow system model shows the flow of the material, energy and information that
hold the system together. There is an orderly flow of logic in such models. A widely
known example is PERT (Program Evaluation and Review Technique). It is used to
abstract a real world system in model form, manipulate specific values to determine the
critical path, interpret the relations
relationships and relay them back as a control.
Static system models.
This type of model exhibits one pair of relationships such as activity – time or
cost – quantity. The Gantt chart, for example, gives a static picture of an activity-
activity time
relationship. Planned
nned activities (stamping, sanding etc.) are plotted in relation to time are
shown in figure 1.3. The date column has light lines that indicate the amount of time it
takes to complete a given activity. The heavy line represents the cumulative time
schedule
ule for each activity. The stamping department, for example, is scheduled to start
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working on order number 25 Wednesday morning and complete the job by the same
evening. One day is also scheduled for order number 28, two days for order number 28,
two days
ys for order number 22 and two days (May 10 10-11)
11) for order number 29. The heavy
line opposite the stamping department represents the total of six days. The broken line
indicates that the department is two days behind schedule. The arrowhead indicates the
date when the chart is to be in effect.
Dynamic System Models.
Business organizations are dynamic systems. A dynamic model approximates the

type of organization or application that analysts deal with. It depicts an ongoing,
constantly changing system.
ystem. It consists of (1) inputs that enter the system, (2) the
processor through which transformation takes place, (3) the program(s) required for
processing and (4) the output(s) that result from processing.
Categories of Information
There are threee categories of information related to managerial levels and the
decision managers make. The first level is strategic information, which relates to long –
range planning policies that are of direct interest to upper management. Information such
as population
tion growth, trends in financial investment and human resources changes would
be of interest to top company officials who are responsible for developing policies and
determining long-range
range goals. This type of information is achieved with the aid of
Decision
ision Support System (DSS).
The second level of information is managerial information. It is of direct use to

middle management and department heads for implementation and control. Examples are
sales analysis, cash flow projection and annual financial statements. This information is
of use in short – and intermediate -range planning – that is months rather than years. It is
maintained with the aid of management information systems (MIS).
The third information level is operational information, whic

whichh is short-term,
short daily
information used to operate departments and enforce the day
day-to-day
day rules and regulations
of the business. Examples are daily employee absent sheets, overdue purchase orders and
current stocks available. Operational information is established by data processing
systems (DPS). Figure 1.4 shows the same.
The nature of the information and managerial levels is also related to the major
types of decision making: structured and unstructured decision making. An
organizational process that is closed, stable and mechanistic tends to be more structured,
computational and relies on routine decision making for planning and control. Such
decision making is related to lower
lower-level
level management and is readily supported with
computer systems. In contrast, open, adaptive, dynamic processes increase the
uncertainty associated with decision making and are generally evidenced by a lack of
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structure in the decision – making process. Lack of structure as well as

extraorganizational and incomplete information makes it difficult to secure computer
support.
Figure 1-4:
4: Management and Information Levels in a Typical Organization.
Therefore, in designing an information system, the analyst needs to determine the

type of information needed, the level of the information, how it is structured and in what
format it is before deciding on the system needed to produce it. This is another reason for
having a background in systems theory and organizations.
Informal Information Systems
The formal information

mation system is a power structure designed to achieve company
goals. An organization’s emphasis on control to ensure performance tends to restrict the
communication flow among employees. As a result, an informal information system
develops. It is an employee
ployee based system designed to meet personnel and vocational
needs and to help solve work – related problems. It also funnels information upward
through indirect channels. In this respect, it is a useful system because it works within the
framework of the business and it’s stated policies. In doing a systems study, the analyst
should have a knowledge of the chain of command, the power power-authority-influence
influence
network, and how decisions are made to get a feel for how much support can be expected
for a prospective
ective installation. Furthermore, knowledge about the inner workings of the
employee- based system is useful during the exploratory phase of analysis. Employee
cooperation and participation are crucial in preventing sabotage and training users. Since
computers
uters cannot provide reliable information without user staff support, a proper
interface with the informal communication channels could mean the difference between
the success and failure of new systems.
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Computer – Based Information Systems
A third class
ss of information system relies on the computer for handling business
applications. The computer is now a required source of information. Systems analysis
relies heavily on computers for problem solving. This suggests that the analyst must be
familiar with
ith computer technology and have experience in handling people in an
organizational context.
Management Information Systems (MIS)
The computer has had a significant impact on the techniques used by management
to operate a business. The level of the manager in the organization is also a factor in
determining the kind of information needed to solve a problem. Lower – level
management needs detailed internal information to make day – to – day, relatively
structured control decisions. Higher – level management, for whom long – range
objectives are the primary concerns, requires summarized information from a variety of
sources to attain goals. In either case, management action is based on information that is
accurate, relevant, complete, concise, anand
d timely. MIS has been successful in meeting
these information criteria quickly and responsively.
MIS is a person – machine system and a highly integrated grouping of

information – processing functions designed to provide management with a
comprehensive
ensive picture of specific operations. It is actually a combination of information
systems. To do the job, it should operate in real time, handling inquires as quickly as they
are received. Management information must also be available early enough to affectaf a
decision. Operationally, MIS should provide for file definition, file maintenance and
updating, transaction and inquiry processing and one or more databases linked to an
organizational database. Within a MIS, a single transaction can simultaneously
simultaneousl update all
related data files in the system. In so doing, data redundancy (duplication) and the time it
takes to duplicate data are kept to a minimum, thus insuring that data are kept current at
all times.
A key element of MIS is the database – a non-redundant

redundant collection of interrelated
data items that can be processed through application programs and available to many
users. All records must be related in some way. Sharing common data means that many
programs can use the same files or records. Information is accessed through a data base
management system (DBMS). It is a part of the software that handles virtually every
activity involving the physical database.
There are several advantages to a data base system:

1. Processing time and the number of programs written are substantially reduced.
2. All applications share centralized files.
3. Storage space duplication is eliminated.
4. Data are stored once in the database and are easily accessible when needed.
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The two primary drawbacks of a database are the cost of specialized personnel
and the need to protect sensitive data from unauthorized access. The primary users of
MIS are middle and top management, operational managers and support staff. Middle
and top management use MIS for prepa
preparing
ring forecasts, special requests for analysis, long –
range plans and periodic reports. Operational managers use MIS primarily for short-
short
range planning, periodic and exception reports. The support staff finds MIS useful for the
special analysis of information
tion and reports to help management in planning and control.
Providing data for use in MIS is the function of most levels of personnel in the
organization. Once entered into the system, the information is no longer owned by the
initiating user but becomes available to all authorized users. Today’s typical MIS poses
several problems. Most MIS reports are historical and tend to be dated. Another problem
is that many installations have databases that are not in line with user requirements. This
means that manyy MIS environments have not been congruent with the real world of the
user. Finally, an inadequate or incomplete update of the database jeopardizes the
reliability for all users.
A major problem encountered in MIS design is obtaining the acceptance and

support of those who will interface with the system. Personnel who perceive that their
jobs are threatened may resist the implementation of MIS. In understanding both
technology and human behavior, the analyst faces the challenge of selling change to the
t
right people for a successful installation.
Decision Support Systems (DSS)
One reason cited in the literature of management’s frustration with MIS is the
limited support it provides top management for decision making. DSS advances the
capabilities
ies of MIS. It assists management in making decisions. It is actually a
continually evolving model that relies heavily on operations research.
Gorry and Morton Coined the term decision support system (DSS). The origin of
the term is simple:
¾ Decision – emphasizes decision making in problem situations, not information

processing, retrieval, or reporting.
¾ Support – requires computer

computer-aided
aided decision situations with enough “structure” to
permit computer support. ¾ System – accentuates the integrated
ated nature of problem
solving, suggesting a combined “man”, machine, and decision environment.
Beginning with management decision systems in the early 1970’s the concept of
interactive computer – based systems supporting unstructured decision making has
h been
expanded to include everything but transaction processing systems. A typical early
definition required an interactive computer – based system to help users use data and
models to solve unstructured problems. There are authors today who view DSS as an
extension of MIS, DSS as independent of MIS, or MIS as a subset of DSS. The
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commonly accepted view in the literature views DSS as a second – generation MIS. MIS
is generated when we add predefined managerial reports that are spun out of the
transaction
nsaction processing, report generation and online inquiry capabilities – all integrated
with a given functional area such as production MIS or personnel MIS. DSS result from
adding external data sources, accounting and statistical models and interactive query
capabilities. The outcome is a system designed to serve all levels of management and top
management in particular, in dealing with “what if” unstructured problem situations. It is
a system with the intrinsic capability to support ad hoc data analy
analysis
sis as well as decision –
modeling activities.
The intelligence phase of decision making involves the awareness of a problem at

a symptomatic level; it requires a closer look at the problem and a through evaluation of
the variables and their relations
relationships.
hips. The more intelligence management has about the
cause of a problem, the better is the likelihood of designing a good decision. A DSS can
provide intelligence through information retrieval and statistical packages.
The design phase of decision maki

makingng focuses on the evaluation of decision
alternatives. During this phase, computer – based deterministic or stochastic models may
be used for decision design. DSS plays a major role in decision design under uncertainty.
The output of the model(s) is the basis of the choice phase of decision-making.
making.
What is a Computer?
The Computer System Concept
A computer is a system, an interrelated combination of components that performs the

basic system functions of input, processing, output, storage and control
control,, thus providing
end users with a powerful information processing tool.
Computer System Functions

A computer is a system of hardware devices organized according to the following system
functions:
1. INPUT
The input devices of a computer system include key

keyboards,
boards, touchscreens, pens, mouse,
optical scanners, etc.
They convert data into electronic machine

machine-readable
readable form for direct entry or
through telecommunications links into a computer system.
2. PROCESSING
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The central processing unit (CPU) is the main proce processing

ssing component of a
computer system. In microcomputers, it is the main microprocessor.
The central processing unit is the most important hardware component of a

computer system. It is also known as the CPU, the central processor or instruction
processor,, and the main microprocessor in a microcomputer. Conceptually, the
CPU can be subdivided into two major subunits: the arithmetic
arithmetic-logic
logic unit (ALU)
and the control unit.
In particular, the arithmetic

arithmetic-logic
logic unit, one of the CPUs major components,
performs the arithmetic and logic functions required in computer processing.
The control unit obtains instructions from those stored in the primary storage unit
and interprets them. Then it transmits directions to the other components of the
computer system, order
ordering them to perform required operations.
3. OUTPUT
The output devices of a computer system include video display units, printers,
audio response units, etc.
They convert electronic information produced by the computer system into

human-intelligible
intelligible form ffor presentation to end users.
4. STORAGE
The storage function of a computer system takes place in the computer’s primary
storage unit, or memory, and in secondary storage devices such as magnetic disk and
tape units. These devices store data and program ins
instructions
tructions needed for processing.
5. CONTROL
The control unit of the CPU is the control component of a computer system. It
interprets computer program instructions and transmits directions to the other
components of the computer system.
COMPUTER PROCESSING SPEEDS

Many microcomputers and minicomputers, and most mainframe computers,
operate at nanosecond speeds and can thus process several million instructions per
second. Another measure of processing speed is megahertz, or millions of cycles per
second.
COMPUTER
OMPUTER TIME ELEMENTS
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• Millisecond One thousandth of a second

• Microsecond One millionth of a second
• Nanosecond One billionth of a second
• Picosecond One trillionth of a second
Primary and Secondary Storage and Devices

The primary storage unit (also ccalled
alled main memory) holds data and instructions
between processing steps and supplies them to the control unit and arithmetic-logic
arithmetic unit
during processing. All data and programs must be placed in memory before they can be
used in processing.
The primary storage

torage unit is also used to hold data and program instructions
between processing steps and after processing is completed but before output. In modern
computers, the primary storage unit consists of microelectronic semiconductor memory
chips.
ory is known as RAM (Random Access Memory). The contents of

Most of memory
these memory chips can be instantly changed to store new data. Other more permanent
memory chips are called ROM (Read Only Memory).
Data and programs are also stored in secondary storage devices

devices,, such as magnetic
disk and tape units, which greatly enlarge storage capacities of computer systems. Also,
since memory circuits typically lose their contents when electric power is turned off,
most secondary storage media provide amore permanent type of storage. However, the
contents of secondary storage devices cannot be processed without first being brought
into the primary storage unit.
Thus, external secondary storage devices play a supporting role to the primary
storage unit of a computer system. F
For
or example, programs and files are typically stored
until needed on magnetic floppy disks and hard disks on microcomputer systems, and on
large computer systems.
The smallest element of data is called a bit, or binary digit, which can have a
value of either
her zero or one. The capacity of memory chips is usually expressed in terms
of bits.
A byte is a basic grouping of bits that the computer operates a single unit. It
typically consists of eight bits and is used to represent one character of data in most
computer
omputer coding schemes. Thus, the capacity of a computer’s memory and secondary
storage devices is usually expressed in terms of bytes.
Storage capacities are frequently measured in kilobytes (abbreviated as KB or K)

or megabytes (abbreviated as MB or M) M).. Although kilo means “one thousand” in the
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metric system, the computer industry uses K to represent 1,024 (or 2 to the tenth power)
storage positions.
STORAGE ELEMENTS
• Kilobyte One thousand bytes
• Megabyte One million bytes
• Gigabyte One billion bytes
• Terabyte One trillion bytes
TYPES AND TRENDS IN COMPUTERS
The trends in computer systems have developed in the past during each major
stage, or generation, of computers, and they are expected to continue into the future.
Computer Pioneers
Computer pioneers include:
1. Charles Babbage – proposed the concept of a computer
2. Augusta Ada Byron ––considered
considered to be the first computer programmer
3. Blaise Pascal – developer of the first adding machine
The ENIAC computer is the first operational general

general-purpose electronic digital computer.
Computer Generations
“Each generation of computer is characterized by a major technological
development that fundamentally changed the way computers operate, resulting
in increasingly smaller, cheaper, more powerful and more efficient and reliable
devices.”
1. First Generation Computers (1951-1958) 1958) used hundreds or thousands of

vacuum tubes for their processing and memory circuitry. These computers were
quite large and generated enormous amounts of heat; vacuum tubes had to be
replaced
eplaced frequently. Thus, they had large electrical
electrical-power, air-conditioning,
conditioning, and
maintenance requirements. These computers had main memories of only a few
thousand characters and millisecond processing speeds. They used magnetic
drums or tape for secondary storage and punched cards or paper tape as input and
output media.
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First generation computers relied on machine languages, the lowest-level

lowest
programming language understood by computers, to perform operations, and they could
only solve one problem at a time.
The UNIVAC and ENIAC computers are examples of first

first-generation
generation computing
devices. The UNIVAC was the first commercial computer delivered to a business
client, the US Census Bureau in 1951.
2. Second Generation Computers (1959-1963) used transistors and other solid-solid

state, semiconductor devices which were wired to circuit boards. Transistorized
circuits were much smaller and much more reliable, generated little heat, were
less expensive, and required less power than vacuum tubes. Tiny magnetic cores
were
ere used for the computer’s memory, or internal storage. Many second-second
generation computers had main memory capacities of less than a hundred
kilobytes and microsecond processing speeds. Removable magnetic disks packs
were introduced and magnetic tape emerge
emergedd as the major input, output and
secondary storage medium for large computer installations.
Second-generation
generation computers moved from cryptic binary machine language to
symbollic, or assembly languages which allowed programmers to specify instructions in
words. High-level programming languages were also being developed at this time,
such as early versions of COBOL and FORTRAN. These were also the first
computers that stored their instructions in their memory, which moved from a
magnetic drum to magnetic core technology.
The first computers of this generation were developed for the atomic energy
industry.
3. Third Generation Computers (1964-1979) began using integrated circuits in

which thousands of transistors and other circuit elements are etched on tiny chips
of silicon. Main memory capacities of several megabytes and processing speeds
of millions of instructions per second were achieved, and telecommunications
capabilities became common. This made possible the widespread use of operating
system programs that automated and supervised the activities of many types of
peripheral devices and the processing of several programs at the same time,
sometimes form networks of users at remote terminals.
Integrated circuit technology also made possible the developm

development
ent and widespread
use of small computers called minicomputers in the third computer generation.
Computers for the first time became accessible to a mass audience because they
were smaller and cheaper than their predecessors. U Users
sers interacted with third
generation
neration computers through keyboards and monitors and interfaced with an
operating system, which allowed the device to run many different applications at
one time with a central program that monitored the memory.
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4. Fourth Generation Computers (1979 to the present) resent) use LSI (Large-Scale
(Large
Integration) and VLSI (Very Large
Large-Scale
Scale Integration) technologies which cram
hundreds of thousands or millions of transistors and other circuit elements on each
chip. LSI and VLSI technologies also allowed the development of
microprocessors,, in which all of the circuits of a CPU are contained on a single
chip with processing speeds of millions of instructions per second.
In 1981 IBM introduced its first computer for the home user, and in 1984 Apple
introduced the Macintosh. M
Microprocessors
icroprocessors also moved out of the realm of desktop
computers and into many areas of life as more and more everyday products began to
use microprocessors.
As these small computers became more powerful, they could be linked together to
form networks, which eventually led to the development of the Internet. Fourth
generation computers also saw the development of GUIs, the mouse and handheld
devices.
5. Fifth h Generation Computers (present and beyond), based on artificial

intelligence, are still in development, though there are some applications, such as
voice recognition, that are being used today. The use of parallel processing and
superconductors is helping to make artificial intelligence a reality. Quantum
computation and molecular and nano
nanotechnology will radically change the face of
computers in years to come. The goal of fifth
fifth-generation computing is to develop
devices that respond to natural language input and are capable of learning and self-
self
organization.
DID YOU KNOW...?

An integrated
ted circuit (IC) is a small electronic device made out of a semiconductor material. The first
integrated circuit was developed in the 1950s by Jack Kilby of Texas Instruments and Robert Noyce of
Fairchild Semiconductor.
Classification of Computers
• Mainframes
Mainframes (often colloquially referred to as “big iron”) are powerful computers

used primarily by corporate and governmental organizations for critical
applications, bulk data processing such as census, industry and consumer
statistics, enterprise resource planning and financial transaction processing.
The term originally referred to the large cabinets that housed the central
processing unit and main m
memory of early computers.Later
Later the term was used to
distinguish high-end
end commercial machines from less powerful units.
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• Minicomputers
• Microcomputers
• Supercomputers
Supercomputers are used for highly calculation

calculation-intensive
intensive tasks such as problems
involving quantum mechanical physics, weather forecasting, climate research
(including research into global
al warming), molecular modeling (computing the
structures and properties of chemical compounds, biological macromolecules,
polymers, and crystals), physical simulations (such as simulation of airplanes in
wind tunnels, simulation of the detonation of nuc
nuclear weapons, and research into
nuclear fusion), cryptanalysis, and the like. Major universities, military agencies and
scientific research laboratories are heavy users.
Definition of Computer Software
Computer software, or just software, is a collect

collection
ion of computer programs and related
data that provide the instructions for telling a computer what to do and how to do it. In
other words, software is a conceptual entity which is a set of computer programs,
procedures, and associated documentation concer concerned
ned with the operation of a data
processing system.
A great variety of software companies and programmers in the world comprise a software
industry. Software can be quite a profitable industry: Bill Gates, the founder of Microsoft
was the richest person inn the world in 2009 largely by selling the Microsoft Windows and
Microsoft Office software products. The same goes for Larry Ellison, largely through his
Oracle database software. Through time the software industry has become increasingly
specialized.
profit software organizations include the Free Software Foundation, GNU Project
Non-profit
and Mozilla Foundation. Software standard organizations like the W3C, IETF develop
software standards so that most software can interoperate through standards such as
XML, HTML, L, HTTP or FTP.
Other well-known
known large software companies include Novell, SAP,, Symantec, Adobe
Systems, and Corel, while small companies often provide innovation
innovation.
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Quality and reliability
Software quality is very important, especially for commercia

commerciall and system software like
Microsoft Office, Microsoft Windows and Linux. If software is faulty (buggy), it can
delete a person's work, crash the computer and do other unexpected things. Faults and
errors are called "bugs." Many bugs are discovered and eli eliminated
minated (debugged) through
software testing. However, software testing rarely – if ever – eliminates every bug; some
programmers say that "every program has at least one more bug" (Lubarsky's Law). All
major software companies, such as Microsoft, Novell an and
d Sun Microsystems, have their
own software testing departments with the specific goal of just testing. Software can be
tested through unit testing, regression testing and other methods, which are done
manually, or most commonly, automatically, since the aamount
mount of code to be tested can be
quite large. For instance, NASA has extremely rigorous software testing procedures for
many operating systems and communication functions. Many NASA based operations
interact and identify each other through command program
programss called software. This enables
many people who work at NASA to check and evaluate functional systems overall.
Programs containing command software enable hardware engineering and system
operations to function much easier together.
License
The software's license gives the user the right to use the software in the licensed
environment. Some software comes with the license when purchased off the shelf, or an
OEM license when bundled with hardware. Other software comes with a free software
license, granting the recipient the rights to modify and redistribute the software. Software
can also be in the form of freeware or shareware.
Patents
Software can be patented in some but not all countries; however, software patents can be
controversial in the software in
industry
dustry with many people holding different views about it.
The controversy over software patents is about specific algorithms or techniques that the
software contains, which may not be duplicated by others and considered intellectual
property and copyright infringement depending on the severity.
Execution
Computer software has to be "loaded" into the computer's storage (such as the hard drive
or memory). Once the software has loaded, the computer is able to execute the software.
This involves passing instructions
uctions from the application software, through the system
software, to the hardware which ultimately receives the instruction as machine code.
Each instruction causes the computer to carry out an operation – moving data, carrying
out a computation, or altering
ring the control flow of instructions.
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Data movement is typically from one place in memory to another. Sometimes it involves
moving data between memory and registers which enable high high-speed
speed data access in the
CPU. Moving data, especially large amounts of it, can be costly. So, this is sometimes
avoided by using "pointers" to data instead. Computations include simple operations such
as incrementing the value of a variable data element. More complex computations may
involve many operations and data elements together.
User, Software and Hardware Interface

1. User Interface
Examples are the keyboard, mouse, menus of a computer system. The user interface
allows the user to communicate with the operating system.
2. Software Interface
Software interface are the

he languages and codes that the applications use to communicate
with each other and with the hardware.
3. Hardware Interface
Hardware interface are the wires, plugs and sockets that hardware devices use to
communicate with each other.
Software Trends
First, from custom-designed
designed one
one-of-a-kind
kind programs developed by professionals
programmers or end users of an organization toward the use of off
off-the-shelf
shelf software
packages acquired by end users from software vendors.
This led to the development of relativ

relatively inexpensive and easy-to-useuse productivity
software packages for microcomputers, and it continues to grow, even for minicomputer
and mainframe users.
Second, from technical, machine

machine-specific
specific programming languages using binary-based
binary or
symbolic codes and procedural languages using brief statements and mathematical
expressions to specify the sequence of instructions a computer must perform toward
nonprocedural natural languages that are closer to human conversation.
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Types of Software
1. System Software
rograms that manage and support the resources and operations of a

System Software are programs
computer system as it performs various information processing tasks.
2. Application Software
rograms that direct the performance of a particular use, or

Application Software are programs
application, of computers to meet the information processing needs of end users.
Types of System Software

System Software Overview
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System software serves as an interface between computer system hardware and

an the
application programs of end users.
Types of System Software
1. System Management Program
1a.) Operating Systems
The OS is the most important system software package for any computer.
computer
Examples of operating systems for personal computers inclu include
de Mac OS,
Microsoft Windows, and GNU/Linux.
OS Functions:
a. The User Interface - part of the operating system that allows
you to communicate with it so you can load programs,
access files, and accomplish other tasks.
Three main types of us

user interfaces:
• Command-driven
• Menu-driven, and
• Graphical-user interfaces (pronounced as GOO-ee)
GOO
The trend in user interfaces is moving away from the entry of brief
end user commands or even the selection of choices from
menus of options toward an easy-to-use graphical user interface
(GUI) which uses icons, bars, buttons, boxes and other
images. GUIs rely on pointing devices like the electronic mouse
to make selections that help you get things done and a well
well-designed
designed GUI
can free the user from learning complex command
languages.
b. Resource Management - manage the hardware resources of a

computer system, including its CPU, memory, secondary
storage devices, and input/output
c. File Management
d. Task Management
1b.) Operating
ing Environments
1c.) Database Mgt. Systems
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2. System Support Program
The System Support Programs are category of software that performs routine
support functions. Examples are utility programs or utilities. Utility programs or
utilities perform
rm miscellaneous housekeeping and file conversion functions.
3. System Development Program
Programming Languages allows a programmer or end user to develop the sets of

instructions that constitute a computer program. Programming software usually
provides tools to assist a programmer in writing computer programs, and software
using different programming languages in a more convenient way. Tools include:
• Compilers
• Debuggers
• Interpreters
• Linkers
• Text Editors
An Integrated Development Environment (IDE)

IDE) is a single application that
attempts to manage all these functions.
The Different Generations of Languages
There are currently five generations of computer programming languages. In each

generation, the languages syntax has become easier to und
understand
erstand and more human-
human
readable.
1. First generation languages ((abbreviated as 1GL,, also known as the Machine

Languages)
Represent the very early, primitive computer languages that consisted entirely of
1's and 0's - the actual language that the comp
computer understands.. They are the most
basic level of programming languages. Programmers must have a detailed knowledge of
the internal operations of the specific type of CPU they are using. All program
instructions had to be written using binary codes uniqueque to each computer. These
requirements make machine language programming a difficult and error-prone
error
task.
2. Second generation languages (2GL

(2GL, also known as Assembly Languages)
Languages
2GL represents a step up from the first generation languages. Allow for
f the use of
symbolic names instead of just numbers. Second generation languages are known as
assembly languages. Code written in an assembly language is converted into machine
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language (1GL). They had the capacity to perform operations like addition. Like
machine languages, assembly languages were designed for specific machine and
microprocessor, this implies that the program cannot be moved from one computer
architecture without writing the codes.
3. Third generation languages (3GL)
With the languages

anguages introduced by the third generation of computer programming,
words and commands (instead of just symbols and numbers) were being used. These
languages therefore, had syntax that was much easier to understand. Third generation
languages are known as "high level languages" and include C, C++, Java, and
Javascript, among others.
4. Fourth
urth generation languages (4GL)
The syntax used in 4GL is very close to human language, an improvement from
the pervious generation of languages. 4GL languages aarere typically used to access
databases and include SQL and ColdFusion, among others.
5. Fifth generation languages (5GL)
Fifth generation languages are currently being used for neural networks. A nueral
network is a form of artificial intelligence tthat
hat attempts to imitate how the human mind
works.
The Different Types

ypes of Languages
Not any computer programming language can do anything. There are limitations,
and actually, different languages are used for different tasks.
1. Web Languages
Used for
or creating and editing pages on the web. It can
an do anything from putting
plain text on a webpage, to accessing and retrieving data from a database. Vary greatly
in terms of power and complexity.
HTML( Hyper Text Markup LanguageLanguage)

The core language of the world wide web that is used to define the
structure and layout
ayout of web pages by using various tags and
attributes. Although a fundamental language of the web, HTML is
static - content created with it does not change. HTML is used to specify
the content a webpage will contain, not how the page functions. Learn HTML at
our HTML tutorials section.
XML (Extensible Markup Language)
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A language developed by the W3C which works like HTML, but unlike
HTML, allows for custom tags that are defined by programmers.
XML allows for the transmission of data between applications and
organizations through the use of its custom tags.
Javascript
A language developed by Netscape used to provide dynamic and
interactive content on webpages.
es. With Javascript it is possible to
communicate with HTML, create animations, create calculators,
validate forms, and more. Javascript is often confused with Java, but
they are two different languages.
VBScript Visual Basic Scripting Edition.

A language developed by Microsoft that works only in Microsoft's
Internet Explorer web browser and web browsers based on the
Internet Explorer engine such as FlashPeak's Slim Browser. VBScript
Can be used to print dates, make calculations, interact
ract with the user,
and more. VBScript is based on Visual Basic, but it is much simpler.
Learn VBScript at our VBScript tutorials section.
PHP
Hypertext Preprocessor (it's a recursive acronym). A powerful language
used for many tasks such as dataata encryption, database access, and
form validation. PHP was originally created in 1994 By Rasmus Lerdorf.
Learn PHP at our PHP tutorials section.
Java
A powerful and flexible language created by Sun MicroSystems that can
be used to create applets (a program that is executed from within
another program) that run inside webpages as well as software
applications. Things you can do with Java include interacting with
the user, creating graphical programs, reading from files, and more. Java
is often confused with Javascript, but they are two different
languages.
2. Software Languages
Used for creating executable programs. It can an create anything from simple
console programs that print some text to the screen to entire operating systems.
sy
Vary greatly in terms of power and complexity.
C
An advanced programming language used for software application
development. Originally developed by Dennis Ritchie at Bell Labs in the 1970's
and designed to be a systems programming language
uage but since then
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has proven itself to be able to be used for various software applications

such as business programs, engineering programs, and even
games. The UNIX operating system is written in C.
C++
Descendant of the C language. The difference between the two languages
is that C++ is object-oriented.
oriented. C++ was developed by Bjarne Stroustrup
at Bell Labs and is a very popular language for graphical applications.
Visual Basic
A language developed by Microsoft based on the B
BASIC
ASIC language .
Visual Basic is used for creating Windows applications. The
VBScript language (also developed by Microsoft) is based on Visual
Basic.
Java
A powerful and flexible language created by Sun MicroSystems that can
be used to create
reate applets (a program that is executed from within
another program) that run inside webpages as well as software
applications. Things you can do with Java include interacting with
the user, creating graphical programs, reading from files, and more.
m Java
is often confused with Javascript, but they are two different
languages.
3. Procedure Oriented Programming
A type of programming where a structured method of creating programs is used.

With procedure-oriented
oriented programming, a problem is brobroken
ken up into parts and each part
is then broken up into further parts. All these parts are known as procedures . They
are separate but work together when needed. A main program centrally controls them
all.
Some procedure-oriented
oriented languages are COBOL, F
FORTRAN,
ORTRAN, and C.
4. Object Oriented Programming
A type of programming where data types representing data structures are defined
by the programmer as well as their properties and the things that can be done with them.
With object- oriented programming, pprogrammers
rogrammers can also create relationships between
data structures and create new data types based on existing ones by having one data
type inherit characteristics from another one.
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In object-oriented
oriented programming, data types defined by the programmer are ar called
classes (templates for a real world object to be used in a program). For example, a
programmer can create a data type that represents a car - a car class. This class can
contain the properties of a car (color, model, year, etc.) and functions that
hat specify
what the car does (drive, reverse, stop, etc.)
Some object-oriented
oriented languages are C++, Java, and PHP.
eople in the History of Programming Languages

Prominent People anguages
Alan Cooper developer of Visual Basic.

Alan Kay pioneering work on object-oriented
oriented programming, and
originator of Smalltalk.
Anders Hejlsberg developer of Turbo Pascal, Delphi and C#.
Bertrand Meyer inventor of Eiffel.
Bill Joy inventor of vi, early author of BSD Unix, and
originator of SunOS, which became Solaris.
Bjarne Stroustrup developer of C++.
Brian Kernighan co-author
author of the first book on the C programming language
with Dennis Ritchie, coauthor of the AWK and
AMPL programming languages.
Dennis Ritchie inventor of C (programming language).
age). Unix
Operating System , Plan 9 Operating System.
Edsger W. Dijkstra developed the framework for structured programming.
Grace Hopper developer of Flow-Matic,
Matic, influencing COBOL.
Guido van Rossum creator of Python
James Gosling developer of Oak, the precursor of Java.
John Backus inventor of Fortran.
John McCarthy inventor of LISP.
John von Neumann originator of the operating system concept.
Ken Thompson inventor of B , Go Programming Language , Inferno
Programming Language.
Kenneth E. Iverson developer of APL, and co-developer
developer of J along with Roger
Hui.
Larry Wall creator of Perl and Perl 6
Niklaus Wirth inventor of Pascal, Modula and Oberon.
Yukihiro Matsumoto creator of Ruby
Types of Application Software

1. General Purpose Programs
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SAP Business One
An application suite consists of multiple applications bundled together. They

usually have related functions, features and user interfaces, and may be able to interact
with each other, e.g. open each other's files. Business aapplications
pplications often come in suites,
e.g. Microsoft Office, OpenOffice.org and iWork, which bundle together a word
processor, a spreadsheet, etc.; but suites exist for other purposes, e.g. graphics or
music.
2. Application Specific Programs
Enterprise software addresses the needs of organization processes and data flow,
often in a large distributed environment. Examples include financial systems,
customer relationship management (CRM) systems and supplysupply-chain
chain management
software. Another example is business
siness applications which is covered in the next
chapter.
Accounting Information Systems and Management Information Systems
(definition of a transaction / financial transaction / nonfinancial transaction)
(difference between AIS and MI

MIS through the definition of a transaction)
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The Evolution of Information Systems
1. The Manual Process Model

The manual process model is the oldest and most traditional form of accounting systems.
Manual systems constitute the physical events, resources, and personnel that characterize
many business processes. Traditionally, this model also includes the physical task of
record keeping. These days manual records are rarely used in practices.
2. The Flat File Model

The flat file approach is most often associated with so
so-called
called legacy systems. The flat file
model describes an environment in which individual data files are not related to other
files. End users in this environment own their data files rather than share them with other
users.
Data processing is thus performed by standalone applications rather than integrated

systems. When multiple users need the same data for different purposes, they must obtain
separate data sets structured to their specific needs. Example,
• The accounting function
unction needs customer data organized by account number and
structured to show outstanding balances. This is used for customer billing,
accounts receivable maintenance, and financial statement preparation.
• Marketing needs customer sales history data organ organized
ized by demographic keys.
They use this for targeting new product promotions and for selling product
upgrades.
• The product group needs customer sales data organized by products and
structured to show scheduled service dates.
The data redundancy demonstr

demonstrated
ated in this example contributes to three significant
problems in the flat file environment:
a. data storage,
b. data updating, and
c. currency of information.
3. The Database Model

An organization can overcome the problems associated with flat fi files
les by implementing
the database model to data management. Access to the data resource is controlled by a
database management system (DBMS). The DBMS is a special software system that is
programmed to know which data elements each user is authorized to ac access.
cess. Through
data sharing, the following traditional problems associated with the flat file approach may
be overcome.
Flat file and early database systems are called traditional systems. Within this context, the
term ‘traditional” means that the organizat
organization’s
ion’s information systems applications (its
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programs) function independently of each other rather than as an integrated whole. These
models were inflexible and did not permit the degree of data sharing that is found in
modern database systems.
True integration,
ation, however, would not be possible until the arrival of the relational
database model. These flexible database approach permits the design of integrated
systems applications capable of supporting the information needs of multiple users from a
common set of integrated tables.
4. The REA Model

REA is an accounting framework for modeling an organization’s critical Resources,
Events and Agents (REA) and the relationship between them. Once specified, both
accounting and non-accounting
accounting data about these phen
phenomena
omena can be identified, captured
and stored in a relational database. From this repository, user views can be constructed
that meet the needs of all users in the organization. The availability of multiple views
allows flexible use of transaction data and permits the development of accounting
information systems that promote integration.
REA is a conceptual model, not a physical system. The most notable application of REA
philosophy is seen in the proliferation of ERP systems.
5. The ERP Model
Enterprise Resource
esource Planning is an information system model that enables an
organization to automate and integrate its key business processes.
(more from James Hall)
History
SAP was founded in June 1972 as Systemanalyse und Programmentwicklung ("System
Analysis and Program Development") by five former IBM engineers in Mannheim,
Baden-Württemberg
Dietmar Hopp
Klaus Tschira
Hans-Werner
Werner Hector
Hasso Plattner, and
Claus Wellenreuther
As part of the Xerox exit strategy from the computer industry, Xerox retained IBM to
migrate their business systems to IBM technology. As part of IBM's compensation for the
migration, IBM acquired the SDS/SAPE software, reportedly for a contract credit of
$80,000. The SAPE software was given by IBM to the founding ex ex-IBM
IBM employees in
exchange for founding stock provided to IBM, reportedly 8%. Imperial Chemical
Industries (ICI) was SAP's first ever customer in 1972.
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The acronym was later changed to stand for Systeme, Anwendungen und Produkte in der
Datenverarbeitung ("Systems, Appli
Applications
cations and Products in Data Processing").
In 1976, "SAP GmbH" founded, and moved its headquarters the following year to
Walldorf. SAP AG became the company's official name after the 2005 annual general
meeting. AG is short for Aktiengesellschaft (corpora
(corporation).
In August 1988, SAP GmbH transferred into SAP AG (a corporation by German law),
and public trading started 4 November. Shares are listed on the Frankfurt and Stuttgart
stock exchanges.
In 1995, SAP was included in the German stock index DAX. On 22 September 2003,
SAP was included in the Dow Jones STOXX 50. In 1991, Prof. Dr. Henning Kagermann
joined the board; Dr. Peter Zencke became a board member in 1993. Claus Heinrich, and
Gerhard Oswald have been members of the SAP Executive Board since 1996. Two years
later, in 1998, the first change at the helm took place. Dietmar Hopp and Klaus Tschira
moved to the supervisory board and Dietmar Hopp was appointed Chairman of the
supervisory board. Henning Kagermann was appointed as Co Co-Chairman
Chairman and CEO of SAP
next to Hasso Plattner. Werner Brandt joined SAP in 2001 as a member of the SAP
Executive Board and Chief Financial Officer. Léo Apotheker was a member of the SAP
Executive Board and president of Global Customer Solutions & Operations from 2002,
and was appointed
ppointed Deputy CEO in 2007. Apotheker became co co-CEO
CEO alongside
Kagermann in 2008.
Henning Kagermann became the sole CEO of SAP in 2003.[9] In February 2007, his
contract was extended until 2009. After continuous disputes over the responsibility of the
development
elopment organization, Shai Agassi, a member of the executive board who had been
named as a potential successor to Kagermann, left the organization. In April 2008, along
with the announcement of Apotheker as co co-CEO,
CEO, the SAP supervisory board also
appointed three new members to the SAP Executive Board, effective 1 July 2008:
Corporate Officers Erwin Gunst, Bill McDermott, and Jim Hagemann Snabe. With the
retirement of Kagermann in May 2009, Apotheker took over as the sole CEO. He was
replaced by new co-CEOsCEOs Bill McDermott, head of field organization, and Jim
Hagemann Snabe, head of product development, effective 7 February,
Milestones in Technical Solutions
In 1973, the SAP R/1 solution was launched. Six years later, in 1979, SAP launched SAP
R/2. In 1981, SAPAP brought a completely re
re-designed
designed solution to market. However, SAP
didn't significantly improve until the period between 1985 and 1990. The most major
improvements came not from the founders or employees, but from a partnership with an
educational institution,
ution, "Chico State".
In 1985, four years after SAP R/2 emerged, SAP had big plans, but few resources to
improve upon their ERP. At the same time, nearly 9000 km (5600Mi) away, at California
State University at Chico (CSUC) ("Chico State") a graduate stud
student
ent in the precursor of
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the College of Business at Chico State informed a couple of senior professors about SAP,
and wondered if they might ask SAP for an evaluation copy to use in the database
management or production management classes. Chico State profeprofessors
ssors contacted SAP,
and soon the conversation went from "evaluation" to "development". Both sides agreed to
become partners.
Chico State remained SAP's only educational partner for the first few years, vastly
improving and extending modules within R/2, wwhich
hich led to the development of R/3 with
a few new modules. SAP and Chico State developed and released several versions of R/3
in 1992 through 1995. By the midmid-1990s,
1990s, SAP followed the trend from mainframe
computing to client-server
server architectures. The develo
development
pment of SAP’s internet strategy
with mySAP.com redesigned the concept of business processes (integration via Internet).
SAP was awarded Industry Week’s Best Managed Companies in 1999. By 1997, SAP
had partnered with over 25 educational institutes, includi
including
ng Massachusetts Institute of
Technology (MIT).
Communities, User Groups and Conferences

Communities
SAP Developer Network (SDN) is a community of developers, consultants, integrators,

and business analysts gaining and sharing knowledge about ABAP, Java, .NET, SOA,
and other technologies via expert blogs, discussion forums, exclusive downloads and
code samples, training mate
materials, and a technical library. The Business Process Exper]
(BPX) Community is a collaborative environment for business process expertsexper to share
information, experiences and best practices to leverage enterprise SOA to increase
business agility and IT value. The SAP Enterprise Services Community serves as a
platform for members from customers, industry experts and partners working
collaboratively
boratively to define enterprise services. Industry Value Networks (IVN) bring
together customers, partners and SAP to co co-innovate
innovate and develop solutions to solve
industry-specific
specific customer challenges. There are currently eleven active IVNs (e.g.
Banking, Chemicals,
emicals, Consumer Products, High Tech, Public Sector, Retail). Another
important aspect of the SAP Community Network is the Career Center. By facilitating
targeted recruitment, the Career Center acts as the free source of jobs and talent for SAP's
partners,, customers and vendors.
User Groups
User Groups are independent, notnot-for-profit

profit organizations of SAP customer companies
and partners within the SAP Ecosystem that provide education to their members,
influence SAP product releases and direction, exchange best practices, and provide
insight into the market needs. Examples of User Groups are the Americas' SAP Users'
Group (ASUG), the German speaking SAP User Group (DSAG), the SAP Australian
User Group (SAUG) and the SAP UK & Ireland User Group. Further SAP User U Groups
can be found at the List of SAP Users' Groups.
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In 2007, the SAP User Group Executive Network (SUGEN) has been established to
foster the information exchange and best practice sharing among SAP User Groups and
to coordinate the collaboration with SAP for strategic topics
Conferences
SAP has two annual conferences: SAPPHIRE and SAP TechEd. SAPPHIRE is SAP's
customer-facing
facing event. It is generally where SAP has announced major product changes
and strategic direction. It is typically held annually in the spring, in both North American
and Europe.
SAP TechEd is the more technical conference, aimed at SAP's ecosystem of consultants
and software development partners. SAP TechEd has been held since 1995, and it usually
held in four locations around the w
world
orld every year in the fall. Technical sessions and
workshops are held during the conference, as well as Birds of a Feather sessions, and a
developer's competition: DemoJam. An associated one one-day
day Unconference event,
Community Day, was initiated in 2006 for the SAP Developer Network (SDN). In 2008 a
Community Day program was added to address the Business Process Expert (BPX)
community.
Products
SAP's products focus on Enterprise Resource Planning (ERP) (ERP).. The company's main
product is SAP ERP.. The current vversion
ersion is SAP ERP 6.0 and is part of the SAP
Business Suite. Its previous name was R/3. The "R" of SAP R/3 stood for realtime – even
though it is not a realtime solution. The number 3 related to the 33-tier
tier architecture:
database, application server and cliclient
ent (SAPgui). R/2, which ran on a Mainframe
architecture, was the predecessor of R/3. Before R/2 came System RF, later dubbed R/1.
SAP ECC is one of five enterprise applications in SAP's Business Suite. The other four
applications are:
•Customer Relationship
nship Management (CRM) – helps companies acquire and
retain customers, gain marketing and customer insight
•Product
Product Lifecycle Management (PLM) – helps manufacturers with product-
product
related information
•Supply
Supply Chain Management (SCM) – helps companies with the process of
resourcing its manufacturing and service processes
•Supplier
Supplier Relationship Management (SRM) – enables companies to procure
from suppliers
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Other major product offerings include: the NetWeaver platform, Governance, Risk and
Compliance (GRC) C) solutions, Duet (joint offering with Microsoft), Performance
Management solutions and RFID. SAP offers SOA capabilities (calling it Enterprise
SOA) in the form of web services that are wrapped around its applications.
While its original products were ttypically

ypically used by Fortune 500 companies, SAP now
actively targets small and medium sized enterprises (SME) with its SAP Business
One and SAP Business All-inin-One.
Business and Markets

SAP is the world's largest business software company and the thirdthird-high
highest revenue
independent software provider (as of 2007). It operates in four geographic regions:
EMEA (Europe, Middle East, Africa), AMERICA (United States and Canada), LAC
(Latin America and Caribbean), and APJ (Asia Pacific and Japan), which represents
Japan,
pan, Australia, India, and parts of Asia. In addition, SAP operates a network of 115
subsidiaries, and has R&D (Research & Development) facilities around the globe in
Germany, India, the US, Canada, France, Brazil, Turkey, China, Hungary, Israel, Ireland
and Bulgaria.
SAP focuses on six industry sectors: process industries, discrete industries, consumer
industries, service industries, financial services, and public services. It offers more than
25 industry solution portfolios for large enterprises and more than 550 micro-vertical
micro
solutions for midsize companies and small businesses. Some of these industries are in:
Automotive Industrial Mach. & Comp.

Chemicals Media
Consumer Products Mining
Discrete Manufacturing Pharmaceuticals
Eng’g, Const.. & Oper. Primary Steel
Fabricated Metals Professionals Services
Healthcare Public Sector
High Tech Retail
Industrial Mach. & Comp. Wholesale Distribution
SAPs Presence in Multiple Countries

Israel Italy Chile
Germany France Mexico
Switzerland Sweden Belgium
Norway Spain Korea
Denmark Portugal Singapore
Finland Canada Japan
Austria China Hungary
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Panama Poland Russia

Philippines USA Slovakia
New Zealand Puerto Rico Czech Republic
Australia UK Costa Rica
South Africa South Africa Guatemala
Cyprus Ireland India
Netherlands Brazil, and more
SOME OF SAP USERS WORLDWIDE

7-Eleven,
Eleven, Inc.; Accenture; Audi AG; Bayer CropScience; BMW; Burger King; Chevron
Phillips Chemical Co.; Coca Cola Co Co.;
.; Daimler Chrysler Corp.; Deloitte & Touche;
DuPont ;Electronic Data Systems; Ericsson; Ernst & Young; Chevron Phillips Chemical
Co.;Coca Cola Co.; IBM; Johnson & Johnson; Konica Minolta Business Solutions;
KPMG; Ford Motor Co.; Harley Davidson; H.J. Hein Heinzz Company; Hewlett-Packard;
Hewlett
Mazitrol Co.; Mazda USA; Nestle; Nexus Technologies, Inc.; Nissan Research &
Development, Inc.; Novartis; Pfizer, Inc.; Phillips Electronics; PricewaterhouseCoopers;
Shell Oil CO.; Siemens Dematic; Vedicsoft Solutions; Verizon C Communications;
ommunications;
Volkswagen of America; Wacker Silicones; Walt Disney Co.; Warnaco Group, Inc.; Inc
Whall Group; Whirlpool Corp.
SAP VS OTHER ERP SYSTEMS PROVIDERS

Based on a study conducted by Panorama Consulting Group, and independent (…more)
Based on Panorama’s global study
SAP leads market share
Oracle is #2 in market share
Consistent with most analyst estimates
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SAP Solutions for Diversified Industries

In the Philippines, actual implementations were made to the following industries:
Automotive Distribution and Import

Public / Financial Services Agriculture / Marine / Feeds and Fertilizers
Telecommunications Pharmaceutical / Medical Equipment
Real Estate Healthcare / Clinic Services
Oil & Gas Logistics / Shipping / Transportation
Transportation and Media Call Center Services
Healthcare
Utilities
Consumer Products
Retail
Manufacturing
Some of SAP Users in the Philippines

Bangko Sentral ng Pilipinas, Land Bank of the Philippines, GSIS, AFPSLAI, PSALM,
Equitable PCI, PLDT, SMART, GOBE, Digitel, Sun Cellular, Ayala Land, Ayala
Corporation, Filinvest, Robinsons Land Corporation, FeFederaland,
deraland, Shell, Petron, Caltex,
Unioil, Cebu Pacific, BayanTrade, St. Lukes, Meralco, Maynilad Services, Inc., San
Miguel Corp., Unilever, Nestle, Procter & Gamble, Splash Corporation, RFM, Coca- Coca
Cola, Colgate-Palmolive,
Palmolive, Universal Robina Corporation, Del M Monte,
onte, SM, KFC,
Penshoppe, Mister Donut, Union, TDK, Siemens, Hitachi, Mitsui & Co., Honda, BMW,
Kawasaki, Motolite, HCG, American Standard, C & E Bookshop, Benby Enterprises,
Inc., Flying V, Phoenix, Victorias Milling Company, Inc., Sumifro, Skyway, etc.
SAP Business One as an ERP System

SAP Business One is a business management solution designed for small and midsize
businesses. It gives you on-demand
demand access to real
real-time
time information through one single
system. The application is divided into a number of modules, each covering a different
business function. It has a user
user-friendly
friendly interface that serves as your central ERP access
point, with standard interfaces to internal and external data sources, handheld computers,
and other analysis tools.
Features:
• Integrates
ntegrates business functions seamlessly
• Uses master data to avoid duplication of data
• Real time operation
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• Customizable to fit customer’s business processes
The Technology of SAP Business One

Architecture
SAP Business One is based on a two two-tier client/server
rver architecture. The server runs a
database server as a central data repository (Microsoft SQL 2000 SP 3, IBM DB2
Universal Database Express Edition 8.1 SP3, or Sybase Adaptive Server Enterprise
12.5.1). Most of the application resides on the client ("fa ("fatt client"). This means that
processing is carried out locally and is largely independent of server performance.
Interfaces
SAP offers a Software Development Kit (SDK) for SAP Business One. You can use this
kit to add your own functions programmed in Visua
Visuall Basic (VB), C/C++, and Java. The
SDK runs either on the server or on the client depending on its purpose. An integration
toolkit provides an interface for converting data from SAP Business One to XML, based
on the SOAP 1.1 protocol, and vice versa.
The Software
ftware Development Kit (SDK) consists of the following:
• Data Interface Server (DI
(DI-Server)
• Data Interface Application Programming Interface (DI API)
• User Interface Application Programming Interface (UI API)
By providing direct read and write access to SAP Business One data objects
independent of the SAP Business One client, the Data Interface Server allows you to
integrate non-SAP
SAP systems. In this case, the user interface of the external system is
not integrated into SAP Business One. Nevertheless, the external system still
accesses the same database as SAP Business One and executes the same application
logic via the Data Interface Server. This ensures that the data remains consistent.
The Data Interface Server provides a library of Component O Object

bject Model (COM)-
(COM)
based business objects. This means that the programming language used must
support COM. SAP recommends Visual Basic and C/C++. You can also use the Data
Interface Server from Java applications with a Java Native Interface (JNI).
If you
ou want to develop additional functions and integrate them fully into the SAP
Business One user interface (for example, industry solutions), you can use the User
Interface API, which provides access to the screen elements in the SAP Business One
client. Events on the user interface trigger the processing of screen data by the
additional functions. Your add
add-on development has access to the SAP Business One
database through the Data Interface API that ensures data consistency (similar to
the functionalityy of the DI Server).
Functionalities
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SAP Business One has Windows look and feel, simple navigation, drill drill-down
down reporting
and can be integrated with Microsoft Word and Microsoft Excel. It is shipped with a
Service Manager and two services for sending ee-mails, ils, faxes, and SMS from SAP
Business One (mail service) and creating regular database backups (backup service).
SAP BUSINESS ONE: BASICS
Choose Company
You navigate through SAP Business One using the main menu. The main menu
arranges the functions of the individual applications in a tree structure. The company
name and the name of the current user display at the top left.
The Main Menu screen.
Choose Administration > Choose

Company to change the server that stores the
company data. The companies stored on the
selected server display in a table. As long as your
user exists in a company, you can switch directly
to different company. You can also change users
without having to exit the system.
The Choose Company screen
Menu Bar and Toolbar
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Menu Bar
The SAP Business
siness One menu bar displays at the top of the screen. The menu bar contains
the Windows standard menu (File, Edit, Window, Help) as well as generic SAP Business
One functions.
Use the File menu to choose and complet

completee the functions: Close; Save as Draft; Page
Setup; Print Preview; Print; Send; Export; Launch Application; Lock Screen; and Exit.
Use the Edit menu to perform standard Microsoft Windows functions: Undo, Redo, Cut,
Copy, Paste, Delete and Select All.
The View menu contains options that relat

relatee to the display functions of SAP Business
One. The open window determines which functions are active. View menu options are
User-Defines
Defines Fields, System Information, Pickers Display, Indicators Display, Restore
Column Width, Legend and Translated Values.
Use the enabled relevant Data menu options while you perform various actions in SAP
Business One. For example, you can add and delete rows, or scroll between the records,
when filling in a table. Data menu options are Find, Add, First Data Record, Next
Record,
ord, Previous Record, Last Data Record, Remove, Cancel, Restore, Close, Duplicate,
Add Row, Delete Row, Close Row, Duplicate Row, Copy from Cell Above, Copy from
Cell Below and Advanced.
The Goto menu is active depending on the window that is currently ddisplayed.
isplayed. The
choices in the Goto menu are links, which enable quick access to the window, reports,
and specific fields in the window.
The Modules menu contains a list of all modules with their related options. The menu
options:
• Are arranged in the same ororder as the menus in the Main Menu
• Cannot be modified
• May be inactive for unauthorized users
The Tools menu in SAP Business One contains a variety of commands that are either
active or inactive, depending on the currently open window. Tools menu options are
a Print
Layout Designer, XL Reporter, Form Settings, System Message Log, Change Log,
Queries, My Menu, My Shortcuts, User User-Defined Values, User-Defined
Defined Windows,
Customization Tools and Default Forms.
Toolbar
The toolbar displays under the menu bar. T The
he toolbar is a collection of icon buttons that
grant you easy access to commonly
commonly-used
used functions. The functions represented by the
buttons are also available in the menu bar.
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Active functions appear in color, and inactive functions gray out. You can choose
choos the
toolbars that will be displayed or hidden. To hide or show a toolbar, right-click
right in the
toolbar area and check or uncheck the appropriate toolbar.
Toolbar Icons and Icon Description
Print Preview Filter
Print Sort
E-mail Base Document
SMS Target Document
Fax Gross Profit
Export to MS--Excel Payment Means
Export to MS--Word Volume and Weight
PDF Print layout Designer
Launch Application Form Settings
Lock Screen Query Manager
Find Messages/Alert
Add Calendar Help
First Data Record Context Help
Previous Record Transaction Journal
Next Record
Last Data Record
Main Menu
There are three tabs under the main menu:
1. Modules
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The Modules menu contains a list of all modules with their related options. The
menu options:
• Are arranged in the same order as the menus in the Main Menu
• Cannot be modified
• May be inactive for unauthorized users
2. Drag and Relate
Drag & Relate is an interac

interactive
tive tool based on predefined system queries. You use
it to create reports and to display information about business processes. The user- user
friendly interface helps you find important information quickly, and locate different
objects or documents in SAP Business
siness One. For example, you can generate a report on
all items or item groups, or all purchase orders that you created for a particular
vendor.
The Drag & Relate queries allow you to search for data both in reports and in the
master data, such as G/L accounts and business partners.
3. My Menu
Use the My Menu tab in the Main Menu to customize a personal menu to include
windows, menu options, and queries you use most frequently.
Modules
1. Administration
Contains the basic system settings for curren
currency
cy exchange rates, system setup, and
authorizations, as well as settings for online alerts, and data import/export
functions.
2. Financials
Manages all your accounting data and chart of accounts, general ledger, current
accounting posting, and reporting. In addition, you can define budgets and profit
centers for better management of company revenues and expenses.
3. Sales Opportunities
Helps the sales employees to manage their sales opportunities and enables you to
analyze your sales information. It also inclu
includes
des opportunity forecast reports, won
opportunities, an opportunities pipeline, and a dynamic display of sales stages.
4. Sales-AR
Handles all aspects of the sales process, from entering sales quotations, sales
orders and deliveries, to issuing customer inv
invoices
oices and returns. In addition, you
can draw base documents to target documents, or send letters to customers with
open debts.
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5. Purchasing-AP
Lets you manage all your vendor transactions. You can map the entire buying
process, from purchase orders to vend
vendor
or invoicing. Companies that import goods
can use the landed costs functionality to calculate the purchase prices of their
imported items, including customs, transport and insurance, fees, taxes, and other
landed costs.
6. Business Partners
Stores the masterr data for all your business partners, including relevant
information about customers, dealers, vendors, and leads. In addition, you can
store information about business partner activities, as well as data for sales
volume forecasts.
7. Inventory
Manages your
ur inventory, including warehouse stocks, price lists, special pricing
agreements, alternative items, and warehouse transactions, as well as the pricing
and packaging process, and batches and serial number management.
8. Banking
Handles the full range of mon
monetary
etary transactions. In addition, you can use the
payment engine to process automatic payments.
9. Production
Enables you to handle bills of materials and production orders.
10. MRP
Effectively manages your material requirements in the manufacturing process. A
planning
lanning wizard helps you define planning scenarios that consider existing stock,
sales orders, purchase orders, production orders, and forecasts, to create material
ordering recommendations that enable you to fulfill your commitments to your
customers.
11. Service
Manages interaction between service representatives and customers. It enables
you to enter and maintain information about service contracts, items and serial
numbers, customer complaints and inquiries, as well as perform numerous related
functions. Each time a customer reports a problem, you log it in by opening a
service call.
12. Reports
Enables you to compile reports with corporate data and information in exactly the
way you want to see it. This includes company internal evaluations, inventory
reports,
ts, financial reports, and accounting data. In addition to the predefined
reports, you can also define individual queries.
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13. Human Resources

Maintains information on company employees and enables you to perform
numerous related functions. It provides staf
stafff management capabilities, including
employee details, contact information, and absence reports.
Users and Password Administration

Use the Users - setup window to define users in SAP Business One. To access this
window, choose Administration > Setup > General> Users .
Authorizations allow users to view, create, and update documents that you assign to
them, according to data ownership definitions. To access this window, choose
Administration > System Initialization > Authorizations > General Author
Authorizations.
izations.
Use the Password Administration window to specify the requirements for user
passwords. To access this window, choose Administration > Setup > General >
Password Administration .
Personalize Windows and Settings
Use the Customize window to define your own shortcut keys for opening frequently used
windows.
To access the window, choose Tools > My Shortcuts > Customize .
The system allows you to assign the function keys F2 through F12 to your most
used transactions. You can then sstart
tart these transactions simply by hitting the
respective function key. The function key F1 is reserved for accessing online help.
Customize Main Menu
Use the My Menu tab in the Main Menu to customize a personal menu to include
windows, menu options, and queries you use most frequently.
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To display or hide certain modules or submodules, use the Form Settings –Main
– Menu
window, and select or deselect the Visible boxes as appropriate for each module.
Authorizations
Authorizations allow users to view, ccreate,

reate, and update documents that you assign to
them, according to data ownership definitions. You can define users as either regular
users or superusers.
Regular users:
• Cannot assign authorization to other users
• Can perform certain actions, for example

example,, award discounts, change prices, or
access confidential accounts, with proper authorization
Superusers can:
• Define permissions for other users
• Have full and unrestricted authorization for everyone except themselves
You define authorizations in the Aut

Authorizations
horizations window, per module. Authorizations are
also affected by the settings in the General section of the window. Users who do not have
permission to alter authorizations do not have the Authorizations folder in their view of
the Administration module.
Display Parameters
Use the General Settings – Font & Bkgd tab to set the font you use for displaying texts
in SAP Business One, and to place your company logo or other graphic as the
background image in the main SAP Business One window.
Use the General Settings - Display tab to define how different variables, such as dates,
numerical values, and currencies are displayed. To access this tab, choose
Administration > System Initialization > General Settings > Display .
Functions in a Form
Changing Field Descriptions
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Use the Customize window to define your own shortcut keys for opening frequently used
windows. You can modify field names to match the terminology used in your company,
enter new field descriptions, or change field formats.
Procedure
• Open the required window, for example, A/R Invoice.

• Press Ctrl and double
double-click
click the name of the field you want to change.
• The Changing Description window opens. The current field name appears in the
Original Description field.
• Enter the new field name in tthe New Description field.
• Select Bold or Italics if required, for example, you can make all the mandatory
fields bold.
• Choose Update and OK.
Input Tools
SAP Business One offers two input tools:
• Selection List: Choose the icon left of the field to open a new window
with a list of all possible entries.
• Dropdown List: Choose the icon to the right of the field to open a
dropdown list with all possible entries.
If a user has the proper authorization, he or she can change field labels by
selecting the Ctrl ke
key and double-clicking
clicking the label at the same time.
Link Arrow
This arrow is a very powerful tool. It allows you to open windows with related
information.
Status Bar
At the bottom of every screen, you will find the status bar that always shows the name,
length, and contents of the current field. Furthermore, if you enable the View > System
Information menu item, the system also displays some technical information about the
field, which you can use for creating queries or formatted searches (more in the
Advanced module).
Marketing Documents
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All the documents in purchasing and in sales share a similar structure. The documents for
sales and purchasing are also often called “Marketing Documents”.
In general, the document is divided into:

1. The upper part (header) with the general information
2. The middle part with the information on different tab pages and the item
specific data (you
can access more item specific data in the line details by double-clicking
double a
row),
3. And the lower part (footer) with more general information.
The middle part contains three tabs:

1. The Contents tab is where all the specific information about the ordered items
or services is entered, such as quantity, price, item number and description
2. The Logistics tab contains the details about where the items or services as well
as payments are to be sent. Shipping method is also specified here. Most of the
data is pulled from preconfigured master compan
company y details and vendor data.
3. The Accounting tab contains the relevant general ledger (G/L) account
information for the purchase pulled from the financial accounting master data.
Sales Documents
1. Sales Order
The sales order is a commitment from a cust

customer
omer or lead to buy a product or service. The
document serves as a foundation for planning production or purchase orders. Creating
sales orders does not post value
value-related
related changes in the accounting system. However, if
the sales order is created for items, the ordered quantities are listed in Inventory
Management as reserved for the customer. You can view the ordered quantities in various
reports, such as the Inventory Status report, as well as other windows in SAP Business
One.
This information is important

nt for:
• Optimizing ordering transactions and stockholding
• Ensuring that customer requirements are dealt with quickly and satisfactorily
2. Delivery
The Delivery is a legally binding document indicating that the shipment of goods or the
delivery of services
ces has occurred. Without this document, goods can be delivered only if
an invoice has already been created.
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When you create a delivery, the corresponding goods issue is also posted. The goods
leave the warehouse and the relevant stock changes are posted. When the stock is
changed, the values in the accounting system change as well (only when you use
perpetual inventory).
3. AR Invoice
The invoice is a legally binding document. When an invoice is received, the posting is
made to the related customer acco
accounts
unts in the accounting system. If a delivery did not
precede the invoice and you sell the warehouse items, stock quantities are also updated
accordingly when you issue the invoice.
If you create an invoice without reference to the delivery, the system aut
automatically
omatically posts
changes to the stock. In other words, if a delivery already exists for the transaction and
you create an invoice without reference to this delivery, errors can occur in inventory
management because the delivery quantity is posted twice in the system.
4. Other Sales Documents
• Return
For legal reasons, a delivery or invoice that you have created in SAP Business
One cannot be subsequently changed or deleted. However, the customer might
send the goods back for various reasons, or you might hhave
ave made a mistake when
you entered the documents.
If you are facing one of the situations mentioned above, create a return document.
When you enter a return document, you can reverse the posting of a delivery.
When you create the return, the system cor corrects
rects the stock quantities. If your
company runs a perpetual inventory, creating a return automatically generates a
journal entry that updates the stock value.
The return is the clearing document for a delivery. Therefore, if an A/R invoice
has not yet beenen created for the delivery you want to reverse, use the return
document. If you have already recorded an invoice, use the A/R Credit Memo
function to correct values and quantities for the transaction in SAP Business One.
• AR Credit Memo
For legal reasons,, you cannot change or delete a delivery or invoice that you enter
in SAP Business One. However, the customer might send the goods back for
various reasons, or you may have made a mistake when you entered the
documents.
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If a sales transaction for which yo

youu record an accounting and an inventory posting
has been completely or partially reversed, you must enter a corresponding sales
document to clear it. This document reverses the changes in terms of stock
quantities and monetary values.
• Sales Quotation
You create the sales quotation document as an offer or proposal that you send
either to a customer, or to a lead.
The sales quotation, as it is displayed in SAP Business One, is not a legally

binding document. It is generally used for information purposes on
only,
ly, and can be
the first link in the sales process chain.
Entering a quotation does not result in any posting that alters quantities or values
in inventory management or accounting.
• AR Reserve Invoice
The A/R reserve invoice allows you to issue invoice

invoicess for warehouse items without
deducting the items from the inventory. If you create a reserve invoice, SAP Business
One creates an accounting journal entry without creating an inventory entry.
SAP Business One enables you to create an A/R reserve invoi

invoice
ce with a zero
amount. You can do this when delivering items without a charge, for example, items
that are part of a promotion or covered by a service contract.
Like an ordinary invoice, a reserve invoice is closed against an incoming

payment. However, inventory closure takes place in the delivery.
• AR Downpayment Invoice
When your company needs to create a down payment invoice for a customer, use
the A/R down payment invoice to document this payment.
The A/R down payment invoice is actually an ininvoice

voice that is cleared by an
incoming payment. Unlike the A/R invoice, the A/R down payment invoice creates a
posting in the accounting system but has no influence on stock accounting values and
quantities.
• AR Invoice + Payment
Use the invoice with pay

payment for cash sales to one-time
time customers, who have to
pay the full invoice amount immediately.
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Purchase Documents
1. Purchase Order
The purchase order is a document used to request items or services from a vendor at an
agreed upon price. When you enteenterr a purchase order in SAP Business One, no value-
value
based changes are posted in the accounting system. However, the order quantities are
listed in inventory management. You can view the ordered quantities in various reports
and windows, such as the Inventory Status report and the Item Master Data window. This
information is important for optimizing ordering transactions and stockholding.
2. Goods Receipt PO
You create this document when you receive goods from the vendor. When you create a
goods receipt PO,, SAP Business One receives the goods into the warehouse, updates the
quantities, and creates an accounting journal if you manage the perpetual inventory.
3. AP Invoice
The A/P invoice is a request for payment. It also records the cost in the profit and loss
statement. You can create an A/P invoice from multiple purchase orders and goods
receipt POs. You cannot change it since it is the legal accounting document that generates
entries in the general ledger.
When you receive an A/P invoice, SAP Business One posts the related accounts for the
vendor in the accounting system. If no delivery for a purchase order precedes the A/P
invoice, and if you are purchasing items managed in the warehouse, the stocks are
increased when the you post the invoice.
4. Otherr Purchase Documents
• Goods Return
The goods return document is used to return delivered goods to vendors or to

reverse a purchasing transaction for an item, for example, a goods receipt PO or an
A/P invoice in SAP Business One. Due to legal stipulatio
stipulations
ns you cannot make any
changes to or delete these documents. However, to return unwanted or faulty goods,
or to correct errors made when entering the above-mentioned
mentioned documents, you can
create a goods return.
• AP Credit Memo
When you create a delivery foforr a purchase order or an A/P invoice in SAP
Business One, legal stipulations prevent you from making any changes or deleting
these documents. You may, however, want to return the goods to the vendor for a
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variety of reasons, or you may find that you havee made a mistake while creating the
documents.
The A/P credit memo is the clearing document for the A/P invoice. Therefore, if
the vendor has delivered goods and you have already created an A/P invoice, you
can reverse the transaction either partially or completely by creating an A/P credit
memo.
You create the A/P credit memo based on the A/P invoice to establish a link
between the two transactions in SAP Business One. However, it is also possible to
create an A/P credit memo without having a base document.
SAP Business One enables you to create an A/P credit memo with a zero amount.
You can do this when you clear A/P invoices for no no-charge
charge items, such as items that
are part of a promotion or covered by a service contract.
You correct both ththee quantities and the values with the credit memo. SAP
Business One reduces the stock of the credited items by the quantity specified in
the credit memo, posts the value of the credit memo to the vendor account in the
accounting system, and reduces the exexpense account by the same amount.
• Landed Cost
The Landed Costs function enables companies that import goods to calculate their
costs by allocating customs, transport and insurance fees, taxes, and other landed
costs to the original price of the impor
imported items.
The landed costs function enables companies, when calculating the purchase
prices of imported items, to include:
Customs
Transport and insurance fees
Taxes
Other landed costs
• AP Reserve Invoice
A/P reserve invoices enable you to create relevant posting in the accounting
system only and do not affect inventory and stock values. You use A/P reserve
invoices to document an A/P invoice you receive from a vendor before goods arrive.
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After you receive the goods, you create a goods receip

receiptt PO based on the A/P
reserve invoice to update inventory quantities and stock values.
SAP Business One enables you to create an A/P reserve invoice with a zero
amount before you receive no
no-charge
charge items, for example, items which are part of a
promotion or under the coverage of a service contract.
The A/P reserve invoice is relevant for items only and is not available for
services.
You close an A/P reserve invoice by creating an outgoing payment.
• AP Downpayment Invoice
A/P reserve invoices enabl

enablee you to create relevant posting in the accounting
system only and do not affect inventory and stock values. You use A/P reserve
invoices to document an A/P invoice you receive from a vendor before goods arrive.
After you receive the goods, you create a goods receipt PO based on the A/P
reserve invoice to update inventory quantities and stock values.
SAP Business One enables you to create an A/P reserve invoice with a zero
amount before you receive no
no-charge
charge items, for example, items which are part
par of a
promotion or under the coverage of a service contract.
The A/P reserve invoice is relevant for items only and is not available for
services.
You close an A/P reserve invoice by creating an outgoing payment.
Row and Column Types
When you process a marketing document, you can define which fields and columns
should be displayed and activated or deactivated in the documents. This enables you to
display frequently used detailed information, so that you can enter data more easily.
When you create a marketing document, SAP Business One enables you to to:
a. add text rows to the Contents tab for inserting any relevant free or predefined text
tex
b. add subtotal row to calculate and display subtotal
subtotalss of the preceding regular rows
c. add or delete row when fill
filling in a table
On the toolbar, click Form Settings to display the Form Settings window, in which you
define the document settings. The window contains three tabs:
1. Document: Maintain data that applies to the entire sales document.
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2. Table Format: Selectt or deselect fields to display the required fields in the Contents tab
table of the sales document.
3. Row Format: Select or deselect fields to make the required selections in the rows of the
Contents tab of the sales document.
Base and Target Documents
SAP Business One enables you to create target documents directly from base documents.
For example, you can create a delivery directly from the sales order. In that case, all the
data that you entered in the sales order is automatically copied to the deli
delivery.
very.
You can create a target document for an added document in status Open only. When you
create a target document, SAP Business One copies all its open rows.
Document Status
a. Open
You can draw the document completely or partially to a docu
document
ment of a higher level.
b. Open – Printed
You printed the document and left it open.
c. Closed
You closed the document manually or SAP Business One closed it auautomatically
tomatically when
you drew it to
another document and you will not be able to dr
draw
aw it again to another document with
the exception
of the Sales Quotation.
c. Cancelled
You cancelled the document manually. The document itself is not deleted. You can
still display and
duplicate it, but you cannot change it or draw it to a higher level document.
d. Unapproved
You cannot draw the sales order to a higher
higher-level document.
e. Draft
The document is still a draft.
The Purchasing Process
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The purchasing process in SAP Business One begins with the creation of a purchase
order. The Purchase Order (PO) is the document used to request items or services from a
vendor. The next stage is the Goods Receipt PO. It is the stage when the stock is received
into the company. The goods receipt is followed by an A/P Invoice, w which
hich is the request
for payment. It is the only mandatory document in the purchasing process. It is possible
to create the A/P invoice without first creating a goods receipt PO or a purchase order.
In SAP Business One, you can create an A/P Reserve Invoic

Invoice.
e. This document is similar
to a purchase order but includes a request for payment. The A/P reserve invoice is used
when a vendor is concerned about the credit worthiness of his customers. In the
purchasing process of SAP Business One, it is possible to re
return
turn goods to the vendor if,
for example, the goods you received were faulty. You can use a Goods Return if you
based the return on a Goods Receipt PO or an A/P Credit Memo if the return is based an
A/P Invoice.
You can create a new document based on one or more of the existing ones. When you
create a new document with reference to an existing document, only the documents that
are still open are displayed. All documents for which you have not created a follow-on
follow
document have an open status. Open documents remain open until you transfer all items
completely to the follow-on
on document or until you manually close or reverse them.
Each document affects stock quantities and some affect the general ledger. The purchase
order affects the available stock quantity. The goods receipt PO increases the actual stock
quantity. If you create an A/P invoice without reference to the goods receipt PO, it will
also increase the quantity in stock.
As far as accounting is concerned, the A/P invoice always creates an accounting

transaction. It records freight and tax and updates the vendor account with the new
outstanding balance.
The A/P reserve invoice only affects the available stock quantity and creates an
accounting transaction.
The goods return reduces the actual stock llevels.

evels. The A/P credit memo reduces the actual
stock levels and also creates an accounting transaction by applying negative amounts to
the previously invoiced accounts.
The Sales Process
The sales process in SAP Business One begins with the creation of a sales quotation. The
second document is the sales order. The sales order is followed by a delivery. Finally, the
A/R invoice is created. It is the only mandatory document in the sales process. It is
possible to create an invoice without first creating a ddelivery,
elivery, a sales order, or a sales
quotation.
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An optional document is the A/R r eserveinvoice that is used when a company is

concerned about the credit worthiness of its customer. In this case, the company demands
payment before the delivery of items to the customer.
Additionally, it is possible to credit a customer for damaged goods. The returns document
is be used to credit the customer if the goods were delivered but no A/R invoice was
issued. Use the A/R credit memo to credit a customer after an A/R invoice was already
issued. For legal reasons, you cannot change or delete deliveries and A/R invoices that
have been already entered in SAP Business One. To correct these, use the clearing
document, the returns.
It is possible to create a new document bbased

ased on one or more of the existing ones. When
you create a new document with reference to an existing document, only the documents
that are still open are displayed. All documents for which you have not created a follow-
follow
on document have an open status. Op Open
en documents remain open until you transfer all
items completely to the follow
follow-on
on document, or until you manually close or reverse them.
Each document updates the stock quantities and the general ledger. The sales order
affects the amount of stock commite
commited d to a customer and, therefore, the available stock
quantity. The delivery reduces the stock commited and the in
in-stock
stock quantities. If the A/R
invoice is created without reference to the delivery, it will also reduce the quantity in
stock.
As far as accounting
ting is concerned, only delivery and the A/R invoice have the affect. The
delivery affects the general ledger, if SAP Business One manages the perpetual
inventory. In this case, the delivery will reduce stock valuation and post a cost of sale.
The A/R invoice
ice always creates the accounting transaction. It records the revenue and tax
and updates the customers’ accounts with a new outstanding balance.
The A/R reserve invoice affects the amount of stock commited to a customer and,
therefore, the available stockk quantity. It also creates an accounting transaction.
The returns increases the in-stock

stock quantity and updates the associated stock accounts.
The A/R credit memo increases available stock levels and creates accounting
transactions. It credits the custom
customer
er accounts on general ledger and corrects the revenue
account by the same amount.
Item Master Data

SAP Business One enables you to manage all items that you purchase, manufacture, sell,
or keep in inventory. Services can also be defined as items, althoalthough
ugh they are only
relevant for sales. For each item, you enter the data relevant for a particular area in the
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system. SAP Business One uses this data for purchasing, sales, production, warehouse
management, accounting, and service.
You use the Item Master Data window to add, update, search, and maintain item data.
The window includes the list of items that the company uses. To access the window,
choose Inventory > Item Master Data.
Business Partner Master Data

Use the Business Partner Master Data to reco
record
rd and retrieve business partner (customers,
vendors, and leads) information and schedule business partner activities. Business partner
information typically includes:
• Company details, including addresses and telephone numbers

• Business partner contact per
persons,
sons, including telephone numbers and E-mail
E
addresses
• Logistic details
• Tax information
• Accounting information
• Details of payment terms
The master data forms the basis for all sales and purchasing documents, and activities
involving a business partner. Y
You
ou can also use the data to analyze your business partner
relationships in detail.
Chart of Accounts
The chart of accounts is an index of all general ledger (G/L) accounts used by one or
more companies. Each G/L account has a code, a description, and inf information
ormation that
determine its functions.
To access the chart of accounts, from the SAP Business One Main Menu, choose
Financials > Chart of Accounts .
The system analyst gives a system development project meaning & direction. A
candidate system is approached
ached after the analyst has a through understanding of user
needs & problems. A viable solution is worked out and then communicates the same.
Candidate systems often cut across the boundaries of users in the organization. For
example, a billing system may
ay involve users in the sales order department, the credit
department, the warehouse and the accounting department. To make sure that all users’
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needs are met, a project from that represents each user works with the analysis to carry
out a system development
opment project.
Stages of system development Life cycle
The system development life cycle method is classically thought of as the set of
activities that analysts, designers and users carry out to develop and implement an
information system. The variousious stages in the business are closely related to each other,
even the order of the steps in these activities is difficult to determine.
Project Selection
One must know what the problem is before it can be solved. The basis for a
candidate system iss recognition of a need for improving an information system or a
procedure. For example, a supervisor may want to investigate the system flow in
purchasing, or a bank president has been getting complaints about the long lines in the
drive – in. This need
eed leads to a preliminary survey or an initial investigation to determine
whether an alternative system can solve the problem. It entails looking into the
duplication of effort, bottlenecks, inefficient existing procedures, or whether parts of the
existing
sting system would be candidates for computerization.
If the problem is serious enough, management may want to have an analyst look
at it. Such an assignment implies a commitment, especially if the analyst is hired from the
outside. In larger environments,
ents, where formal procedures are the norm, the analyst’s first
task is to prepare a statement specifying the scope and objective of the problem. He/She
then reviews it with user for accuracy. At this stage, only a rough “ ball park” estimate of
the development
lopment cost of the project may be reached. However, an accurate cost of the
next phase- the feasibility study – can be produced.
Impetus for system Change
The idea for change originates in the environment or from within the firm (see
Figure 2-1). Environment-based
based ideas originate from customers, vendors, government
sources, and the like. For example, new unemployment compensation regulations may
make it necessary to change the restructures. Customer complaints about the delivery of
orders mayy prompt an investigation of the delivery schedule, the experience of truck
drivers, or the volume of orders to be delivered. When investigated, each of these ideas
may lead to a problem definition as a first step in the system life cycle process.
Ideass for change may also come from within the organization
organization- top management,
the user, and the analyst. As an organization changes its operations or faces advances in
computer technology, someone within the organization may feel the need to update
existing applications or improve procedures. Here are some examples:
• An organization acquires another organization.

• A local bank branches into the suburbs.
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• A department spends 80 percent of its budget in one month.

• Two departments are doing essenti
essentially
ally the same work, and each department head
insists the other department should be eliminated.
• A request for a new form discloses the use of bootleg (unauthorized) forms.
Serious problems in operations, a high rate of labor turnover, labor intensive
activities, and high reject rates of finished goods, also prompt top management to initiate
an investigation. Other examples are:
• A report reaches a senior vice president and she suspects the figures.
• The company comptroller reads an IRS audit report and starts thinking.
• An executive read about decision support systems for sales forecasting and it
gives him an idea. Many of these ideas lead to further studies by management request,
often funneled downward and carried out by lower managemmanagement.
User- originated ideas also prompt initial investigations. For example, a bank’s
head teller has been noticing long customer lines in the lobby. She wants to know
whether they are due to the computers slow response to inquires, the new teller’s limited
li
training or just a sudden increase in bank business. To what extent and how quickly a
user- originated idea is converted to a feasibility study depend on several factors:
• The risks and potential returns.
• Management’s bias toward the user.
• Financial costs, and the funds, available for system work.
• Priorities of other projects in the firm.
• The persuasive ability of the user.
All these factors are crucial for a prompt response to a user request for change. A
systems analyst is in a unique position to detect and even area of operations make him/
her a convenient resource for ideas. The role and status of the analyst as a professional
add credibility to the suggestions made.
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Feasibility Study
Depending on the resultsts of the initial investigation, the survey is expanded to a

more detailed feasibility study. A feasibility study is a test of a system proposal
according to its workability. Impact on the organization, ability to meet user needs, and
effective use of resources.
sources. It focuses on three major questions:
1. What are the user’s demonstrable needs and how does a candidate system meet
them?
2. What resources are available for given candidate systems? Is the problem worth
solving?
3. What is the likely impactt of the candidate system on the organization? How well
does it fit within the organization’s master MIS plan?
Each of these questions must be answered carefully. They revolve around

investigation and evaluation of the problem, identification and descr
description
iption of candidate
systems, specification or performance and the cost of each system and final selection of
the best system.
The objective of feasibility study is not to solve the problem but to acquire a sense
of its scope. During the study the prob
problem
lem definition is crystallized and aspects of the
problem to be included in the system are determined. Consequently, costs and benefits
are estimated with greater accuracy at this stage.
The result of the feasibility study is a formal proposal. This is simply a report-
report a
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formal document detailing the nature and scope of the proposed solution. The proposal
summarizes what is known and what is going to be done. It consists of the following:
1. Statement of the problem – a carefully worded statement of the problem
that led to analysis.
2. Summary of findings and recommendations
recommendations- a list of the major findings
and recommendations of the study. It is ideal for the user who requires quick access to
the results of the analysis of the system under study.
Conclusions
onclusions are stated followed by a list of the recommendations and a
justification for them.
3. Details of findings- an outline of the methods and procedures undertaken by
the existing system followed by coverage of the objectives and procedures
of the
he candidate system. Included are also discussions of output reports,
file structures, and costs and benefits of the candidate system.
4.Recommendations and conclusions
conclusions- specific recommendations regarding
the candidate system including personnel assign
assignments, costs, project
schedules, and target dates.
After management reviews the proposal, it becomes a formal agreement that

paves the way for actual design and implementations. This is a crucial decision point in
the life cycle. Many project die he
here,
re, whereas the more promising ones continue through
implementations. Changes in the proposal are made in writing, depending on the
complexity size, and cost of the project. It is simply common sense to verify changes
before committing the project desig
design.
Analysis
Analysis is a detailed study of the various operations performed by a system and

their relationships within and outside of the system. A key question is, what must be done
to solve the problem? One aspect of analysis is defining the bou boundaries
ndaries of the system and
determining whether or not a candidate system should consider other related systems.
During analysis, data are collected on the available files, decision points, and transactions
handled by the present system. Data flow diagram
diagrams interviews, on – site observations, and
questionnaires are examples of the analysis tools. The interviews is a commonly used tool
in analysis, it requires special skills and sensitivity to the subjects being interviewed. Bias
in data collection and interpretation
terpretation can be a problem. Training, experience, and common
sense are required for collection of the information needed to do the analysis. Once
analysis is completed the analyst has a firm understanding of what is to be
done. The next step is to decide
ide how the problem might be solved. Thus, in systems,
design we move from the logical to the physical aspects of the life cycle.
Design
The most creative and challenging phase of the system life cycle is system design.
The term design describes a final system and the process by which it is developed. It
refers to the technical specifications (analogous to the engineer’s blueprints) that will be
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applied in implementing the candidate system. It also includes the construction of

programs and programm testing. The key questions here is: How should the problem be
solved? The major steps in design are shown in Figure 2.2.
The first step is to determine how the output is to be produced and in what format.
Samples of the output (and input) are also pr
presented.
esented. Second, input data and master files
(database) have to be designed to meet the requirements of the proposed output. The
operational (processing) phases are handled through program construction and testing
including a list of the programs need
needed
ed to meet the system’s objectives and complete
documentation. Finally, details related to justification of the system and an estimate of
the impact of the candidate system on the user and the organization are documented and
evaluated by management as a step toward implementation.
The final report prior to the implementation phase includes procedural flowcharts,
record layouts, report layouts, and a workable plan for implementing the candidate
system. Information on personnel, money, hardware, facili
facilities, and their-estimated
estimated cost
must also be available. At this point, projected costs must be close to actual costs of
implementation.
In some firms, separate groups of programmers do the programming, whereas

other firms employ analyst- programmers w who
ho do analysis and design as well as code
programs. For this discussion, we assume that two separate persons carry out analysis and
programming. There are certain functions, though, that the analyst must perform while
programs are being written. Operati
Operating
ng procedures must also be developed. 2.2.5
Implementation
The implementation phase is less creative than system design. It is primarily

concerned with user training site preparation, and file conversion. When the candidate
system is linked to terminals
als or remote sites, the telecommunication network and tests of
the network along with the system are also included under implementation.
During the final testing, user acceptance is tested, followed by user training.
Depending on the nature of the sys system,
tem, extensive user training may be required.
Conversion usually takes place at about the same time the user is being trained or later.
In the extreme, the programmer is falsely viewed as someone who ought to be
isolated from other aspects of system de development.
velopment. Programming is itself design work,
however. The initial parameters of the candidate system should be modified as a result of
programming efforts. Programming provides a “ reality test” for the assumptions made
by the analyst. It is therefore a mistake to exclude programmers from the initial system
design.
System testing checks the readiness and accuracy of the system to access, update
and retrieve data from new files. Once the programs become available, test data are read
into the computer
er and processed against the file(s) provided for testing. If successful, the
program(s) is then run with “ live” data. Otherwise, a diagnostic procedure is used to
locate and correct errors in the program. In most conversions, parallel run is conducted
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SAP Business One
where the new system runs simultaneously with the “old” system. This method, though
costly, provides added assurance against errors in the candidate system and also gives the
user staff an opportunity to gain experience through operation. In some cases, however,
parallel processing in not practical. For example, it is not plausible to run parallel two
online point-of-sale
sale (POS) systems for a retail chain. In any case, after the candidate
system proves itself, the old system is phased out.
Post – Implementation
lementation and Maintenance
After the installation phase is completed and the user staff is adjusted to the
changes created by the candidate system, evaluation and maintenance begin. Like any
system there is an aging process that requires periodic ma
maintenance
intenance of hardware and
software. If the new information is inconsistent with the design specifications, then
changes have to be made. Hardware also requires periodic maintenance to keep in tune
with design specifications. The importance of maintenanc
maintenancee is to continue to bring the new
system to standards.
User priorities, changes in organizational requirements, or environmental factors

also call for system enhancements. To contrast maintenance with enhancement, if a bank
decided to increase its service
vice charges on checking accounts from Rs 3.00 to Rs 4.50 for
a minimum balance of Rs 300, it is maintenance. However, if the same bank decided to
create a personal loan on negative balances when customers overdraw their account, it is
enhancement. This change requires evaluation program modifications, and further testing.
Project Termination
A system project may be dropped at any time prior to implementation although it

becomes more difficult (and costly) when it goes past the design phase. Generally,
Gene
projects are dropped if, after a review process, it is learned that:
• Changing objectives or requirements of the user cannot be met by the
existing design.
• Benefits realized from the candidate system do not justify commitment
to implementation.
• There is a sudden change in the user’s budget or an increase in design
costs beyond the estimate made during the feasibility study.
• The project greatly exceeds the time and cost schedule.
In each case, a system project may be terminated at the user’s request. In contrast
project termination is new system failure. There are many reasons a new system does not
meet user requirements:
• User requirements were not clearly defined or understood.
• The user was not directly involved in the crucial phases of system
development.
• The analyst, programmer, or both were inexperienced.
• The systems analyst (or the project team) had to do the work under stringent
time constraints. Consequently not enough thought went into the feasibility
04.pdf)
SAP Business One
study
tudy and system design. • User training was poor.
• Existing hardware proved deficient to handle the new application.
• The new system left users in other departments out of touch with
information that the old system had provided.
• The new system was not user
user-friendly.
• Users changed their requirements.
• The user staff was hostile.
The list can be expanded to include many more causes. The important point is that
although advances in computer systems and software make life easier for the analyst,
an the
success of a system project depends on the experience, creative ability, and knowledge of
the analyst and the support from the user staff. This suggests that the analyst be skilled in
the state of the art (hardware and software) as well as in dealing with people.
Considerations for candidate system
In today’s business, there is more demand for computer services than there
are resources available to meet the demand. The demand is made up of the following:
1. Operations of existing syst

system.
2. Maintenance that focuses on “patching” programs – often representing over 50
percent of maintenance.
3. Enhancements that involve major modifications in program structure or
equipment.
4. Requests for candidate systems.
All these demands require
uire resource – human, financial, and technological. On the
human side, the computer department has to provide the following:
™ Computer operators to run equipment.

™ Data entry personnel.
™ Systems analysts to define and design specifications.
™ Application
plication programmers to convert system specifications to computer programs ™
Maintenance programmers to repair errors.
™
Supervisors, project leaders, and managers to coordinate the jobs with the users.
Thus, the basic problem is to match the demands for service with the available
resources. How much one project is favored over another depends on technical,
behavioral, and economic factors.
The technical factor involves the system department’s ability to handle a project.
Much depends on the availability
ilability of qualified analysts, designers, and software specialists
to do the work. This is especially true in designing databases and implementing complex
systems for large concerns. The alternative to abandoning a project because of limited
talent on the inside is free – lancing it to an outside consulting firm. The cost of
developing the project has to be weighed against the total benefits expected.
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SAP Business One
The behavioral factor involves (1) the user’s past experience with an existing
system (2) the success
cess record of the analyst, and (3) the influence the user can exert on
upper management to finance a candidate system. Political considerations that
subjectively favor one project over another, the status of the department, and its
performance record are additional factors that bear on funding a candidate system.
Perhaps the most important criterion in selecting a project is the economic factor.
It focuses on the system’s potential return on investment. What is considered an
acceptable rate variess with different formulas, the variables chosen, and the like. System
consultants suggest an annual rate of return of just over 20 percent.
Political considerations
In conjunction with the preceding considerations is the political factor, which is

partly behavioral. Imagine this setting: managers in a production firm are considering two
office automation proposals: proposal A – a teleconferencing system designed to reduce
travels costs, and proposal B-- a sales support system. Proposal B (poorly presented
esented and
justified) was sponsored by an influential executive and had the support of the committee.
It passed because the right people were convinced it should.
Politics is the art of using influence and building coalitions when routine
procedures do not achieve the right results. When system projects are developed, a
collaborative relationship with the end user is helpful. A user who participated in building
a system rarely criticizes it. If such a participative relationship comes too late, resistance
resi
can crop up and politics comes into play. The trick is to anticipate resistance early and
turn it into support.
Planing and control for system success
What can the analyst do to ensure the success of a system? First, a plan must be
devised, detailing the procedure, some methodology, activities, resources, costs, and
timetable for completing the system. Second, in larger projects, a project team must be
formed of analysts, programmers, a system consultant, and user representatives. Shared
knowledge, interaction, and the coordination realized through team effort can be
extremely effective in contrast with individual analysts doing the same work. Finally, the
project should be divided into manageable modules to reflect the phases of system
development – analysis, design, and implementation.
Most of this work falls under project management and control. The main idea
behind the system development life cycle is to formalize a means structured at three
major levels for effective contr
control
ol of the project. At the lowest level, work assignments are
broken down into small manageable tasks. A task is usually a well – defined, structured
work unit that can be carried out by one individual. The task can be easily budgeted and
scheduled and its
ts quality measured. It can be easily completed independent of other tasks
and other project team members. If rework is necessary, there is minimal loss or impact
04.pdf)
SAP Business One
on other tasks, except where time is critical. The second level at which work units are
structured
ructured involves activities that have larger scope and are designed to produce
substantial results. An activity is a group of logically related tasks that serve one phase of
the system development life cycle.
A phase, a third level of control, is a set of activities that bring the project to a
critical milestone. Milestones are steppingstones that make up the entire project.
In planning a project, the following steps should be taken:
1. Identify the activities in each phase and the tasks within each activity.
2. Calculate the budget for each phase and obtain agreement to proceed.
3. Review, record, and summarize progress on activities periodically.
4. Prepare a project progress report at the end of a reporting month.
In summary, system devel

development
opment should not be regarded merely as some
procedure that deals with hardware and software. The original assumptions upon which
system specifications were based should be tested and re
re-evaluated
evaluated with the user in mind.
Managing system projects includes the important responsibility of seeing to it that all
features of the candidate system – technological, logical, and behavioural – are
considered before implementation and maintenance.
SAP Business One Accelerated Implementation Program
Implementation
on Phases
The implementation is divided into five project phases:
Phase 1: Project Preparation
During this phase, the team prepares and conducts a project kick-
kick
off meeting and goes throughinitial planning and preparation for the
SAP Business One im
implementation.
Phase 2: Business Blueprint
During this phase, a requirements workshop is conducted with

various key stakeholders to define project objectives, scope, and
schedule. In addition, the relevant business process scenarios are
defined. In order to document the results gathered during the
workshops, the Business Blueprint is created.
Phase 3: Project Realization

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SAP Business One
The purpose of this phase is to implement all business process

requirements based on the Business Blueprint. Other key focal foc
areas of this phase are conducting integration tests and drawing up
end user documentation.
Phase 4: Final Preparation
The purpose of this phase is to complete final preparation (including

user and administrator training, system management and cutovercut
activities) to finalize go
go-live
live readiness. Upon successful completion
of this phase, the SAP Business One system is ready to be used as
a productive environment.
Phase 5: Go-Live
Live and Support
The purpose of this phase is to move from a project

project-oriented,
riented, pre-
pre
production environment to live production operation. The most
important elements include setting up production support,
monitoring system transactions, and optimizing overall system
performance.
SAP Business One AIP - Implementation Cycle

1. Project 2. Business 3. Project 4. Final 5. Go-Live
Preparation Blueprint Realization Preparation and Support
4.69 days 3.31 days 9.5 days 5.25 days 23.5 days
Project Team Project Team Project Team Project Team Project Team
+ SAP Account Mgr. + SAP Account Mgr.
+ Client executive + Client executive
steering group steering group
The time estimate guidelines for each phase in the SAP Business One
Accelerated Implementation Program are base on suggested time
estimates to implement the core functionality in SAP Business One.
The time estimate guidelines do not include custom configuration and
development
In most cases, the partner and client work together or simultaneously
Task durations listed in this guide are estimates and can vary
depending on the size and complexity of the project
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SAP Business One
Estimate for core product implementation: 46.25 days

Project Go--
Start
kick-off Live
Time
Task durations in this methodology are guidelines:

can vary
depend on size and cocomplexity of the project
• are for the purpose to install the product with core functionalities
• are for enterprises with no more than 15 users
• Assume that in most cases, partner and client work together or
simultaneously
SAP Business One AIP

Implementation Phases
1. Project Preparation
Project Preparation
The purpose of this phase is to provide initial planning and

preparation for the SAP Business One implementation project.
Although each SAP Business One project has its own unique
objectives, scope, and priorities; the steps in the preparation phase
help identify and plan the primary focus areas that need to be
considered. This does include technical issues as well as project
management topics. In addition, the SAP Business One software is
delivered during this phase and a preliminary installation of a
sandbox or test system is completed.
Milestones
At the end of this phase, the following deliverables and objectives

have to be completed:
Milestone 1.1: Obtain clear understanding about sales process and

client from sales team
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SAP Business One
Milestone 1.2: Conduct kick

kick-off meeting
Milestone 1.3: Deliver and install SAP Business One software
Milestone 1.4: Obtain project phase sign

sign-off
off from customer for
“Project Preparation”
SAP Documents recommended for all phases of the

Implementation.
SAP documents recommended for use in
Meeting Agenda
Meeting Minutes
Project Plan
SAP Guides
Project Phase Signoff
The purpose of this phase is to provide initial planning and preparation

for the SAP Business One implementation project.
Although each SAP Business One project has its own unique
objectives, scope, and priorities; the steps in the preparation phase
help identify and plan the primary focus areas that need to be
considered.
• Handover from sales Includes technical issues as
well as project management topics.
• Prepare project kick-off
kick SAP Business One software is
delivered during this phase and a
• Conduct kick-offoff meeting preliminary installation of a sandbox
or test system is completed.
• Deliver Software
• Install SAP Business One

in sandbox
SAP Implementation
Handover from Sales Cycle
SAP Documentation
Project Risk Assessment
Kick-Off
Off Meeting Presentation
04.pdf)
Service Level Agreement (SLA)
Software Delivery Receipt

SAP Business One

2. Business Blueprint
Business Blueprint (Phase 2)
The purpose of this phase is to achieve a common understanding of

how the client intends to run SAP Business One tto o support their
business. One or more requirements gathering workshops are
conducted during which business processes and individual
functional requirements of the client are defined and analyzed. In
addition, the workshops serve to refine the original project
proj goals
and objectives as well as to revise the overall project schedule, if
necessary. The result is the Business Blueprint, which is a detailed
documentation of the results gathered during requirements
workshops. The Business Blueprint serves as a tec technical
hnical and
functional guide during the subsequent phases of the SAP Business
One implementation project.
Milestones
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SAP Business One
At the end of this phase, the following deliverables and objectives

have to be completed:
Milestone 2.1: Schedule and conduct busines business

s requirement
gathering workshops with client functional leads
Milestone 2.2: Create Business Blueprint
Milestone 2.3: Determine changes to project scope and time

schedule (if applicable)

sign-off
off from customer for
“Business Blueprint”
SAP Documentation
• Conduct “business
requirements gathering”
workshops
• Create Business Blueprint
• Review project plan
Purpose:
Achieve a common understanding of how the client intends to run SAP
Business One to support their business.
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SAP Business One

3. Project Realization
Project
oject Realization (Phase 3)
This phase represents the most significant o off the implementation

phases. The purpose of Project Realization is to implement all the
business process and technical requirements defined during the
previous phases and documented in the Business Blueprint. During this
phase, the consultants validate and update configuration and
demonstrate processes while the customer updates the work
instructions (business process procedures: BPP) and performs unit and
integration tests.
Milestones
At the end of this phase, the following deliverables and objectives have
to be completed:
Milestone 3.1: SAP Business One production system installed and

customized based on Business Blueprint
Milestone 3.2: Data migration complete (if applicable)
Milestone 3.3: System setup validated
Milestone 3.4: System testin

testing complete
Milestone 3.5: Training and cut

cut-over plan defined

sign-off
off from customer for “Project
Realization”
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Manage project
• Plan organizational change
• Plan end user training
• Define and prepare data migration
Setup production system
• Install SAP Business One production system
• Initialize system
• Configure system
• Migrate data
• Configure interfaces
• Define users and authorizations
Manage organizational change
• Communicate and manage change
Perform system validation/acceptance testing
• Maintain BPML
• Conduct validation workshops
Conduct system testing
• Define test cases and scope
• Prepare test environment
• Execute test plan
• Review test results and necessary changes
Plan cut-over
over and support
• Define cut-over
over plan
• Plan support strategy
• Plan system administration
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SAP Business One
This phase represents the most significant of the implementation

phases.
The purpose of Project Reali
Realization
zation is to implement all the business
process and technical requirements defined during the previous phases
and documented in the Business Blueprint.
During this phase, the consultants validate and update configuration
and demonstrate processes
The customer
tomer updates the work instructions (business process
procedures: BPP) and performs unit and integration tests.
SAP Documentation
Change Management Communication Guide
Business Process Master List
Test Strategy Guide
Test Case Template
Test Plans
04.pdf)
SAP Business One

4. Final Preparation
Final Preparation (Phase 4)
The purpose of this phase is to prepare the SAP Business One system
and the client organization
rganization for production go
go-live.
live. Key activities during
this phase include the completion of user and administrator training as
well as a final fine-tuning
tuning of the SAP Business One system. As part of
final system tests, necessary adjustments are made to resolve r all
remaining critical open issues. Cut
Cut-over
over activities are also completed
during the Final Preparation phase.
Milestones
to be completed:
Milestone 4.1: Complete user and administrator training
Milestone 4.2: Confirm system readiness for go

go-live
Milestone 4.3: Complete cut

cut-over activities

sign-off
off from customer for “Final
Preparation”
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SAP Business One
SAP Process
• Finalize
cutover plan
• Conduct user and

administrator
training
• Complete system
readiness for
Go-Live
over
• Complete cut-over
The purpose of this phase is to prepare the SAP Business One system
and the client organization for production gogo-live.
Key activities during this phase include the completion of user and
administrator training as well as a final fine
fine-tuning
tuning of the SAP Business
One system.
As part of final system tests, necessary adjustments are made to
resolve all remaining critical open issues.
Cut-over
over activities are also completed during the Final Preparation
phase.
SAP Documentation
Go-Live
Live Checklist
Cutover Checklist
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SAP Business One

4. Final Preparation
5. Go-live
Go and Support
Go-Live
Live and Support (Phase 5
5)
The purpose of this phase is to cut over to live productive operation

and to continuously support and improve live operations. The Go-Live
Go
and Support phase consists of two distinct phases. First, the project is
completed with a formal “Project Closin
Closing”.
g”. During this time, the
system is used productively in day
day-to-day
day operations, all issues and
problems are resolved, transition to the production support team
finalized, knowledge transfer completed, and the project signed off.
Subsequently, the “Continuo
“Continuous
us Improvement” phase begins during
which the production support team monitors the system and resolves
live business process issues. Proper change management procedures
are established and ongoing end user training is conducted. Plans are
made to continuously
sly review and improve business processes and the
“Review and Optimization Conference” is scheduled and conducted.
Milestones
to be completed:
Milestone 5.1: SAP Business One sy system

stem fully implemented in
production
sign-off
off from customer for “Go-
“Go
Live and Support” as well as final project
completion
Milestone 5.3: Conduct “Review and Optimization Conference”
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SAP Business One
SAP Cycle
• Support on-site
site
production
• Conduct project
closing
• Begin continuous
improvement
The purpose of this phase is to cut over to live productive operation

and to continuously support and improve live operations.
The Go-Live
Live and Support phase consists of two distinct phases. First,
the project is completed with a formal “Project Closing”.
During this s time, the system is used productively in day-to-day
day
operations, all issues and problems are resolved, transition to the
production support team finalized, knowledge transfer completed, and
the project signed off.
Subsequently, the “Continuous Improvemen
Improvement” t” phase begins during
which the production support team monitors the system and resolves
live business process issues.
Proper change management procedures are established and ongoing
end user training is conducted.
Plans are made to continuously review and improve business
processes and the “Review and Optimization Conference” is scheduled
and conducted.
This is an overview of the high

high-level
level tasks for each phase in the SAP
Business One Accelerated Implementation Program.
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SAP Business One
SAP Business One AIP - Implementation Cycle

1. Project 2. Business 3. Project 4. Final 5. Go-Live and
Preparation Blueprint Realization Preparation Support
Handover from Review project plan Plan organizational Finalize cutover Support
sales change, training, and training plans production
Gather business data migration
Prepare project requirements Conduct key user Resolve critical
kick-off Setup production and administrator issues
Create Business system training
Execute kick-off Blueprint Handover
Manage Conduct system administration to
Conduct kick-off Review project organizational readiness and Go-
Go client
meeting phase change Live check
Close project
Deliver and install Conduct system Conduct cut-over
over
software validation and
acceptance testing Implement
Review project continuous
Review project phase Improvement
phase Perform system
testing
Conduct review
and optimization
Plan for cutover conference
and support
Review project
Project phase Go-
Start kick-off Live
Time
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SAP Business One
SAP Business
usiness One Accelerated Implementation Program 46.25 days
Project Preparation 4.69 days
General project management 1.5 days
Handover from sales 6 hrs
Define project organization 2 hrs
Internal kick-off 4 hrs
Project kick-off
off preparation 1.25 days
Customer
stomer communication 2 hrs
Create kick-off
off presentation 8 hrs
Kick-off meeting 0.75 days
Conduct kick-off
off meeting 6 hrs
Software delivery and install 1.06 days
Deliver software 0.5 hrs
Install SAP Business One in Sandbox 8 hrs
Review project phase 1 hr
Business Blueprint 3.31 days

Review project plan 1 hr
Schedule business requirements gathering workshops 0.5 hrs
Business requirements gathering 2.38 days
Conduct workshops 15 hrs
Create Business Blueprint 4 hrs
Review Business Blueprint 0.63 days
Review and discuss Business Blueprint 4 hrs
Review project plan 1 hr
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SAP Business One
Project Realization 9.5 days

Plan organizational change 2 hrs
Plan end user training 8 hrs
Define and prepare data migration 8 hrs
Production system setup 3.5 days
Install SAP Business One production system 2 hrs
System initialization 2 hrs
System configuration 8 hrs
Data migration 8 hrs
Interfaces 4 hrs
Users
rs and authorizations 4 hrs
Organizational change management 0.25 days
Change management communication 2 hrs
System validation/acceptance testing 1 day
Maintain BPML 6 hrs
Conduct validation workshops 2 hrs
System testing 3.25 days
Define test cases and scope 8 hrs
Prepare test environment 1 hr
Execute test plan 16 hrs
Review test results and necessary changes 1 hr
Cut-over
over and support planning 0.13 days
Define cut-over
over plan 1 hr
Plan support strategy 1 hr
Plan system administration 1 hr
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SAP Business One
Final Preparation 5.25 days

Confirm training plan 1.5 hrs
Finalize cut-over
over plan 1.5 hrs
Training 3 days
Key user training 20 hrs
Administrator training 4 hrs
System readiness 0.5
.5 days
Complete system administration 2 hrs
Go-live check 2 hrs
Cut-over 1.25 days
Final legacy processing 4 hrs
Conduct cut-over 6 hrs
Go-Live and Support 23.5 days

Production support 2.75 days
On-site support 20 hrs
Resolve critical issues 20 hrs
Handover support and administration to client 2 hrs
Project closing 0.25 days
Project closing meeting 2 hrs
Continuous improvement 20.5 days
System monitoring 20 days
Review and optimization conference 4 hrs
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SAP Business One
Installation Process
From the package folder, look for MSSQLSERVER2005 folder and locate
pre-installation
installation files needed before installing SAP B1
Start installing .NET Framework, followed by the SQL Server.
Follow the steps in the Installation Manua

Manuall to configure SQL Server.
Configure the SQL Instance manager.
There are three basic components for installing SAP Business One. These
files are located inside the Packages folder. Initially, install Server Tools
followed by the Server. Finally, install Client.
Install the SAP Business One AddAdd-On

On framework and the add-ons
add on
every client on which you want to use them.
License Manager
License SAP
SAP
Manager
Business Business
One License One
Test File Development
Server Production Server
Server
SAP Business Clients

SAP Add-On Solutions
Partner Add-On Solutions
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SAP Business One
The licenses for all users of SAP Business One and any add add-on
on solutions are
centrally managed by the license manager.. The license manager is a software
service that is part of the SAP Business One server tools. It can be installed on
any computer within the company network.
The licenses are stored in a license file.. You only need one license file for
fo all kind
of license packages (such as licenses for special user types or add
add-on
on solutions).
Several SAP Business One Server installations can use the same license manager
and the same license file. This means that you can use one central license
manager for you whole system landscape (production server, test server,
development server, and so on).
A license is always valid for a named user. If the user has the same code in
several company databases or even several servers, he can use the same license
from
rom the license file. However, one user can access the same database only twice
at the same time.
Whenever a user accesses a form in SAP Business One, the system checks if the
user has the required license for that form. This license check is independent from
the authorization check.
The license check controls if you have bought the transaction from SAP.
The authorization check controls if you have granted the transaction to the
user.
Requesting and Adding License

License Manager
http://service.sap.com/licensekey
service.sap.com/licensekey
Select a customer installation

and create a new system
License Key
Enter System Details
Request
Hardware Key M1028424123
Next
Select components for license

package
License Components
File E-mail with (SAP or Partners)
License File Number of Users
Validity Dates
Submit
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SAP Business One
To request a license,
ense, you need to enter the settings of the license manager and to
connect to your license server. The license manager returns a hardware key to
you. The hardware key is generated from the hardware data (motherboard) of the
server on which the license manamanager
ger is installed. You need the hardware key to
request a license for installation.
You then access the SMB Portal and enter the License Key Request. The direct
way to the license key request is through http://service.sap.com/licensekey.
http://service.sap.com/licensekey
In the first stepp of the license key request, you need to select the customer
installation for which you want to request a license and create a new system.
Enter all system details of the request form (such as release, database, and system
type) and paste the hardware key into the correct field.
On the next step, you need to select the components that shall be included in the
license file. The components can be from SAP or developed by SAP partners. The
partner will receive a list of licenses that have been given out to customers.
Furthermore, you specify the number of named user for each component and a
validity date.
SAP then generates a license file for this system and sends it to you as an
attachment to an e-mail.
mail. When you have received the ee-mail,
mail, save the license file
f
to your server’s file system. Enter the settings of the license manager, browse for
the license file, and select Import License File.
Note: After installation, you can use SAP Business One for one month without a
license. This means you can start your implementation project immediately
without waiting for your license. However, you should apply for a license as early
as possible, preferably immediately after you install the software at the customer
site.
License Administration
SAP Components Partner Components
Licenses for…
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SAP Business One
After you add the license file to the license manager, you must assign the
individual licenses in the license file to your named users. You can do this in the
license administration under Administration → License → License
Administration.. The user for whom you want to change the license assignment
must not be connected to the system. Only superusers (administrators) can change
the license assignment.
In the license administration, you can also view the total number of licenses for
each component, the number of licenses that are not yet assigned to any user
(Available
Available License Numbers
Numbers),), and the begin date and expiration date.
Creating a Company
To create a new company, choose Administration → Choose Company.

Company Then
choose New. Enter the
he following data:
Company Name
Database Name
Local Settings
Chart of Accounts
Base Language
Posting Periods
When a new company is created in SAP Business One, a new database is created
on the SQL - Server at the same time. You can choose if you want to copy the
user-defined
defined fields and tables from the company to which you are currently
logged in to the new database.
With your selection in the local settings, you activate local tables and local
functionalities for the new database. You cannot change tthe
he local settings after the
database has been created.
04.pdf)
SAP Business One
Company Details General

Company Name
Address
Communication
Accounting Data
Tax information
Holiday calendar
Basic Initialization
Critical Settings (!):
Chart of accounts
Company Details Template
Local currency - System
currency
Balance display
Account segmentation
Inventory valuation
Purchase accounts system
After you have created the company database, you should perform the basic
initialization and maintain the company details. Choose Administration →
n → Company Details.
System Initialization
On the General tab, the address and communication data of the company is
stored. The Company Name field is used only internally for displaying
information in the header area of the SAP Business One menu tree. The other data
can be used
ed on printed documents. You can store all general data in two different
languages.
The Accounting Data area records tax information, such as the name of the tax
office, federal tax IDs
IDs,, and so on. Here you can also select and maintain your
holiday calendar.
The Basic Initialization tab contains the most critical settings in the system, since
you cannot change most of them after you have created documents in the
company:
You can select one of several Chart of Accounts Templates.. By selecting a
chart of accounts template, you transfer the account determination at the
same time. You still need to ensure the G/L Account Determination area is
correct. You can also define your own chart of accounts in the system, or
import one using the data migration workben
workbench.
You decide on the Local Currency and the System Currency.
You decide how a credit balance is displayed with the Display Credit
Balance with Negative Sign indicator.
You specify whether you want to use account segmentation.
04.pdf)
SAP Business One
You decide if you want to aactivate

ctivate the inventory system and how it is
handled.
Paths to Templates
Choose Administration --> System Initialization --> > General Settings

and then the Path tab to define the paths to these directories
This shared directory contains central directo

directories
ries for the Microsoft
Excel exports, pictures, and attachments.
04.pdf)
SAP Business One
This is where the system stores all exported Word files
SAP Business One Service Manager

Set service
Select service
Start service Double-click

click
Pause service
Stop service
04.pdf)
SAP Business One
• The SAP Business One Service Manager and its services are
installed automati
automatically
cally when you install the SAP Business One
server.
• After the installation, you need to start the SAP Business One
Service Manager by running the file ServerManager.exe in
drive:\\<Installation
<Installation path of SAP Business One>\Service
One>
Manager.
• After you start the SAP Business One Service Manager, a new
icon appears on the Windows taskbar. To open the SAP Business
One Service Manager, double
double-click
click this icon. You can select, set,
start, pause, or stop services individually within the SAP
Business One Service Man
Manager.
• The following services are provided:
SAP Business One Backup Service

SAP Business One Mail Service
SAP Business One Users
Defaults
General (Address and
Communication Data)
Logistics and
Accounting Defaults
Print Settings
Credit Card Accounts
2 Types
Superuser
Superusers Users
Have all authorizations Authorizations in

accordance with General
Authorization Management
and Data Ownership
04.pdf)
SAP Business One
• To be able to work in SAP Business One, the user must log on to

the system. To do this, a user master record must be defined in
the system. Choose Administration → Definitions → General
→ Define Users to create and maintain user master records.
The user-specific
specific password can be numeric or alphanumeric.
Note that the entries are case
case-sensitive. To change
ange his own
password, the user chooses Administration → Definitions →
General → Change Password
Password.
• The authorizations of a user are defined in general authorization

management and through data ownership. If a user is to receive
full authorizations for the whole system (for example, if he is an
administrator), the user can be identified as a superuser.
superuser A
superuser can also reset passwords of other users.
• You can define a set of default values that you can then assign
to one or more users by entering it int
into the Defaults field.
General Authorizations
Authorization
Objects
Authorizations
Behrendt Administration Read--Only
Krueger Financials Full Authorization
Loewe Sales Opportunities Read--Only
Sales – A/R Read--Only
manager
Purchasing – A/P Read--Only
Riemann
Business Partners Read--Only
Drag & Schmidt Read--Only
Banking
Drop Schuy Inventory Read--Only
Training Production Various Authorizations
Define Bill of Materials Read--Only
Weber
Production Order Full Authorization
Walter Full Authorization
Receipts from Production
Winter Issues for Production Full Authorization
MRP Read--Only
Users Max. Discount Expand Collapse
Use Encryption
Ok Cancel Full Authorization Read Only No Authorization
Authorization Level
04.pdf)
SAP Business One
• Choose Administration → System Initialization →

Authorizations → General Authorization to manage general
authorizations.
• You use the general authorization management to assign the

authorizations
orizations for special transactions or functionalities
(authorization objects) to individual users in the system. There
are three different authorization levels for general
authorizations:
Full Authorization - The user can display and

change data of this authorization object.
Read Only - The user can only display data of this

authorization object.
No Authorization - The user has no access to this

authorization object.
• You can copy general authorizations. Select the user with the
previously defined g
general
eneral authorization and drag and drop this
user to the user who is to receive this general authorization. The
system automatically copies the general authorizations.
• You can create additional authorization objects for forms that

you have created with the Software Development Kit. These will
be added to the list of authorization objects under the title User
Authorizations.. Choose Administration → System
Initialization → Authorizations → Additional Authorization
Creator to create and maintain new authorizat
authorization
ion objects.
04.pdf)
SAP Business One
Data Migration
ma
nu
al
a l
a nu
m c
ati
tom
au
• SAP Business One implementations require you to migrate data

from the legacy system into the new SAP Business One system.
Business data (such as customers, vendors, products, invoices,
creditt memos, and so on) must be available in the new system
before going live.
• Data migration can be done manually (if you have not used an
ERP-system
system before) or automatically through Microsoft Excel and
tools offered by SAP Business One.
Data migration is thehe process by which existing business data is migrated

from a previous system to SAP Business One.
• To ensure the data is migrated as easily as possible, SAP provides the

SAP Business One AddAdd-On Data Transfer Workbench.. It can be
installed on any workstat
workstation
ion within the network of the SAP Business
One Server.
• Data migration consists of the following steps:
04.pdf)
SAP Business One
Data Extraction. The necessary data is extracted from

the previous system
system.
Data Mapping. The data is converted into the data

format of SAP Business O
One
ne and assigned to its data
structures.
Data Import. The data is imported to SAP Business One.

One
The Data Transfer Workbench uses the Data Interface API
to ensure data consistency.
• In the future, the Data Transfer Workbench will support all data
migration steps.
Data Transfer Workbench
Data Transfer Workbench

Legacy System
SAP Business One

DI-
E
X Data Import Wizard
A
P
O
P
R Data Data
T Data
Extrac- Map- Import I
tion ping
• The Data Transfer Workbench supports data mapping and data import.
The data export must be provided by the legacy system.
• The data must be available in Microsoft Excel and saved as a text file
that is tab-delimited,
limited, coma delimited, or semicolon delimited.
• The Data Transfer Workbench provides the following tools for carrying
out data mapping and data import:
1. Microsoft Excel templates

2. Interface Maintenance
3. Data Import Wizard with Mapping Functionality
04.pdf)
SAP Business One
4. Log Management
anagement
• The first step is to connect to the database into which you want to
import the data.
• When you choose Log on, the Login screen appears. Here you enter
the user name and the password as well as the server on which the
database is stored. When you choose Refresh,, all databases for which
the user name and the password are valid are listed in the Company
dropdown list.
• Select the database into which you want to import the data and
choose OK.
• The Language field affects the language of the log fil

file.
04.pdf)

Manual Systems Analysis and Design

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Manual Systems Analysis and Design

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SAP Business One

Guide to Systems Analysis and Design

In business, System Analysis and Desi

Looking at a system and determining how adequately it functions, the changes to

Organizations are complex systems that consist of interrelated and interlocking

System analysis and design focus on systems, processes and technology.

Over View of System Analysis and Design

Systems development can generally be thought of as having two major

Consider, for example, the stockroom operation of a clothing store. To better

Only after you have collected tthese

Working with managers and employees in the organization, systems analysts

Once this decision is made, a plan is developed to implement the

analyses, purchasing summaries, and invoices. The systems aanalysts

Business System Concepts

The study of systems concepts, then, has three basic implications

Organization implies structure and orde

Interaction refers to the manner in which each component functions with

Interdependence means that parts of the org

An integrated information system is designed to serve the needs of authorized

In summary, no subsystem can function in isolation because it is dependent on the

Integration refers to the holism of systems. Synthesis follows analysis to achieve

In most cases, systems analysts operate in a dynamic environment where change

1. Outputs and inputs.

Outputs and Inputs

Control in a dynamic system is achieved by feedback. Feedback measures output

Feedback may be positive or negative, routing or informational. Positive feedback

The environment is the “suprasystem” within which an organization operates. It

Boundaries and interface

Each system has boundarie

the “teller system” to pay the ppremium

The frame of reference within which one views a sysystem

Physical or abstract systems

Open or Closed Systems

Another classification of systems is based on th their

Figure: 1.3 Gantt Chart – An Example

A focus on the characteristics of an open system is particularly timely in the light

Five important characteristics of open systems can be identified.

4. Differentiation: Open systems have a tendency toward an increasing

Man – Made Information Systems

Ideally, information reduces uncertainty about a state or event. For example,

Many practitioners fail to recognize that a business has several information

Formal Information system

A formal information system is based on the organization represented by the

indicated by boxes and connected by straight lines. It is concerned wit

A schematic model is a two – dimensional chart depicting system elements and

Flow system Models.

Static system models.

Dynamic System Models.

Business organizations are dynamic systems. A dynamic model approximates the

The second level of information is managerial information. It is of direct use to

The third information level is operational information, whic

structure in the decision – making process. Lack of structure as well as

Therefore, in designing an information system, the analyst needs to determine the

Informal Information Systems

The formal information

Computer – Based Information Systems

Management Information Systems (MIS)

MIS is a person – machine system and a highly integrated grouping of

A key element of MIS is the database – a non-redundant

There are several advantages to a data base system:

A major problem encountered in MIS design is obtaining the acceptance and

Decision Support Systems (DSS)

¾ Decision – emphasizes decision making in problem situations, not information

¾ Support – requires computer