Question

Case Study:

Numerous information systems are available within SAP ERP to support most of the processes that we will discuss in this book. Information systems (IS) can be divided into three broad categories: logistics information systems (LIS), financial information systems (FIS), and human resources information systems (HRIS). Logistics information systems support all of the logistics processes. Recall that logistical processes are concerned with acquiring, storing, creating, and distributing materials. The components of LIS include purchasing IS, sales IS, inventory control IS (IWM processes), quality management IS, plant maintenance IS, and shop floor IS (production processes). The financial information system supports reporting related to the general ledger (e.g., balance sheet, income statement, statement of cash flows), accounts receivable, and accounts payable. The HRIS is used to retrieve information about different HR components such as personnel, positions, and jobs.

Recall that information systems are part of the OLAP component of SAP ERP, and they utilize information structures to provide analytic capabilities. There are two types of information structures—standard and user-defined. Standard information structures are predefined in the SAP ERP system, and they collect the data needed to generate the most commonly used reports. SAP ERP also enables users to define their own structures, known as user defined information structures, to meet specific reporting requirements.

Finally, information structures enable users to conduct two types of analysis— standard and flexible. Standard analysis provides predefined analytics for data in standard information structures. This type of analysis is sufficient for most analytic requirements. When standard analysis is insufficient, users can conduct flexible analysis to customize the reporting. In contrast to standard analysis, flexible analysis allows users to define the content and format of the analysis. Specifically, it enables users to combine available characteristics and key figures as needed and to create new key figures using user-specified formulas. It also provides users with several layout options.

To summarize, the OLTP component of SAP ERP offers reporting in the form of work lists and online lists that are based on detailed transaction data.

In contrast, the OLAP component offers reporting via information systems, based on aggregated data in information structures. These capabilities are limited to data within the SAP ERP system. Today, however, companies need even more powerful reporting capabilities that combine data from multiple sources. This is the domain of business intelligence.

Q1. As an information systems project manager, on what bases would you select the modules and the functionalities of the enterprise systems to fit with your business needs and requirements?

Q2. Analyze the capabilities and the type of reporting you are seeking for your project and illustrate the right approach in selecting the suitable IS vendor for the project.

Answer 1

1) As a manager, i will choose the same by analyzing day to day business requirements of each functional areas. Even, different department will asked to submit its main requirements of database creation, storage and recording various critical information with proposed system. A separate and special attention will be given to logistics, finance and human resource functions. It will offer us valuable insights about our system requirements. The requirements of business will be matched and integrated with latest addition of SAP ERP so that challenges of reporting might be resolved. There should be an online update facility in this relation.

2) Our system requirements have some of the important considerations like reporting with ease , a feedback system, offline accees , remote access , update with data restoration, easily designed categories and many other situation based or emergent software requirements. We are looking for our user specified formulas. It will need a two way interface through system enabled communication. If, we get chatbot facility then it will give us a competitive edge in resolving the queries of our valuable customers.

We shall choose vendors based on following major criteria

1) Reputation in terms of quality of services at door steps

2) Cost associated with customized system development

3) Benefits packages offered by the vendors

4) Time of development activities incurred by vendors

5) Options related to emergency services in maintaining the system functionality

A vendor rating system will be designed by a team of experienced managers from within . If, there is a need then outside experts will be hired.