Lego: Embacing Change By Combining BI With Flexible Information Systems

1. Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4
1 MBA_Batch2_UMK_Kch/M7/GST5803/Information Systemand E-Commerce/P14D398P
CASE STUDY 2.4
LEGO : EMBRACING CHANGE BY COMBINING BI
WITH A FLEXIBLE INFORMATION SYSTEM
a) Explain the role of the database in SAP's three-tier system
There was a need for a flexible and robust IT infrastructure with business excellence and
capabilities that could help management better forecast and plan. Lego implemented a SAP’s
business suite which is based on a flexible three-tier
client-server.
Three Tier Systems
i. The First Tier (Presentation Layer)
This is software component with a client interface
browser type Graphic User Interface (GUI). The
graphic user interface is between SAP system and the user. It gets the user input, sends it to
application server for processing receives data, formats and output it. The presentation layer
resides on a user’s PC, desktop or mobile device.
ii. The Second Tier (Application Layer)
This is where SAP software runs. It contains of at least one or more application server which
offers the services to users and a manage server responsible for communication between the
application servers. In the system, it receives and process clients request. In turn these
application servers send the processed requests to the database system. The application layer is
scalable as the organization grows larger and more users are added.

2. Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4
2 MBA_Batch2_UMK_Kch/M7/GST5803/Information Systemand E-Commerce/P14D398P
Distributed Architecture System
iii. The Third Tier (Database Layer)
This consists of a central database system which consists of the database and DBMS (Data Base
Management System), it receives the processed clients request from the second server to the
database system which consists of one or more relational database, these rational database
contain the tablets that store data on LEGO’s products, daily operations, the supply chain and
thousands of employees. The information is then stored and retrieved from the data base system
and sent back. A few database systems which you may find with SAP in different
implementation are Oracle, Microsoft SQL server, IBM and etc.
b) Explain why Distributed Architectures are flexible?
A distributed architecture system consists of
multiple autonomous computers that
communicate through a computer network. The
computers interact with each other in order to
achieve a common goal. Basically, this group of
computers would each hold a specific software
subset of the global aggregate operating system.
Distributed computing is a field of computer
science that studies
distributed systems. They create an enterprise architecture that copes with complexities of
change in a company.
Distributed programming typically falls into one of several basic architectures or categories:
client–server, 3-tier architecture, n-tier architecture, distributed objects, loose coupling, or tight
coupling. Distributed architecture enables authorized personnel to have direct access to the
database system from the company’s various locations, including those in Europe, North
America and Asia.
Distributed architecture such as SAP’s business suites supports databases from different
vendors including those offered by Oracle, Microsoft, MySQL and others. They are optimal for
medium to high performance business environments. Complex application rules can be easily
implemented on the application server by authorized personnel.
Separating the application into multiple layers makes it easier to implement re-usable
components. A single component in the business layer, for example, may be accessed by

3. Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4
3 MBA_Batch2_UMK_Kch/M7/GST5803/Information Systemand E-Commerce/P14D398P
multiple components in the presentation layer or even by several different presentation layers
(such as desktop and the web) at the same time.
c) Identify some of the business intelligence features include in SAP’s business
software suite.
Business Intelligence (BI)
Tools for consolidating, analyzing, and providing access to vast amounts of data to help users
make better business decisions
“SAP software offered the best combination of standardized processes, yet with the ability to
respond flexibly to the changing demands of the toy industry,” comments EsbenViskum.
“The SAP landscape supports all our business processes, such as finance, logistics and sales,
and the long-term roadmap is to implement SAP Product Lifecycle Management, integrated
with SAP Warehouse Management. As the company grows and rolls out the ‘cookbook’ to new
geographies, we will add SAP ERP Human Capital Management to the portfolio, too.
d) What are the main advantages and disadvantages of having multiple databases in a
distributed architecture? Explain.
The advantages are:
Fault tolerance
A fault tolerance is a setup or configuration that prevents a computer or network device from
failing in the event of an unexpected problem or error such as, power failure, power surge, data
loss, system overload, virus etc. By LEGO having multiple databases data can still obtained
from other servers during interruption from one of the data base. This enables the business to
save time, retrieve loss data and their daily operations will not be drastically affected.
Improved Scalability
Ability of a business to expand to meet its business needs. Unlike a single-database system, in
which the amount of data that can be stored depends on the limitations of one host and database,
a distributed-database system is easily scalable and, therefore, supports growth in LEGO. SAP
supports an unlimited number of users as well as data base, application servers and a variety of
hardware configurations. It enables an organization to start small and add additional databases

4. Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4
4 MBA_Batch2_UMK_Kch/M7/GST5803/Information Systemand E-Commerce/P14D398P
or applications or hardware. This would allow to organization to effectively and efficiently add
to the network when its needs to expand.
Distribution of workload
Enables administrators to distribute the load on various servers, a business function such as
logistics can be can be routed to a particular server for load balancing ( division of its activities
and processes between computer networks so that it doesn’t get overwhelmed). Open system:
from SAP encourages plug and play with hardware from different vendors e.g. Microsoft oracle,
used which leads to more competition and lowers cost. This means that the system can connect
with other vendor therefore it is flexible.
The disadvantages are:
Security issues
It is more vulnerable to external attacks than single databases and the possibilities of abuse is
more possible in multiple databases than a single database as single databases have more control
of information. To reduce the chances of unauthorized users accessing sensitive information,
Lego would need a control system for example, not all information should be available to all
level of the organization.
Data quality and integrity
Since the database is accessible to users remotely, adequate controls are needed to control users
updating data and to control data quality especially as the organization grows. With increased
number of users accessing data directly, there are enormous opportunities for users to damage
the data. Unless there are suitable controls, the data quality may be compromised. The integrity
of the information is also relevant since a large number of users could be using the database
simultaneously, technical safeguards are necessary to ensure that the data remains correct during
operations and business decisions. The main threat to data integrity comes from several
different users attempting to update the same data at the same time. The database therefore
needs to be protected against inadvertent changes by the users.

5. Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4
5 MBA_Batch2_UMK_Kch/M7/GST5803/Information Systemand E-Commerce/P14D398P
Cost of maintaining multiple databases in a distributed architecture
Single databases are usually designed to run a number of well-defined, pre-planned processes
because they are often adjusted to run efficiently for the processes that they were designed for.
Multiple data bases are costly to maintain as each server requires a separate operating system.
The cost of protecting and securing the servers, upgrades, backups will be expensive and Lego
would have to weigh the benefits of using multiple database over the costs of implementations ,
restructuring the organization , the as well as maintenance costs.