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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 - PowerPoint PPT Presentation
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Large Package Implementation
Week 13CMIS 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
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”
What should you be able to come up with? Reasons for implementing ERP Critical success factors of ERP
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