Latha,
Are you preparing to teach a SAP training class or are you a university professor trying to integrate BI into one of your classes? Depending on that answer, there are several different ways you could approach SAP content - basically, go with the method that feels most comfortable to you. There is no "right" way.
Many years ago, I was an instructor here at SAP - and had the opportunity to teach BW310 that you mentioned (go back to the BW 2.2 days). My intent was to highlight the most critical info that was included in the book then provide additional content that wasn't in the book, as the focus of my lectures b/c that's where a more experienced person can provide the value. Depending on the topic, it would be fine to do as you've outlined --- lecture first, then demo. For more complex topics, you may wish to consider an integrated approach where you lecture for a couple of slides, then demo part of the process (i.e. building the cube, then in a later defining extraction rules) to mix things up a bit. This helps so that attendees aren't overwehlmed with all the details of a long demo. Some instructors are comfortable with the class participants walking along with the instructor during the demo, others prefer to have them wait until the exercises - that's personal preference. A key challenge with adult education is keeping participants engaged as you're competing with the work they left behind at their company.
If you're trying to use BW310 ideas in a university class, again, how you integrate it is personal preference. Some professors will continue to teach their normal lecture topic in class (i.e. data modeling), and only reserve a few minutes in class to introduce the SAP content -- identify key steps/points and outline the homework. Then expect students to work through the SAP content outside of class, along with other homework. Time would then be taken at the beginning of the next lecture to discuss the results and tie it back to the last lecture --- so that students really understand what they did in SAP s/w, beyond simply moving through the keystrokes. Other professors choose to fully integrate SAP content into the actual class experience -- and may do their lectures right in a compute lab. In which case, the SAP content becomes much more integrated into the lecture itself. If you are a professor teaching to students through the University Alliances program, I would advise that you explore the UA content we have available that was developed by other professors around the world. The materials do a nice job of connecting the educational theory to the SAP software ... so students have a solid understanding of both critical topics.
Good luck!
Heather
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