openSAP

Getting Started with SAP Business ByDesign

Chapter 1 Unit 1

00:00:04 Welcome to the third edition of SAP's Business ByDesign video training.
00:00:10 My name is Rainer Zinow in charge of SAP Business ByDesign product management.
00:00:16 As I've already mentioned, it's the third edition. We started the sequel about four or five years
ago
00:00:23 together with the SAP University Program, and what we wanted to do is provide an
introduction
00:00:29 to Business ByDesign predominantly for academia. Over the last couple of years,
00:00:34 this video sequence has gained a lot of attractivity and a lot of people are using it
00:00:41 also to explain in their companies, in our customers what Business ByDesign can be used for,

00:00:48 what the motivation of SAP was to build Business ByDesign. Therefore, welcome to the third
edition here.
00:00:55 We've updated a couple of slides. If you look at the previous versions, not too much has
changed,
00:01:01 but obviously the market developed further, Business ByDesign gained quite a lot of traction
00:01:06 in the last couple of years, and therefore we found it useful
00:01:10 to provide you with an update. If we go through the structure of this training,
00:01:15 then you see that we've split it up in a couple of chapters
00:01:19 so that it doesn't get too boring for you. So we will talk about the goals of the video training as
a first thing.
00:01:27 And the goal of the video training basically is to explain: What did SAP want to accomplish
00:01:33 with Business ByDesign? Why is cloud computing so relevant
00:01:38 and plays an ever-growing role in the strategy of SAP Business ByDesign?
Chapter 2 Unit 1

00:00:05 Short introduction to SAP: SAP was founded in 1972 in Germany on April 1st.
00:00:15 So we have quite a bit of history. And what you see here on this slide,
00:00:18 is we've picked four sections that mark significant milestones
00:00:25 of our company development, but are also relevant milestones in how the market
00:00:31 actually developed over the last 40 years. The first decade basically was
00:00:38 from 1973 till 1980, roughly. That was the time of the mainframes.
00:00:45 SAP got founded based on the idea: We can take business processes and abstract them
00:00:55 in a way that they can be used for more than one company. The time before that, if a company
wanted software,
00:01:03 they basically started from scratch. They started to build the programs, and the founders of
SAP
00:01:09 found that fairly a waste of resources. Therefore, they said, let's analyze in detail
00:01:17 what financials is all about, what logistics is all about, what human resources is all about,
00:01:23 abstract it to a certain level, but at the same time, keep it flexible
00:01:28 so that a company can adjust the business processes in the way that they need them.
00:01:35 The next decade was the decade in the early '80s, globalization.
00:01:41 SAP grew very fast. We created a lot of subsidiaries around the globe,
00:01:48 and we also saw that the mainframe era slowly came to an end.
00:01:55 And we saw the rise of the new data technologies, predominantly the large UNIX systems,
00:02:03 which allowed us to - and that was the most important - to cut the initial costs that you would
need
00:02:10 to put on the table to get going with an SAP project by a factor of 10.
00:02:16 So what that helped us was to grow the customer base in the R/2 mainframe world.
00:02:22 We had about 3,000, 3,500 customers. We were able to grow the installed base
00:02:31 by a factor of 10, simply by lowering the cost and making the product accessible
00:02:37 to a much broader audience than what we had before. The next decade is what we describe
here
00:02:44 as the decade of the Internet - with all of the challenges that we know.
00:02:50 The business processes changed quite a bit. Companies developed new channels.
00:02:58 The boundaries of the company no longer stopped at the legal boundaries of the companies,
00:03:03 but more and more companies reached out to their suppliers, reached out to their customers,

00:03:08 and built larger ecosystems. Supply chain management didn't stop
00:03:14 at an individual plant any more, but the supply chain got bigger and bigger.
00:03:20 And that was the mantra of that era. 2015 and beyond will stand for yet another level
00:03:30 of evolution, and we titled it Digital. With the new technologies that we have available today,
00:03:39 we can do business processes that we were not able to do some 20, 25 years ago, and I'll talk
about that
00:03:47 in a couple of minutes. What we can drive there, and how the new technologies -
00:03:53 be it around blockchain, be it around the Internet of Things, big data,
00:03:57 and so on and so on, machine learning predominantly - will help us to build completely new
categories
00:04:03 of applications that will support the market in an even more interesting way
00:04:09 than we've done it in the last 40 years. So that much as a very short introduction
00:04:15 to the philosophy behind SAP. SAP is a large company.

2
00:04:21 Most of you will know it. We are touching 76% of worldwide transactions
00:04:28 sooner or later touch an SAP systems. SAP is used by the most valuable companies.
00:04:36 And the next chapter of our corporate development also will be to not only be the solution
00:04:45 for the large enterprises, but mid-market companies need exactly the same capabilities
00:04:51 that we know from the large-enterprise world. Therefore, that is something that was on our
mind
00:04:58 when we started to build Business ByDesign, always is on our mind, because the traditional
separation
00:05:06 between this is the infrastructure, these are the processes, that a large company is using,
00:05:11 and this is here what the mid-market is using. That barrier is going away.
00:05:16 We want to have a world in which large enterprises, mid-market companies, and small
enterprises
00:05:23 all can use the benefits and the lessons learned of SAP.

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Chapter 2 Unit 2

00:00:05 The digital economy is in full swing right now. I've just picked here three random numbers.
00:00:14 You can see the projected, what is it, 200 billion of Internet of Things devices
00:00:21 which will create a whole array of new business processes. Just think of one little device.
00:00:29 It's about that size here. We just recently got it.
00:00:34 It's a multi-sensor device from Texas Instruments and what that allows you to do is you can,
00:00:40 for example, if you're in the food business, you can put such a device inside of the packets
00:00:48 and track, for example, the temperature. You can track how long is the duration of the journey.

00:00:55 You can track a lot of additional information. And should, for example, the temperature go
00:01:01 above a certain level, you can raise an alert, and act accordingly.
00:01:07 That will give us a completely new process quality that we have not seen in the past.
00:01:13 So a lot of new capabilities are coming online that we want to use.
00:01:19 Obviously, the challenge is we need to cope with all of the data.
00:01:24 Therefore, we will have transactional environments, but we will also have big-data
environments,
00:01:31 very large, federated big-data environments where the data comes together,
00:01:35 gets analyzed, and then we see what the results are which then trigger business processes in
itself.
00:01:45 And already today, 74% of all companies who we are working with are working -
00:01:51 or have already developed - smart products. And that journey will continue onwards.
00:01:59 SAP's strategy is best visualized here in this picture. And you can see we have the digital
business backbone
00:02:06 with the S/4HANA and Business ByDesign. And they form the digital core.
00:02:12 But what is equally important are the adjacent line-of-business solutions - be it the workforce
engagement.
00:02:20 It's preaching to the choir. Everybody knows that the core asset
00:02:23 of each and every company is the workforce. And you need to develop the workforce on an
ongoing basis.
00:02:30 Therefore, the whole topic of the line of business human resource management is absolutely
critical.
00:02:37 Supplier, collaboration business networks: What started in the '90s that I talked about,
00:02:44 that the business processes no longer ended at the barriers of the legal structure of a
company
00:02:50 but that you collaborate with your customers and your suppliers:
00:02:53 That will continue. And specifically, if you think about the IoT scenario
00:02:58 that I talked about a minute ago, that is a new quality, and that will go on for the next 10, 20
years at least.
00:03:08 Closely related here to the assets, the Internet of Things, that is so important,
00:03:14 that is also the key motivation for SAP to drive all of the investment around the SAP cloud
platforms
00:03:21 so that our customers can consume from us the core business applications that we can
provide
00:03:29 and that we can standardize to a certain degree. But when it comes to unique IoT scenarios,
00:03:35 or big data scenarios, we want to provide our customers with a platform so that they can build

00:03:42 these scenarios on their own. And last but not least, customer experience.

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00:03:46 Customer experience is how you interact with your customers. That can be the web shop,
00:03:50 that can be myriad of other capabilities - but this is the big picture.
00:03:56 And SAP summarizes all of this in this one visual and that explains where we will go as a
company.
00:04:06 We also are using the key terms HANA for the in-memory database, which is the key driver
00:04:14 for all of those capabilities, and then SAP Leonardo as the umbrella term
00:04:20 for all of our activities that we drive around blockchain, machine learning, big data,
00:04:26 and further IoT scenarios and other capabilities that we provide to all of our customers.

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Chapter 3 Unit 1

00:00:05 That much as a short introduction to what SAP is all about -

00:00:11 where we want to go. Now let's dive a little bit deeper
00:00:15 into the topic of cloud computing. As much as I'm in love with architecture and technology,
00:00:22 I always challenge people by saying: Cloud computing is predominantly an economic topic
00:00:30 and not so much a technology topic. Why am I saying this?
00:00:34 And this here is visualized on the following graphs. SAP has a very close relationship with Intel

00:00:41 and we meet with the Intel executives on a regular basis and we talk about where are we
today,
00:00:47 where do we want to be in a year, in three years, in five years and 10 years from now.
00:00:51 And we had meetings with Intel in the early 2000s, 2003/2004,
00:00:57 where Intel said: SAP, what we will do is we will provide you with processes that are so large
00:01:07 that even you can't consume all of the CPU cycles. The architects in the room said: Well, let's
see.
00:01:14 We'll accept that challenge. They said: In addition, we will provide so much memory
00:01:23 that all of the paradigms we had in the past - be careful with memory,
00:01:29 consume it very carefully, write to disk relatively early -
00:01:34 that all of these paradigms will be history. You can keep everything in main memory.
00:01:41 And the third prediction from Intel was - and they said they wouldn't do that on their own,
00:01:45 but with a lot of partners or with the telecommunications industry -
00:01:49 was they said: We will provide you so much bandwidth at a decent price rate
00:01:56 that it doesn't matter any more where the consumer of an IT service is
00:02:02 and where the provider of an IT service is. Those of you who are my age
00:02:08 will probably remember the days when you had to have your IT in the basement
of the building,
00:02:14 because even getting a cable across to your office on the other side of the road
00:02:20 was a medium adventure. It was expensive; it took a long time;
00:02:24 the quality was pretty poor. Today, it doesn't matter any more.
00:02:29 So, all of those predictions came true and SAP said: If all of this happens,
00:02:36 we have a unique opportunity to rethink the way we build applications: get rid of the traditional
barriers
00:02:45 which we always thought about - specifically around: Be careful
00:02:49 when you consume processor speed and how you consume main memory capacity -
00:02:56 and build brand new applications. So, that was a key moment in time
00:03:01 in the mid-2000s, when we said: Now we can really do something new.
00:03:07 That obviously is not only true for SAP. It is equally true of Microsoft, for Google,
00:03:11 for all the other large players, for the Amazons of the world.
00:03:15 Today, it doesn't matter any more where the data center is. Yes, we have certain legal aspects

00:03:21 which we obviously need to adhere to, but in principle, you can consume a service
00:03:27 from all around the world, from all of the edges and the corners of the world.

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Chapter 3 Unit 2

00:00:06 When I talk to customers, some of them say, "Rainer, we are a bit confused
00:00:12 about the portfolio of SAP, what are you offering, why are you offering so many things?"
00:00:18 And then I mostly draw the simple two-by-two matrix, and I say, look,
00:00:23 at the end of the day, when I analyze the market, it comes down to the simple two-by-two
matrix.
00:00:31 And the first dimension is, the horizontal dimension is, what is your preference?
00:00:37 How would you like to license the solution that you want to have?
00:00:42 Do you want to buy it, or do you want to rent it? And the second question that we need to ask
is,
00:00:49 how do you want to run it? Do you want to run it...
00:00:52 and sometimes I simplify it and say, do you want to run it in your basement,
00:00:57 or shall I do it for you, and I run the application in my basement?
00:01:01 And if we go through this matrix here, and we look at the individual cells,
00:01:07 if you want to purchase a license and the customer operates it on their own.
00:01:11 That is the typical perpetual license model that we've known for many, many years,
00:01:16 and it's an on-premise deployment form. If the customer says, I want to own the license,
00:01:21 but you know what, "I'm not in the business of running all of that infrastructure
00:01:26 and having all of the housing," then we talk about hosting.
00:01:29 This can be done by SAP through a HANA enterprise cloud,
00:01:33 this can be done with our partners. So that is a very well-known business model in our market.

00:01:40 If the customer says, "I would like to rent the solution,
00:01:46 but I want to operate it," that is the typical case of leasing,
00:01:50 and there are many options available, financial options available by SAP
00:01:55 and its partners in the market. Last, but not least, the customer says,
00:02:00 "I want to subscribe to the solution, and I don't want to know anything
00:02:05 about databases, operating system, network, housing, security, how high your fence is
whatsoever,
00:02:12 you do all of that on my behalf, or for me," and then this is what we talk about,
00:02:18 cloud computing in the different facets, be it private cloud, be it public cloud,
00:02:23 and I'll talk about some of the differences there. This simple two-by two-matrix shows you
00:02:30 that if we want to serve the market, we need to have all of these capabilities.
00:02:37 We need to have offerings for those customers who say, "I want to buy the license"
00:02:41 versus "I want to subscribe to the license," for those customers who say, "I want to operate it
on my own,"
00:02:47 and for those ones who say, "Look, I'm out of this business of operating that infrastructure."

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Chapter 3 Unit 3

00:00:05 One more visual on cloud computing, and it illustrates the biggest difference
00:00:10 between how we did IT in the past and how we want to do IT in the cloud computing world.
00:00:17 In the past or in the on-premise model, the customer does a lot of activities.
00:00:25 SAP or whoever else develops the software and provides bug fixes and so on and so on.
00:00:32 But the customer is in charge of running the infrastructure, starting from installing the operation
system,
00:00:38 the solution, applying corrections, upgrading to the next versions,
00:00:42 and running the solutions. In the cloud world,
00:00:47 it is a completely different model of who does what.
00:00:53 We've completely reorganized the labor part in the entire model.
00:00:58 And what you can see here is that now SAP or the partners
00:01:02 are taking on the lion's share of the work, be it the infrastructure,
00:01:07 be it the system maintenance, making sure that everything runs smoothly
00:01:12 so that the customer just focuses on doing what they can do best,
00:01:17 which is run their business. And that is why cloud computing is so mission-critical,
00:01:22 specifically for mid-market companies, for fast growing mid-market companies.
00:01:28 They don't want to be bothered with all of those yellow boxes.
00:01:34 They say, "I want to consume my Solution as a Service. I don't even want to know which
operating system
00:01:41 you're running it on, you are the experts for that."
00:01:44 And one more key reason why this model is so attractive,
00:01:48 as a mid-market company, try to find people or hire people into your organization
00:01:55 who are really experts on cybersecurity. You will have a hard time to, number one,
00:02:00 find them, and if you can hire them, to keep them, because there is a crazy competition going
on
00:02:07 in the market for that skillset. SAP and other leading providers,
00:02:11 yes, we can hire these people, we can bring them on board,
00:02:15 we can provide them an environment which is attractive, but therefore I believe
00:02:20 that this model of consuming something as a service, very similar to how you consume energy
as a service
00:02:27 is a truly interesting model for the future. It is not the only model.
00:02:33 There will always be companies who have their own data centers
00:02:37 and they will run all and everything on their own, but I think for an ever-growing audience,
00:02:43 and I'm moving up market from the mid-market to larger segments, cloud computing is super
attractive for them.

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Chapter 3 Unit 4

00:00:05 One more aspect to look at, the different kinds of cloud computing
00:00:10 that we differentiate today, also in the literature. We start at the bottom with Infrastructure as a
Service -
00:00:17 that is basically somebody who says, "I provide you with an infrastructure."
00:00:21 It is basically a virtual computer, and you can do on this machine whatever you want.
00:00:26 The layer above is the Platform-as-a-Service layer - there, you get more or less services,
00:00:31 so that you don't have to worry about the underlying infrastructure.
00:00:36 You can focus on building out the applications that you want.
00:00:39 And the top level is the Software-as-a-Service level. That is where companies like SAP provide
you
00:00:46 with the solutions that you want to use.

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Chapter 3 Unit 5

00:00:05 For SAP, building Business ByDesign in the mid-2000s, understanding

00:00:11 we will see these hardware and network revolutions driven by Intel and the large telcos.
00:00:19 We said, what does it mean for us? What kind of innovations are available to us now,
00:00:26 or what kind of innovations do we need to come up with? And we said, well, number one,
00:00:32 and I've already talked about it, this new paradigm allows us quite a few product innovations.
00:00:39 But equally important, we said - and think of the diversity of labor slide
00:00:45 which I had just a minute ago - it is a completely new way to deliver a solution to our
customers.
00:00:51 It is no longer, we put something on a tape or we put something on a DVD
00:00:57 and we hand over the DVD to our customers. It's a completely new model of engagement.
00:01:03 And it also means for a company that was super good in running a development organization

00:01:11 that you need to build up a lot of new skills which traditionally you didn't have
00:01:16 but other companies had. So we saw that there would be massive need
00:01:21 for learning, on our side. We also said, especially with the Internet,
00:01:27 it is so easy to inform yourself about what a solution can do.
00:01:31 How is this solution doing relative to another one? What is this customer saying about the
solution,
00:01:38 versus another one? So it allows us to invent
00:01:42 completely new models to sell and buy, and it is not only an opportunity for SAP,
00:01:49 it is also something which customers demand. I have seen companies, again, in the mid-
market,
00:01:56 who said, "I don't want to see anybody with a sales mission at my office.
00:02:02 I will collaborate with you via video conferences, via phone calls, and maybe we meet once
00:02:11 for the final signature of the contract, but in principle, I want to do e-contracting
00:02:16 as much as possible." I've now talked a lot about what SAP does.
00:02:24 Whatever SAP does, by definition, it's always incomplete. Because we would never have
enough people
00:02:33 to build all of the capabilities that our customers need. Therefore, nurturing, building out,
training,
00:02:41 maintaining the ecosystem around us, the hundreds, the thousands of partners,
00:02:47 who can take what we built and transform it into something
00:02:53 which meets the specific requirements of the customers. That is absolutely key.
00:02:59 You can have the best cloud solution in the world - if you don't have the ecosystem around it,
you won't be successful.
00:03:06 Therefore, these are the four dimensions that we need to cater for.
00:03:11 I've added some more aspects on it. I don't want to go through all of the details here.
00:03:17 On the product side, and that is closely related to the dimension of the partners,
00:03:26 a cloud solution has to have two facets, two natures. The first nature, it needs to be a solution.

00:03:33 I need to be able to log on to the system, identify myself, create a sales order,
00:03:39 and process the whole thing through. So that is the solution nature of what we are talking
about.
00:03:46 The second aspect is the platform nature. The platform nature means the customer says,
00:03:52 "I like the way how you orchestrate the process, but in my company we do this and this
differently."

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00:04:00 And then the platform needs to be flexible enough that you can react.
00:04:05 So that is, again, where the partners, where the ecosystem comes in,
00:04:09 because that is the lion's share of the work that they need to do.
00:04:14 The challenges are, specifically when you build out such a platform,
00:04:19 is that you need to take on a different way of engineering. With Business ByDesign,
00:04:28 we really built the entire platform, the entire model, for the first, I would say, at least two years,

00:04:36 in a design environment. We were using, at that point in time, ARIS,

00:04:41 to model out all of the business objects, all of the business processes.
00:04:47 And we followed the state-of-the-art paradigms, be it regarding object orientation,
00:04:53 Model View Controller concept, and so on and so on, because we knew that we will have the
platform,
00:05:01 and we talked to a lot of our large customers in the automotive industry and said,
00:05:07 what does a platform mean for you, and how do you build different cars
00:05:12 on one and the same platform? And that is what we are doing,
00:05:16 and that is, for example, also the reason why in Business ByDesign it doesn't matter at all
00:05:22 to the underlying platform, whether you consume the platform through a user interface,
00:05:28 through a Web service, through a message, or through whatever.
00:05:33 But to get to this kind of isolation needed a completely different architecture
00:05:38 than what we had before. When we talk about cloud computing
00:05:45 and we talk about providing such a system to the masses, yes, you can start saying,
00:05:52 "Well, it's basically the same thing what we did before." We have a computer, we install a
piece of software on it,
00:05:59 yes we put a Web server on top of it, and then we give it company access to it.
00:06:04 But as I said, cloud computing is predominantly an economic topic.
00:06:09 It's all about economies of scale. There's one aspect of economies of scale
00:06:15 that you say, "Hey, if I'm not only buying one computer but I'm buying a thousand computers,

00:06:20 then I can talk to Lenovo, Hewlett Packard, to all the others, and get a much better price
00:06:26 than if I just would buy one machine." That's one aspect of economies of scale.
00:06:31 But the interesting part in the cloud computing world is what we describe as multi-tenancy,
00:06:37 and there are millions of ways to do it, and I won't go into the details here.
00:06:42 And it is a topic that the customer should not worry about.
00:06:46 It is a topic to the provider. What does it mean?
00:06:50 It means that, yes, you install a machine, or you install multiple machines,
00:06:56 but you are very clear about what are the components which you can share across multiple
customers,
00:07:03 and which are the components which only exist once per customer.
00:07:07 And the better you are at isolating these components which you just need to keep once,
00:07:13 you can really drive your cost down and come back with a very attractive price,
00:07:18 which, again, is super important in the mid- market when you want to have a commercially
viable offering.
00:07:25 Obviously, your data centers need to be absolutely secure, that is a must-have.
00:07:33 And if you look at this slide here, it talks a little bit more about the aspect of multi- tenancy.
00:07:40 You see here on the left side, basically an historic, single-tenant model
00:07:46 where you have the Web client, and then you have, moving down here,
00:07:50 the different capabilities, but they exist just once per customer.

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00:07:55 And so here is customer one and here is customer two. In the multi-tenancy world,
00:08:02 you have here one block, which is basically shared. And then you have all of the individual
tenants,
00:08:09 which represent unique capabilities. For example, every customer has their own data,
00:08:15 has, even in the SAP world, their own program code, or those pieces which are really unique
to the customer,
00:08:23 the specific interfaces which you have to them, and then all of the Web clients access the
system.
00:08:29 So the right side is something which is very close to my heart,
00:08:35 or very important for me as a provider because this is where
00:08:39 the economies-of-scale game really happens. The data center slide.
00:08:45 To run a state-of-the-art data center costs a fortune today.
00:08:51 I would say it is absolutely impossible for a mid-market company to run a data center
00:08:57 at such a level. I had a lot of discussions,
00:09:01 let's say five, six, seven years ago, "Hey Rainer, isn't the data safer
00:09:06 in the basement of my building?" I think, today, that discussion is completely over.
00:09:12 It is so easy to hack your way into a piece of infrastructure
00:09:17 if you haven't hardened out all of the mechanisms. And I have a rough idea of what SAP does

00:09:24 to harden out our infrastructure, and there are not many companies
00:09:28 who can spend so many hundreds of millions, up into the billion-euros range,
00:09:35 to just make sure that we provide a rock-solid, super-reliable service.
00:09:42 One more reason why I believe that cloud computing will be absolutely key.
00:09:47 And I talked already about the importance of the ecosystem - without the partners,
00:09:53 you will not be successful. Specifically in the mid-market.
00:09:56 Let me give you one more reason for that. When I work with my largest customers,
00:10:04 I always meet, or I can always rely on the fact, that there's a large IT organization.
00:10:11 And this IT organization can take whatever I give them and transform it in a way
00:10:18 so that it meets specifically the needs of that company. In the mid-market, that doesn't exist.
00:10:26 There is no CIO. There is no team of experts.
00:10:32 In the mid-market, the customer expects to get a solution and to see a solution during the
sales process
00:10:40 where he immediately recognizes himself, says, "Yep, that is the right thing.
00:10:46 They speak my language, they know exactly what is going on in my industry."
00:10:51 Proximity matters a lot. For customers it is very important to know
00:10:57 that for this and this supplier, I'm amongst their top 10 customers,
00:11:02 and if I have an issue on a weekend, they will still help me.
00:11:07 So therefore, this kind of proximity is something which SAP finds very difficult to deliver.
00:11:14 Our very large customers, they want to do business directly with us.
00:11:18 I know a lot of mid-market companies who rather prefer to do business with the partner
00:11:25 but consume an industry-leading solution from SAP. Last but not least, the new ways to sell
and buy.
00:11:34 This simply means all of the information about the product needs to be available on the
Internet.
00:11:39 You need to have test-drive capability. We experimented a lot with that concept of test drive,
00:11:45 so to give even prospects very early access to a system so that they can get a first feeling
00:11:53 on how this will look. Will my people like it?

12
00:11:56 That is one of the key questions that companies have to ask. Then, in a later phase of the
sales cycle,
00:12:03 they really want to work against the live system, try out a couple of things.
00:12:08 How easy is it to adjust a workflow? How easy is it to adjust the threshold for a shopping cart?

00:12:15 So all of these are new ways to sell and buy, new ways to collaborate, which we have to make
available.
00:12:23 So all four elements, we drove a lot of innovation. And to just give you one more aspect,
00:12:31 and that is key for the partners, the partners develop their own intellectual property.
00:12:36 I have a partner, for example, who built a complete plant maintenance system
00:12:40 on top of Business ByDesign. So the way that works is
00:12:44 the partner develops on the platform, then packages up whatever they've developed,
00:12:51 and they can publish, in the SAP App Center, "Hey, this is available now."
00:12:56 And so this gives the customer a much higher level of transparency on what is available,
00:13:03 through SAP and the ecosystem. And it's a seamless way, and a controlled way,
00:13:10 to get access to all of this IP provided by the partners. But, in the background, as you can see,

00:13:17 it requires quite a bit of infrastructure from us to be able to do that.

13
Chapter 3 Unit 6

00:00:05 One more aspect about my favorite topic, the mid-market companies.
00:00:09 The majority of the mid-market companies today are at least 10 to 15 years IT-wise behind
00:00:18 where large enterprises are. One of the reasons is that for them,
00:00:24 this kind of muddling-through approach mostly worked. Yes, they had a small provider who did
this,
00:00:31 and somebody else who did that, but what did that lead to?
00:00:36 Mostly when I meet with these kinds of companies and I ask a simple question,
00:00:41 like, "How many customers do you have?", the first guy looks up an Excel spreadsheet, gives
me a number.
00:00:48 The second person logs on to a CRM system and says, "I believe that we have so many".
00:00:53 The third person guesses that they have that and that number, and these numbers typically
don't even correlate.
00:01:01 So, if we want a different level of process quality in mid-market companies,
00:01:06 and a secure environment, then something has to change.
00:01:10 And just take legislation. If you just look at - and we're recording this video here in 2017 -
00:01:19 and 2017 saw, and I'll just pick two very relevant events, saw the new goods and services tax
in India
00:01:28 and saw the SII concept in Spain. So, in Spain you have to deliver all
00:01:34 of your taxation-relevant content within three days after you posted the transaction.
00:01:40 Yes, for SAP this is possible, we knew it early enough, we were able
00:01:46 to provide all of the solutions that our customers need - but imagine you're working
00:01:51 with a tiny software company. Will they have the developers available
00:01:55 to do that development? And that wasn't just the story in in 2017.
00:02:02 In 2018, we all have to cope with IFRS 15. In 2019, we have to cope with China's new
cybersecurity law.
00:02:11 And so on and so on and so on. So you need a really strong partner
00:02:15 to help you with that infrastructure, therefore I believe that SAP is super relevant
00:02:22 for the mid-market, and the mid-market is super relevant for SAP.
00:02:27 What is unique about the mid-market? What do these companies want?
00:02:33 They want, first of all, business transparency. When I meet with the CEOs of mid-market
companies,
00:02:40 it is not that they shop for an ERP system because it's so much fun. I always believe it's fun,
but I'm probably the only one
00:02:49 in the room who believes it's such a great experience. Most companies who work with me
have an issue.
00:02:55 They say either, "Hey, we've outgrown our existing landscape," or they say, "We just had a
meeting with our banks
00:03:03 and the bank said you don't provide me with the level of transparency that I need
00:03:07 to sign off the next credit line." And so on and so on.
00:03:12 So, what these companies predominantly want is transparency of their business processes.
00:03:20 Another fact of life, especially in the mid-market, is, pretty often, business processes change

00:03:28 in the mid-market faster than somewhere else. There are large companies like Daimler
00:03:33 who simply inform their suppliers, "As of then and then, we will only accept invoices
00:03:42 in an electronic format." And either you can do it - great - or you're out.

14
00:03:47 So, mid-market companies need to be a lot more adaptive. Yes, they can invent a lot of the
rules,
00:03:55 but pretty often also others invent the rules and they simply have to follow.
00:03:59 So, whatever they buy needs to be flexible, and they need to be able
00:04:06 to adjust the solution on their own. They can't always bring in consultants
00:04:11 just because a certain workflow needs to be changed, just because certain authorizations
00:04:18 need to be readjusted. Or they need additional reports.
00:04:23 All of that must be possible without external consultants.
00:04:27 They need to simplify the solution usage. They don't have the people with a double PhD in
physics
00:04:36 who you can give the crappiest user interface and they will still find out how to work it.
00:04:41 You need to have a consumer-grade user interface to win in these companies.
00:04:47 And last but not least, you must minimize their operating cost.
00:04:51 On the previous slide, I called out that the amount of money that a mid-market company
spends
00:04:58 on IT as a percentage of their revenue is significantly higher
00:05:03 than what the average large enterprise company spends. Yes, again there's an economies-of-
scale factor baked in,
00:05:10 but spending half a percent more on IT means competitive disadvantage.
00:05:18 So, the first movers who fully adopt cloud computing have an advantage, and I've heard that
numerous times
00:05:26 from my customers, that they say, "In the past, whenever we did a dollar more in revenue,
00:05:33 also our IT cost increased," obviously not by the dollar but as a fraction of the dollar.
00:05:39 They said, "After we implemented Business ByDesign, we were able to decouple these two
lines.
00:05:48 With the existing team of people that we have and the users that we have,
00:05:54 we could do more business." So your revenue curve grows,
00:05:59 but your cost curve, at least for IT, stays the same, and that gives you competitive freedom
00:06:05 that you need to be innovative and react in the market.
00:06:09 That much about a short introduction into why it is so key for SAP
00:06:15 to be a cloud service provider.

15
Chapter 4 Unit 1

00:00:05 Now let's talk in a greater level of detail about SAP Business ByDesign
00:00:10 and what the solution is all about. This visual summarizes the key capabilities of Business
ByDesign.
00:00:18 It's an integrated cloud with all of the key capabilities that you would expect, ranging
00:00:24 from financials, human resource management, project management, purchasing,
00:00:30 and obviously supply chain management, as well as CRM, plus the capability to extend the
solution.
00:00:38 There are two schools of thought in the market on how you would build such a suite.
00:00:44 The first school of thought is to say... and that school of thought
00:00:48 is specifically prominent with our large customers, who say, "You know what? I take the best
possible line-of-business solutions
00:00:57 that I can find in the market, I integrate all of them
00:01:00 and then I have the perfect solution. That is exactly also what SAP S/4HANA private cloud,
public cloud
00:01:07 offers to our customers. You take, for human resource management, SuccessFactors,
00:01:13 you take for all of the purchasing both operational and strategic Ariba.
00:01:17 You use Concur for travel and expense management, you use SAP Analytics Cloud
00:01:24 for certain analytical scenarios, and so on and so on.
00:01:27 That is the one school of thought, but obviously it requires a company
00:01:32 which knows what it's doing. When I would present that concept
00:01:36 to my mid-market customers, they would find that fairly confusing.
00:01:41 They would say "Yeah, I like the basic idea, but what do you mean by interface?"
00:01:45 So, for mid-market companies, I rather need something which we call a suite in a box.
00:01:52 So, think of instant coffee or think of an espresso capsule - you put it in,
00:01:57 you press the button, and the result that you get is ready to use.
00:02:01 That is what the mid-market companies need. Also, and I've talked about that at great length,
00:02:06 they find it very difficult to have these IT experts.
00:02:10 And I also ran into quite a few CEOs of mid-sized companies who said, "I don't want these IT
experts in my company.
00:02:18 They cost a lot of money, I don't know exactly what they are doing,
00:02:22 I'd rather consume it as a service." That is why we said for the mid-market,
00:02:28 a suite in a box is exactly the right thing to have. If we go through some of the capabilities,
00:02:35 the suite in a box, and you first saw the visualization
00:02:39 of the key components, but what matters more to my customers
00:02:44 are the 36 built-in, end-to-end business processes. And a little later you will see from my
colleague,
00:02:50 Kristof Schneider, how these end-to-end processes look, and he will demo to you a complete
end-to-end flow,
00:02:58 because for the companies, their problems don't start and end, let's say,
00:03:03 in customer relationship management. They have an order-to-cash challenge,
00:03:09 they want to make sure that whenever they ship a good to a customer,
00:03:13 that immediately the invoice also goes to the customer as soon as they know that the
customer has received it,
00:03:19 and that the payment happens automatically. So the companies think in end-to-end processes

16
00:03:26 and they don't think in silos, and that is very key for the suite-in-a-box approach.
00:03:32 It needs to be quickly configurable. I talked about the need to adjust business processes as
they change,
00:03:39 and to do that without the help of external consultants, and it must be easy to use,
00:03:45 therefore an HTML5 user interface, which I will show you in a minute.
00:03:50 The second dimension is "insightful". To give you one example,
00:03:55 I recently met the chief financial officer of one of our large customers
00:04:00 in Latin America, a company called, Galpa - they are one of the market leaders
00:04:05 in the wholesale area for air conditioning equipment. And the CFO talked to me and he said,
00:04:10 "Rainer, there are so many people coming into my office, saying, 'Hey, we should do more
00:04:16 with this and this customer, we should invest more in this and this product
00:04:19 or we should do more in this and this region.'" And he says in the past, he said,
00:04:24 "Well, I'm sure they know what they are doing - come on, let's invest."
00:04:28 He says, now that they are live with ByDesign for quite a while, he says, he brings up the
profitability analysis,
00:04:36 by customer, by product, by region. And he says, "Then you have a fact-based decision,"
00:04:43 and he says, one of the great contributions that he can bring to the table
00:04:47 when they have a board meeting is that he can say, "Look, these are the most profitable
customers.
00:04:52 These are the most profitable products. These are the most profitable regions."
00:04:56 And he said, they managed to do the transition from a not-so-well-educated decision
00:05:04 to really smart decision making, and that is what insightfulness is all about.
00:05:10 We deliver lots of KPI standard reports and whatever, and we made sure that the companies
00:05:16 can define their own KPIs, their own reports, because every company has different
requirements.
00:05:24 And you'll see a lot of additional capabilities, specifically in the area of dashboarding.
00:05:30 "Built for growth" - Business ByDesign is a global solution. It is used today, the last time I
checked, in 128 countries around the globe.
00:05:41 And don't believe that mid-market companies are local. Mid-market companies are as global
00:05:49 as the large multinationals. They are truly champions in certain niches that they work in,
00:05:57 and they serve many, many countries. When we first started with Business ByDesign,
00:06:05 we discussed with the first customers, "Hey, how about us only providing Business ByDesign
in six countries?"
00:06:14 The reaction was, "Well, if you only support six countries, sorry, you're irrelevant."
00:06:20 So, then what we did was a network analysis that we asked, for example, let's take an
American company -
00:06:26 where do you have your subsidiaries? And then you find out very fast,
00:06:30 they have their subsidiaries or their key subsidiaries in Canada, Mexico, and other Latin
American countries.
00:06:37 For a European country, maybe headquartered in Germany, for sure they will have a
subsidiary in France,
00:06:44 they will do something in Italy, for sure they will leverage Poland, they will do certain things in
Romania.
00:06:50 So therefore, Business ByDesign is a global solution with a global reach,
00:06:55 and that is very important for my customers. Business ByDesign has no built-in user limits.
00:07:03 So, you can run it from 20 users, I say here to 10,000 - my largest customer at the moment
00:07:09 has 8,750 users on a single tenant. It's built on the same NetWeaver architecture
00:07:16 as the other SAP solutions. When you ask me, "Where does ByDesign fit specifically?"

17
00:07:23 Well, I always say it fits for the mid-market companies. And that is something between 50 and
500 users.
00:07:30 And it is not the users, it is typically in that segment,
00:07:34 I know that the 36 business processes that we are bringing to the table
00:07:39 mostly meet the requirements of the companies. When I go significantly above that barrier,
00:07:45 then I run into companies who say, "Hey, Rainer, I like Business ByDesign but I need a full-
blown global risk and compliance management solution,
00:07:53 I need an advanced planning capability, I need certain other export regulation capabilities
00:08:00 that I don't have built in Business ByDesign." Therefore, Business ByDesign
00:08:05 is targeted towards one specific market segment, and for other segments we have other
solutions.
00:08:13 The next topic is continuous innovation. When you buy or when you subscribe
00:08:19 to a cloud solution, you also implicitly hand over the responsibility
00:08:26 to drive innovation, at least in those areas
00:08:31 to the company who you are working with, in our case specifically to SAP.
00:08:36 My customers find it very important and very comforting to know
00:08:41 that I have complete teams working on IoT scenarios, working on machine learning scenarios,

00:08:48 thinking about blockchain, and coming up with ideas how to do Big Data scenarios.
00:08:53 Not that everybody needs it at the moment, but they find it important
00:08:59 to know that we have the concepts available. And when they want to start with their first IoT
concepts,
00:09:06 they find counterparts in the ecosystem and in SAP who say, "You want to do this and this?
00:09:13 Let me show you how this can be done." So therefore also we will keep the pace
00:09:19 to ship quarterly and provide the new capabilities,
00:09:23 because, as I said, the innovation speed is high,
00:09:27 and specifically the mid-market is at the forefront of these kinds of innovations.
00:09:34 ByDesign is used today by 4,000 companies. Let me also tell you how I count.
00:09:40 These are more than 4,000 companies with their own profit-and-loss and balance sheet
statements.
00:09:47 So, I'm not counting terminated contracts, university licenses, or partner licenses,
00:09:54 that number is most likely a bit too conservative. But also when I work with analysts,
00:10:00 that's roughly the number that I give them. It's used in 27 industries.
00:10:04 That doesn't mean that ByDesign is adjusted for specific industries.
00:10:10 We have a dedicated ByDesign version for the professional service provider industry.
00:10:16 We've just announced a dedicated ByDesign version for the public sector.
00:10:21 For the other areas, ByDesign is more a kind of horizontal solution. And I always tell this story,

00:10:28 I found out recently that the Stuttgart stock exchange is using Business ByDesign.
00:10:33 And the financials market is a highly regulated market in Europe,
00:10:38 so Stuttgart isn't too far away. So on my next trip to Stuttgart, I met with a customer,
00:10:44 and they said, "Look, relax, even a stock exchange first of all is a normal company.
00:10:50 We need a financial management system, we need to purchase certain goods,
00:10:54 we need to pay the salaries, we need a human resource management system."
00:10:59 So yes, for trading we have a dedicated platform which is not SAP Business ByDesign.
00:11:05 But first of all, a bank or a stock exchange is a normal company.

18
00:11:11 And they said, "For us, ByDesign works perfect, we love it." So, therefore that explains a little
bit
00:11:18 why we are busy today in so many different industries.
00:11:22 If I stack rank the number of customers by industry, I have my largest install base
00:11:28 in the professional services industry, discrete manufacturing, wholesale and distribution,
00:11:33 and there I don't yet have... Or it is, if I would sort it by contract value,
00:11:39 it's already at the second rank - public sector and higher education,
00:11:43 specifically in North America, is a super important market for us.
00:11:47 That's also why we are building out industry-specific capabilities.
00:11:52 How does Business ByDesign fit into the entire portfolio? If you think back to the beginning of
this video
00:11:59 where I talked about the four aspects or the two-by-two matrix,
00:12:05 what is your preference regarding how you want a license or subscribe, and do you want to
operate it on your own,
00:12:11 yes or no? Then you can look at this pyramid now.
00:12:15 On the left side, you have the on-premise solutions, on the right side, you have the cloud
solutions.
00:12:20 If I focus here on the right side, our flagship product, S/4HANA public cloud, private cloud
00:12:27 at the top end in the cloud editions, geared towards the need
00:12:31 of the large enterprises and the upper mid- market companies. The segment below Business
ByDesign,
00:12:37 and below Business ByDesign we have our super successful SAP Business One,
00:12:42 both in the on-premise edition as well as in the cloud edition,
00:12:46 either operated by SAP or by our partners.
00:12:51 Companies ask, why do you need so many products? Simply, there is no one size fits all.
00:12:56 And I always say, think of the following example: As desirable as it would be
00:13:02 that we all drive Mercedes S-Class as company cars, it's unfortunately commercially not
viable,
00:13:09 therefore Mercedes offers an S-Class, think S/4, Mercedes offers an E-Class, think Business
ByDesign,
00:13:17 Mercedes offers a C-Class, think Business One. I think that explains it quite nicely,
00:13:24 and that is the reason why SAP with this portfolio can serve the entire market.

19
Chapter 4 Unit 2

00:00:05 Before I dive into the architecture, we thought, let's spend one or two minutes
00:00:10 just on a very short demo of Business ByDesign, then you've seen it at least,
00:00:15 before I then explain, or we take a joint look
00:00:19 under the hood of that amazing engine. You arrive at the home screen of Business ByDesign.

00:00:26 And here you have the overview, and that is the most important topic
00:00:30 which I tell all of my customers. Make sure that you familiarize yourself,
00:00:35 and all of your users, with the basic navigation patterns in Business ByDesign.
00:00:40 You have the certain tiles through which, with a single click action,
00:00:45 you can start to launch certain business capabilities. You have on the left side the list of the
work centers.
00:00:52 The work centers are obviously relevant to your role. And if you scroll down in the system, then
you can also see,
00:01:00 one of the things that we would've never dared to do in the past, that was to present analytical
content
00:01:06 directly at the main screen. It would've just taken too long.
00:01:10 Thanks to the HANA in-memory technology today, we can do this easily.
00:01:15 And let me just give you a quick view on how we use analytics.
00:01:21 I gave up years ago to believe that I will ever run into a customer who will say,
00:01:27 "Hey Rainer, I really like this report, can we please leave it as it is?"
00:01:31 It is always that the companies say, "Yeah, that's very interesting, but..."
00:01:35 Let me show you how you cope with that "but" in Business ByDesign.
00:01:39 Let's analyze our sales order volume a little bit in a greater level of detail.
00:01:44 So you click on Analyze Data, and what opens up is a so-called analytical pattern.
00:01:50 If you understand the capabilities of the analytical pattern once,
00:01:54 you will find it in each and every screen of Business ByDesign.
00:01:59 So you just learn it once. That's the beauty of the pattern-based user interface.
00:02:04 Here in this example, I could now narrow down the analysis that I want to do, or I could say,
00:02:10 come on, show me the whole thing as a table. For the sake of this little demo, let's do that.
00:02:15 And I talked about that, I can't predict what companies really want to see.
00:02:21 Therefore, what we do is, we disclose, in Business ByDesign,
00:02:26 the underlying data cubes. The underlying analytical data cubes.
00:02:30 And what you can do now is to say, "I don't want to see the breakdown by month,
00:02:34 I want to see an ABC analysis, I want to see who are the customers
00:02:38 who I'm doing business with." And let's say,
00:02:41 "I want to see the actual sales orders behind it." If you click on OK,
00:02:45 the system recalculates the entire report, on the fly, in main memory, and presents the results
to you.
00:02:54 And here comes the second key innovation in Business ByDesign.
00:02:58 Traditionally, you had a transactional subsystem, and an analytical subsystem.
00:03:04 These two systems were separated in the past, because the transactional folks were scared
00:03:09 that the analytics folks would run large reports which would have a performance impact
00:03:14 on the transactional side. That problem is gone.
00:03:17 So, instead of scribbling down now a certain order number,

20
00:03:21 in Business ByDesign, I just say, show me the sales order,
00:03:26 and the system immediately presents to me the actual order. And if I want to know a bit more
about that order,
00:03:34 then the system also shows me, it is a sales order, where I am right now.
00:03:39 And if it would've been preempted by a quote, an opportunity, and a lead, I would have three
more boxes to the left.
00:03:47 I obviously didn't have the goods in stock that I was selling, therefore, the system automatically
raised a purchase order.
00:03:56 Once the goods were available, we did the outbound delivery and we produced a customer
invoice.
00:04:02 If I now want to know more about the customer invoice, well, then it's sufficient to just click on
the link to the invoice.
00:04:09 I navigate through. And if I would like to see how did that invoice physically look,
00:04:15 then the system directly generates the PDF for me. That is the level of transparency
00:04:23 that my mid-market customers really love to have. That is the ease of running through a
business process
00:04:30 and that is what they really enjoy. Therefore, that much as a very short summary,
00:04:35 or very short demo of how Business ByDesign looks, before we now dive into the architecture
of Business ByDesign.

21
Chapter 4 Unit 3

00:00:05 Those of you who know me know that I could go on now for days
00:00:09 about the architecture, but the colleagues who put this program together
00:00:13 told me that I get a maximum of 10 minutes. So I'd better hurry up with this chapter.
00:00:18 Let's first talk about the platform architecture of Business ByDesign.
00:00:23 And now that you've seen the demo, you've already seen some of the benefits
00:00:27 of the underlying HANA engine that we are using in close collaboration
00:00:32 with the analytics portion of Business ByDesign. SAP Business ByDesign is built on a multi-
tenancy stack.
00:00:40 I talked about that already, a bit earlier, and the key, the heart of Business ByDesign
00:00:47 are these honeycomb-shaped structures. These are the business applications
00:00:53 that we are providing to the market, and the individual honeycombs illustrate
00:00:59 the so-called deployments units, about which I will talk in a minute.
00:01:03 I also already mentioned that extensibility is key. You must be able to extend business objects

00:01:10 with additional fields. You must be able to adjust the user interface.
00:01:15 You must be able to adjust the analytical aspects. Therefore, the extensibility layer
00:01:20 is key to the flexibility of Business ByDesign. Everything in Business ByDesign is stored in
repository.
00:01:29 So it's a true model-driven environment. For example, none of the screens are hard- coded.
00:01:37 They are only defined. At the end of the day, technically speaking,
00:01:41 the screens are stored in XML tables as a representation for where are the different fields,
00:01:48 what they do, what kind of behavior you want to have. And the entire Business ByDesign
00:01:54 exposes all of its capabilities exclusively via services, and via the services layer.
00:02:02 Therefore, the layer on top, whether you now invoke Business ByDesign via mashup,
00:02:09 via Microsoft Office or Google scenario, via an HTML5 user interface,
00:02:15 a mobile client, or a Web service, the back end never knows who is actually invoking it,
00:02:23 and it doesn't matter to the back end. So that is the beauty of the architecture,
00:02:27 that it is highly scalable, that it is extensible on all layers,
00:02:33 that customers... and that is here illustrated on the left, and I will spend a few minutes a little
later
00:02:39 on how you can extend the solution with your own business logic.
00:02:45 It scales close to linear. If you google SAP Business ByDesign and Intel,
00:02:51 you will find two white papers from Intel talking about the scalability,
00:02:55 the high-end scalability of Business ByDesign on always the latest Intel platform,
00:03:03 and it offers an on-demand operations model, which is the key thing for cloud.
00:03:10 One more slide about multi-tenancy because that is not always so easy to understand.
00:03:16 If you look just here at the left side and you look at the system ID,
00:03:20 in a single-tenancy system, in the traditional system, that exists only once.
00:03:26 In a multi-tenancy system, you can run multiple tenants within one system.
00:03:34 So the system is the basic container, and the tenants are the boxes within the container,
00:03:42 and that gives us the economies-of-scale model. Let me spend a bit more time
00:03:48 on the model-driven nature of Business ByDesign, because that is unique.
00:03:53 We had the chance, the one-in-a-lifetime opportunity to start with a blank piece of paper,
00:03:59 and we said, let's build the application in a true engineering fashion.

22
00:04:05 We don't build a first cut and then we add on and add on and add on.
00:04:10 No, we said, let's first analyze what are the business processes,
00:04:14 what are the business capabilities that our customers would like to see,
00:04:18 then disaggregate the business processes, come down to the layer of an individual business
object.
00:04:25 The business object could be a sales order, it could be a purchase or could be a business
partner,
00:04:32 so that is the overarching term which we are using for customer, supplier,
00:04:37 employees, and so on and so on. Could be a production order.
00:04:41 So we aggregated everything down to the layer of the business object,
00:04:46 and then we assembled business objects into process components.
00:04:52 So that is the work, that is the modeling work, that our architects did for nearly two years
00:04:58 to come up with one consistent model for Business ByDesign. That is really unique,
00:05:04 and if the whole story around service-oriented architecture is key for you, then ByDesign
00:05:12 is the perfect solution for you. For us, obviously, the big advantage
00:05:16 is such a system is a lot better to maintain than any other.
00:05:21 Today we are talking about hundreds of business objects, integration scenarios, and so on and
so on,
00:05:28 so these numbers here could easily be higher. I haven't checked them for a while,
00:05:33 but just to give you an idea how that looks. How does the structure look?
00:05:39 And you saw on the previous slide the little honeycombs. Here the honeycombs are the
individual boxes.
00:05:47 So we have a basis layer. These are core services which we simply need
00:05:53 to run the entire environment. And then we have a very rich layer
00:05:58 of foundation capabilities. Foundation capabilities are, for example,
00:06:02 the calendar, the factory calendar - things which you only want to have once in your system
00:06:08 and you consume it from multiple areas so that you have just one.
00:06:14 And then you build out on top of that the so-called deployment units
00:06:18 for the different business areas, be it financials, project management, and so on and so on.
00:06:24 If you look into such a deployment unit, again, you will find an inner structure there
00:06:30 that a deployment unit comprises a number of process components,
00:06:34 and the process components are made up of the business objects.
00:06:38 So that is the underlying structure, and then this business object or the process component
00:06:45 then consumes, for example, shared business objects out of the foundation layer,
00:06:53 like the account here or the employee, and so on and so on. Very important topic.
00:07:00 There is one area where ByDesign differs from everything that we've built in the past.
00:07:05 In the past, we did integration between the applications via shared database tables.
00:07:11 In Business ByDesign, the only way how project management and financials,
00:07:16 or any other deployment unit can talk to another deployment unit is via messages.
00:07:23 In the old days, when I built an application in CRM and I wanted to show how much of a
certain product
00:07:30 I have in stock, I went into the coffee corner, found a colleague
00:07:34 who knew who warehouse management works in SAP, I talked to him and said,
00:07:39 "Which is the table, which is the index that I can use?" And I simply used that index.
00:07:44 The disadvantage was, if the colleague made up his mind to re-architect that specific
component,
00:07:50 suddenly my application didn't work anymore, and I mostly found out too late.

23
00:07:56 In a message-based world, I have a contract between these two deployment units
00:08:02 that they keep the messages stable. So I can rework whatever I want in here, in financials,
00:08:09 but I must stick to my contract. And that is a promise both SAP-internally,
00:08:14 but a commitment also to our partners. If you build something on top of the messages,
00:08:20 of the Web services, of SAP Business ByDesign, from feature pack to feature pack,
00:08:25 we commit to keep these ones stable. If we need to change them because of innovation,
00:08:30 we will tell you. We will provide the new interface
00:08:34 and we will give you a year to then use this new interface before we finally retire it.
00:08:42 One level deeper, and then I promise that I hit the ground floor now,
00:08:48 that is the structure of a business object. A business object, think of a sales order,
00:08:53 comprises of nodes. A node would be the header of the sales order,
00:09:01 and then I have the individual line items that would be individual nodes,
00:09:05 and I can have actions for a specific business objects, for example, recalculate the price,
00:09:10 or have very basic services, like create, read, update, delete,
00:09:15 the so-called CRUD services, and that mechanic also then makes sure
00:09:20 that whatever I do with a business object arrives at the persistency layer, so at our HANA
database,
00:09:27 and I can write now into the database. All of the business object's capabilities,
00:09:33 again, can only be accessed, or are exposed to the outside world, via the services layer.
00:09:41 If we look a little bit more at what we can do here, so here again we have the business object.

00:09:48 The business object provides core services, create, read, update, delete,
00:09:52 but we also offer compound services. Pretty often it would be "too dangerous"
00:09:59 to just provide the CRUD service because, I take an extreme example,
00:10:04 and it's not a very good one, so the architects may forgive me -
00:10:08 if we would talk about the CRUD service "delete", it does exactly what it's supposed to do, it
deletes.
00:10:14 But what you probably want, especially in the context of the sales order,
00:10:18 is that you can only delete or set something to inactive if the order has been delivered
completely.
00:10:26 Therefore, you need a lot more logic, which you don't want to have at the basic level,
00:10:31 but at a higher level, where you can first do all of the checks.
00:10:35 Therefore, in the compound service, we provide all of these checks,
00:10:39 the compound services are then available as an application-to-application service
00:10:45 or as an application-to-external-application service, and so on and so on.
00:10:50 And we then integrate all of these business objects into larger entities.
00:10:59 Quick cut - when we now leave the architecture layer and we go back to the top of the
application,
00:11:06 you saw that Business ByDesign, the back end, exposes a service layer,
00:11:12 and from there you can consume it with the user interface. We also wanted to drive a really
important innovation
00:11:19 at the user interface, and that is what we call a pattern-based user interface.
00:11:25 In the past, you sometimes had the feeling, if you looked at - let's take from my own home turf,
CRM -
00:11:35 lead, opportunity, quote, and the sales order, and you looked at the screens
00:11:40 of these four steps in one process chain. You sometimes had the impression
00:11:45 that they come from three different, or four different organizations.

24
00:11:50 With Business ByDesign, we said we standardize the way the user interacts with a system
once,
00:11:57 and this is mandatory then for all applications. And this is the feedback which I also get from
my customers,
00:12:03 they say, "One of the best things about Business ByDesign is if you understand one
application,
00:12:11 and you understand the underlying business, you understand everything else too."
00:12:15 A list is always a list, so if you need to sit in for your colleague
00:12:20 because he's on vacation, ill, or whatever, and you know the business,
00:12:25 and you know one area of Business ByDesign, you will find it easy to sit in for this colleague
00:12:31 and take over additional responsibilities. So, again, the user interface concept
00:12:39 comprises of different components, like the UI elements,
00:12:42 that can be individual push buttons or fields, which we then aggregate into UI patterns,
00:12:48 which we then aggregate up into so-called floor plans. And once you understand how the floor
plans work,
00:12:57 the system will always look the same to you. So that is an absolute key innovation which we
drove here.
00:13:04 And, as I said, the back end exposes itself via services and has no knowledge about who's
actually consuming it.
00:13:14 That allowed us to swap out the Microsoft Silverlight client in Business ByDesign
00:13:21 and replace it with our brand new HTML5 user interface without changing a single line of code
at the bottom here.
00:13:32 That is one of the biggest advantages of a model-driven architecture,
00:13:36 and this gives me a fairly relaxed feeling, also, about the years to come -
00:13:41 if we would see a new wave of innovation in mobile applications,
00:13:45 or if we would see HTML6 coming around the corner, or if suddenly Adobe digs up Flash
again.
00:13:54 It doesn't matter. I can always react at the user interface layer,
00:13:58 and I don't have to rewrite the applications. And very important also for my partners,
00:14:05 they don't need to rewrite the user interfaces. I will provide the technology for them
00:14:12 and they will be automatically on the latest technology. Obviously, the user interface
00:14:19 also takes care of what you are allowed to see. So there's a direct association
00:14:26 between which are the work centers that you are allowed to see
00:14:30 and what is the data that you're allowed to see. Because very often, this is a fairly complicated
matrix,
00:14:38 so that yes, you're allowed to see this and this application, but you belong to this and this sales
organization
00:14:45 and therefore you can only see these customers and the associated sales orders.
00:14:50 That is also the reason why it's not a good idea to directly access the data at a database level,

00:15:00 because the database mechanism never has the power to model
00:15:05 these complex authorization schemas. Therefore, the way to do analytical work
00:15:11 in Business ByDesign always goes within ByDesign, through all of the access-control lists
00:15:18 and the authorizations, and you see what you're allowed to see.
00:15:21 And if you call the analytical subsystem from the outside, via OData,
00:15:27 we enforce the same stringent behavior, and therefore we commit that you can only see
00:15:34 what you've been authorized by the system administrator to see in the system.

25
Chapter 4 Unit 4

00:00:05 The second piece of architecture where we spend a lot of time

00:00:09 is what we call Business Configuration. One of the analyses that we did
00:00:14 when we built Business ByDesign was, where do our customers, large customers,
00:00:19 spend the money during the implementation project? And we saw that they spend a lot of time
and money
00:00:26 in the area of customizing. Customizing is that you go into certain tables,
00:00:32 you set certain parameters there, and then the system, basically you set...
00:00:39 you come to a junction and you tell the system, either go left or go right.
00:00:44 That is something for which you traditionally need consultants,
00:00:48 and we said, if we want the agility in business processes that we need to see, then we need to
have something significantly better.
00:00:57 What we did was we talked to a lot of our large customers in the investment goods industry.
00:01:04 And we asked, for example, thyssenkrupp, we said, how do you make sure that you sell
00:01:12 an elevator that you can later build and deliver? And that obviously then led us deep
00:01:19 into the topic of configurators, variant configurators. And what we built into Business ByDesign

00:01:27 is a huge artificial intelligence engine, which is basically a rule-based engine,

00:01:33 which presents to the customer, "This is how you can adjust Business ByDesign,
00:01:38 this is how you can pick and choose which business processes you want to have."
00:01:42 And at the end of the day, when all of the questions are answered, the system calculates all of
the settings
00:01:51 for the underlying customizing tables and deploys them. So that is a really beautiful piece of
technology
00:01:57 that we built there, and it is the key reason why today the initial implementation projects,
00:02:04 let's say, financials, order-to-cash, procure-to- pay, can be done in 80 days.
00:02:10 And instead of showing you a lot more architecture slides here,
00:02:15 let me just go back into the Business ByDesign system, here into the area of Business
Configuration,
00:02:22 and show you how this works. I've prepared already an implementation project,
00:02:26 and if I click on it, what you can see is that the Business Configuration,
00:02:31 not only gives you access to all of the settings that we want to have in Business ByDesign,
00:02:38 but it also allows me to keep track of what already has been done.
00:02:43 So how many questions have already been reviewed? And so on and so on.
00:02:48 So the Business Configuration is also the built-in implementation methodology
00:02:54 which guides you through the project. If I want to edit the project scope,
00:02:59 then it guides me into, again, a specific pattern, which we call a guided procedure.
00:03:05 And the first part is... and no, I don't want to provide feedback now... the first aspect is that it
says, in which countries do you want to do business?
00:03:15 Currently, the system is set up to do business in the US. If I now go into Edit Countries,
00:03:20 and I say, I've just recently created a subsidiary or I want to create a subsidiary in China,
00:03:27 then I just move... oh, now I've moved all countries over, that is a bit too much.
00:03:33 So, I only want to move China over here. Then what that does for me in the background,
00:03:40 it deploys the Chinese language, it deploys the Chinese chart of account,
00:03:45 and it deploys all of the key capabilities around, for example, Golden Tax in China.

26
00:03:51 So that is a very straightforward way to say how I want to run my business
00:03:57 in the different countries. I skip some of the scope questions.
00:04:02 I'm going here for a full-blown implementation. And the next part now is that the system
00:04:09 presents to me what are all of the capabilities that I can choose from now.
00:04:16 And think here of a car configurator. These are all of the options
00:04:21 which you have available to yourself. To make that a bit more visible,
00:04:26 I expand the capabilities and just want to show you one or two unique features here.
00:04:33 If you, for example, say, "Hey, I'm in the middle of the implementation of Business ByDesign.

00:04:38 At the moment, Campaign Management isn't all that relevant for me."
00:04:42 Then you can say, "Okay, I don't need Campaign Management." And you could also say, "At
the moment
00:04:48 I don't need Lead Generation, and I don't need Competitive Information.
00:04:53 And maybe I don't need Market Development as a whole." So you can take out capabilities.
00:04:59 Now imagine we fast forward in time a couple of months. The implementation has run great.
00:05:06 And now you say, I want to do Campaign Management. And just watch the checkboxes
00:05:12 above the one which I'm setting. You will see that the system automatically sets now
00:05:18 a couple of checkboxes. So the system makes sure that whatever you scope
00:05:24 is always consistent in itself. That is something which is very important for us
00:05:30 because in the past we had a lot of customer systems, where the consultants customized the
system,
00:05:37 and they knew that to get a certain behavior they have to maintain five tables
00:05:42 in a certain sequence. Unfortunately, after the third sequence, the phone rang,
00:05:47 and they forgot to complete sections four and five. The system still works, but it shows an
unusual behavior.
00:05:54 That is something that cannot happen in Business ByDesign. Once you've done your selection

00:06:00 of what are the business processes, the system guides you into the next level of the dialog.
00:06:06 The next level of the dialog is that the system gives you questions which you can answer.
00:06:13 We have default values for nearly each and every question which we have in the system, but
certain things,
00:06:20 like your taxation numbers and stuff like that, we can't preempt.
00:06:24 Therefore, we raise questions here. Obviously I've been here before.
00:06:28 Therefore, we can skip this part. The system says, "Are you sure
00:06:33 that you want to go with all of the standard settings?" And I say, yes, I'm sure that I want to do
it.
00:06:39 And in the next step, the system does something very important for me.
00:06:43 The system documents now all of my decisions so far. What I want it to do is to make sure
00:06:51 that for those people who take over responsibility for a ByDesign implementation two years
later,
00:06:57 that they have a fair chance to understand what has been configured and what not.
00:07:02 So therefore, the system proposes or produces here two PDF files.
00:07:07 One is a solution proposal, which is an extensive document, or the executive summary for the
management team,
00:07:14 and the executive summary then is one short PDF document with all of the key findings,
00:07:20 with all of the key decisions that you've done in the system, so you can see everything
00:07:27 that you've defined as in scope or out of scope. That much quickly about the Business
Configuration.

27
00:07:35 I've skipped the details for it. I think you've seen most of it in the demo.
00:07:40 If you remember that the Business Configuration is the one where you can always adjust
00:07:45 the business processes, that guarantees consistency of what you are scoping. And last but not
least, the Business Configuration guides you through the step
00:07:56 from scoping to fine tuning, to testing, to doing the integration scenarios,
00:08:02 and then finally to go-live. That is the purpose of the Business Configuration.

28
Chapter 4 Unit 5

00:00:05 The last topic is integration. As I said, a solution is never complete

00:00:11 and no ByDesign system ever exists in a greenfield environment.
00:00:17 There are always surrounding systems, be it integration to your bank,
00:00:22 be it integration to other production-related systems, whatever, you name it.
00:00:27 ByDesign provides a whole array of mechanisms that you can use to get data in and out
00:00:34 of SAP Business ByDesign, be it SOAP-related user interfaces
00:00:40 or be it RESTful Web services that you want to use. And then you can also have here, for
example,
00:00:47 the integration into other analytical subsystems, be it big data warehouses like
00:00:53 SAP Business Information Warehouse, you would use the ODP protocol.
00:00:58 Or, if you work more in the Microsoft world, you would use rather the OData protocol.
00:01:05 If you want to work with attachments, obviously you have the WebDAV capability, and you can
use all of the Web APIs that we produced.
00:01:14 All Business ByDesign capabilities are accessible via Web services. A bit more technical, but
exactly the same information visually.
00:01:24 Summarized for you, these are the interfaces which we provide in and out of Business
ByDesign.
00:01:31 Therefore it also was an ambition of us, at that point in time, to say we want to build
00:01:36 the most open possible solution that we can think of. And that's why we invested so heavily in
these interfaces.
00:01:47 Very important, especially for the partners, is the repository of all of the Web service APIs.
00:01:54 We summarize all of that under the term of the public solution model. The public solution
model describes all of
00:02:01 the capabilities which are available that you can invoke from the outside.
00:02:06 For example, if you want to create a sales order, not within ByDesign but from the outside,
00:02:12 it's an easy way to find out what are the corresponding Web services that you want to
consume.
00:02:18 If you go to /help.sap.com and search for Business ByDesign,
00:02:24 you find the entire catalog of all of the Web services.
00:02:28 So, in a nutshell, that is what the Business ByDesign architecture is all about. I've introduced
you to most of the components,
00:02:38 and I think it gives you a fairly good understanding, and you see why is Business ByDesign so
scalable,
00:02:46 what have we done to make sure that it's extensible, and that you can integrate it with
00:02:52 all kinds of additional scenarios, and what have we done with Business Configuration
00:02:58 and the user interface. That brings me to the end of the architecture chapter.

29
Chapter 5 Unit 1

00:00:05 In the next chapter let's talk about some of the basic principles and cross- innovations
00:00:10 which we put for you into Business ByDesign. We've already looked at the demo where you
saw
00:00:16 how the user interface looks at the moment. And I tried to show you what is
00:00:23 the principle behind the simplification of the user interface, the pattern-based model.
00:00:28 We want to talk about how you can adjust the solution to the specific requirements that you
have,
00:00:35 and then talk a little bit about how do you use the business transparency that we built in.
00:00:41 So... you saw it in the demo that the user interface is highly consistent.
00:00:47 And, therefore, we motivate everybody to familiarize yourselves with the navigational pattern
00:00:54 in the Getting Started document available in the Help Center of Business ByDesign on the
right side.
00:01:00 If you click on here, the question mark, you will find all of the documents which explain to you

00:01:06 how to use the user interface of Business ByDesign. Built-in Help and Learning was one of the
key topics
00:01:15 for Business ByDesign because the typical mid-market companies will not come
00:01:19 to SAP training centers and spend weeks there. They will expect that they have really good
00:01:27 and solid documentation available in the system but also learning content.
00:01:32 The differences between the two scenarios are, for documentation it is, "I have a question, I
want an answer,
00:01:39 and I have a span of attention of three minutes." Learning content is rather, "I want to learn a
certain
00:01:46 behavior and I know that this will take me half an hour, so guide me now through the learning
process."
00:01:52 Therefore we built both into Business ByDesign available for our customers.
00:01:58 We made it, obviously, user specific because not everybody needs to learn everything.
00:02:02 The key user needs to know some additional things that the end users don't necessarily need
to know.
00:02:09 We built in a lot of self-services into Business ByDesign, the most popular self-service,
obviously, is "Request vacation",
00:02:19 but you can also do things like change your private data in Business ByDesign, maintain your
bank information,
00:02:27 and other topics which every user needs on a day-to-day basis.

30
Chapter 5 Unit 2

00:00:05 Let's look at the flexibility of Business ByDesign. The first part of the flexibility aspect
00:00:10 is the organizational management. Companies vary greatly in the way they organize
themselves.
00:00:17 What is the structure? Who reports to whom?
00:00:20 What is the relationship between subsidiary A and subsidiary B?
00:00:24 So all of that rolls up in the organizational management, and it is absolutely important that you
get that one right
00:00:33 when you implement Business ByDesign. You can always change it.
00:00:37 But keep in mind that the organizational model drives, for example, who is allowed to see
which data.
00:00:45 So therefore, the organizational modeling happens at the very beginning of the implementation
project
00:00:52 and is an absolutely vital step. Through the organizational model,
00:00:57 I, for example, also decide later if somebody stops a business process,
00:01:03 and sends a certain step in a business process for approval to a manager.
00:01:11 The system consults the organizational model to find out who is the manager.
00:01:17 Should the manager be on vacation, the system again then, in the organizational model,
00:01:24 finds out who is the person sitting in for this person while she or he is on vacation.
00:01:30 So that is why the organizational model is such key component in Business ByDesign.

31
Chapter 5 Unit 3

00:00:05 I talked about the analytical aspects and we saw how easy it is
00:00:10 to adjust a report to your specific requirements. Let me call out one more capability, and it is,

00:00:18 I wouldn't say hidden, but you can find it here behind the magnifying glass.
00:00:24 That's the enterprise search. The enterprise search is, again, a capability
00:00:29 which we can offer because of our in-memory HANA technology. What it allows you to do is,

00:00:36 to simply key in to the enterprise search, for example, the name of your customer Silver Star.

00:00:42 And the system will come back with all business objects, be it sale orders, invoices, account
information, whatever - you name it -
00:00:50 which is related to that customer Silver Star. So it's a kind of Google-like search built into
ByDesign,
00:00:58 but it is a semantical search. So, if you...
00:01:02 You can't see it here on the screenshot very well, but the system tells you, "Yes, I found Silver
Star,
00:01:09 I found business documents, I found attachments, I found this, I found that." So it's a
semantical search and you can now narrow down,
00:01:17 I'm only interested in the sales orders of Silver Star. I have customers who attach, for example,

00:01:27 a barcode scanner to the USB port of their machine. They scan the incoming invoice, the
barcode,
00:01:35 and they fill the barcode into the search field, and the customers tell me, "You can search a lot
faster
00:01:42 than navigate to the individual document." So therefore the enterprise search is something
00:01:48 which is super valuable to many of my customers. You saw in my short little demo the
document flow -
00:01:56 that is something which everybody who interacts with the customer... The customer says,
"Have you already shipped my order?" Yes.
00:02:03 "How will the invoice look?" You can see it. "How did the outbound delivery look?"
00:02:07 So that is the perfect way to navigate along the business processes in ByDesign.
00:02:13 One aspect of extensibility is that you can bring into the user interface of Business ByDesign
additional Web tiles.
00:02:24 This is the so-called mashup technology, and what we've done here, we integrated Google
Maps.
00:02:31 So we move, or we hand over information about who is the customer,
00:02:36 the location, the street address, to this tile from Google Maps.
00:02:43 And we visualize the information here. We can also have scenarios where, via mashup,
00:02:48 information flows back to the invoking Business ByDesign tile. So a very interesting capability

00:02:57 when you want to build integrations but you want to stick within the same user interface.

32
Chapter 6 Unit 1

00:00:05 A few more points on integration. As I said, ByDesign is both a solution and a platform,
00:00:14 and we analyzed hundreds of implementation projects and wanted to describe what are all the
things
00:00:22 that companies typically do during an implementation project, and we came back with this
visualization.
00:00:29 And in the past, 10 years ago, 15 years ago, even here, for business configuration, you
needed to bring in
00:00:36 external consultants, who did the work for you. Especially when it came to building additional
forms
00:00:44 or building additional reports, you relied on external information.
00:00:49 With Business ByDesign, we said, let's move the needle, and we said, here at the mashups,
00:01:00 everything to the left is non-coded, so the key user of the company can do it.
00:01:10 When you now need to start to program, then either you have the skills in-house
00:01:16 or you bring in somebody who helps you with more complex integration scenarios,
00:01:20 composite apps and so on. So these here are the coded extensions that
00:01:26 you can do in Business ByDesign. If we do a quick walk through Business Configuration,
00:01:32 I already told you and showed you in the demo what you can do with it.
00:01:37 So also, the solution adaptation is done after you've selected what you want to have.
00:01:42 Here, you can do, and maybe Kristof Schneider shows that a little later, you can, for example,
say,
00:01:48 "And for purchase requests above 500 US dollars, send it to the corresponding manager."
00:01:55 That is what you can do in the solution adaptation area. As Rainer mentioned,
00:02:00 for mid-sized companies, it's critical to be able to adapt a software solution
00:02:03 easily and fast to new requirements. Therefore, I would like to show you
00:02:07 how this works in Business ByDesign. The use case I would like to utilize for this short demo
00:02:12 is that of a company that plans to set up an approval process for sales orders
00:02:16 that exceed a specific threshold. So let's go to the Business ByDesign system
00:02:19 and see how this approval process can easily be implemented. To start with solution
adaptation,
00:02:23 I go to the work center Business Configuration, and here I select Implementation Projects.
00:02:28 As we can see, there is already an active implementation project which defines the current
solution scope.
00:02:33 To implement the approval process, I first need to activate this functionality.
00:02:38 To do so, I have to edit the current project scope. So I select a project and click Edit Project
Scope.
00:02:43 What you see up here is a so-called guided activity that leads me, step by step, through the
process.
00:02:48 In the first step, I define the country in which the company is operating, and the type of
business.
00:02:54 This instantly causes the system to preselect specific elements and the corresponding
predefined content like, for example,
00:03:00 the relevant chart of account. In the second step, I define the implementation focus,
00:03:08 and then in the third step I scope the solution. The solution capabilities are listed in the
00:03:13 business adaptation catalog, and let me expand the catalog a bit further.
00:03:20 This catalog organizes and structures the capabilities into hierarchies of business areas,
00:03:24 packages, topics, and options. For the described use case, I do not need to

33
00:03:29 select any additional options as the usage of the sales orders is already activated. Which you
can see...
00:03:37 ...here. The fact that it is gray means that
00:03:42 I cannot simply deactivate this option as there are dependencies with other areas of Business
ByDesign,
00:03:48 which you see when I click the Dependency tab. But what I need to do is to answer the related
questions
00:03:55 and I will do that in the Questions tab. So I click Next.
00:03:58 I, again, go to Actions to expand the list, and then I scroll down,
00:04:05 select Sales Orders, and here I find the related question:
00:04:10 "Do you want to use a multi-step approval process for sales orders?" To activate this process,
I simply need to check the question,
00:04:19 to check the box to put it in scope, and then I can go to the next step.
00:04:27 Yes, I do want to use the preselected answers. And the last step, I could review my
implementation
00:04:33 in the solution proposal here, and if I'm okay with current status of the solution proposal,
00:04:39 which I am, I can click Finish. After we have activated the functionality,
00:04:43 the approval process for sales orders, let's go back to My Launchpad,
00:04:51 and now continue with the definition of the approval limits. To define the threshold for the
approval process,
00:04:58 I go to the work center Application and User Management. And here, I select Approval
Processes.
00:05:07 In the list of the available approval processes, I need to scroll down a little bit
00:05:12 to select our default approval process that has automatically been created.
00:05:20 To edit the default approval process, I need to select it and create a copy of the default
process.
00:05:27 In the upcoming screen, I first enter the process name. I call it Sales Order Approval Video
Training.
00:05:45 In the details screen, down here, I can provide additional information for the approval step.
00:05:51 By default, the approval process related to a business document, in our case the sales order,

00:05:56 always consists of one step. But as a business process might require more than one approval
step,
00:06:02 I could add additional steps here, and also define the work distribution,
00:06:09 as well as some additional rules, for example, if all approvals are required,
00:06:15 if automatic approval is possible, or if I want to skip reapproval.
00:06:22 Here I also define the conditions based on which the approval process should be triggered.
00:06:28 And in our case, I want to trigger the approval process for each sales order that is higher than
or equal to 10,000 dollars.
00:06:35 So let me do this, therefore I click Add Group, and on the upcoming Edit Condition screen,
00:06:41 I first select the field I would like the approval process to check against, which is the Net Value
field,
00:06:49 and then I define the compare operator, which is "Greater than or equal to",
00:06:56 and the value, which is 10,000 US dollars.
00:07:05 And now I can click OK to add the conditions.
00:07:10 And I can now save and close the screen, and next I need to activate the approval process.
00:07:17 To activate the newly created approval process I go to Inactive Processes.
00:07:27 And here, let me quickly search for the related document which is sales order.

34
00:07:33 And I've found our newly created approval process down here.
00:07:38 I now need to edit the validity, therefore I click Edit Validity,
00:07:43 and now on the upcoming screen I first need to stop the default approval process,
00:07:50 which I do by unchecking Unlimited Validity. And define the end date, which is
00:07:58 today at 07:02. And now I define the start date for our new approval process,
00:08:10 which is the same date, and the end date should be unlimited.
00:08:21 I now can check the process, and now that tells me the current time stamp,
00:08:29 it's one minute past, so I need to change this quickly because the time sync cannot be
00:08:39 before the time stamp of the system. Let me check again - and you see,
00:08:45 now all processes are consistent. And I can now save and close the screen
00:08:51 to activate our new approval process. And with that, let me continue to create a sales order
and
00:08:56 see how the approval process is applied in the sales order. To create a new sales order that
exceeds the approval limit,
00:09:03 I go to the Sales Orders work center, and here I select the common task New Sales Order.
00:09:09 In the upcoming New Sales Order screen, I first enter an account.
00:09:15 I choose Luxury Heating and Cooling, and then, further down,
00:09:21 enter the product information. I will sell 40 of our "Gas Boiler Combi 75"
00:09:36 to make sure that the value is higher than 10,000 net value. As you remember, that was the
threshold
00:09:44 that we have defined for the approval process. And if I now click Submit
00:09:51 and release the order, you will see that the sales order
00:09:58 requires an approval. With that, I'm done with that little demo to show you
00:10:03 how easy it is to adapt Business ByDesign to new requirements.

35
Chapter 6 Unit 2

00:00:05 The next aspect is personalization - UI adaptation and individual workflows.

00:00:11 The personalization is the capability, where each and every user,
00:00:16 and the system administrator too, can say, "These are the relevant parts in the user interface."

00:00:22 And you can map out things that you don't consider useful, be it individual fields,
00:00:26 be it entire tasks - just take them out or reshuffle the whole thing
00:00:31 in the way you want to use it. You can reach that one through the icon here in the middle
00:00:39 where you normally would see your picture. There you can start the personalization dialog,
00:00:44 and you can simply deselect this checkbox here, and then an entire tile over here may vanish
or may appear.
00:00:54 So, that is what personalization is all about.

36
Chapter 6 Unit 3

00:00:05 Extensibility is the area where we talk about, how do you build custom documentation and
learning?
00:00:14 How do you build your individual forms? Because, pretty often, you want to change maybe,
00:00:20 if you have a change in your board of directors, you need to change the underlying forms
there,
00:00:26 and state the right names. Custom analytics, we've already talked about,
00:00:30 companies have their own ideas about which reports are key, and which KPIs are key,
00:00:36 and the extension fields. So if we quickly go through that,
00:00:40 the key user extensibility is, you can, for example, on an individual screen,
00:00:46 add additional fields to it. You can say, I need a field - stupid as it sounds, maybe - "Shoe
size".
00:00:55 Then in the material master record for a product, you can define additional extension fields,
00:01:02 and that is a non-coded extension. So the system presents a dialog to you,
00:01:08 and says, "What is the field name? What is the purpose of the field?
00:01:12 What type of field is it? What kind of relations does it have?"
00:01:16 So it is something that a normal business user can do in the system.

37
Chapter 6 Unit 4

00:00:05 Flexibility and extensions. I've talked about the non-coded side of the house,
00:00:12 but obviously, we also have scenarios where customers say, "We need additional
integrations,"
00:00:19 into other, let's say, CRM solutions or other manufacturing execution solutions.
00:00:26 So we've tried to pre-think all of those scenarios which are, or which you will run into
00:00:34 during the implementation project, and give you capabilities to either use
00:00:40 and adjust a core process, or extend with key user tools. Or if additional logic is required,
00:00:50 we will provide you with the SAP software development kit called the Cloud Applications
Studio.
00:00:58 So this circle here visualizes what are all of the capabilities
00:01:03 which we provide you to make sure that you can adjust the Business ByDesign system
00:01:09 to the specific requirements of your company. Give me a few more minutes to talk
00:01:16 about the SAP Cloud Applications Studio. SAP's mission in life
00:01:22 is to build out the SAP solution scope. These are the capabilities
00:01:29 where SAP says, "That is our obligation, we need to do it. If we don't do it, most likely nobody
else will do it."
00:01:37 These are the core capabilities around financials, human resource management, whatever -
you name it.
00:01:43 But the lion's share of the entire segment is the responsibility of the partners.
00:01:51 So the partners build the integration scenarios. The partners build all of the add-ons
00:01:57 which are super relevant for my customers. They build additional forms and reports, mashups,

00:02:04 or entire micro-vertical solutions. For example, one of my partners,

00:02:10 Seidor in the United States and in Spain, they took Business ByDesign
00:02:16 and specifically adjusted it to the needs of gym clubs. So they added a couple of capabilities
00:02:23 like management for training plans, the integration into the revolving door, and stuff like that.
00:02:30 But they reuse as much as possible from Business ByDesign. So again, this talks to the
platform nature
00:02:38 and the importance of the ecosystem around it. Let me show you one example
00:02:43 where standard software typically doesn't meet the requirements of the customers,
00:02:47 that's the example of bonus plan management. Every company does it in a slightly different
way,
00:02:53 and therefore, it's a good example to solve this specific capability via an add-on
00:02:59 through the SAP Applications Studio. So what are we talking about?
00:03:03 We are talking about that we want to define a new business object in Business ByDesign,
00:03:09 so we want to open up a new honeycomb, a new deployment unit, and have in there
00:03:14 one business object, which is called the BonusPlan.bo. So how do I do that?
00:03:19 I've already logged on to the Cloud Applications Studio here, and what you can see is a typical
example
00:03:27 of a domain-specific language. In this domain-specific language,
00:03:31 you can describe now, I want to create a business object called BonusPlan, and I used my
initials
00:03:38 to simply identify it. And the BonusPlan comprises
00:03:44 of a couple of elements. So, a "Bonus Plan ID", a "Description",
00:03:49 a "Start date", an "End date", and so on and so on. It's very easy to read.

38
00:03:53 You just write down what are the attributes that you would associate or that you want to see
00:03:59 in that specific BonusPlan object. So, now you have a BonusPlan object,
00:04:05 you don't need to worry about how the select statement
00:04:08 and the data definition language statements now look. That is something that the Cloud
Applications Studio
00:04:14 does completely for you. It builds all of the indexes
00:04:17 and all the things you don't need to worry about. So, now we have the business object,
00:04:24 and let me just call out two things here at the bottom. The business object
00:04:29 is associated to the employee because obviously a bonus plan needs
00:04:37 to be allocated to an individual employee. And I already define here
00:04:42 that I will have two actions. One action is to calculate the bonus
00:04:46 and then I can have additional capabilities here. So, that was the first step.
00:04:52 I've defined my business object. The next step now is that I create these associations
00:04:59 to my two other business objects, one is the SalesOrder,
00:05:03 the other one is the Employee. And here you see the power
00:05:07 of what Business ByDesign can do. Traditionally I would have copied
00:05:12 the business object, and with that decoupled myself from further development of the solution.
00:05:19 Here in this case, what I do is I overdefine my business object,
00:05:25 and just let's look at it here from an employee perspective.
00:05:29 So, I define for this employee is he eligible for a fixed bonus,
00:05:35 and if so, what is the total bonus amount? Now that we've created the relationship
00:05:43 between our BonusPlan business object and the business object of the employee,
00:05:49 I can move forward with the next step and define a data source.
00:05:54 A data source is basically the analytical representation, and in the data source, I now funnel all

00:06:01 of the information that I need. So, if I look at the data source definition,
00:06:06 I have a header here and then I can say which are the individual fields
00:06:12 which I want to make available in this data source.
00:06:15 The beauty of the data source is that I can access information
00:06:20 not only related to one specific business object, but all of the three business objects together.

00:06:27 So, when I later want to build reports on top of this object,
00:06:31 it is a lot easier than linking together the information in a different way.
00:06:37 Once I'm done with the definition of the data source, I can now focus on building out the
capabilities
00:06:45 which I want to associate to that business object. And the way we do that
00:06:50 is that we can now build the so-called actions. If you look at the way the actions are defined,
00:07:00 you see that it's not SAP's own programming language, ABAP, but that we've borrowed the
syntax of C# from Microsoft.
00:07:10 We wanted to use a state-of-the-art scripting language. We could also have chosen Ruby
00:07:18 and we've experimented with a lot of other languages. I could also do it in Python.
00:07:23 That doesn't matter. The key thing is we wanted to have a way
00:07:28 we can easily define in a scripting language what are the variables that we need,
00:07:34 and then what I do here is I check, is this employee eligible for a bonus plan?
00:07:42 If yes, I loop here over in this example the sales quote - typically I would rather use
00:07:49 the sales order, but that's the example here. I loop over it, I add up all of the numbers which I
want to have,

39
00:07:56 and finally, I write these numbers then into the persistency layer of Business ByDesign
00:08:02 and I'm ready for further calculations. So that is then the next step,
00:08:07 that I define all of the actions, and I can now continue to build a user interface
00:08:14 on top of Business ByDesign, on top of the BonusPlan.
00:08:18 I won't show that here. I could do the input/output mechanism.
00:08:23 I could, for example, say I want to be able to upload historic bonus plans
00:08:29 via XML files, then I can do this here. And I can finally, once I've developed everything,
00:08:37 in the developer's desktop, I write all of the results,
00:08:42 so all of the business objects, the actions, the forms, the user interface, the query definitions.

00:08:48 I have all of that in my repository. And what I physically do is I collect all
00:08:54 of that information, put it into a ZIP file, and I can transfer or deploy this ZIP file now
00:09:02 into the target tenant where I want to make that solution available.
00:09:07 So, I will do a final test of my solution and then I can tell my customer
00:09:13 the new capability is ready for inspection, and then if I have additional feedback,
00:09:20 improve the solution further, and have an entire lifecycle management solution
00:09:26 built into the SAP Cloud Applications Studio. So, that is the so-called one-off case
00:09:34 that I have available. I build something, I test it in the test tenant
00:09:38 and I deploy it in the production tenant. Also, if partners work and serve multiple customers at
the same time,
00:09:46 they do it in the partner development tenant. There we also have one more capability
00:09:52 which is the multi-customer solution. In the multi-customer solution,
00:09:57 the partner maintains the solution just once and then deploys all of the resulting solutions
00:10:05 into the individual tenants of the customer, which obviously lowers
00:10:10 the maintenance load on the partner side. So, in a nutshell,
00:10:14 the Cloud Applications Studio is the instrument of choice to do extensions of Business
ByDesign
00:10:23 on the inside of Business ByDesign. The advantage for the partner
00:10:27 is whatever they build looks exactly like the solutions that SAP would build,
00:10:33 so that is good whenever you want to add one more business object,
00:10:37 add more capabilities. That is what this in-place extensibility is good for.
00:10:42 Let me mention also that you can do a side-by-side extensibility,
00:10:47 especially with SAP, the SAP Cloud offering, where you then consume the Web services
00:10:54 that would, for example, be if you want to integrate a chat application in Business ByDesign,
00:11:00 I would rather use the SAP Cloud offering, use some of the frameworks there.
00:11:06 And once the chat has reached a level where you now want to create a sales order out of it,
00:11:13 that is when you invoke Business ByDesign via the Web Services interface.
00:11:19 So, these are the capabilities of the Cloud Applications Studio and what you can do with it.

40
Chapter 7 Unit 1

00:00:05 Let me talk for a second now about the subsidiaries. As I said, also mid-market companies
00:00:11 have a lot of subsidiaries, and let me give you a short taxonomy
00:00:16 of what these subsidiaries do, because pretty often I also have situations
00:00:21 where customers are using something at their headquarter, and they are using ByDesign at
the subsidiary level.
00:00:27 Normally, especially if it's a large SAP customer, I always recommend if you are using SAP
Business Suite
00:00:34 or S/4 at the headquarter level, consider first S/4 also at the subsidiary level.
00:00:41 The advantage is obvious. You can use the same data model, the same process model.
00:00:47 But if you have a situation where the headquarter and the subsidiary
00:00:53 are using similar processes, but the subsidiary is just using a much smaller subset,
00:00:59 then it may be economically advisable to use something else.
00:01:03 So, if the subsidiary does the same business but at reduced complexity, what is key?
00:01:09 Key is that they get a cost-effective solution. I know a lot of customers who say,
00:01:15 "We spend a maximum of 10% of the earnings before income tax on IT at a subsidiary level."

00:01:22 Therefore you have a certain financial corridor in which you have to deploy and build the
solution.
00:01:29 Time to go live is mostly not that relevant, but they need a solution which is easy to use.
00:01:34 I have customers who said, "Have you ever tried to hire somebody in the Philippines," let's
say,
00:01:41 "with good SAP know-how?" These people either don't exist
00:01:46 or they call themselves consultants, therefore whatever solution we want to deploy there,
00:01:50 it must be easy to use. And it is key that the solution properly integrates
00:01:57 into the environment that you're working in. Another scenario would be
00:02:02 the subsidiary does a completely different business than the headquarter.
00:02:08 That could be that, for example, I know one company from the oil industry
00:02:12 where a subsidiary is in charge of the maintenance of petrol stations.
00:02:18 That's a completely different, more project-based business.
00:02:22 There it is very important that you can deploy a solution
00:02:26 in a lightweight manner, which nevertheless is integrated.
00:02:30 Joint ventures is a key topic, especially if it's still in an early stage of a joint venture,
00:02:35 you can't load a lot of IT cost into a joint venture. Therefore a cloud solution on a subscription
basis
00:02:43 is the perfect thing to have for such an environment. The same thing for mergers and
acquisitions.
00:02:50 I know companies who sell and buy companies by the dozen. When they decide to sell a
company,
00:02:57 they want to get them off of their corporate backbone as soon as possible,
00:03:01 put them onto a ByDesign system because you can't sell a company today
00:03:05 without a working ERP system, and then sell them off in the market.
00:03:10 The same thing when you acquire a company, the day you do it,
00:03:14 you're in charge of their financials, and it may take too much time for you
00:03:18 to get them first onto your corporate backbone. Therefore the easier way maybe,
00:03:24 get them first onto Business ByDesign so that you have control over all

41
00:03:28 of the financials, and then in the second phase, move them to S/4 or SAP Business Suite.
00:03:35 So, these are the typical subsidiaries scenarios that we see, and nearly every mid-market
company
00:03:42 that I'm working with has subsidiaries, and they helped me to come up
00:03:47 with this classification to explain what is the role of the subsidiary,
00:03:52 what is the business scope of the subsidiary, and why is Business ByDesign a good solution
for that.
00:03:59 With that, we come to the end of this chapter here on the subsidiaries,
00:04:03 and I would like to hand over to Kristof Schneider who will give you an update
00:04:09 on end-to-end processes in Business ByDesign.

42
www.sap.com/contactsap

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