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Large Package Implementation. Week 13 CMIS 570. Plan for Tonight. Intro to Packaged Software, ERP and LPI Ch 18 3 readings already distributed Overview of SAP R/3. Packaged Software. Traditionally focused on isolated business functions ERP focuses on integrated software solutions

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Plan for tonight
Plan for Tonight

  • Intro to Packaged Software, ERP and LPI

    • Ch 18

    • 3 readings already distributed

  • Overview of SAP R/3

Packaged software
Packaged Software

  • Traditionally focused on isolated business functions

  • ERP focuses on integrated software solutions

  • Current trends show increase in packaged software and decrease in in-house software development

Three critical issues of packaged software spanning all phases of the sdlc figure 14 3
Three Critical Issues of Packaged Software Spanning All Phases of the SDLCFigure 14-3


  • Desire is to minimize customization

    • Best practices built-in already

    • Unique requirements may exist

  • Customization types

    • Configuration

    • Modification

    • Enhancement


  • Standardize data so all functions can access it in real time

  • Enterprise application integration (EAI) is the process of linking applications to support the flow of information across multiple business units and IT systems

    • Middleware

    • ERP with built-in middleware

Upgrading packages
Upgrading Packages

  • Upgrades can be challenging

    • Frequency

    • Existing level of customization

    • Integration

  • Must be planned and documented

Large package implementation1
Large Package Implementation

  • Pre-ERP

  • What is ERP?

  • Advice from “the front”

Large package implementation2
Large Package Implementation

  • Associated Readings:

    • The ABC’s of ERP

      • Koch, Slater & Baatz, CIO 12-22-99

    • History of SAP

      • From

    • ERP Training Stinks

      • Wheatley, CIO 6-1-00

Pre erp

  • Application-specific systems

    • Incremental design

    • Separate information systems built over long period of time

    • Each system supports discrete business process (e.g., manufacturing, finance, sales)

    • Suppliers and customers rarely part of the information system picture

Pre erp2

  • Application-specific systems

    • An illustration of associated problems --

      Mott’s North America (Catherine Riordan):

      • “Under application-specific systems, each business unit was well served, but important data would vary dramatically among divisions”

      • “Sales would use its system to project sales; Logistics planning group would use manufacturing system to decide how much product to make and how to schedule production”

      • “Each area would think overtly or covertly that the other area’s numbers weren’t any good”

      • “There was no trust between the divisions”

What is erp
What is ERP?

  • Configurable information system that integrates applications in accounting, sales, manufacturing, and other functions

  • Integration is accomplished through a single (HUGE) database shared by all the applications

  • Designed to support global operations

    • Multiple languages and currencies

Major erp vendors
Major ERP Vendors

  • Major ERP vendors:

    • SAP AG

    • PeopleSoft

    • Oracle

    • J.D. Edwards

Advice from the front
Advice from “the front”

  • Need to redesign business processes to fit the ERP (not the other way around)

    • Boeing:

      • “Most difficult and time-consuming and expensive aspect of the project was creation of a ‘bridge’ between PeopleSoft HR system and our legacy payroll systems”

      • In hindsight, they believe they should have forced the payroll process to move to PeopleSoft and eliminated those legacy systems

Advice from the front1
Advice from “the front”

  • Management support, at the top and in business areas, is crucial

    • A-Busch recommends placing a BUSINESS leader in charge, not MIS, so project leadership comes from the business perspective

    • Leader needs to communicate vision, maintain motivation, fight political battles, and remain influential with all stakeholders (Willcocks & Sykes, 2000, Communications of the ACM)

Advice from the front2
Advice from “the front”

  • Prepare to invest in training of IT and process folks

    • A-Busch:

      • “Find the ‘right’ people for the project, empower them, and take the training seriously”

    • Boeing:

      • “Reskill the end users; supplement generalized user training with training on the specific application modules each will be using”

Advice from the front3
Advice from “the front”

  • Prepare to deal with difficulty in hiring and retaining ERP-skilled workers

    • Monsanto:

      • “One of the critical workforce requirements for the SAP project was identifying analysts with both business and technical knowledge”

      • “Instead of 200 ‘programmers’ with average skills, the SAP project demanded and could be accomplished with 20 of the ‘best and brightest’ business analysts”

      • “However, retaining these professionals was a significant problem because of their market value”

What should you be able to come up with
What should you be able to come up with?

  • Reasons for implementing ERP

  • Critical success factors of ERP

Overview of sap r 3
Overview of SAP R/3

  • Major ERP vendors:

    • SAP AG

    • PeopleSoft

    • Oracle

    • J.D. Edwards

Overview of sap r 31
Overview of SAP R/3

  • Pronounced “Ess Ay Pee”

  • SAP is the company, R/3 is the product

    • SAP stands for Systems, Applications, and Products

    • R stands for Real-time system

    • 3 represents client/server (vs. R/2 mainframe version)

Overview of sap r 32
Overview of SAP R/3

  • Three-tier architecture of R/3

Overview of sap r 33
Overview of SAP R/3

  • Basic design principles implemented in the SAP R/3 product

    • Real-time information

    • Single integrated database

    • Business groups work with SAME data in REAL TIME

Sap r 3 software
SAP R/3 Software

  • Basis (the blue blob)

    • Middleware that enables R/3 to run on various platforms

      • Operating systems

        • Major UNIX platforms (e.g., AIX)

        • Windows NT

        • IBM’s AS/400 and S/390 platforms

      • Database Management Systems

        • IBM’s DB2

        • Oracle

        • Microsoft SQL Server

  • Functional Modules . . .

Sap r 3 financial components
SAP R/3Financial Components

  • FI - Financial Accounting

  • CO - Controlling

  • EC - Enterprise Controlling

  • IM - Capital Investment Management

  • TR - Treasury

  • (might be 1 or 2 recent additions)

Sap r 3 hr components
SAP R/3HR Components

  • PA - Personnel Administration

  • PD - Personnel Development

Sap r 3 logistics components
SAP R/3Logistics Components

  • MM - Materials Management

  • PM - Plant Maintenance

  • PP - Production Planning

  • PS - Project System

  • QM - Quality Management

  • SD - Sales and Distribution

Sap r 3 industry solution applications
SAP R/3 Industry Solution Applications

  • Fully integrated with SAP R/3 components

  • Address unique needs of the industry

  • Industry Solutions available include:

    • Banking

    • Healthcare

    • Public Sector

    • Retail

    • Utilities

    • Insurance

Is development view of sap r 3
IS Development View of SAP R/3

  • 4 ways to adapt SAP R/3 to a company

  • What is ABAP?

  • Recommended R/3 development landscape

4 ways to adapt sap r 3
4 Ways to Adapt SAP R/3

  • Configuration

    • A mandatory part of setting up R/3

    • Set system parameters using a special user interface (IMG)

    • Essentially entering “master data” and selecting processes

    • Done by business analysts

4 ways to adapt sap r 31
4 Ways to Adapt SAP R/3

  • Modification

    • Customer changes SAP R/3 objects

    • When you upgrade your SAP R/3 system, must compare your version of modified objects with new SAP version -- and deal with the associated issues

    • “DON’T DO IT”

4 ways to adapt sap r 32
4 Ways to Adapt SAP R/3

  • Enhancements

    • Customer additions and changes to R/3 objects that are not “modifications”

    • SAP programs have “user exits” designed into them at points where they have found customers may want to branch to additional specialized logic

4 ways to adapt sap r 33
4 Ways to Adapt SAP R/3

  • Customer Development

    • R/3 contains a customer namespace where you can create your own objects (e.g., additional tables, report programs, dialogs, transactions, etc.)

  • NOTES:

    • SAP customers typically do only 1 and 4 - Configuration and Customer Development

    • Textbook use of term “Enhancements” would encompass both 3 and 4 here

What is abap
What is ABAP?

  • The ABAP Language

    • Pronounced “ah-bop”

    • Advanced Business Application Programming

    • All SAP functional modules are written in ABAP

    • Only SAP and SAP customers use the ABAP language

What is abap1
What is ABAP?

  • The ABAP Language (continued)

    • Supports event-driven logic

    • Uses Open SQL (subset of ANSI SQL)

    • Is “multilingual”:

      • Text on screens/reports (e.g., titles, headers) stored separately from the program code

        • User settings indicate which language the text should be displayed in

      • Special date, time, currency fields are incorporated in the language functionality to support “global” logic

        • Conversions are done automatically

What is abap2
What is ABAP?

  • Companies installing or running SAP R/3 need ABAP programmers to:

    • Provide extended functionality that can’t be implemented by Configuration

      • specialized reports

      • additional screens, dialogs, tables

      • additional transactions

      • modules to execute at user exits

  • Of course, the SAP company and SAP consulting firms also need ABAP programmers