Enterprise Resource Planning – An information system (multi-module application software) that integrates all manufacturing and related applications for an entire enterprise.
Different ERP Software solutions vendors
– RAMCO OnDemand ERP,
– People soft,
– JD Edwards,
– SAP, etc
SAP is the market leader in ERP Software solutions.
Dietmar-Hopp-Allee 16 69190 Walldorf, Germany
The name SAP being a German company, is acronym for “Systeme Anwendungen, Produkte in der Datenverarbeitung”.
This is translated into English as
“ System ,Applications and Products in Data Processing ”
Founded Weinheim (1972) Headquarters Walldorf, Germany
Key people Henning Kagermann,
CEO Shai Agassi
INDUSTRY COMPUTER SOFTWARE
Revenue 8.5 billion EUR (2005)
(or 10.2 billion USD)
Employees 35,873 (2005)
SAP AG is the largest European software enterprise.
SAP is the 3rd largest software company in the world.
It ranks after Microsoft, IBM , in terms of market capitalization.
It is also the largest business application and Enterprise Resource Planning (ERP) solution software provider in terms of revenue.
R/3 Real Time Three Tier Architecture
BASIS is similar to a kernel for R/3.
It provides the runtime environment
for ABAP/4 programs. Basis is
essential to run ABAP/4 programs.
It is a collection of R/3 system
programs that present you with an
ABAP stands for Advanced Business
Application Programming / 4th Generation
• ABAP/4 cannot run directly on an operating
system. It requires a set of programs to
load, interpret, and buffer its input and
Task-Technology Fit (TTF)
DeLone & McLean (Updated) Model of Information Systems Success
Unified Theory of Use and Acceptance of Technology (UTAUT)
IS Project Failure (CHAOS Report)
Incomplete Requirements 13.1%
Lack of User Involvement 12.4%
Lack of Resources 10.6%
Unrealistic Expectations 9.9%
Lack of Executive Support 9.3%
Changing Requirements & Specifications 8.7%
Lack of Planning 8.1%
Didn't Need it any Longer 7.5%
Lack of IT Management 6.2%
Technology Illiteracy 4.3%
Lessons for ERP Systems …
"Those who fail to learn history are doomed to repeat it" (Winston Churchill)
In the field of MIS, “issues seen as ‘new’ turn out to have long roots” (Keen, 1991)
What of ERP Systems ?
ERP systems are large scale, expensive projects
ERP systems may involve dramatic changes to work practices and organisational processes
They are not “quick fix” solutions and need to be implemented with care
POOR DUMP SAP LET BE THE LESSON
It’s All About the Requirements !
“ In nearly every software project that fails to meet performance and cost goals, requirements inadequacies play a major and expensive role in project failure” (Alford & Lawson, 1979)
“ The hardest single part of building a software system is deciding precisely what to build. No other part of the conceptual work is as difficult as establishing the detailed technical requirements ... No other part of the work so cripples the resulting system if done wrong.” (Brooks, 1987)
Build the correct system (product) + Build the system correctly (process)
Playing Catch-up with User Needs FUNCTIONALITY TIME User Needs Actual System Capabilities t 0 t 1 t 3 t 2 t 5 t 4