Welcome Guest. | Log In| Register | Membership Benefits

News

June 12, 2000

Printer ready
Printer ready

SAP Customers Update Their ERP Applications

continued...page 3 of 3

Related links:

  • sidebar: SAPıs ERP Suite Upgrades Focus On Change Management

  • TechEncyclopedia
    Need a definition of a technology term? Look it up here:


    Send Us Your Feedback
    E-business-enabling technology-might gain by using a single interface to access information residing throughout the company, Kirsch says, but they probably won't get best-of-breed systems. "There's no way any one company can produce the finest software in every area and every field. SAP knows this," he says.

    During the next three years, SNSC will work toward integrating its multiple systems to create "one virtual system" that lets users access almost any data through the same interface, Kirsch says. "The ideal solution would be one system that all the users log on to because it does everything. For now, the closest thing we can have is one virtual system."

    The integration includes an Internet-based, multitier architecture that was built in-house, SAP Accelerated Financials, and Interlinq Software Corp.'s InfoLinq system, a tool that lets mortgage lenders query their databases via their intranets.

    The IS department at Tyson Foods Inc., on the other hand, is immersed in SAP right now and will be for some time to come, if things go well.

    In 1998 and 1999, the Springdale, Ark., company installed SAP R/3's Financial and HR modules, versions 3.1H and 4.0B, respectively. Early this year, Tyson began installing SAP's plant-maintenance module at 50 production sites. But the company has called a halt to that project, at least until September, to focus on upgrading all its installed modules to release 4.6B.

    Gary Cooper, Tyson's VP of IS, says the upgrade should strengthen the company's SAP foundation and better prepare it to implement all of SAP's R/3 ERP software some time in the future. "It's not fair to characterize us as an ERP installation, but we're hoping to be one someday," Cooper says.

    By installing release 4.6B of the plant-maintenance system, for instance, Cooper says Tyson will gain important new functionality, such as integration with SAP systems in other functional areas of the company. For example, when a maintenance worker fills out a work order to repair equipment on the plant floor, the upgraded system will document the parts the worker will need from inventory, and create a purchase order to buy replacement parts from a certified vendor.

    These automated processes will replace phone calls and faxes of handwritten forms, Cooper says. It should also improve the use of approved vendors to buy replacement parts, which could help Tyson save money by getting discounts for making aggregated purchases through approved vendors.

    Still, Cooper says, "the big benefit for us is the more-intuitive user interface in release 4.6B. Our users might not be as technologically savvy as other companies', and if we hear a complaint from SAP users, it's that it's not very intuitive." Despite the challenges involved in upgrading to 4.6B, Cooper says he expects the new version to be much easier to use for nontechnical employees, who make up an ever-larger portion of Tyson's SAP users. Once Tyson has digested the upgrade, Cooper says he'll take a closer look "at business-to-business and other Web-dimension capabilities that are enabled by the mySAP.com mind-set."

    Like many of its customers, SAP is also in transition, according to AMR Research analyst David Boulanger. "They're being hit hard by three groups," he says. Potential customers want to know if SAP can provide the functionality required to meet their business needs. Other software vendors, such as Ariba Inc. and Commerce One Inc., are pouring on the pressure in E-markets. Also, Boulanger says, SAP's existing customer base is saying, "We thought of you as a thought leader in 1995. Where do you stand today?"

    To sustain its historic success, SAP must respond with a clear and compelling message that will override its customers' confusion about the company's future-but not all its customers are sure it can do that. "SAP is pursuing a lot of different angles to help people with business-to-business strategies," says National Semiconductor's Groves. "It's exciting that they're trying to push the envelope, but how it will come together in the end, I'm not sure."

    return to page 1, 2

    Back to This Week's Issue
    Send Us Your Feedback
    Top of the Page