Case Study 15

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


Q1: Explain the role of the database in SAP’s three-tier system.

The First-tier:
In the first tier, a client interface browser type Graphical User Interface (GUI) running on either a laptop, desktop, or mobile device. GUI is in between the SAP system and the user. It gets the user input, sends the input to application server for processing, and generates outputs.

The Second-tier:
The applications servers (the second tier in the system) receive and process clients’ requests. In turn, these application servers send the processed requests to the database system (the third tier) which consists of one or more relational databases.

The Third-tier:
This consists of central database system which consists of the database and Data Base Management System, it receives the processed clients request from the second server to the database system. SAP’s business suite supports databases from different vendors, including those offered by Oracle, Microsoft, MySQL, and others. The relational databases contain tables that store data on Lego’s products, daily operations, the supply chain, and thousands of employees. Managers can easily use the SAP query tool to obtain reports from the databases because it does not require any technical skill.

Q2: Explain why distributed architectures are flexible.

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.

Distributed architectures store data across multiple computers, it allowing transactions to be processed on many machines, instead of being limited to one to improve efficiency. Users from different parts of the world may access the same data.  It shows that it is more flexible in providing information to the users and this is very helpful for a company like Lego which expands to many different locations.

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 paralleled, allowing load on the databases to be balanced among servers. A high load on one module of the database would not 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.

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).

Q3: Identify some of the business intelligence features included in SAP’s business software suite.

Supply Chain Management (SCM):  Supply chain monitoring and analysis as well as forecasting, planning and inventory optimization for Lego’s flow of supply chain.

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 to help Lego to retain talents.

Q4: What are the main advantages and disadvantages of having multiple databases in a distributed architecture

Explain.

Advantages:
Disadvantages:
Multiple databases contains the tables that store data on product, daily operation, supply chain and thousands of employees.
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. 
Managers can easily use the SAP query tool to obtain reports from the database because it does not require any technical skills.
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.
Distributed architecture enables authorized personnel to have direct access to database system from the company’s various locations including in Europe, North America and Asia. They can retrieve the data anytime at any places where it improve efficiencies to their work.
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.

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