Large Package ImplementationPlan for TonightPackaged SoftwareThree Critical Issues of Packaged Software Spanning All Phases of the SDLC Figure 14-3CustomizationIntegrationUpgrading PackagesSlide 8Slide 9Pre-ERPSlide 11Slide 12What is ERP?Slide 14Major ERP VendorsAdvice from “the front”Slide 17Slide 18Slide 19What should you be able to come up with?Overview of SAP R/3Slide 22Slide 23Slide 24SAP R/3 Functional ModulesSAP R/3 SoftwareSAP R/3 Financial ComponentsSAP R/3 HR ComponentsSAP R/3 Logistics ComponentsSAP R/3 Industry Solution ApplicationsIS Development View of SAP R/34 Ways to Adapt SAP R/3SAP R/3 “Master Data”Slide 34Slide 35Slide 36What is ABAP?Slide 38Slide 39Large Package ImplementationWeek 13CMIS 570Plan for TonightIntro to Packaged Software, ERP and LPICh 183 readings already distributedOverview of SAP R/3Packaged SoftwareTraditionally focused on isolated business functionsERP focuses on integrated software solutionsCurrent trends show increase in packaged software and decrease in in-house software developmentThree Critical Issues of Packaged Software Spanning All Phases of the SDLCFigure 14-3CustomizationDesire is to minimize customizationBest practices built-in alreadyUnique requirements may existCustomization typesConfigurationModificationEnhancementIntegrationStandardize data so all functions can access it in real timeEnterprise application integration (EAI) is the process of linking applications to support the flow of information across multiple business units and IT systemsMiddleware ERP with built-in middlewareUpgrading PackagesUpgrades can be challengingFrequencyExisting level of customizationIntegrationMust be planned and documentedLarge Package ImplementationPre-ERPWhat is ERP?Advice from “the front”Large Package ImplementationAssociated Readings:The ABC’s of ERPKoch, Slater & Baatz, CIO 12-22-99History of SAPFrom sapfans.comERP Training StinksWheatley, CIO 6-1-00Pre-ERPApplication-specific systemsApplication-specific systemsIncremental designSeparate information systems built over long period of timeEach system supports discrete business process (e.g., manufacturing, finance, sales)Suppliers and customers rarely part of the information system picturePre-ERPPre-ERPApplication-specific systemsApplication-specific systemsAn 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 functionsIntegration is accomplished through a single (HUGE) database shared by all the applicationsDesigned to support global operationsMultiple languages and currenciesWhat is ERP?Major ERP VendorsMajor ERP vendors:SAP AGPeopleSoftOracleJ.D. EdwardsAdvice 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 systemsAdvice from “the front”Management support, at the top Management support, at the top and in business areas, is crucialand in business areas, is crucialA-Busch recommends placing a BUSINESS leader in charge, not MIS, so project leadership comes from the business perspectiveLeader 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 folksA-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 workersMonsanto:“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 ERPCritical success factors of ERPOverview of SAP R/3Major ERP vendors:SAP AGPeopleSoftOracleJ.D. EdwardsOverview of SAP R/3Pronounced “Ess Ay Pee”SAP is the company, R/3 is the productSAP stands for Systems, Applications, and ProductsR stands for Real-time system3 represents client/server (vs. R/2 mainframe version)Overview of SAP R/3Three-tier architecture of R/3Overview of SAP R/3Basic design principles implemented in the SAP R/3 productReal-time informationSingle integrated databaseBusiness groups work with SAME data in REAL TIMESAP R/3 Functional ModulesSAP R/3 SoftwareBasis (the blue blob)Middleware that enables R/3 to run on various platformsOperating systemsMajor UNIX platforms (e.g., AIX)Windows NTIBM’s AS/400 and S/390 platformsDatabase Management SystemsIBM’s DB2 OracleMicrosoft SQL ServerFunctional Modules . . .SAP R/3Financial ComponentsFI - Financial AccountingCO - ControllingEC - Enterprise ControllingIM - Capital Investment ManagementTR - Treasury(might be 1 or 2 recent
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