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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
customization
Customization
  • Desire is to minimize customization
    • Best practices built-in already
    • Unique requirements may exist
  • Customization types
    • Configuration
    • Modification
    • Enhancement
integration
Integration
  • 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 sapfans.com
    • ERP Training Stinks
      • Wheatley, CIO 6-1-00
pre erp
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
Pre-ERP
  • 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
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