case4 lego embracing change by combining bi with flexible information system 2

Lego : Embracing Change by Combining BI with a Flexible Information System CASE 2.4

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

1 MBA_Batch2_UMK_Kch/M7/GST5803/Information System and E-Commerce/P14D398P

Distributed Architecture System


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.

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

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

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.

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.
