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Understanding SAP Reference Business Architecture

<div id="content"><p tabindex="0">The SAP Reference Business Architecture (RBA) framework assists in understanding the structure and linkage between business capability and process models, and between business and solution architecture. Also, it delivers guidance in the organization and management of enterprise and business domains, end-to-end processes, and solution components.</p><div class="kalturaVideoLessonWrapper"><div aria-label="" class="kalturaVideoLessonContainer" data-testid="video" id="1_e9sv3gnj"></div></div><div class="parentsection"><div class="section"><div tabindex="0"><h3>Key Points to Remember</h3></div><div tabindex="0"><h3>Key Components of Reference Architecture Content</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">Business Architecture and Solution Architecture are focal points.</li><li tabindex="0">Business Capability Model and Business Process Model are pivotal elements.</li></ul><p tabindex="0"><strong>Business Capability Model (BCM):</strong></p><ul style="list-style-type:disc"><li tabindex="0">Organizes business capabilities essential for achieving strategic objectives.</li><li tabindex="0">Adheres to the mutually exclusive and collectively exhaustive MISI principle.</li><li tabindex="0">Organized by:<ul class="second1" style="list-style-type:circle"><li tabindex="0">Business Domain</li><li tabindex="0">Business Area.</li><li tabindex="0">Business Capability (What the organization does to generate value)</li></ul></li></ul><p></p><p tabindex="0"><strong>Business Process Model (BPM):</strong></p><ul style="list-style-type:disc"><li tabindex="0">Classifies business processes into eight end-to-end groups.</li><li tabindex="0">Linked to the APQC framework, especially the Process Classification Framework (PCF).</li><li tabindex="0">Connects to BCM via business activities.</li></ul><p></p><div tabindex="0"><h3>Solution Architecture</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">Depicts solution components, their roles, business functions they provide, and the data objects they manage.</li><li tabindex="0">Solution Capability Model and Solution Process Model are main aspects.</li><li tabindex="0">Product map details all solution capabilities and components for implementing business capabilities.</li></ul><div tabindex="0"><h3>Linkage Between Business and Solution Architecture</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">Business Capabilities are tied to various solution capabilities and components.</li><li tabindex="0">Both architectures anchored by four Enterprise Domains:<ul class="second1" style="list-style-type:circle"><li tabindex="0">Develop Product and Service</li><li tabindex="0">Supply (Fulfill Demand)</li><li tabindex="0">Customer (Generate Demand)</li><li tabindex="0">Corporate (Plan and Manage Enterprise)</li></ul></li></ul><div tabindex="0"><h3>Entity and Object Relations</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">BCM<ul class="second1" style="list-style-type:circle"><li tabindex="0">Describes what the organization needs to deliver.</li><li tabindex="0">One-to-one ownership assignment to business areas and domains.</li></ul></li><li tabindex="0">BPM<ul class="second1" style="list-style-type:circle"><li tabindex="0">Defines how the organization delivers business value via structured processes.</li><li tabindex="0">Business activities linked to APQC’s Process Classification Framework (PCF).</li></ul></li></ul><div tabindex="0"><h3>Model Integration</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">Solution capabilities and components aligned with business capabilities to support processes and activities.</li><li tabindex="0">Capabilities from BCM can be reused across different BPMs.</li></ul><div tabindex="0"><h3>Industry-Specific Customization</h3></div><div class="formalblock"></div><ul style="list-style-type:disc"><li tabindex="0">Flexibility to tailor business capability maps for different industries.</li><li tabindex="0">Ability to apply multi-layered filtering for organizations spanning multiple industries.</li></ul><p tabindex="0">The SAP enterprise architecture framework interconnects business capabilities and processes with solution architecture, structured under enterprise domains. Business capabilities map to solution capabilities, fulfilling strategic organizational needs while maintaining consistency and flexibility across various industries and processes.</p></div></div></div>

SAP Reference Business Architecture

Discovering SAP Enterprise Architecture

<div><div><div>This video provides a detailed overview of the SAP Reference Architecture Content Framework, Business Capability and Business Process Model, and Solution Capability and Solution Process Model. You will learn about the methodology, tools, and practices within the SAP enterprise architecture framework.<br><br># This description was auto-generated #</div></div></div>

Understanding SAP Reference Architecture Content

This training outlines the SAP Reference Architecture Content Framework, Business Capability and Business Process Model, Solution Capability and Solution Process Model. After completing this training, you will be able to understand the SAP Reference Architecture Content, Business Capability Model Structure, the Business Process Model Taxonomy, linkage between business capability and business process models and linkage between the reference business architecture and reference solution architecture. The SAP enterprise architecture framework consists of methodology, reference architecture content, tooling, practice, and services. The focus of this training is going to be on the reference architecture content. When we look at the SAP enterprise architecture methodology, the The artifacts are organized and arranged into various logical groupings. Working from left to right, you can see architectural principles and vision, strategy and motivation, business architecture, solution architecture, technology architecture, opportunities and migration planning, and last but not least at the bottom, requirements and risks, architecture decisions. The focus of this training will be looking at the business and solution architecture and in particular, those artifacts that are highlighted inside the boxes as shown. The reference architecture content consists of the business architecture and the solution architecture. As we look in the blue column under business architecture, you can see there's two types of models. There's the business capability model and the business process model. model. And we look to the right to the solution architecture, you can see there's solution capability model and the and the solution process model. As we focus in on the business capability model and the capability view, the business capability model organizes the complete set of business capabilities an organization requires to successfully complete its mission, reach its strategic objectives, and execute its business model. It observes the mutually exclusive and collectively exhaustive MISI principle. Right below that we have the business process model, and the business process model classifies business processes in the eight end-to-end business process groups. All business processes follow the same hierarchical structure, which at the leaf level defines business activities that are aligned with APQC business activities. As we slide to the right under Solution Architecture, the Reference Solution Architecture content from SAP provides insights how SAP solutions are built by depicting solution components, their roles, the business functions they provide, and the data objects they manage. Moreover, it details out processes supported by solution components and the integration and data flows between them. Let's now look at a reference architecture content example. So everything is anchored by enterprise domains. There's four enterprise domains, starting from the left, develop product and service, to the one in the middle, supply, fulfill demand, customer, which is generate demand, and corporate, which is plan and manage the enterprise. Now these four enterprise domains then set the anchor for the rest of the model and the colors are important because they are prevalent throughout the reference architecture content itself. So next we look at the business domains and the business domains fall under the area of the business capability model and there's 21 business domains. And you can see this example on the left here again in purple where R&D and engineering and product management are sort of aligned now to that enterprise domain of developed product and services. services. And as you move to the right, let's say in the area of customer or the generate demand, you can see that there's four business domains under that marketing, sales, omni-channel commerce, and customer service. Now additionally, we have these end-to-end processes and there's eight end-to-end processes. You can see from the left again, ID to market, source to pay, plan to fulfill, lead to cash, recruit to retire, acquire to decommission, These two are anchored, again, by those enterprise domains that are providing those overarching dependencies in terms of how the content and the reference architecture is framed and modeled. Now, besides creating these end-to-end processes and creating the capability model of showing the business domains, we also then connect this to solution architecture, solution components, and in this case, you can see some of the solution component groups that would then be connected to either the end-to-end processes or business demands themselves. And last but not least, we also deliver content when it comes to the industries. We first create processes or content for cross and then if needed, then industry specific things falling within the segments of one of these buckets of consumer or discrete energy and natural resources, financial services, public services, et cetera. So this is one example of the overarching framework of the content, how the content is then organized between enterprise domains, end-to-end processes, business domains, all then connected to a solution component architecture, and then obviously flavoring when it comes to the industry or industry flavors themselves. Let's now explore a little bit more about the reference architecture and the reference business architecture linked to the reference solution architecture. So we're going to go down one more level from that prior slide that we showed and show you some of the entities and objects that are then associated to some of these process models or the capability models and what's sitting in these two primary buckets. So on the left-hand side we have what we call the reference business architecture in blue and the right-hand side the reference solution architecture. So as mentioned prior, everything is anchored by these four enterprise domains for product and service, supply, customer, and corporate. So as we look in the reference business architecture side as you can see that enterprise domain layer sitting there. So on the one side we have the business capability model, which is what we call the BCM, and it describes the complete set of capabilities an organization requires to fulfill its mission. It is a segmentation of business capabilities across various levels and describes what an organization needs to deliver in terms of business value and needs to be successful. We also have a business process model. And this is made up again of the eight end-to-end business processes. And this describes and provides the foundation of building blocks for the standardization of business processes and business process modeling. At the top level, everything starts with this end-to-end business process and then drills down into various levels. And we're gonna get into that in one second. The other thing that's important when it comes to the business process model is the linkage to the APQC framework. And in this case, what's considered the process classification framework or the PCF. And we in the business process modeling side connect to APQC through one of the entities and objects called the business activity. So we connect these two models on the process and capability side to what we call the solution capability and components. Because obviously we're a software company, we develop software, that's the linkage. And this is the goal in terms of what customers are looking for. So the solution capability, or what we refer to as the product map, it depicts all solution capabilities and solution components that are needed to implement a business capability. And a business capability might be supported by one, none, or many solution capabilities. So just keep that in mind, there could be a variety and a mix of solution capabilities that could be identified that are then connected to a business capability. Looking now at the entities and objects that then sit within the business process model, business capability model, and reference solution architecture, let's explore a little bit more. So first let's take a look at the business capability model. So the business capability model consists of the business domain, the business area, and the business capability. And the business capability is really describing what the organization does to generate value independent of how the software or the technology supports it. And the capability assignment here is a one-to-one relationship in terms of ownership. So a capability is assigned to one business area and one business domain, specifically in terms of the creation and ownership assignment. On the other side, we now have the business process model, which consists of end-to-end business processes, the business process module, the business process segment, the business activity. And it's connected, again, through that business capability that you saw in the prior screen with the business capability model. The only difference is in this case, the business capability could be used in the aspect of one or many different aspects to then create a model or an end-to-end process. So a capability can be reused through any of these end-to-end processes and process modules and segments to complete or define an actual business process or business process variant. And that is then connected again to the solution capability and component P. So the activity in this case on the business process model describes the how, how the stakeholder creates value and achieves an outcome by performing a series of steps, using information and applications and how the technology supports it. Now, when you look at the reference architecture content, you can see how the how and the what complement each other in terms of how the stakeholder creates value and what the organization does to create value. Now being a software company too, we have a how when it comes to the reference solution architecture side. How technology supports the business to then drive value to the organization. And the combination of these then is really driving critical aspects that the organization is looking for. So which stakeholders could be impacted or involved? Which divisions and business units? What are the strategy and objectives you're trying to accomplish as an organization? What customer journeys are you modeling, experimenting with or building within your organization and how that leads to processes, requirements, applications, data, information, and ultimately to the integration to all this content that's sitting within your backend systems. Let's now walk through a business capability model example. So using the enterprise domain of supply, I'm going to next expose the business domains that sit under, that are associated to that enterprise domain. So we've got the domain of sourcing and procurement, supply chain planning, supply chain enablement, supply chain execution, manufacturing, and service delivery. We'll now zero in on one of those business domains and expose the business areas that are sitting below that. So under supply chain execution, you can see the five business areas associated to supply chain execution. We'll go one more level down and now expose the business capabilities that are then associated to those various business areas. Now mentioned before, the assignment of the business capabilities in the case of the business capability model are assigned a one-to-one relationship. So the ownership is assigned specifically to these areas and you will not see these business capabilities in the business capability model example assigned to another area or domain. Now, in this example even further, let's say you want to now investigate the two areas of transportation management and dock and yard logistics. So you can see the capabilities that sit under those two business areas, and maybe you want to start to delve into what solution capabilities and components might be associated. So continuing from the previous slide and example, we're now looking at the solution capabilities and components associated to dock and yard logistics and transportation management. And in this view you can see the color coding has reference, so the darker shade is anything sitting on the business technology platform. The royal blue is anything within the Esfahana space and in the case under transportation management you can see that darker gray at the bottom where it's specifically focused on the on-prem. So in this example we took the hybrid aspect of the solution capability and component view where then you'd see aspects of on-premise. This view showing you the component and solution capability view so you can see under docking yard logistics, something like SAP Business Network for Logistics, and the grouping of those two solution capabilities, the gate processing and dock appointment scheduling. And then the example of transportation management, you can see under the S4HANA, which would be the S4HANA on-premise or private cloud example, you can see the solution capabilities of freight, charge management, carrier booking and tendering, transportation execution, etc. We also have the ability to filter by industry or industry specific and get business capability maps that can be specific to an industry. In this example, applying the filter of retail, you can see the ones that would then be grayed out that would not be pertinent to retail. We can also do a multi-layering and add multiple industries on top of each other to kind of see what that business capability map ultimately would look like with a combination of industries because we know customers today don't fit within a single industry and are playing between multiple industries and we have the capability of the industry content we publish to provide this multi-layering filtering process within the tools. Now we're going to investigate a business process model example. So on the left-hand side, we're going to start to build the entities associated to the process model, and in the middle of the screen, we're going to fill it in with the actual content and substance. So we're going to look at the enterprise demand or supply. We're going to look at the end-to-end business process, the plan to fulfill. So under that end-to-end process, the first level is called the business process module. In this case, with the business processes, everything starts with the planning piece and everything ends with the manage. So you can see the first box is plan to optimize fulfillment followed by procure to receipt, make to inspect, deliver product to fulfill, deliver service to fulfill, and then at the end the manage fulfillment process. We're going to look at one of them called deliver product to fulfill now. So one business process module called deliver product to fulfill and expose the business process segments that are under there. So there's four in this case. We've We've got the perform order promising, manage warehouse inventory, manage transportation, monitor and optimize logistics performance. And then from there, we're going to drill another level down to what we call the business activities. Again, you can see there's four associated to manage transportation, which is sourcing the transportation, planning the transportation, executing the transportation and perform transportation settlement. It's at this level, too, that we link to the APQC PCF Framework Classification, and you can see in this case those codes that would be associated to the activities of the mapping alignment. And in the case of APQC, there could be one or many codes associated to a business activity. So assigned to those business activities now, we have the business capabilities. As mentioned, the business capabilities are defined in the business capability model in terms of the ownership and assignment to domains and areas. But in the case of the business process model, these capabilities could be reused across one or many different end-to-end processes to build that process or that process variant itself. We continue now to connect from the business capability to the solution capability and the components. So linking that up through the activities, you can see under source transportation, we have a solution capability called freight order collaboration or strategic freight management. Or in the case of execute transportation, you can see the appointment collaboration or the transportation execution. the brackets, it then shows the component that would then be needed in terms of providing the solution capability functionality for this particular business activity. Let's explore the summary for the reference solution architecture. We talked about the solution capability model with the business capabilities implemented by solution components and went in and showed a solution capability and product map. We discussed the solution process model, discussing business value flows implemented by solution components, showed detailed solution process flows implemented by solution components, and also discussed solution components and their communication channels. And there, there were three primary artifacts, the solution value flow diagram, the solution process flow diagram, and the solution component diagram. And last but not least, the solution data model, which is the recommended data flow between solution components, and there we showed the solution data flow diagram itself. All this offers a recommended implementation guidance using SAP software components. It also allows us to obtain and validate an implementable SAP reference architecture showing how the components interact to support the business process. We can leverage the content to define a target architecture based on specific needs, and it allows us to explore how process implementations can be broken down to APIs with all the integration content being linked. Thank you for taking the time to explore this learning module and we appreciate the time that you spent.