While SAP R/3 is used for the day to day operational 'boring' stuff, like Finance, HR, Procurement, the SAP SEM or Strategic Enterprise Management module is used to complete the overall big picture of an Enteprise Management.
Using SEM, we can see the 'birds eye view' of the overall company. All the processes and interactions between the R/3 module (HR/SCM/FIN/EAM) will manifest itself in SEM and provide us with the bigger picture.
Thus, SEM is a powerful tool for CEO's, Strategist, Planners of a Company to see snapshots of how 'healthy' the company is doing. Using 'Management Cockpit', 'Business Planning and Simulation', and 'Balanced Scorecard Strategy Management', a CEO can decide what's the best way to run and fine tune the company. With the information at hand, he can decide the next move of his company. Like a seasoned chess player, he will move the pieces with the help of a powerful ally, SAP SEM!
Therefore, any SAP implementation will only be complete with the addon of SEM components.
Without it, it's kinda like the story of the 3 blind men who felt the different parts of the elephant. Each of them will have a different interpretation, without being able to see the bigger picture.
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