Case Study 6: Lego: Embracing Change by Combining BI with a flexible Information System (pages 270-271)

Question 1: Explain the role of the database in SAP's three-tier system.

Question 2: Why distributed architectures are flexible?

Question 3: Identify some of the business intelligence features included in SAP's business software suite?

Question 4: What are the main advantages and disadvantages of having multiple databases in a distributed architecture?


Question 1:

• SAP’s business suite is based on a flexible three-tier client-server architecture that can easily be adapted to the new Service-Oriented Architecture (SOA) available in the latest versions of the software. 
• In the first tier, a client interface-a browser-type graphical user interface (GUI) running on either a laptop, desktop, or mobile device-submits users’ requests to the application servers. The applications servers send the processed requests to the database system-receive and process clients’ requests to the database system-the third tier-which consists of one or more relational databases.
• The main role of the database is as an information storage system. The relational database contains the tables that store data on LEGO’s products, daily operations, the supply chain, and thousands of employees. 
• Using the SAP query tool, users are able to toggle and tabulate data and extract reports from the database.  Therefore the database’s role is also as a reports generator.

Question 2:

• A distributed architecture system is a software system in which components located on networked computers communicate and coordinate their actions by passing messages. The components interact with each other in order to achieve a common goal.  Data may be stored in multiple computers, located in the same physical location; or may be dispersed over a network of interconnected computers.  A distributed database can reside on network servers on the Internet, on corporate intranets or extra nets, or on other company networks.
• Because they store data across multiple computers, distributed databases can improve performance at end-user work sites by allowing transactions to be processed on many machines, instead of being limited to one. Users from different parts of the world may access the same data.  Therefore they are more flexible in terms of availability to users.
• They also bank on an improved performance of the machines, as data is located near the site of greatest demand, and the database systems themselves are parallelized, allowing load on the databases to be balanced among servers. A high load on one module of the database won't affect other modules of the database in a distributed database.
• They are also more flexible for purposes of expansion of the database and transparency, as the data can be monitored on site of the specific computers as the data is potentially stored within the departments they relate to.  There is local autonomy or site autonomy, where a department can control the data about them (as they are the ones familiar with it).
• They are economically flexible and may cost less to create a network of smaller computers with the power of a single large computer.  Systems can be modified, added and removed from the distributed database without affecting other modules (systems).

Question 3:

• Supply Chain Management (SCM)  :  Supply chain monitoring and analysis as well as forecasting, planning and inventory optimization.
• Product Lifecycle Management (PLM) :  Enable managers to optimize development process and system.
• Enterprise Resources Planning (ERP):  Include Human Capital Management (HCM) application for personnel administration and development.
• They are also more flexible for purposes of expansion of the database and transparency, as the data can be monitored on site of the specific computers as the data is potentially stored within the departments they relate to.  There is local autonomy or site autonomy, where a department can control the data about them (as they are the ones familiar with it).
• They are economically flexible and may cost less to create a network of smaller computers with the power of a single large computer.  Systems can be modified, added and removed from the distributed database without affecting other modules (systems).

Question 4:

Advantages
   

1. Multiple database contains the tables that store data on product, daily operation, supply chain and thousands of employees.
2. Managers can easily use the SAP query tool to obtain reports from the database because it does not require any technical skills.
3. Distributed architecture enables authorized personnel to have direct access to database system from the company’s various location including in Europe, North America and Asia.

Disadvantages
   

1. The additional overhead of these transactions can be a performance penalty when the total amount of data in the network is small. Users also see slower performance when accessing data that is not local. 
2. Increased the use of database space. Every table must exist in every database. When the number of tables is very large, the amount of space used can be significant. Administrators must use database storage parameters to size tables and reduce database space consumption.
3. Administrators must keep the schemes of all database synchronized and ensure that the network is configured to take optimal advantage of the distributed-database environment in term of availability and performance. Although database backups are more flexible in a distributed-database environment, multiple databases add complexity to the backup process.