Module - 1: Enterprise Systems & Data Source

Business Data Warehousing (MIS 6309)

 Module - 1: Enterprise Systems & Data Source

Learning Objectives:
 To understand Business Processes
 A deep-dive into SAP Enterprise Resource Planning and Enterprise Systems
 To comprehend the evolution of SAP Architecture
 To enable students to critique different Data Types in ES/BW
 To gain a fundamental understanding of the BW data source
 To get a bigger sense of how a Data Warehouse's usual business structure looks
 Module - 1: Enterprise Systems & Data Source

Data and Decision Flow:

What is data?
• Data is defined as a collection of individual facts or statistics (singular: datum)
• It is information that has been translated into a form that is efficient for movement or processing.

We can categorize data into two forms:

1. Generated data (comes out of a system)
2. Captured data (volunteered data, captured data)

Data Flow:
Database Data Warehouse Data Analytics Data Mining Data Visualization

This way one piece of data can be seen in 5 different ways called “Multidimensional Data”.

 Another aspect of data is Data Training which is related to ML

 Module - 1: Enterprise Systems & Data Source

Business Process Flow:

 Module - 1: Enterprise Systems & Data Source

Sources of Data in Data Warehousing Process:

 Module - 1: Enterprise Systems & Data Source

Business Process (BP):

• Collection of activities that takes one or more inputs and creates a desired output that is of value to organizations is called
a Business Process.
• Activities are specific to the functional area of operation. All activities may have sub-activities.
• The specific steps in the process are completed in different functional areas.
• Every process is triggered by some event, such as receiving a customer order or recognizing the need to increase
inventory.
• The columns in the figure represent different parts, or functional areas, within an organization, such as sales, warehouse,
manufacturing, and accounting.
 Module - 1: Enterprise Systems & Data Source

Business Process in an Enterprise Systems:

ES
PLM
ERP

HR

SRM MM FI/CO SD CRM

PP

SCM
 Module - 1: Enterprise Systems & Data Source

SAP Enterprise Systems (ES):

• An enterprise system, also known as Enterprise Resource Planning (ERP) system, is a cross- functional information system
that provides organization-wide coordination and integration of the key business processes and helps in planning the
resources of an organization.
• With the help of enterprise resource planning systems, information can flow seamlessly across the firm.
• Different business processes from sales, production, manufacturing, logistics, and human resources, etc. can be integrated
into organization-wide business processes.
• Enterprise software or enterprise application software, is computer software used to satisfy the needs of an organization
rather than individual users. Such organizations include businesses, schools, interest-based user groups, clubs, charities,
and governments, etc.
• Incredibly large, extensive software packages used to manage a firm’s business processes.
• Standard software packages that must be configured to meet the needs of a company
 Module - 1: Enterprise Systems & Data Source

Core Components of SAP ES:

Components of Enterprise Resource Planning (ERP):
• FI/CO: Financial Accounting/Controlling – all about Tracking. Also, known as the heart of ERP.
• MM: Material Management – all about Buying.
• SD: Sales and Distribution – all about Selling.
• PP: Production Planning – all about Making.
• HR/HCM: Human Resource/Human Capital Management – all about People.

Components of Enterprise Systems (ES or Business Suite):

• SRM: Supplier Relationship Management – all about Sourcing.
• SCM: Supply Chain Management – all about Planning.
• CRM: Customer Relationship Management – all about creating Demand.
• PLM: Product Lifecycle Management – all about Idea.
• ERP: Is the heart of Enterprise Systems
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Functional Area of Operations:

• Organizations that utilize a functional structure are divided into functions, or departments, each of which is responsible
for a set of closely related activities.
• Each functional area consists of a number of narrower business functions. Businesses are organized according to business
functions.
• Historically, businesses have organized according to business functions
• Structure of Functional Area:
 Module - 1: Enterprise Systems & Data Source

Functional Area of Operations (Cont.):

Important Functional Areas:
• Financial Accounting Department: sends and receives payments, and external reporting.
• Managerial Accounting: provide information regarding costs, budgets, asset allocation, and performance appraisal for
internal use by management for the purpose of decision-making.
• Purchase Department: The purchasing department is responsible for the procurement of raw materials, machineries,
equipment, and supplies.
• Sales Department is responsible for making sales, growing your business and retaining existing customers.
• Manufacturing Department: this department follows specific standards and targets for each section of the production
process.
• Human Resources: recruiting and staffing, benefits, compensation, employee relations, HR compliance, organizational
design, training and development, human resource information systems (H.R.I.S.), and payroll.
 Module - 1: Enterprise Systems & Data Source

Integrated Information Systems for BP:

• Systems in which functional areas share data. Better integration leads to improvements in communication, workflow, and
success of company.
• Thus, integrated data leads to more efficient business processes.
• The specific steps in the process are completed in different functional areas.
 Module - 1: Enterprise Systems & Data Source

Enterprise Resource Planning (ERP):

• The core software is used by companies to effectively manage their enterprise data.
• Uses a centralized database for many business processes to simplify existing business workflows and coordinate
information in every area of business.

Key Benefits of ERP:

 Better Insights
 Higher Productivity
 Reduce Risk
 Consistent Infrastructure
 Improves Efficiency
 Synchronizes Reporting and Automation
 Improves agility
 Reduces costs and save money
 Module - 1: Enterprise Systems & Data Source

Integrated Enterprise Systems of SAP:

• This figure identifies the various capabilities that are part of an application suite and illustrates how they connect to other
members of a company’s business network.
• It is important to note that one of the key benefits of utilizing a complete suite of software is that the data and processes
are integrated among the systems in the suite.
 Module - 1: Enterprise Systems & Data Source

Three Layer Client-Server Architecture – R/3:

Buyer Acct. Seller People/Users

MM FI/CO SD Applications

Database Information
 Module - 1: Enterprise Systems & Data Source

4 Layer Architecture S4/HANA:

Buyer Acct. Seller People/Users

MM FI/CO SD Applications

In Memory Computing
HANA Engine (IMCE)
S4/HANA (HDB)

Database Information
 Module - 1: Enterprise Systems & Data Source

5 Layer Architecture Next-GEN/5:

Buyer Acct. Seller Users

Cloud Infrastructure Cloud

MM FI/CO SD Applications

In Memory Computing
HANA Engine(IMCE)
S/4 HANA (HDB)

Database Information
 Module - 1: Enterprise Systems & Data Source

Architecture of Enterprise Systems (Cont.):

3) SAP R/3 Architecture – 1992:
R/3 architecture is also called Client-Server Architecture where “R” signifies Real-Time Data Processing and “3” represents 3 Tier or Layer
of architecture.
These layers are:
• Presentation Layer: Is the User Interface (UI) of the system. The presentation layer is usually distributed across several presentation
servers. The presentation layer analyzes user actions and transfers these to the application layer. It is also known as User Layer and
View Layer.

• Application Layer: Application programs are executed in Application Layer. Application Layer serves as a purpose of a communicator
between Presentation and Database Layer. It is also known as Domain Layer and Logic Layer.

• Database Layer: The Database Layer consists of a central database system containing all of the data in the R/3 System. The database
system has two components - the database management system (DBMS), and the database itself. SAP has manufactured its own
database named Hana but is compatible with all major databases such as Oracle. It is also known as Information Layer and Data
Layer.
 Module - 1: Enterprise Systems & Data Source

Architecture of Enterprise Systems (Cont.):

Presentation Layer:
It’s also called the Client or front-end layer.
Front-end takes the user's requests to
database server and application servers.

Application Layer:
The application server is built to process
business-logic. This workload is
distributed among multiple application
servers.

Database Layer:
Database server stores and retrieves
Data as per SQL queries generated by
applications.
 Module - 1: Enterprise Systems & Data Source

SAP S/4HANA Architecture:

• SAP HANA (High-Performance Analytic Appliance) is an application that uses In-Memory Database (IMBD) technology
that allows the processing of massive amounts of real-time data in a short time. The In-Memory Computing Engine
(IMCE) allows HANA to process data stored in Random Access Memory (RAM) as opposed to reading it from a disk.
• The SAP IMCE that resides at the heart of SAP HANA is an integrated database and calculation layer that allows the
processing of massive quantities of real-time data in the main memory to provide immediate results from analysis and
transactions.
 Module - 1: Enterprise Systems & Data Source

5 Layer Architecture – Next-GEN/5:

• Build data solutions with modern architectures and gain business-ready insights in real-time. As the data foundation for
SAP’s Business Technology Platform, the SAP HANA Cloud database offers the power of SAP HANA in the cloud.
• Cloud is suitable for Small and Medium Enterprise (SME).

• SAP HANA Cloud Database (HDB) capabilities:

 Make faster decisions by acting on live data.
 Integrate data from across your enterprise.
 Gain trust in your business data.
 One source of business data and truth.
 Storage options based on your needs.
 On-demand data with high performance.
 SAP HANA Cloud has a simple and flexible pricing model that supports many purchasing scenarios

• Benefits of Cloud Platform:

 Cloud or hybrid deployment,
 Elastic (Scalable) and low total cost of ownership,
 High processing performance through multi-model hybrid transactions, and
 Real-time analytics processing.
 Module - 1: Enterprise Systems & Data Source

Architecture of Enterprise Systems (Cont.):

1) SAP R/1 Architecture – 1970:
• SAP R/1 is a Single Layer Architecture application in which all three components Presentation, Application, and Database are merged
and installed in one System/Server.
• SAP R/1 was born in 1970. The first version of real-time enterprise resource planning (ERP) software was produced by the German
company SAP AG.
• The first module that was developed by this company was a financial accounting system.
 Module - 1: Enterprise Systems & Data Source

Architecture of Enterprise Systems (Cont.):

2) SAP R/2 Architecture – 1979:
• SAP R/2 is a Two Layer Architecture application in which all three components Presentation, Application and Database are merged and
installed in two Systems/Servers.
• In R/2, the Presentation component is installed in one System/Server and
• Application component and Database component is installed in other System/Server.
 Module - 1: Enterprise Systems & Data Source

SAP NetWeaver:
• SAP NetWeaver is a software stack for many of SAP SE's applications. ... It can be used for custom development and
integration with other applications and systems, and is built primarily using the ABAP programming language, but also
uses C, C++, and Java.
• SAP XI/PI:
• The Exchange Infrastructure (SAP XI/PI) is the SAP platform for process integration based on the exchange of XML
messages. It enables you to connect systems from different vendors (both SAP and non-SAP), different versions, and
different programming languages (Java, ABAP, etc.).

 XI for Exchange Interface

 PI for Process Integration
 ABAP or Advanced Business
Application Programming is a
programming language that runs in
the SAP ABAP runtime environment,
created and used by SAP for the
development of application programs
including reports
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW:

• BW data is the data that is shared by the users of an organization,
generally across departments and/or geographic regions.
• BW data loss can result in significant financial losses for all parties
involved, enterprises spend time and resources on careful and
effective data modeling, solutions, security, and storage.
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW:

Organizational Data:
• Organizational data are used to represent the structure of an enterprise.
• Examples of organizational structure are companies, subsidiaries, factories, warehouses, storage areas, and sales regions.
• Organizational data describe central characteristics of organizations, their internal structures and processes as well as
their behavior as corporate actors in different social and economic contexts.
• Any data that describes an organization.
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW (Cont.):

Master Data:
• Any descriptive data that describes an object or/and business entity that provides context for business transactions is
master data.
• It is also known as Column, Field, Attribute, Characteristic, Dimension etc.
• Master data does not change often i.e. master data remains unchanged over a period of time.
• Examples of Master Data:
 Customer Master: Any data that describes a customer. Customer ID, customer name, address, telephone number, email, gender,
age, and height etc.
 Product Master: Any data that describes a product. Product ID, product name, product description, product size, color, and weight
etc.
 Vendor Master: The vendor master database contains information about the vendors that supply an enterprise. This information is
stored in individual vendor master records. A vendor master record contains the vendor's name and address, as well as data such
as: The currency used for ordering from the vendor.
 Employee Master: Any data that describes an employee of an organization. It describes the basic set of employee data points. It can
include the employee's name, contact information, pay rate, pay period, job title and whether the employee is salaried or is paid
hourly etc.
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW (Cont.):

Transaction Data:
• Transaction data reflect the consequences of executing process steps, or transactions.
Transactional data are numeric data generated by a transection. Examples of transaction
data can be dates, quantities, prices, payment amount etc.
• Transactional data is any data relating to the day-to-day transactions of a business.
• Data must be generated by a business transection carried out in application process of
the Enterprise System and recorded in the database.
• It is also knows as Row, Fact, Measure, and Key Figure etc.
• Data that is relatively temporary.
• Data processed during a transaction.
Transaction data are a combination of organizational
data, master data, and situational data—that is, data
that are specific to the task being executed, such as
who, what, when, and where. The composition of
transaction data is illustrated in this figure:
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW (Cont.):

Operational Data:
• Data generated by your day-to-day operations such as customer, inventory, and purchase data.
• Stored at various stages of a business process (after a transaction is over).
• An Operational Data Store (ODS) is a central database that provides a snapshot of the latest data from multiple
transactional systems for operational reporting.
• It enables organizations to combine data in its original format from various sources into a single destination to make it
available for business reporting.
 Module - 1: Enterprise Systems & Data Source

Different Data Types in ES/BW (Cont.):

Metadata:
• Metadata is information about the data. For example: A database contains fields such as Name, Address, City, and so on.
Metadata names these fields, describes the size of the fields, and may put restrictions on what can go in the field (for
example, numbers only).
• Metadata describes the relevant information on said data, giving them more context for data users.

Data in a table

Metadata in a Data Dictionary

 Module - 1: Enterprise Systems & Data Source

Master vs. Transactional Data

Master Data Transactional Data

Dimension Measure

Attribute Record

Column Row

Characteristics Key Figure

Nominal Ordinal
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Source of Data in BW:

Data Source is a logical combination of fields selected from various tables to arrive at a form that can act as a source for a
target InfoProviders in BW. A strong BW system can integrate with every department in a business.
Different Source Type:

• Enterprise Data: is data that is shared by the users of an organization,

generally across departments and/or geographic regions.
• Corporate Flat Files and .csv: A flat file consists of a single table of
data. It allows the user to specify data attributes, such as columns
and data types table by table, and stores those attributes separately
from applications. This type of file is commonly used to import data
in data warehousing projects. A Comma Separated Values (CSV) file is
a plain text file that contains a list of data.
• Public Records: these are documents or pieces of information that
are not considered confidential and generally pertain to the conduct
of the government.
• 3rd Party Data: Third-party data is any information collected by an
entity that does not have a direct relationship with the user the data
is being collected on. Oftentimes, third-party data is collected from a
variety of websites and platforms and is then aggregated together by
a third-party data provider.
 Module - 1: Enterprise Systems & Data Source

Sample of a Typical Business Structure for DW:

Sam Walt, Inc. Enterprise

Sam’s Club Wal-Mart Walmart.com Business Organizations

Wholesale Retail Sale Online Distribution Channels

Database Database Database OLTP Database (ODS)

Data Warehouse OLAP Database (EDW)

Good to Know:
• OLTP: On-Line Transactional Processing.
• OLAP: On-Line Analytic Processing.
• ODS: Operational Data Storage.
• EDW: Enterprise Data Warehouse.
 Module - 1: Enterprise Systems & Data Source

OLTP vs OLAP:
OLTP OLAP

Database (DB) Data Warehouse (DW)

Transactional Systems Information Systems

ES Process Data Sources Heterogeneous Data Sources

CRUD Possible Read only

Granular Data Aggregated Data

Data modification Possible Single Source of Truth

Data Generated Data Acquired

Normalized Data Denormalized Data

 Module - 1: Enterprise Systems & Data Source

OLTP vs OLAP (cont.):

OLTP OLAP

Two-Dimensional Structure Multidimensional Structure

Current Data Historical Data

For Business Information For Business Intelligence

Column & Row Data Mart (Cube)

Mathematical Reporting Statistical Reporting

Standard Reporting Ad-hoc Reporting

Operational Decision Strategic Decision

 Module - 1: Enterprise Systems & Data Source

Learning Outcomes:
 You are now aware of business processes and how they work together
 You understand the need for software and the significance of how SAP ERP and ES assist firms in coordinating
their Business Processes
 The modifications to SAP Architecture and their rationale are clear
 In ES/BW, you can recognize the differences between the various data types
 You are aware of the source of data and the importance of a data warehouse in managing this data
 You can envision how a company would utilize a data warehouse to manage large amounts of data