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CMIS 470 Structured Systems Design

CMIS 470 Structured Systems Design. Package Software, Intro to LPI, Intro to hands-on SAP R/3 Week 6. Plan for the Week. Intro to Packaged Software, ERP and LPI Ch 14 4 readings distributed Overview of SAP R/3 Turn in BPP, Sequence Diagram Homework . Packaged Software.

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CMIS 470 Structured Systems Design

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  1. CMIS 470Structured Systems Design Package Software, Intro to LPI, Intro to hands-on SAP R/3 Week 6

  2. Plan for the Week • Intro to Packaged Software, ERP and LPI • Ch 14 • 4 readings distributed • Overview of SAP R/3 • Turn in BPP, Sequence Diagram Homework

  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. So . . . • Which installation method is likely most recommended in ERP implementations? • Big-bang • Parallel • Phased

  21. What should you be able to come up with? • Reasons for implementing ERP • Critical success factors of ERP • At least one take-away from each article

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

  23. 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)

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

  25. 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

  26. SAP R/3 Functional Modules

  27. 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 . . .

  28. 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)

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

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

  31. 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

  32. 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

  33. 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

  34. SAP R/3 “Master Data”

  35. 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”

  36. 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

  37. 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

  38. 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

  39. 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

  40. 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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