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With the introduction of release 4.0 and in the context of the Business Framework, SAP's strategy for enterprise computing was to develop R/3 into a family of integrated components that can be upgraded independently. Following a well known study by the Gartner Group, SAP closely watches the strategy depicted for the survival of the Enterprise Software Vendors and put the corresponding actions in place well before 1997. The four actions indicated were: 9
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R/3 Release 4.0 Move toward componentization, both in products and sales force. This move can be clearly seen with the emergence of R/3 release 4.0. Add consulting content. This is another step that SAP has added to its overall business, although in a more silent way, in order not to provoke the legion of consulting partners. SAP figures show that 1997 and 1998 have seen a percentage growth both in revenue and people from services and consulting. Develop industry specific components or templates. This is not a new strategic direction for SAP, although it is true that for the year there has been more marketing than real products. With release 4.0, some industries such as retail and the public sector can find some additional and specific business processes; however, telecom companies have been waiting since 1995 for their piece of the cake. Focus on fast implementation: methodologies and solutions. ASAP and TeamSAP are excellent examples of SAP's reaction to the continuous criticism of implementation times and overbudgeted projects. In addition to the logical evolution of technological aspects besides the increment on functionality on release 4.0, there are two features that should be particularly highlighted: componentization and inclusion of industry solutions. To these features, from a strategic and pragmatic point of view, we should also add the increased accent on the use of solution sets for rapid implementation, such as AcceleratedSAP or ASAP. Componentization is a practical consequence of possibility enabled by the Business Framework architecture. When SAP introduced release 4.0, it explained that R/3 has evolved into a family of distributed business components. Among the new components and functional add ons to the kernel R/3 application modules are: Introduction of new distributed scenarios using ALE and its integration using BAPIs. Enhancements for the management of the global supply chain (from the provider of the provider to the customer of the customer) together with the New Dimension products within the Supply Chain Optimization Planning and Execution (SCOPE) and SAP Advanced Planner and Optimizer (APO) initiatives. Introduction of new specific functionality for particular industry solutions, starting with retail and the public sector. New Business Framework architecture components. With these new components customers can add new enhancements to the system independently of other R/3 functionalities. For instance, there is a large group of new Internet scenarios that can be used for business processes. Some of the new business components within New Dimension that were introduced at the time of the release of R/3 4.0, for example Product Data Management (PDM), ATP Server (Available to Promise), the Business Information Warehouse or the system of catalog and purchase requisitions using Internet. These products are installed separately and are release independent. It was SAP's goal to include substantial improvement for implementing R/3 more quickly, making it a business solution that is easy to use and easy to upgrade. With new R/3 Business Engineer components, the system includes an advanced mechanism for model based configuration (business blueprints) and for continuous change management. Technologically, the programming language ABAP/4 has also evolved toward a completely object oriented language based on the so called ABAP objects, and from release 4.0 on it is called simply ABAP. These new objects allow interoperability with other types of external and standard object architectures. There are also enhancements in security and data integrity by means of using authentication and electronic signature techniques. 10
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R/3 Release 4.5 There was also the extension of the SAP Business Workflow via the addition of new wizards for rapid work flow scenario configuration and deployment as well as the possibility of launching Workflows from the Internet using forms with HTML formats.
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