Hello Nikhil,
OK, I found what you mean - the picture in the guide is obsolete, as the SAPphone interface configuration has moved from VU variables to System Configurator some time ago.
The SAPphone is quite old RFC-based protocol, predecessor of current ICI, which is SOAP-based. However, the SAPphone is still necessary for some scenarios, which require bulk data tranfer - statistical data transfer to CRM and campaign transfer.
In the Integration guide, find chapter Outbound Campaigns and Automatic Dialing. There is description how to setup the SAPphone connection.
Just a note: for basic operations, you don't have to setup the SAPphone interface.
Regards,
Dawood.