It Application Tools in Business

IT APPLICATION TOOLS IN BUSINESS / SAP – PRELIM - FINALS [2ND SEMESTER]
What is Technopreneurship?
For most people, entrepreneurship is a broad subject that has various definitions. Some define it as a process of identifying
business opportunities. Some say that it is a study of how new businesses are created and some view it as the actual
creation of business. Out of the numerous definitions, the term which is repeatedly being emphasized is the word
“business” and “idea”. In simpler terms, entrepreneurship is the process of coming up with an idea and forming it into a
business. Along with the process are risks which are needed to be undertaken in order to make a profit. The people who
engage themselves in this process are called entrepreneurs. Moreover, the concrete utilization of technology to help
transform a business endeavor into an entrepreneurial endeavor means TECHNOPRENEURSHIP
Businessman vs. Entrepreneur
People often mistakenly associate businessmen as entrepreneurs. In contrast, a businessman is someone who starts a
business venture using traditional concepts or ideas.
For instance, an individual who puts up a store that sells Coca-Cola products. These products are already existing in the
market and if the person decides to sell these in order to make a profit, he is considered as a businessman as he uses an
existing idea already. On the other hand, entrepreneurs are individuals who think of new ideas and materialize them into a
possible business venture. Supposed an individual came up with an idea of creating and selling a new brand of soft drink,
he is considered as an entrepreneur as he uses new and innovative idea. The chart below summarizes the difference
between a businessman and entrepreneur.
The Technopreneurial Mindset
Regardless of educational attainment and social class, anyone can be an entrepreneur. But it does not mean that anyone
can become an entrepreneur the moment they want to be. Being an entrepreneur entails skills which are necessary for the
whole duration of the process.
1. Set and visualize your goal. The best way to start is to begin at the end. Take time to sit back and examine what
your goal is. Having a clearer picture of your vision entices you to become a person with a sense of purpose.
Visualize what you want to achieve for the next years and work on your way one step at a time towards the
accomplishment of your goal.
2. Plan and accomplish, even the slightest detail counts. Be aware of every detail that might help you achieve
your vision. Create a mental image depicting the processes needed to be accomplished and execute your plans.
Along the process, you might encounter instances wherein you need to change your plan. If so, do not be afraid
because these changes are indeed part of the process.
3. Time is a resource. Do not waste it and manage it properly. Procrastination is the enemy of success. Always
protect and manage the time you have allotted for your plans. Time is the most valuable asset you can have.
4. Be outcome-oriented. Have a clear grasp of the output you are trying to produce. Take into consideration every
action you will have to undertake but focus mainly on the outcome and never change your initial goal. If you do
so, the tendency is that every time you are aiming at a certain goal, you might be overwhelmed and sometimes
you may think you may have reached an impasse or dead end, which then leads to you having the notion of
changing your goal. This will spoil the progress you have achieved.
5. Mind makeover. Remind yourself always of the person you want to be. Learn from your experiences and lead
yourself to your desired goals. Recognize the importance of having greater skill sets and teach yourself constantly
on how to acquire such.
6. Focus. Once you have a clear picture of your opportunities, focus on the present. Concentrate doing the things
you are presently doing while keeping your head up on the future. You may be overwhelmed with the many
challenges you will encounter, always follow along the course until you become successful.
A FRAMEWORK FOR SUCCESSFUL TECHNOPRENEURIAL ENDEAVOR
Starting any business venture requires a great deal of sacrifice. Entrepreneurs often search for the best advices when it
comes to managing a business. Out of the many business models, entrepreneurs often keep in touch with those that are
commonly implemented. Sometimes, they spend a lot of money to purchase books and even attend business seminars just
to find the model that suits their businesses. Even if they find the right model, it takes only few, unprecedented situations
that make them change their minds and look for another model, and this process goes on and on until they finally settle for
what they think the best business model is. In the framework provided below, the four, namely Idea, Innovation, Strategy
and Manpower are needed for a successful business venture. In each of the four components, the occurrence of risk and
competition is inevitable but focusing on the main goal of the business as illustrated by putting the icon of the business at
the center of the framework will somehow keep things on track.
 Idea. Every business starts with an idea. But then, successful businesses start with unique ideas. Whether a
business is offering products or services, it is more likely that it will be more successful than the other and
existing businesses if the idea is considered to be one of a kind in the market. Innovation. Along the process of
managing a business venture are concepts which are radically being discovered. These concepts are new to the
business and entrepreneurs take time to study and fully implement them. These innovations oftentimes are the
reasons why businesses continue to evolve for the better.
 Manpower. People are what make up an organization or business. How well a business grows depend on how
well the people involved perform. Management is a crucial process of a business’ growth and development.
Having skilled people with the right attitude will surely add harmony to the business operations.
 Strategy. Business strategy is defined as the plan of action designed to attain a common goal. Successful
organizations look forward to its long-term plans and visions. Oftentimes, what makes a business stand out from
other businesses is the uniqueness of its strategy that is being implemented within its operations.
 Risks and Competitions. One of the indications of a successful business is the existence of risks and
competitions. Usually, in successful businesses, business owners recognize the presence of both foreseen and
unexpected problems. These problems are considered as opportunities for them to improve their operations. Most
of the successful business ventures consider competitions (e.g. business rivals) as drive in order for them to step
their game up and look for ways on how to not let these competitions take the lead.
The Market
People will always have their needs and wants which can only be found in the marketplace. It is where the exchange of
products from buyers and sellers takes place. Today, the market exists everywhere and anywhere. It can either be physical
or online as shown in the following illustrations.
Before, there was only the physical market where people gather to buy products personally. When technology came, it
slowly merged itself into our daily lives greatly affecting the way we buy in the market. The online market allows people
to buy products in the comfort of their homes with the use of gadgets such as smart phones, computers, tablets, and a
stable internet connection. Lazada, eBay and Amazon are examples of online markets which also let you pay online, cash,
or with use of credit cards.
The Market – Past to Present
Long before money was used in the market, there was the barter system. The barter system allows two or more parties to
exchange goods and services for other goods and services from the other party. The history of the barter system goes all
the way back to 6000 BC and as civilizations begins to progress, so does bartering. People started to exchange goods for
food, spices, and even weapons. By the time that money was introduced, bartering became better and more organized and
gave birth to the state of the market we know today.
In the present era, the market is still dominated by two parties, the buyers or what we usually call customers and the
sellers which can be either a businessman or an entrepreneur. In the barter system, same products from different parties
can be exchanged regardless of the resources used to make the product. In the example below, when the barter system was
still commonly used, a plate made of wood and a plate made from glass has the same value. Whereas today, with money
as a medium for product exchange, the wooden plate would clearly be cheaper than the other plate.
Technology advances together with time. It takes away the difficulties and reduces the time in finishing a certain task. In
the coming years, although it is currently happening today, online markets will be more rampant. Online market is a new
trend in the marketplace as it lessens your effort in going to physical markets and buying the products you want. However,
there are some disadvantages when it comes to buying products online. Some are listed below:
 Delayed delivery. Since the product is bought online and if you are in a far place, chances are, the product will
arrive late because of unpredicted events.
 Damage during transport. During the delivery of the product, there will be certain conditions that will cause at
most minimal damage to it.
 Lack of inspection. Buying in the online market will not give you a chance of inspecting the quality of the
product. Nevertheless, you have to accept the quality of the product delivered to you.
Competition in the Market
The business world can never be that challenging to a young entrepreneur like you without a fair competition. As time
passes by, more and more entrepreneurs develop new and innovative products as a solution for the ever-growing needs
and wants of customers. The idea of these products however does not stop from developing to distributing them. A
constant effort to improve existing products will not only satisfy the customers but also increase the number of customers.
Usually in the market, customers can become sellers themselves and are often called resellers or businessmen. What they
do is to buy a product with the original market price and sell it at a higher cost for a higher profit expectation. Some
products may also have similarities but made from different brands. In relation to this, if products similar to yours exist in
the market, how will you be able to convince customers to buy yours?
Products, especially those already existing, need to be introduced in new and different ways in the market. Creative
overview of products often gets a lot of attention and interest from customers. Some of which are enumerated below:
 TV Commercials. Utilizing one of the most popular technology today will certainly get a lot of attention from
customers. Viewers from around the world will be able to have a glimpse of what your product has to offer.
 Radio Advertisements. You may want to make a radio advertisement for the areas that only radio signals can
reach.
 Flyers. With a simple picture and description, distributing flyers to a populated community can be of great help in
marketing your product and with minimal cost.
 Newspaper Advertisements. Since the mid-1700s, newspapers have been used to disseminate information to the
public. Included in these newspapers were advertisements promoting different products.
Technopreneurial Success
A lot of people are facing their own problems in life but only a few can give solutions to it. As young entrepreneurs, even
your smallest idea for a solution can lead to a bigger one and be able to help a lot of people. Entrepreneurs like Bill Gates,
Mark Zuckerberg and the late Steve Jobs all started their business from a single solution that they thought would assist the
people from their daily tedious tasks. Their unique and innovative idea is the very foundation of their success. Their vision
which is anchored on determination and hard work enabled them to turn their idea into a successful business scheme.
Below are the success stories of these three entrepreneurs which made them what they are today.
WILLIAM HENRY GATES III a.k.a. BILL GATES

Founder of Microsoft Corp.
When he was 13, young Bill already showed interest in computers and because of this, he successfully hacked a computer
in his school and used it for free. When the school was informed about the incident, they took immediate action and
banned Gates from using it again. Later, upon realizing the skills he possesses, the school asked him to use the computer
and should report back any bugs he will encounter to improve the computer system. He became a hacker from that
moment on.
Micro Instrumentation and Telemetry Systems’ (MITS) Altair 8800 microcomputer in January 1975 inspired Paul Allen
(Bill Gates’ childhood friend and who later became the co-founder of Microsoft) to suggest a BASIC interpreter that
could be programmed for the device. Gates made a call to MITS and claimed (although not true) that they already have a
working interpreter. When MITS requested for a demonstration, Allen began working on a simulator while Gates created
the interpreter which are both for the Altair. After a flawless demonstration of the interpreter in March 1975, MITS agreed
to market and distribute it as Altair BASIC which was the start of Microsoft BASIC. Microsoft was officially established
on April 4, 1975 and is still one of the biggest companies today that focuses on the development, licensing and
distribution of computer-related services and products.
MARK ELLIOT ZUCKERBERG a.k.a. MARK ZUCKERBERG

Co-founder/Creator of Facebook
With the idea of connecting people came the most popular social networking site today, Facebook. In his sophomore years
in Harvard (2003), Mark wrote a program called FaceMash. It is a website that allows visitors to compare two pictures of
female students and decide which of them is hot or not. It was shut down by Harvard administrators a few days later and
Mark was charged with breach of security, violating copyrights and individual privacy and faced expulsion. The charges
were dropped eventually and Mark created the social study tool Coursematch for their art history final exam. In
Coursematch, art images are uploaded to a website with a comment section. He then shared the site with his classmates
where they began to share their notes.
In January 2004, Mark started writing a code for a new website named TheFacebook. It was based on face book—a print
material found at some universities which consists of students’ photographs and their names. He launched TheFacebook
in February 2004 which was then originally located at www.thefacebook.com. Today, Facebook is the most popular social
media website in the world with at least two billion active users every month.
STEVEN PAUL JOBS a.k.a. STEVE JOBS

Co-founder of Apple Inc.
In 1972, Jobs attended Reed College and dropped out the same year. The declassified reports from the FBI states that Jobs
was a marijuana and LSD user while in college. Seeking enlightenment, he travelled to India and studied Zen Buddhism
in 1974.
Steve Wozniak, an acquaintance of Jobs since he was 13, created Apple I personal computer. To sell Apple I, Jobs and
Wozniak formed an alliance and co-founded Apple in 1976. A year later, both gained wealth and fame from selling the
Apple II which was then one of the first highly successful personal computers. Inspired by the GUI (graphical user
interface) and mouse-driven feature of the Xerox Alto, Apple Lisa was developed in 1983 but has never became that
successful. However, after Apple Lisa came the Macintosh. It was the first mass-produced computer with GUI that
became a breakthrough for Apple in 1984. In addition to this, it was the Macintosh that introduced the desktop publishing
industry the following year with the addition of the first laser printer to feature vector graphics, the Apple LaserWriter.
After a long power struggle with Apple’s board and its then CEO John Sculley, Jobs was forced out of the company in
1985. Taking a few of the company’s members, Jobs founded a new computer platform development company he called
NeXT that specialized in computer for business markets and higher education. In 1997, Apple merged with NeXT and
Jobs became CEO of Apple within a few months to revive the company that was then in the edge of bankruptcy. With
determination and hard work, Jobs together with designer Jony Ive developed new lines of products that included the
iPhone and iPod series, Apple Store, App Store, iMac, iTunes, etc. Jobs died at the age of 56 because of respiratory arrest
related to pancreatic neuroendocrine tumor diagnosed in 2003.
WEEK 3
SALES, MARKETING, AND DELIVERY
Sales - defined as the number of products sold at a given period. If the number of products sold is high in a short amount
of time, it means that the product is in demand or at its peak. However, if the number of products sold is low in either
short or long span of time, one of the main reasons would be the lack of a marketing campaign. Low product sales are
often caused by the lack of marketing campaigns. Products, especially the ones that are new to a customer’s eye, will not
be that easy to sell. To avoid this kind of situation, you can use different strategies such as distributing flyers and creating
TV commercials or newspaper advertisements in marketing your product. In conducting marketing campaigns, you should
remember the following tips to effectively market your product.
Product Information - Add everything the customer needs to know about the product.
Know your customer - Before marketing your product, you should establish a clear goal on whom you will sell it to.
Otherwise, no one will buy your product.
Offer your product - Persuade your customers. Let them know and if possible let them see how beneficial your product
is.
Delivery is very critical in businesses especially online. The delivery time of the product greatly affects the review of
customers and the after sales of it. However, if a product is meant to be delivered to a customer’s doorstep, it does not
mean that you have to deliver it quickly. One must always consider some key points in order to make multiple efficient
deliveries.
Location - It is the most important thing to consider in delivering a product. The farther the place, the longer it will take
to make the delivery.
Weather - The unpredictable change in the weather can greatly affect the delivery time of a product. As it sometimes
causes massive damages to roads and bridges, long-term delay may occur.
Bulk Delivery - When a customer orders a product, if possible, take time to wait for some other customers from nearby
locations to order. Then gather all the products and make the delivery as one. This will lessen the cost of travel in making
the delivery.
Product delivery can be very difficult to handle. If done wrong, sales might go down and the review of customers in your
service will be affected. But if done right, positive reviews, feedbacks and recommendations will be a priceless reward
from customers. Remember not to deliver quickly but deliver wisely.
OUTSOURCING
Outsourcing is derived from the words outside and resourcing. It is a business practice wherein you are to decide whether
foreign resources are to be used in the benefit of your company. A company often has its core procedure which is given a
lot of attention. When a company begins to expand its field of market, so does its need for manpower and resources.
However, as important as it may seem, getting enough manpower and resources will not only consume time but also
money. In these situations, a company tends to resort to outsourcing to reduce the time and cost of looking for what it
lacks. There are two circumstances that needs to be carefully thought of before outsourcing.
1. Know what to outsource. Knowing what you need is very important when you decide to outsource. Usually, companies
only focus on one field of expertise and sometimes forget the others. When this situation happens, a company often resorts
to outsourcing people. However, they should possess the proper qualifications for them to be considered and the existence
of different fields of expertise provides a greater chance for the company to find the right person for the job.
It is not only people that can be outsourced. At times, companies also resort to outsourcing some resources they use in
their products. Also, it helps secure a stable chain of supply for the materials needed which can help the company focus on
the other aspects of the business.
2. Know when to outsource. Knowing when to outsource is one of the challenges faced by some companies. It needs
careful planning and consideration whether outsourcing now or later would be beneficial to the growth of the company.
Types of Outsourcing
Knowing when and what to outsource are keys in making a business more productive as it allows wise utility of its
resources, manpower, and expertise. Consider the following specific types of outsourcing to better understand it.
1. Professional Service Outsourcing. Companies often outsource some of the complicated tasks and procedures. IT,
accounting, legal, purchasing, and administrative support are the most common outsourced services.
2. Manufacturing Outsourcing. This type of outsourcing has been a trend for a while now. Since making your own
products is costly, it would be a good idea to do the manufacturing in a place where labor costs less. This will save both
money and manpower.
3. Process-Specific Outsourcing. For the continuity of a company, normally it focuses on its core procedures. With
process-specific outsourcing, other necessary procedures can be done by another company. Let’s take a book company as
an example. Its core procedure would involve writing, illustration, layouting, proofreading, editing, and mass-producing
the books. If a book company ties up with another company to take care of the delivery of ordered books, process-specific
outsourcing is done.
4. Operational Outsourcing. Operational outsourcing takes over the procedures required for the best quality of a product
from the company to a third party company. Usually, maintenance and equipment repairs are those that are commonly
outsourced. In some products like smartphones, before a company releases it in the market, a dedicated quality assurance
team inside the company will have to test it and then the company will hire a group to further test the quality of the
smartphones.
WEEK 4: E-COMMERCE
Business Models in E-Commerce
In the Philippines, most of the businesses done online can be categorized into 4 business models namely Business to
Business, Business to Customer, Customer to Customer, and Business to Government. Let us tackle each of these business
models for you to have a concrete grasp of them.
Business to Business (B2B)
An e-commerce site following the Business to Business model allows intermediate buyers to place order online. After the
business organization delivers the order, the intermediate buyer can now repackage or resell the products to the customer.
In the illustration for the Business to Business (B2B) model, the intermediate buyer serves as the wholesaler. Wholesalers
buy products at high volume in a lower price and sell them to end-customers in a higher price.
Business to Customer (B2C)

The Business to Customer (B2C) model offers a simple and direct paradigm. Products offered by the business
organization can be viewed through the e-commerce site. After online transaction, the business organization facilitates the
delivery of products. The customer can track the status of his transaction and can even give feedbacks in this regard.
Customer to Customer (C2C)
Literally, Customer to Customer (C2C) model happens if two customers are involved in buying and selling products. In
this model, an e-commerce site allows customers to publish information about the product they are selling with or without
charge. Once the advertisement is viewed by other customers, they may opt to buy the product.
Business to Government (B2G)
The Business to Government (B2G) model encompasses online business transactions made between a business
organization and a government organization. Business organizations involved in this type of model are those that are
accredited by the government organization they transact with. Usually, a contract is signed by the two parties involved in
the business.
WEEK 5: INFORMATION SYSTEMS
PRODUCT OR SERVICE PROMOTION
SHARED
 Inform, advocate
PROMOTION
 Endorse
 Establishing awareness
 Attracting, persuading
 Cost-effective
 Short span of time only
 Free samples, social media campaign, coupons and sales are some of the most common examples of promotion.
 Celebrities endorsements can also qualify qualify under this strategy for as long as there is a specific event where
a chosen celebrity endorses a product or service but not shown on television, heard on the radio or seen on
magazines or billboards.
ADVERTISING
 paid content
 television and radio commercials, magazines, billboards, website banners
 expensive
 tested long-term effect
Commercial should not be mistaken with infomercial
 paid content
 advocacy
 not associated with any product or service
THE NATURE OF PROUCT OR PROMOTION
 Product or service promotion has a major goal of persuading potential customers and gets their loyalty.
 Product or service promotion has a direct effect to potential customers
 Product or service promotion has a short-term duration and effect.
THE USE OF EFFECTIVE COMMUNICATION ON PRODUCT PROMOTION
 Completeness
 Conciseness
 Consideration
 Clarity
 Concreteness
 Courtesy
 Correctness
INFORMATION SYSTEMS IN THE DIGITAL AGE
COST ASSOCIATED
 Production
 Distribution
 Security
 Storage
 Retrieval
INFORMATION
By-product of conducting a business fuel of the organization
 Success
 Failure
Though information is around us, it is not free and its strategic use for positioning a business competitively should not be
taken for granted.
INFORMATION
 Production
 Distribution
 Security
 Storage
 Retrieval
SYSTEMS ANALYSIS AND DESIGN
Technology Businesses
 System
 Analysis
 Design
 Systems analysis
 Systems design
SYSTEMS DEVELOPMENT
 Systematic process which includes phases such as planning, analysis, design, deployment and maintenance.
SYSTEMS ANALYSIS
 Collecting and interpreting facts

 Identifying the problems
 Decomposition of a system into its components
SYSTEMS ANALYSIS
 Why is it conducted?
o It has the purpose of studying a system or its parts in order to identify its objectives.
 Problem solving technique
o Improves the system ensures that all the components of the system work efficiency to accomplish their
purpose.
 Analysis specifies what the system should do.
WHAT IS NEEDED BEFORE PLANNING?
Understand the old system thoroughly and determine how computers can best be used in order to operate efficiently.
SYSTEMS DESIGN
 Focus
o How to accomplish the objective of the system
 System Analysis and Design [SAD] mainly focuses on:
o Systems
o Processes
o Technology
WHAT IS A SYSTEM
Origin in GREEK:
SYSTEMA – an organized relationship between any set of components to achieve some common cause or objective.
A system is “an orderly grouping of interdependent components linked together according to a plan to achieve a specific
goal”
BUSINESS INFORMATION SYSTEM
Sets of inter-related procedures using IT infrastructure in a business enterprise to generate and disseminate desired
information.
Systems are designed to support decision making by the people associated with the enterprise in the process of attainment
of its objectives.
There are systems of control over the use of IT resources and the feedback system offers useful clues for increasing the
benefits of information systems to business. The business information systems are sub-systems of business system and by
themselves serve the function of feedback and control in business system.
TYPES OF BUSINESS INFORMATION SYSTEMS
Office Automation Systems
 Support data workers

 Familiar aspects
o Word processing
o Spreadsheets
o Desktop publishing
o Electronic scheduling
o Email
KNOWLEDGE WORK SYSTEMS [KWS]
Aids professional workers
 Scientists
 Engineers
 Doctors
Knowledge Work Systems (KWS)
Inputs: Design specs
Processing: Modeling
Outputs: Designs, graphics
Users: Technical staff
Example: Engineering work station CAD
Virtual Reality
Investment Workstations
Human Resource Systems
MANAGEMENT INFORMATION SYSTEM [MIS]
 It does not replace TPS; rather it includes it.

 Caters to a broader spectrum of organizational tasks
o Decision analysis
o Decision making
 User share common database
Components
 Hardware, software, people
Process
 Data collection, information/ report generation
MIS
 Reports & Information
DECISION SUPPORT SYSTEMS [DSS]
Similar to MIS
 Both depends on a database a source of data
Departs from MIS
 Emphasizes support on decision making in all its phases

 Actual decision comes from decision maker
EXPERT SYSTEMS
ES use the approaches of AI reasoning to solve the problems put to them by business
General Thrust of AI:
Develop machines that behave intelligently
2 Avenues of AI Research
1. Understanding natural language

2. Analyzing the ability to reason through a problem to its logical conclusion
A DEEPER LOOK INTO ORGANIZATIONS AND INFORMATION SYSTEM
PART 1 –HFOT
• Burn in
• Useful time
• Wear out
Hardware
Failure over Time
PART 1 – SFOT
• Testing phase
• Useful time
• Obsolescence
• Hard
ware
Failure over Time
PART 2 – SCOPE
• Person Hitting
• Force
• Hits
• Distance of hits from the Circles
• Size of the circles
INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY
Perspectives on Information Systems
Functions of an information system

Information Systems are more than computers
• Organizational dimension of
information systems
– Hierarchy of authority, responsibility
• Senior management
• Middle management
• Operational management
• Knowledge workers
• Data workers
• Production or service workers
Levels in a firm
Business organizations are hierarchies consisting of three principal levels: senior management, middle
management, and operational management. Information systems serve each of these levels. Scientists and
knowledge workers often work with middle management.
• Organizational dimension of information systems (cont.)
– Separation of business functions
• Sales and marketing
• Human resources
• Finance and accounting
• Manufacturing and production
– Unique business processes
– Unique business culture
– Organizational politics
• Management dimension of information systems
– Managers set organizational strategy for responding to business challenges
– In addition, managers must act creatively:
• Creation of new products and services
• Occasionally re-creating the organization
• Technology dimension of information systems
– Computer hardware and software
– Data management technology
– Networking and telecommunications technology
• Networks, the Internet, intranets and extranets, World Wide Web
• Business perspective on information systems:
– Information system is instrument for creating value
– Investments in information technology will result in superior returns:
• Productivity increases
• Revenue increases
• Superior long-term strategic positioning
• Business information value chain
– Raw data acquired and transformed through stages that add value to that information
– Value of information system determined in part by extent to which it leads to better decisions, greater
efficiency, and higher profits
• Business perspective: Calls attention to organizational and managerial nature of information systems
• Business information value chain
– Raw data acquired and transformed through stages that add value to that information
– Value of information system determined in part by extent to which it leads to better decisions, greater
efficiency, and higher profits
• Business perspective: Calls attention to organizational and managerial nature of information systems
THE BUSINESS INFORMATION VALUE CHAIN
Variation in Returns on Information Technology Investment
INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY
• Investing in information technology does not guarantee good returns
• Considerable variation in the returns firms receive from systems investments
• Factors:
– Adopting the right business model
– Investing in complementary assets
• Complementary assets:
– Assets required to derive value from a primary investment
– Firms supporting technology investments with investment in complementary assets receive superior
returns
– E.g.: invest in technology and the people to make it work properly
• Complementary assets include:
– Organizational investments, e.g.
• Appropriate business model
• Efficient business processes
– Managerial investments, e.g.
• Incentives for management innovation
• Teamwork and collaborative work environments
– Social investments, e.g.
• The Internet and telecommunications infrastructure
• Technology standards
CONTEMPORARY APPROACHES TO INFORMATION SYSTEMS
The study of information systems deals with issues and insights contributed from technical and behavioral
disciplines.
• Technical approach
• Emphasizes mathematically based models
• Computer science, management science, operations research
• Behavioral approach
• Behavioral issues (strategic business integration, implementation, etc.)
• Psychology, economics, sociology
• Management Information Systems
• Combines computer science, management science, operations research and practical orientation with
behavioral issues
• Four main actors

• Suppliers of hardware and software
• Business firms
• Managers and employees
• Firm’s environment (legal, social, cultural context)
THE BEHAVIORAL VIEW OF ORGANIZATIONS

Features of organizations
All modern organizations share some characteristics:
 Use of hierarchical structure

 Accountability, authority in system of impartial decision making
 Adherence to principle of efficiency
 Other features include: Routines and business processes and organizational politics, culture, environments and
structures
Routines and business processes
 Routines (standard operating procedures)

o Precise rules, procedures, and practices developed to cope with virtually all expected situations
 Business processes: Collections of routines
 Business firm: Collection of business processes
Organizational politics
o Divergent viewpoints lead to political struggle, competition, and conflict

o Political resistance greatly hampers organizational change
Organizational culture:
 Encompasses set of assumptions that define goal and product

 What products the organization should produce
 How and where it should be produced
 For whom the products should be produced
 May be powerful unifying force as well as restraint on change
Organizational environments:
 Organizations and environments have a reciprocal relationship

 Organizations are open to, and dependent on, the social and physical environment
 Organizations can influence their environments
 Environments generally change faster than organizations
 Information systems can be instrument of environmental scanning, act as a lens
Organizational structure
Five basic kinds of structure
 Entrepreneurial: Small start-up business

 Machine bureaucracy : Midsize manufacturing firm
 Divisionalized bureaucracy: Fortune 500 firms
 Professional bureaucracy: Law firms, school systems, hospitals
 Adhocracy: Consulting firms
Other Organizational Features
 Goals
 Constituencies
 Leadership styles
 Tasks
 Surrounding environments
Organizational resistance to change
 Information systems become bound up in organizational politics because they influence access to a key resource –
information
 Information systems potentially change an organization’s structure, culture, politics, and work
 Most common reason for failure of large projects is due to organizational and political resistance to change
In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by
competition with its traditional direct competitors but also by four forces in the industry’s environment: new
market entrants, substitute products, customers, and suppliers.
Using Information Systems to Achieve Competitive Advantage
• Traditional competitors
• All firms share market space with competitors who are continuously devising new products, services,
efficiencies, switching costs
• New market entrants
• Some industries have high barriers to entry, e.g. computer chip business
• New companies have new equipment, younger workers, but little brand recognition
• Substitute products and services
• Substitutes customers might use if your prices become too high, e.g. iTunes substitutes for CDs
• Customers
• Can customers easily switch to competitor’s products? Can they force businesses to compete on price
alone in transparent marketplace?
• Suppliers
• Market power of suppliers when firm cannot raise prices as fast as suppliers
• Four generic strategies for dealing with competitive forces, enabled by using IT
• Low-cost leadership
• Product differentiation
• Focus on market niche
• Strengthen customer and supplier intimacy
• Low-cost leadership
• produce products and services at a lower price than competitors while enhancing quality and level of
service
• Product differentiation
• Enable new products or services, greatly change customer convenience and experience
• Focus on market niche
• Use information systems to enable a focused strategy on a single market niche; specialize
• Strengthen customer and supplier intimacy
• Use information systems to develop strong ties and loyalty with customers and suppliers; increase
switching costs
SAP – MIDTERM
WEEK 1: SAP ON CLOUD PLATFORM
Cloud computing represents a new way to deploy computing technology to give users the ability to access, work on,
share, and store information using the internet. The ideal way to describe Cloud Computing would be to term it
as 'Everything as a Service' (abbreviated as XaaS). The cloud itself is a complex network of data centers, each composed
of thousands of computers working together that can perform and achieve the functions of software on personal or
business computer units by providing users access to a vast number of applications, platforms and services delivered over
the Internet.
Types of Cloud Deployment
PRIVATE CLOUD
Private Cloud, also known as Internal Cloud, is a cloud based infrastructure operated exclusively for a single organization
with all data protected behind an internal firewall. This is usually physically located at the company's on-site data center
or can also be managed and hosted by a third-party provider.
PUBLIC CLOUD
Public Cloud, also known as External Cloud, is available to the public where data are created and stored on third-party
servers. Service infrastructure belongs to service providers that manage them and administer pool resources. The need for
user companies to buy and maintain their own hardware is eliminated. It is based on a shared cost model for all the users
or in the form of a licensing policy such as pay per use.
HYBRID CLOUD
Hybrid Cloud encompasses the best features of the above-mentioned cloud computing deployment models. It allows
companies to mix and match the facets of public and private cloud that best suit their requirements.
HUAWEI AND SAP COOPERATION JOURNEY
Huawei Cloud is the chosen partner of Fasttrack IT Academy for the deployment of SAP Business One on Cloud to our
university and collegiate partners. Huawei Cloud now distills 30+ years of accumulated technology, innovation, and
expertise in the ICT infrastructure field to offer customers everything as a service. You can grow your enterprise in the
best environment with stable, secure, and ever-improving Huawei Cloud services and affordable, inclusive AI. It provides
a powerful computing platform and easy-to-use development platform to support Huawei's full-stack, all-scenario AI
strategy.
By the end of 2019, Huawei Cloud had launched 200+ cloud services and 190+ solutions. News agencies, social media
platforms, law enforcement, automobile manufacturers, gene sequencing organizations, financial institutions, and a long
list of other industry customers are all benefiting in significant ways from Huawei Cloud. 3,500 applications were added
to the Huawei Cloud marketplace with offerings from more than 10,000 business partners.
Capabilities and User Experience
Key Features of Cloud Computing
The characteristics of Cloud Computing express its significance in the current business market. It has already been proven
that Cloud Computing is a model for enabling universal, convenient and on-demand network access. Below are the key
features of Cloud Computing:
 Agility -helps in rapid and inexpensive re-provisioning of resources
 Location Independence - resources can be accessed anywhere (except on limitations set by company's internal
control)
 Multi-Tenacity - resources are shared amongst a large pool of users
 Reliability - dependable accessibility of resources and computation
 Scalability - dynamic provisioning of data helps in avoiding various bottleneck scenarios
 Ease of Maintenance - users (companies/organizations) have less work in terms of resource upgrades and
management, handled by service providers of cloud computing
INTRODUCTION TO SAP
SAP (stands for Systems, Applications and Products in data processing) is a European multinational software corporation
founded in 1972, headquartered in Walldorf, Baden- Wurttemberg, Germany with regional offices in 180 countries.
It is founded by five IBM engineers namely Hasso Plattner, Klaus Tschira, Claus Wellenreuther, Dietmar Hopp and Hans-
Werner Hector.
SAP is considered as one of the world’s largest business software company:
 Commands 67% share of the Business Software Market
 12 Million Users. 95,000 Installations in more than 130 countries
 1,500 Partners. 25+ Industry Solutions. 60,000 employees
It is the recognized leader in providing collaborative business solutions for all types of industries and for every major
market globally.
SAP BUSINESS ONE
SAP Business One is an ERP (Enterprise Resource Planning) Solution. It is arranged into 15 functional modules,
automating the major functions in a business organization. This system prides itself on having the following
characteristics:
 Integrated
 Real-time
 Flexible
 Easy to use
Benefits
SAP Business One: On Premise vs. On Cloud
Fasttrack IT Academy formerly offers SAP Business One – On premise with our university and collegiate partners. To be
able to provide our partners with the most recent business solution trends in the industry, we have decided to open the
doors on the latest cloud computing developments, thus offering SAP Business One on Cloud. The following are the
differences between SAP Business on Premise and SAP Business on Cloud:
Measures On Premise On Cloud
Deployment On premise installation of SAP Through the internet
Business One
Accounting Localized / Independent Branch Accounting
Accessibility Limited (within the premises of the Remote access through the internet
installation)
Data Storage Hardware Cloud Server
WEEK 2: MASTER DATA AND DOCUMENT HANDLING
Everything depends on Master Data
Master Data is the strength of the data foundation that runs the enterprise
1. Reporting
2. Transactional Data
3. Master Data
SAP Business One tracks business activities using documents such as purchase orders, invoices, production orders, sales
orders, and so on. Each of these documents is constructed from smaller reusable chunks of data called master data.
Creating documents from master data increases productivity, ensures data consistency, and reduces errors.
Master data refers to the key information that describes your customers, vendors, and leads as well as items that your
company buys and sells.
It is easy to look up business partner and item information while you are entering sales and purchasing documents. A
selection list icon is available in the business partner and item number fields in marketing documents. Use the selection
list icon to make a selection list appear. You can scroll through the list or use characters with wildcards to search.
MASTER DATA
 Business Partner Master Data

o Lead
o Customer
o Vendor/ Supplier
 Item Master Data
o Inventory item
o Sales item
o Purchase item
o Fixed asset
Most software systems have lists of data that are shared and used by several of the applications that make up the system.
For example, a typical ERP system as a minimum will have a Customer Master, an Item Master, and an Account Master.
This master data is often one of the key assets of a company.
Both Financial Accounting and Purchasing use vendor master data. General data and data relevant to both departments is
stored in shared master records to avoid duplication.
Searching the Master Data List
One can show all the inventory items inside the master data list by placing an asterisk (*) in the item number or
description field. The same procedure applies for business partner master data, you can just type asterisk (*) in the BP
Code field.
However, you can do a wild card search by placing the asterisk (*) before, after or in the middle of the word that you want
to search. The list would show all items that contain the particular string that you used.
You could also find specific information by typing in the word or number that you are looking for in the particular field.
BUSINESS PARTNER MASTER DATA
 Vendors
o One or more control accounts for vendors
o Possible transactions:
 All purchasing transactions
 Customers
o One or more control accounts for customers
 All sales transactions
 Sales opportunities
 Leads
o Leads do not have any effect on accounting
 Quotations and orders
 Sales opportunities
Each customer, vendor, or interested party is entered in the system as a master record. Use the Business Partner Master
Data to record and retrieve business partner (customers, vendors, and leads) information and schedule business partner
activities.
Business partner information typically includes:
 Company details, including addresses and telephone numbers
 Business partner contact persons, including telephone numbers and E-mail addresses
 Logistic details
 Tax information
 Accounting information
 Details of payment terms
The information you enter in a master record for a customer or a vendor in the system is applied automatically when you
process your business transactions, for example, the terms of payment that you define for a customer. These then form the
basis of the orders and invoices for this customer. You can also use the data to analyze your business partner relationships
in detail.
How to Create a Business Partner Master Data
1. Go to Modules Menu > Business Partners > Business Partners Master Data. Business Partner Master Data
window will open
2. Business Partner Master Data window will Switch to find mode by clicking the Add in the tool bar or simple
press Ctrl + A in your keyboard.
3. On the Business Partner Master Data header, input the following information:
4. Business Partner Master Data window will Switch to find mode by clicking the Add in the tool bar or simple
press Ctrl + A in your keyboard.
5. On the Business Partner Master Data header, input the following information:
Item Master Data
SAP Business One, therefore, provides optimum support for your business processes. In Sales, it helps you create orders,
delivery notes, and outgoing invoices because prices, sales units and gross profit calculate automatically. Using the item
data in the system, you can optimize stockholding. You have complete control over stock quantities at all times and can
also analyze the financial aspects of stockholding at the same time. The system allows you to control production based on
the items that are used for production and based on the finished product and any by-products created.
Use the general area to maintain general item information relevant for all types of items. The Item Master Data
consists of the general area and seven tabs. Each tab enables you to manage sales and purchase items, warehouse
items, and planning data for MRP and Production.
How to Create an Item Master Data
1. Go to Modules Menu > Inventory > Item Master Data
2. Item Master Data window will open. Switch to find mode by clicking the (Add) in the tool bar or simple press
Ctrl + A in your
3. Input on the following information:
Item No: A1000
Description: Linens
Item Group: Consumables
Unit Price: 60
4. Go to Inventory Data Tab
5. Input the following information:
Warehouse Code: 01
Warehouse Name: General Warehouse
6. Click Add.
Document Handling
General Structure of Marketing Documents
All the documents in purchasing and in sales share a similar structure. The documents for sales and purchasing are also
often called “Marketing Documents”. Much of the data appearing in these tabs defaults from the master data. The values
can be changed while working in the documents. These changes will affect the document, but do not change the master
data records.
In general the document is divided into:
1. The upper part (header) with the general information,

2. The middle part with the information on different tab pages and the item specific data (you can access more item
specific data in the line details by double-clicking a row),
3. The lower part (footer) with more general
The middle part contains three tabs:
1. The Contents tab is where all the specific information about the ordered items or services is entered, such as
quantity, price, item number, and description
2. The Logistics tab contains the details about where the items or services as well as payments are to be sent.

Shipping method is also specified here. Most of the data is pulled from preconfigured master company details and
vendor
3. The Accounting tab contains the relevant general ledger (G/L) account information for the purchase pulled from
the financial accounting master data
WEEK 3: PURCHASING PROCESS
Procurement management is a core functionality of the SAP® Business One application that enables you to automate and
standardize your core procurement activities. It provides support for purchasing planning, vendor selection, purchase
order management, and vendor invoice payment. And it lets you do all these rapidly, with the necessary integration across
business functions in accounting and warehouse management to drive success.
With SAP® Business One, you gain a detailed view of your vendors and support for an integrated, centralized vendor data
repository so you can make more effective purchasing decisions, identify opportunities for cost savings, and better
manage supplier relationships.
You can manage and maintain supplier related activities with SAP® Business One, including issuing purchase
orders, updating inventory quantities, calculating the landed cost value of imported items, delivering goods, and handling
returns and credits.
1. The purchasing process in SAP Business One begins with the creation of a purchase order. The Purchase Order is
the document used to request items or services from a vendor. It affects the available stock quantity.
2. The next stage is the Goods Receipt PO. It is the stage when the stock is received into the company. The goods
receipt PO increases the actual stock quantity.
3. The goods receipt is followed by an A/P Invoice, which is the request for payment. It is the only mandatory
document in the purchasing process. It is possible to create the A/P invoice without first creating a goods receipt
PO or a purchase order.
4. Once the outgoing payment is added, an appropriate journal entry is created. The journal entry reduces the
vendor’s balance.
If you create an A/P invoice without reference to the goods receipt PO, it will also increase the quantity in stock. The
goods return reduces the actual stock levels. The A/P credit memo reduces the actual stock levels and also creates an
accounting transaction by applying negative amounts to the previously invoiced accounts.
Purchase Order
The purchase order is a document used to request items or services from a vendor at an agreed upon price. When you
enter a purchase order in SAP Business One, no value-based changes are posted in the accounting system. However, the
order quantities are listed in inventory management. You can view the ordered quantities in various reports and windows,
such as the Inventory Status report and the Item Master Data window. This information is important for optimizing
ordering transactions and stockholding.
How to Create a Purchase Order
1. Go to Modules Menu > Purchasing A/P > Purchase Order. Purchase Order window will open.
2. Input the following information on the Purchase Order header:
Vendor: V10000 (Acme Associates)
Delivery Date: <date today>
3. Input the following information on the Contents tab
Item/Service Type: Item
Item No: A00001
Quantity: 5
4. Add.
5. Click the Last Data Record button on the Tool bar. Take note of the document number.
Goods Receipt PO
You create this document when you receive goods from the vendor. When you create a goods receipt PO, SAP Business
One receives the goods into the warehouse, updates the quantities, and creates an accounting journal if you manage the
perpetual inventory.
How to Create a Goods Receipt PO
1. Go to Modules Menu > Purchasing A/P > Goods Receipt PO

2. Input the vendor on the purchase order that you are In this case, V10000 (Acme Associates.
3. Click ‘Copy From’ on the lower right side corner of the Goods Receipt PO
4. Choose Purchase orders
5. To accurately select the Purchase Order, refer to the Document number of the previously created purchase order.
6. Click Choose
7. Click Add on the Good Receipts PO window
A/P Invoices
The A/P invoice is a request for payment. It also records the cost in the profit and loss statement. You can create an A/P
invoice from multiple purchase orders and goods receipt POs. You cannot change it since it is the legal accounting
document that generates entries in the general ledger.
When you receive an A/P invoice, SAP Business One posts the related accounts for the vendor in the accounting system.
If no delivery for a purchase order precedes the A/P invoice, and if you are purchasing items managed in the warehouse,
the stocks are increased when the you post the invoice.
How to Create an A/P Invoice
Aside from the ‘Copy From’ function that we have used in the previous document, we can also use the ‘Copy to’ function
in linking the Purchasing Documents.
1. Select the Goods Receipt PO window then click Last Data Record on the tool
2. The last added Goods Receipt PO will be On the lower right corner of the Goods Receipt PO window, click Copy
to.
3. Select A/P A/P invoice window will open (with all the contents copied from Goods Receipt PO).
4. Click Add
Outgoing Payments
After the A/P Invoice has been sent to the Vendor, it’s time to actually pay the money owed for the goods and/or services
rendered. This is done through the Banking Module. To go to the forms to process outgoing payments, using the main
menu, go to Banking > Outgoing Payments > Outgoing Payments. Note that this is a different module than the previous
three documents entirely.
How to Create Outgoing Payments
1. Go to Modules Menu > Banking > Outgoing Payments > Outgoing
2. Choose Vendor that you are going pay. In this case, V10000 (Acme Associates).
3. On the ‘Selected column’, check the invoice to be
4. Click Payment Means on the tool
5. Select the Payment Means (there are 4 options – Check, Bank Transfer, Credit Card, Cash), in this case, choose
6. Choose G/L Account 160000 Petty
7. On the Total field, right click, select Copy Balance
8. Click
9. On the Outgoing Payments window, click Add.

Linking Purchasing Documents
Copy to:
 Open saved document to copy

 All items copied to new document
 No options available on how items are copied
 However, you can delete items and adjust quantities after copying
Copy from:
 Enter business partner in a new document

 Choose one or multiple documents from a list
 Draw document wizard allows you to:
o Customize rows and quantities copied
o Select the exchange rate to use
SAP Business One enables you to create target documents directly from base documents. For example, you can create a
Goods Receipt directly from the Purchase Order (and vice versa). In that case, all the data that you entered in the sales
order is automatically copied to the delivery.
Linking documents is important, as it establishes the connections between documents (by extension, the procurement
process) to form a paper trail. This trail will then allow all concerned in the organization to track the progress of each
given step. To see the document trail of a particular Purchasing Document, right click on the document and choose
relationship map.
How to view Relationship Map
1. Open a purchasing document. (Purchase Order, Goods Receipt PO, A/P Invoice)
2. Click Last Data Record, or other tools in the tool bar (First Data Record, Previous Record, Next Record) to view
the document you want to view.
3. Right click on the purchasing document and choose Relationship Map.
WEEK 4: SALES PROCESS
The sales process in SAP Business One begins with Sales Order. The sales order affects the amount of stock committed to
a customer and, therefore, the available stock quantity.
The delivery reduces the stock committed and the in-stock quantities. The delivery affects the general ledger, if SAP
Business One manages the perpetual inventory. In this case, the delivery will reduce stock valuation and post a cost of
sale.
The A/R invoice is created. It is the only mandatory document in the sales process. It is possible to create an invoice
without first creating a delivery, a sales order, or a sales quotation. If the A/R invoice is created without reference to the
delivery, it will also reduce the quantity in stock.
It records the revenue and tax and updates the customers’ accounts with a new outstanding balance.
Incoming payments are the last step in the basic sales process, even though they are a function in Banking. Posting
an incoming payment receives the payment from the customer.
Additionally, it is possible to credit a customer for damaged goods. The returns document is be used to credit the customer
if the goods were delivered but no A/R invoice was issued. Use the A/R credit memo to credit a customer after an A/R
invoice was already issued. For legal reasons, you cannot change or delete deliveries and A/R invoices that have been
already entered in SAP Business One. To correct these, use the clearing document, the returns.
Leads and Customers
 Leads
o Use on pre-sales documents or sales orders
o Not on deliveries or invoices
 Customers
o Use on any sales document
o Convert leads to customers when they buy
Sales Order
The sales order is a commitment from a customer or lead to buy a product or service. The document serves as a
foundation for planning production or purchase orders. Creating sales orders does not post value-related changes in the
accounting system. However, if the sales order is created for items, the ordered quantities are listed in Inventory
Management as reserved for the customer. You can view the ordered quantities in various reports, such as the Inventory
Status report, as well as other windows in SAP Business One.
This information is important for: Optimizing ordering transactions and stockholding and ensuring that customer
requirements are dealt with quickly and satisfactorily.
How to Create a Sales Order
1. Go to Modules Menu > Sales A/R > Sales Order. Sales Order window will open
2. Input the following information on the Sales Order header: Customer:
1. C20000 (Norm Thompson)
2. Delivery Date: <date today>
3. Input the following information on the Contents tab
4. Add.
5. Click the Last Data Record button on the Tool bar. Take note of the document number.
Delivery
The Delivery is a legally binding document indicating that the shipment of goods or the delivery of services has occurred.
Without this document, goods can be delivered only if an invoice has already been created.
When you create a delivery, the corresponding goods issue is also posted. The goods leave the warehouse and the relevant
stock changes are posted. When the stock is changed, the values in the accounting system change as well (only when you
use perpetual inventory).
How to Create a Delivery document
1. From the Sales Order previously created, click ‘Copy to’ on the lower right portion of the window.
2. Choose
3. The Delivery document will pop up. Input the quantity delivered if there is partial
4. Note that the base document reference is listed in the ‘Remarks’
5. Click ‘Add’ Click ‘Yes’ when prompted that you can no longer change the document once added
6. Click Last Data Record.
A/R Invoice
The invoice is a legally binding document. When an invoice is received, the posting is made to the related customer
accounts in the accounting system. If a delivery did not precede the invoice and you sell the warehouse items, stock
quantities are also updated accordingly when you issue the invoice.
If you create an invoice without reference to the delivery, the system automatically posts changes to the stock. In other
words, if a delivery already exists for the transaction and you create an invoice without reference to this delivery, errors
can occur in inventory management because the delivery quantity is posted twice in the system.
How to Create an A/R Invoice
1. On the Delivery document, click ‘Copy to’ on the lower right portion of the
2. Choose A/R
3. Contents of the Delivery document will copy to the A/R Click Accounting tab on the A/R Invoice window.
4. You can see here the Payment Means and Payment Method to see how payment will be processed
5. Add.
Incoming Payments
Incoming payments are the last step in the sales process, even though they are a function in banking.
How to Create Incoming Payments
1. Go to Modules Menu > Banking > Incoming Payments > Incoming Payments
2. Choose Customer in the code field. In this case, C20000 (Norm Thompson).
3. On the ‘Selected column’, check the invoice to be
4. Click Payment Means on the tool
5. Select the Payment Means (there are 4 options – Check, Bank Transfer, Credit Card, Cash), in this case, choose
6. On the Total field, right click, select Copy Balance
7. Click ok
8. Click ‘Add’ and click Yes when prompted with the system message.
WEEK 5: INVENTORY
Items and Warehouses
SAP Business One enables you to manage all the items that you purchase, manufacture, sell, or keep in stock. Services,
such as labor, can also be defined as items. This can be useful for defined services you sell on a regular basis. Items can
also be used to describe fixed assets that are tracked for accounting purposes.
For each item, enter the data relevant for a particular area in the system. This data is used automatically by the system for
purchasing, sales, production, managing your warehouse, and accounting. SAP Business One, therefore, provides
optimum support for your business processes.
Using the item data in the system, you can optimize your stock. You have complete control over stock quantities at all
times and can also analyze the financial aspects of stockholding at the same time. In SAP Business One, there is a direct
relationship between warehouses and items.
Defining a warehouse
Choose (1) Administration > (2) Setup > (3) Inventory > (4) Warehouses to define new warehouses.
Here, you can enter a Warehouse code and a Warehouse name.
Address Fields: Specifies address details for the warehouse. This address defaults into the purchasing document for the
ship-to address for the warehouse.
Location: Specifies the warehouse location. Use this field to classify warehouses according to their physical location.
Drop Ship: Defines the warehouse as a drop-ship warehouse. Use this option when the company does not manage
inventory for specific items, but receives commission for every order. SAP Business One will not calculate stock postings
for this warehouse.
In the Accounting tab, you define various default accounts used for inventory management per warehouse. To define a
warehouse as a default in the MRP wizard, select the Nettable checkbox. If unchecked, the warehouse can still be chosen
in MRP, but does not appear as default. Stock Change – Marketing Documents
Inventory Transactions
When an item is purchased or sold, warehouse inventory is automatically reduced or increased when the transactions are
entered in purchasing and sales. For example, if a delivery note is created based on a sales order for a customer, the
warehouse stock is reduced by the delivery quantity when the delivery note is added. If an incoming invoice is entered in
purchasing, the warehouse stock increases by the delivery quantity when the incoming invoice is added.
The purchase or sale of an item is, however, not the only transactions that result in a goods receipt or goods issue. For
example, if five pieces of an item are found damaged in the warehouse as a result of water damage, rendering them
useless, they are removed from the warehouse. These items cannot, however, be sold because they are now useless. In this
case, you have to post a separate goods issue with the function described here.
A goods receipt may be necessary, for example, if, after carrying out a physical inventory, you establish that you have not
considered part of the quantity stored. You enter the forgotten quantity by means of a goods receipt in the system.
Goods Receipt and Goods Issue
For goods receipts and goods issues that do not refer to a sales process or purchasing process, you must specify the
warehouse to which or from which you want to post the goods. The system always uses the default warehouse from the
item master record if you do not specify otherwise.
A goods receipt creates a journal entry that posts the value of the received goods on the debit side of the stock account and
the credit side of the inventory offset – increase account. You can use the Goods Receipt if there is an increase in the
quantity of inventory outside the regular purchase and sales process (e.g., Samples or freebies from Suppliers) or if you
are reconciling the system inventory count and physical inventory count (e.g. Physical inventory count is higher than the
system inventory count).
To post a goods receipt: e.g. the company received 2 A00001 from its suppliers as freebies due to recent bulk purchase.
Go to (1) Inventory → (2) Inventory Transactions → (3) Goods Receipt.
4. On the Item No. field, click the selection list (picker’s list) button. Select
5. Input ‘2’ on the Quantity
6. In the Remarks field, put ‘Freebies from Suppliers’
7. Add.
A goods issue creates a journal entry that posts the value of the issued goods on the debit side of the inventory offset –
decrease account and the credit side of the stock account. The stock accounts are retrieved from the Inventory Account
fields on the Inventory Data tab of the item master record.
You can use the Goods Issue if there is a decrease in the quantity of inventory outside the regular purchase and sales
process (e.g., Theft in the warehouse, flood/fire damaging warehouse goods) or if you are reconciling the system
inventory count and physical inventory count (e.g. Physical inventory count is lower than the system inventory count).
To post a goods issue: e.g. the warehouse manager recently discovered a theft in the warehouse with 5, A00001 items
missing. To record the missing items:
Go to (1) Inventory → (2) Inventory Transactions → (3) Goods Issue
1. On the Item No. field, click the selection list (picker’s list) button. Select
2. Input ‘5’ on the Quantity
3. In the Remarks field, put ‘Warehouse theft’
4. Add.
Inventory Transfer
When you post an inventory transfer from warehouse 02 to warehouse 01, the system creates an inventory transfer
document and a journal entry. The journal entry posts the value of the transferred goods on the debit side of the stock
account of warehouse 01 and on the credit side of the inventory account of warehouse 02.
To post a stock transfer: e.g. The current branch wanted transfer 5 pcs of A00001 from Warehouse 1 to Warehouse 2.
Go to (1) Inventory → (2) Inventory Transactions → (3) Inventory Transfer.
4. Input the following information: Item No: A00001
To Warehouse: 01
From Warehouse: 02
Quantity: 5
5. Click Add.
Inventory Management
By Serial Numbers
Serial numbers can help you track items down to the level of each individual object in your warehouse, so you know
exactly which one was sold to a customer. The typical criteria for determining if an item needs a serial number are:
 Is the item a high value item?
 Should the item be tracked for security or repair reasons?
Serial numbers are also important in Service. A serialized item can be set up to automatically create a customer equipment
card and a service contract when the item is delivered to a customer. The customer equipment card is used to store service
information, such as valid service contracts, any service calls, and inventory transactions for the item.

Example:
Add the following item on the Item Master Data:
Item No. Description Item Group Price Managed by
SN1000 Acer Aspire 5 A514 Laptop 30,000 Serial Numbers
OEC Computers UK received 10 items of SN1000 from Acme Associates.
Serial Number String: OEC-AcerL-00001
Later on, OEC computers UK delivered 5 items of SN1000 to Norm Thompson.
Go to (1) Inventory → (2) Item Master Data. Switch to Add mode (Ctrl + A).
3. Input the information above regarding the
4. On the general tab, there is a Manage Item By drop down list, select ‘Serial Numbers’.
Management Method, ‘On every transaction’.
5. Click Inventory Data tab
6. Input the information according the warehouse assigned to your branch
Warehouse Code: 01
7. Click Add.
The whole Procurement and Sales Process should still be done completely. But for example purposes and to address this
topic directly, we will only use Goods Receipt PO and Delivery.
Go to (8) Purchasing A/P → (9) Goods Receipt PO
10. Input the following information: Vendor: V10000 Acme Associates
11. Item No: SN1000
Quantity: 10
12. Click yes, if prompted the message “You cannot change this document after you have added it”.
13. Serial Numbers Set-up window will appear. Click the ‘You can also’ button on the lower right corner of the
window, and select automatic creation.
14. Automatic Serial Number Creation window will appear. Click the button beside the Serial Number
15.Automatic String Creation window will appear. Input the following:

# String Type Operation
1 OEC-AcerL- String No Operation
2 00001 Number Increase
16. Click OK.
17. Click Create.
18. Serial Number for all 10 items should be
19. Click Update
20. On the Goods Receipt PO window. Click Add.
Go to (21) Sales A/R → (22) Delivery

Customer: C20000 Norm Thompson
24. Item No: SN1000
Quantity: 5
25. Click Click Yes, if prompted the message “You cannot change this document after you have added
it”.
26. Serial Number Selection window will Click Auto Select. 5 items will automatically selected on a First-In First-Out
basis.
27. Click Update. Click
28. On the Delivery window, click Add.
By Batches
Batches are used to track groups of items with characteristics in common. These characteristics might be attributes you
define such as a shade of color, granularity or PH balance. The characteristics could be dates, such as expiration dates,
manufacturing date, or the date the items were received into inventory.
Example:
BN1000 Mousepad Accessories 50 Batches
OEC ordered and received 100 items of BN1000 from Acme Associates. Items will be divided into 10 batches.
Batch number: Box-0001
Batch Attribute 1: OEC-MP-00001
OEC sold 27 items of BN1000 to Norm Thompson, via FIFO.
4. On the general tab, there is a Manage Item By drop down list, select ‘Batches’. Management Method, ‘On every
transaction’.
6. Input the information according the warehouse assigned to your
Warehouse Code: 01
7. Click Add.
Vendor: V10000 Acme Associates
11. Item No: BN1000
Quantity: 100
12. Click yes, if prompted the message “You cannot change this document after you have added it”.
13. Batches Set-up window will appear. Click the ‘You can also’ button on the lower right corner of the window, and
select automatic creation.
14. Automatic Batch Creation window will appear. Set the number of batchers to
15. Click the button beside the Batch
16. Automatic String Creation window will appear. Input the following:
1 Box- String No Operation
17. Click OK
18. On the Automatic Batch Creation window, click the button beside the Batch Attribute 1 field
1 OEC-MP- String No Operation
20. Click OK.
21. On the Automatic Batch Creation window, click Create
22. Batchers for all 100 items should be created
23. Click Update
24. On the Goods Receipt PO window. Click Add
28. Item No: BN1000
Quantity: 27
29. Click Yes, if prompted the message “You cannot change this document after you have added it”.
30. Batch Number Selection window will Click Auto Select. 5 items will automatically selected on a First-In First-Out
basis.
31. Click Update. Click
FINALS WEEK 1 – INVENTORY MANAGEMENT
By Batches
Batches are used to track groups of items with characteristics in common. These characteristics might be attributes you
define such as a shade of color, granularity or PH balance. The characteristics could be dates, such as expiration dates,
manufacturing date, or the date the items were received into inventory.
Example:
BN1000 Mousepad Accessories 50 Batches

OEC ordered and received 100 items of BN1000 from Acme Associates. Items will be divided into 10 batches.
Batch number: Box-0001
Batch Attribute 1: OEC-MP-00001
OEC sold 27 items of BN1000 to Norm Thompson, via FIFO.
4. On the general tab, there is a Manage Item By drop down list, select ‘Batches’. Management Method, ‘On every
transaction’.
6. Input the information according the warehouse assigned to your
Warehouse Code: 01
7. Click Add.
Vendor: V10000 Acme Associates
11. Item No: BN1000
Quantity: 100
12. Click Click Yes, if prompted the message “You cannot change this document after you have added it”.
13. Batches Set-up window will appear. Click the ‘You can also’ button on the lower right corner of the window, and
select automatic creation.
14. Automatic Batch Creation window will appear. Set the number of batchers to
15. Click this button beside the Batch
1 Box- String No Operation
17. Click Ok.
18. On the Automatic Batch Creation window, click this button beside the Batch Attribute 1 field.
1 OEC-MP- String No Operation
20. Click OK.
21.On the Automatic Batch Creation window, click Create.

22. Batchers for all 100 items should be
23. Click Update
24. On the Goods Receipt PO window. Click Add.
28. Item No: BN100
Quantity: 27
29. Click Click Yes, if prompted the message “You cannot change this document after you have added it”.
30. Batch Number Selection window will Click Auto Select. 5 items will automatically selected on a First-In First-Out
basis.
31. Click Update. Click OK.
INVENTORY MANAGEMENT FROM LECTURE
SAP Business One enables you to manage all the items that you purchase, manufacture, sell or keep in stock.
Services – labor can also be defined as item
- Useful for defined services offered on a regular basis
Items – use to describe fixed assets that are tracked for accounting purposes
Data – used automatically by the system for purchasing, sales, production, managing your warehouse, and accounting
Using the item data in the system, you can optimize your stock.
In SAP Business One, there is a direct relationship between warehouses an items.
WEEK 3: Introduction to DBMS
Definition of DBMS
A database management system (DBMS) is system software for creating and managing databases. The DBMS provides
users and programmers with a systematic way to create, retrieve, update and manage data.
A DBMS makes it possible for end users to create, read, update and delete data in a database. The DBMS essentially
serves as an interface between the database and end users
COMPONENTS OF A DBMS
A database system has four components. These four components are important for understanding and designing the
database system. These are:
1. Data
Data is made up of data item or data aggregate. A Data item is the smallest unit of named data: It may consist of bits or
bytes. A Data item is often referred to as field or data element. A Data aggregate is the collection of data items within the
record, which is given a name and referred as a whole. Data can be collected orally or written. A database can be
integrated and shared. Data stored in a system is partition into one or two databases. So if by chance data lost or damaged
at one place, then it can be accessed from the second place by using the sharing facility of data base system. So a shared
data also can be reused according to the user’s requirement. Also data must be in the integrated form. Integration means
data should be in unique form i.e. data collected by using a well-defined manner with no redundancy, for example Roll
number in a class is non-redundant form and so these have unique resistance, but names in class may be in the redundant
form and can create lot of problems later on in using and accessing the data.
2. Hardware
Hardware is also a major and primary part of the database. Without hardware nothing can be done. The definition of
Hardware is “which we can touch and see”, i.e. it has physical existences. All physical quantity or items are in this
category. For example, all the hardware input/output and storage devices like keyboard, mouse, scanner, monitor, storage
devices (hard disk, floppy disk, magnetic disk, and magnetic drum) etc. are commonly used with a computer system.
3. Software
Software is another major part of the database system. It is the other side of hardware. Hardware and software are two
sides of a coin. They go side by side. Software is a system. Software are further subdivided into two categories, First type
is system software (like all the operating systems, all the languages and system packages etc.) and second one is an
application software (payroll, electricity billing, hospital management and hostel administration etc.). We can define
software as which we cannot touch and see. Software only can execute. By using software, data can be manipulated
organized and stored.
4. Users
Without user all of the above said components (data, hardware & software) are meaningless. User can collect the data,
operate and handle the hardware. Also operator feeds the data and arranges the data in order by executing the software.
Other components:
1. People - Database administrator; system developer; end user.
2. CASE tools: Computer-aided Software Engineering (CASE) tools.
3. User interface - Microsoft Access; PowerBuilder.
4. Application Programs - PowerBuilder script language; Visual Basic; C++; COBOL.
5. Repository - Store definitions of data called METADATA, screen and report formats, menu definitions, etc.
6. Database - Store actual occurrences data.
7. DBMS - Provide tools to manage all of this - create data, maintain data, and control security access to
data and to the repository, etc.
ADVANTAGE OF DBMS
One of the major advantages of using a database system is that the organization can be handled easily and have
centralized management and control over the data by the DBA. Some more and main advantages of database management
system are given below:
The main advantages of DBMS are:
Controlling Redundancy
In a DBMS there is no redundancy. If any type of duplicate data arises, then DBA can control and arrange data in non-
redundant way. It stores the data on the basis of a primary key, which is always unique key and have non-redundant
information. For example, Roll no is the primary key to store the student data. In traditional file processing, every user
group maintains its own files. Each group independently keeps files on their db e.g., students. Therefore, much of the data
is stored twice or more. Redundancy leads to several problems:
 Duplication of effort
 Storage space wasted when the same data is stored repeatedly
Files that represent the same data may become inconsistent (since the updates are applied independently by each users
group).We can use controlled redundancy.
Restricting Unauthorized Access
A DBMS should provide a security and authorization subsystem.
 Some DB users will not be authorized to access all information in the DB (e.g., financial data).
 Some users are allowed only to retrieve data
 Some users are allowed both to retrieve and to update database.
Providing Persistent Storage for Program Objects and Data Structures
Data structure provided by DBMS must be compatible with the programming language’s data structures. E.g., object
oriented DBMS are compatible with programming languages and the DBMS software automatically performs conversions
between programming data structure and file formats.
Permitting Inference and Actions Using Deduction Rules
Deductive database systems provide capabilities for defining deduction rules for inferencing new information from the
stored database facts.
Inconsistency can be reduced

In a database system to some extent data is stored in, inconsistent way. Inconsistency is another form of delicacy. Suppose
that an employee “Janet” work in department “Computer” is represented by two distinct entries in a database. So
inconsistent data is stored and DBA can remove this inconsistent data by using DBMS.
Data can be shared

In a database system data can be easily shared by different users. For example, student data can be shared by teacher
department, administrative block, accounts branch arid laboratory etc.
Standard can be enforced or maintained

By using database system, standard can be maintained in an organization. DBA is overall controller of database system.
Database is manually computed, but when DBA uses a DBMS and enter the data in computer, then standard can be
enforced or maintained by using the computerized system.
Security can be maintained

Passwords can be applied in a database system or file can be secured by DBA. Also in a database system, there are
different coding techniques to code the data i.e. safe the data from unauthorized access. Also it provides login facility to
use for securing and saving the data either by accidental threat or by intentional threat. Same recovery procedure can be
also maintained to access the data by using the DBMS facility.
Integrity can be maintained
In a database system, data can be written or stored in integrated way. Integration means unification and sequencing of
data. In other words it can be defined as “the data contained in the data base is both accurate and consistent”. ‘Data can be
accessed if it is compiled in a unique form. We can take primary key ad some secondary key for integration of data.
Centralized control can also ensure that adequate checks are incorporated in the DBMS to provide data integrity.
Confliction can be removed

In a database system, data can be written or arranged in a well-defined manner by DBA. So there is no confliction
between the databases. DBA select the best file structure and accessing strategy to get better performance for the
representation and use of the data.
Providing Multiple User Interfaces

For example query languages, programming languages interfaces, forms, menu- driven interfaces, etc.
Representing Complex Relationships among Data

It is used to represent Complex Relationships among Data
Providing Backup and Recovery

The DBMS also provides backup and recovery features.
DMBS ACTORS
A Database Administrator (short form DBA) is a person responsible for the installation, configuration, upgrade,
administration, monitoring and maintenance of databases in an organization. The role includes the development and
design of database strategies, monitoring and improving database performance and capacity, and planning for future
expansion requirements. They may also plan, co-ordinate and implement security measures to safeguard the database.
A Systems Analyst researches problem, plans solutions, recommends software and systems, and coordinates development
to meet business or other requirements. They will be familiar with a variety of programming languages, operating
systems, and computer hardware platforms. Because they often write user requests into technical specifications, the
systems analysts are the liaisons between vendors and information technology professionals. They may be responsible for
developing cost analysis, design considerations, and implication time-lines.
DBMS developers design and build the DBMS product, and the only ones who touch its code. They are typically the
employees of a DBMS vendor (e.g., Oracle, IBM, Microsoft, Sybase), or, in the case of Open source DBMSs (e.g.,
MySQL), volunteers or people supported by interested companies and organizations. They are typically skilled systems
programmers. DBMS development is a complicated task, and some of the popular DBMSs have been under development
and enhancement (also to follow progress in technology) for decades.
Application's end-users (e.g., accountants, insurance people, medical doctors, etc.) are people who know the application
and its end-user interfaces, but need not know nor understand the underlying DBMS. Thus, though they are the intended
and main beneficiaries of a DBMS, they are only indirectly involved with it.
CHAPTER 5: CUSTOMIZED REPORTS USING BASIC SQL USING SAP B1
INTRODUCTION TO SQL AND SQL GENERATOR
SQL [pronounced as ess-que-el] stands for Structured Query Language. SQL is used to communicate with a database.
According to ANSI [American National Standards Institute], it is the standard language for relational database, or retrieve
data from a database. Some common relational database management systems that use SQL are: Oracle, Sybase,
Microsoft SQL Server, Access, Ingres, etc. Although most database systems use SQL, most of them also have their own
additional proprietary extensions that are usually only used on their system. However, the standard SQL commands such
as “Select”, “Insert”, “Delete”, “Create”, and “Drop” can be used to accomplish almost everything that one needs to do
with a database.
For this course we will just use the following SQL Commands
1. SQL Select – used to select data from a database

2. SWL Where – used with SQL select to filter or to have a condition for more accurate query results
3. SQL Relational Operators – use with SQL Where to further enhance queries
SAP B1 has the capability to create and execute queries within the application; we use Query Generator to do so
SQL SELECT
How to access and use Query Generator and perform SQL Select:
Go to the Menu Bar
1. Tools
2. Queries
3. Query Generator
4. Query Generator window will open. Select the blank field on the upper left corner of the Query Generator
window, click tab
5. List of tables’ names will appear. Choose OCRD.
After pressing tab, it will automatically populate the middle part of the Query Generator with the Table Column and SAP
B1 Descriptions.
6. Select the following fields that we have captured last chapter for Business Partner Master Data
Field Table Name Column Name

Code OCRD Card Code
Name OCRD Card Name
Group OCRD Group Code
Business Partner Type OCRD Card Type
Just double click the Name of the Column then it will automatically be selected on the SELECT Field.
7. After all Column Names that we need to select are all in the Select Field, just click execute
BUSINESS PARTNER MASTER DATA – each table has a code which is OCRD

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IT APPLICATION TOOLS IN BUSINESS / SAP – PRELIM - FINALS [2ND SEMESTER]

The Technopreneurial Mindset

A FRAMEWORK FOR SUCCESSFUL TECHNOPRENEURIAL ENDEAVOR

The Market – Past to Present

Competition in the Market

WILLIAM HENRY GATES III a.k.a. BILL GATES

MARK ELLIOT ZUCKERBERG a.k.a. MARK ZUCKERBERG

STEVEN PAUL JOBS a.k.a. STEVE JOBS

SALES, MARKETING, AND DELIVERY

Business Models in E-Commerce

Business to Business (B2B)

Business to Customer (B2C)

Customer to Customer (C2C)

Business to Government (B2G)

WEEK 5: INFORMATION SYSTEMS

PRODUCT OR SERVICE PROMOTION

Commercial should not be mistaken with infomercial

THE NATURE OF PROUCT OR PROMOTION

THE USE OF EFFECTIVE COMMUNICATION ON PRODUCT PROMOTION

INFORMATION SYSTEMS IN THE DIGITAL AGE

By-product of conducting a business fuel of the organization

SYSTEMS ANALYSIS AND DESIGN

 Collecting and interpreting facts

WHAT IS NEEDED BEFORE PLANNING?

BUSINESS INFORMATION SYSTEM

TYPES OF BUSINESS INFORMATION SYSTEMS

Office Automation Systems

 Support data workers

KNOWLEDGE WORK SYSTEMS [KWS]

Aids professional workers

Knowledge Work Systems (KWS)

Inputs: Design specs

Outputs: Designs, graphics

Users: Technical staff

Example: Engineering work station CAD

Human Resource Systems

MANAGEMENT INFORMATION SYSTEM [MIS]

 It does not replace TPS; rather it includes it.

 Hardware, software, people

 Reports & Information

DECISION SUPPORT SYSTEMS [DSS]

 Both depends on a database a source of data

Departs from MIS

 Emphasizes support on decision making in all its phases

General Thrust of AI:

Develop machines that behave intelligently

1. Understanding natural language

A DEEPER LOOK INTO ORGANIZATIONS AND INFORMATION SYSTEM

• Distance of hits from the Circles

• Size of the circles

INFORMATION SYSTEMS IN GLOBAL BUSINESS TODAY

Perspectives on Information Systems

Functions of an information system

– Hierarchy of authority, responsibility

• Production or service workers

• Organizational dimension of information systems (cont.)

– Separation of business functions

• Sales and marketing

• Finance and accounting

• Manufacturing and production

– Unique business processes

– Unique business culture

• Management dimension of information systems