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In order to reduce cost, LEGO implemented a restructuring plan until today
LEGO outsourced part of their manufacture to Flextronics and reduce their labour cost
From a manufacturer, LEGO slowly switch to a marketing oriented firm, to react faster to changing global demand Question 2 Explain why distributed architectures are flexible Question 1 Question 4 Question 3 Identify some of the business intelligence in SAP's business software suite Advantages and Disadvantages of multiple databases in a distributed architecture Explain the role of the database in SAp's three-tier system Presented by Group 5 Lego: Embracing Change Combining BI with a Flexible Information System Third tier- consists of one or more relational databases, it contains the table that store data on products, daily operations, supply chain and thousand of employees.
It stores the data – business data, system tables, SAP programs – all conceivable data which may be present in a SAP system. The Third Tier The database layer consists of the database system - the database and DBMS (Data Base Management System). Managers are able to easily use the SAP query tool to obtain reports from the databases
Does not require any technical skill
Distributed architecture enables authorised personnel to have direct access to the database system from the company’s various locations
Europe, North America, Asia Distributed Architecture at Lego DSA delivers this integration amongst multiple systems while retaining a coherent, global security scheme.
Allows easier addition of new system equipment without affecting the operation of current equipment.
Future-proof the investment - expand the system without completely replacing it
With distributed traffic management there is no additional bandwidth requirement for existing sites as new sites are added, ensuring minimal impact as system capacity grows Efficiencies are achieved through the transfer of information between clusters of interested users, rather than between individual users.
Therefore, if multiple users are interested in the same data on another site, the request is sent only once.
Extremely efficient with its network usage, allowing satellite and other low bandwidth/high latency networking possibilities.
DSA being a single integrated system also does not require any dedicated networking and can leverage existing WAN infrastructure.
Firewall friendly features allow Distributed System Architecture to adapt to existing firewall configurations to allow existing infrastructure to be used. Why is it flexible? Distributed System Architecture allows multiple Process Knowledge Systems (PKS) to operate as one across multiple units, sites and facilities across the enterprise.
This single integrated system enables seamless global access to data, alarms, alerts, interactive operator control messages and history across groups of systems. What is it? Daily activities
Planning and forecasting
Specialize management Operation Systems integrate internal and external management of information across an entire organization which consist of:
Customer relationship management
Data services Enterprise Resource Planning(ERP) Process of managing the entire lifecycle of a product from its conception, through design and manufacturing, to service and disposal
Product and portfolio management(PPM)
Manufacturing process management(CAx)
Product data management(PDM) Product lifecycle management(PLM) Outsourcing
Attitudes Tactical Network optimization
Align overall strategy
Long-term resource commitment Strategic Control all movement of storage of raw materials, work-in-process inventories and finish goods
Reducing ownership of resources
Outsource to other firms
Reduce management control
Supply Chain activities can be group into Strategic, Tactical and Operational Supply Chain Management(SCM) Supply chain management (SCM)
Product lifecycle management (PLM)
Enterprise resource planning module (ERP) SAP Features Costly
Require extra effort
Need expertise from skilled workers Disadvantages Secure data
Easy back up and restoration
Standardization of information
Easy to navigate
Easy modification Advantages(Cont) Independence
Handle different customers
Located files closer to where it needed most
Reduce network traffic
Improve response time Advantages Thank You ! Case Summary (cont.) This process has brought to LEGO sales growth and expanded to more countries
LEGO workforce are more diversified and HR role need to be more strategic
HR need to make strategic decision in policies planning, retaining and recruiting a qualified and diversified workforce Case Summary (cont.) SAP software products using by LEGO:
- Supply Chain Management (SCM)
- supply chain monitoring and analysis
- forecasting, planning, and inventory optimisation
- Product Lifecycle Management (PLM)
- optimize development processes and systems
- Enterprise Resources Planning (ERP)
- Human Capital Management - application for personnel administration and development Related MIS Issue 1: Organising data in a traditional file environment
- Data redundancy and inconsitency
- Program-data dependence
- Lack of flexibility
- Poor security
- Lack of data sharing and availability Related MIS Issue 2: Total cost of ownership
- the original cost of acquiring and installing the software
- Ongoing administration costs for software upgrades, maintenance, technical support, training, or utility or other costs - Security
Susceptible to attacks
Costly and difficult for high security
Time and resource consuming
Difficult to maintain consistent data
Concurrency control issue Disadvantages(Cont) www.best-carrer-for-erp.com
Business Editors/High-Tech Writers Sarbanes-Oxley Compliance for Customers of,SAP Software. (2003, Nov 03). Captaris participates at sarbanes-oxley compliance for SAP customers. Business Wire. Retrieved from http://search.proquest.com/docview/446292317?accountid=12528
Business Editors, High-Tech Writers SAP,TechEd 2000. (2000, Jun 20). SAP delivers expanded software partner program.Business Wire. Retrieved from http://search.proquest.com/docview/445952180?accountid=12528
SAP moves to strengthen customer trust in security software and consulting services. (2005, Jan 24). PR Newswire. Retrieved from http://search.proquest.com/docview/447142393?accountid=12528
SAP: SAP ships best-in-class solution for master data management; SAP master data management, the latest product of the SAP NetWeaver technology platform, to help companies ensure consistent master data across the extended enterprise, accelerate collaborative business processes and further reduce total cost of ownership. (2003, Sep 30).M2 Presswire. Retrieved from http://search.proquest.com/docview/443790062?accountid=12528 References