Describing the ItelO Company

Objectives

After completing this lesson, you will be able to:

  • Describe the ItelO Company

Introduction

Scenario

Let's look at a case study that examines the implementation of data modeling requirements in ITelO, a computer and accessories company, which recently acquired a similar company, Retailer King. ITelO struggles with inconsistencies in different business segment reports.

First, let's see why users can experience different results in reports.

These discrepancies can be addressed with an SAP BW/4HANA data warehouse, but that requires an effective data modeling directive before its application. Even with the data warehouse's potential to align varying outcomes, users can still have different expectations concerning business reports. Addressing these issues involves setting priorities for the data modeling strategy, determining business requirements for ITelO, and understanding which business segments are in focus.

Identifying what data is available in the source systems for sales and storage and how it’s stored is also essential. For instance, the data model in the source system CIA, which ITelO uses to document sales transactions, must be examined.

Introduction of the ITelO Company

ITelO Company - EPM Model

Consider the movement of goods from storage to sales and procurement.

ITelO is a company that buys and sells computers and accessories. This company has no production unit.

There are three main areas of business:

  • Procurement (purchasing products)
  • Sales (selling the same products)
  • Storage (storing these products)

ITelO is a global player, with several subsidiaries and locations worldwide, selling its products through direct distribution channels. The company has various resellers and standard customers as well as different suppliers. Some business partners appear as suppliers only, others as customers only, and some in cases, both. ITelO has several employees at different locations who can handle sales or purchase processes, that is, create and change purchase orders or sales orders.

ITelO has one storage warehouse per location, and the same product can be stored at different locations. The smallest storage unit is the storage bin. A storage bin is located in one location and (at a point in time) contains exactly one product.

These relations are reflected in the SAP S/4HANA source system of ITelO by tables and key references called the EPM SAP NetWeaver Demo Model. EPM stands for enterprise procurement model. While the scope of EPM is complex enough to be used as a basis for testing and demonstration, it isn’t a fully fledged application for a productive system environment. This simple model doesn't involve production processes, and there’s no automatic link between goods issued and changing the corresponding stock bin's content. Imagine all goods being delivered directly from the shops without accessing the central storage, and the same quantities being reordered to the shops directly from suppliers.

According to the EPM SAP NetWeaver Demo Model, data volumes for master data, for example, products; and transactional data, for example, purchase orders and sales orders, are generated in the source system.

Note
The mass data is generated with the transaction SEPM_DG. The generated data is approved and can also be used at customer sites for demo or training purposes.

ITelO Company and Retailer King

For our case study, imagine that ITelO has acquired another retailer named Retailer King 3000. Retailer King 3000 has exactly the same business processes. For our case study, data from both companies is available in two systems, T41 and CIA.

ITelO and Retailer King

ITelORetailer King
Data in system CIA:
  • Sales (multiple currencies)
  • Storage
  • Procurement
Data in system T41:
  • Sales (only EUR)
  • Storage

Both companies have implemented the EPM Model, so the same types of tables are used for sales and storage. However, there are also differences:

  • ITelO also has data related to procurement.

  • ITelO has sales data in multiple currencies, while Retailer King only has sales data in EUR.

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