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Large Package Implementation

This resource explores the trends and critical issues associated with packaged software, specifically focusing on Enterprise Resource Planning (ERP) systems like SAP R/3. Key topics include integration of business functions, minimizing customization, the importance of real-time data access, and strategies for successful implementation. Emphasis is placed on understanding the relationship between different business units, addressing common challenges, and ensuring management support to drive project success. Best practices, major ERP vendors, and real-world advice from industry leaders provide a comprehensive view of the ERP landscape.

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Large Package Implementation

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  1. Large Package Implementation Week 13 CMIS 570

  2. Plan for Tonight • Intro to Packaged Software, ERP and LPI • Ch 18 • 3 readings already distributed • Overview of SAP R/3

  3. 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

  4. Three Critical Issues of Packaged Software Spanning All Phases of the SDLCFigure 14-3

  5. Customization • Desire is to minimize customization • Best practices built-in already • Unique requirements may exist • Customization types • Configuration • Modification • Enhancement

  6. 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

  7. Upgrading Packages • Upgrades can be challenging • Frequency • Existing level of customization • Integration • Must be planned and documented

  8. Large Package Implementation • Pre-ERP • What is ERP? • Advice from “the front”

  9. 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

  10. 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

  11. Pre-ERP

  12. 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”

  13. 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

  14. What is ERP?

  15. Major ERP Vendors • Major ERP vendors: • SAP AG • PeopleSoft • Oracle • J.D. Edwards

  16. 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

  17. 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)

  18. 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”

  19. 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”

  20. What should you be able to come up with? • Reasons for implementing ERP • Critical success factors of ERP

  21. Overview of SAP R/3 • Major ERP vendors: • SAP AG • PeopleSoft • Oracle • J.D. Edwards

  22. 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)

  23. Overview of SAP R/3 • Three-tier architecture of R/3

  24. 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

  25. SAP R/3 Functional Modules

  26. 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 . . .

  27. 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)

  28. SAP R/3HR Components • PA - Personnel Administration • PD - Personnel Development

  29. SAP R/3Logistics Components • MM - Materials Management • PM - Plant Maintenance • PP - Production Planning • PS - Project System • QM - Quality Management • SD - Sales and Distribution

  30. 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

  31. 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

  32. 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

  33. SAP R/3 “Master Data”

  34. 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”

  35. 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

  36. 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

  37. 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

  38. 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

  39. 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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