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

CMIS 470Structured 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 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 SDLCFigure 14-3

Customization Desire is to minimize customization

Best practices built-in already Unique requirements may exist

Customization types Configuration Modification Enhancement

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 Upgrades can be challenging

Frequency Existing level of customization Integration

Must be planned and documented

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

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 Application-specific systemsApplication-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-ERP

Pre-ERP Application-specific systemsApplication-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? 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

What is ERP?

Major ERP Vendors Major ERP vendors:

SAP AG PeopleSoft Oracle J.D. Edwards

Advice from “the front” Need to redesign business processes to Need to redesign business processes to

fit the ERP (not the other way around)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 front” Management support, at the top Management support, at the top

and in business areas, is crucialand 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 front” Prepare to invest in training of IT Prepare to invest in training of IT

and process folksand 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 front” Prepare to deal with difficulty in hiring Prepare to deal with difficulty in hiring

and retaining ERP-skilled workersand 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”

So . . . Which installation method is likely

most recommended in ERP implementations? Big-bang Parallel Phased

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

Overview of SAP R/3 Major ERP vendors:

SAP AG PeopleSoft Oracle J.D. Edwards

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/3 Three-tier architecture of R/3

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 Functional Modules

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/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/3HR Components

PA - Personnel Administration PD - Personnel Development

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 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

4 ways to adapt SAP R/3 to a company

What is ABAP? Recommended R/3 development

landscape

4 Ways to Adapt SAP R/31 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

SAP R/3 “Master Data”

4 Ways to Adapt SAP R/32 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/33 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/34 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?

The ABAP LanguageThe ABAP Language Pronounced “ah-bop” AAdvanced BBusiness AApplication

PProgramming All SAP functional modules are written in

ABAP Only SAP and SAP customers use the

ABAP language

What is ABAP? The ABAP LanguageThe 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 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