BPMN6053 MANAGEMENT

INFORMATION SYSTEM
LECTURER:DR. ARFAN SHAHZAD
PREPARED BY:
1) LILAMBIKHA RAJA VIKRAMAN VARMAN (820275)
2) SHUBASHINI MATHYALINGAM (820283)
3) RAYMOND (

Embracing Change By Combining

Business Intelligence With A
Flexible Information System

Lego

Overview

The worlds fourth-largest manufacturer of toys.

Lego is a family-owned company based in Billund, Denmark, which
manufactures Lego brand toys.
The company was founded in 1932 by Ole Kirk Christiansen.
The word "lego" is derived from the Danish words "leg godt", meaning
"play well".
Lego started to uses the SAP business suite system after international
expansion, Lego needs to keep track of its operations efficiently.
SAP Business Suite is a bundle of business applications that provide
integration of information and processes, collaboration, industryspecific functionality, and scalability.
SAP Business Suite is based on SAP's technology platform called
NetWeaver.

Case Problem
In 2003, The LEGO was facing tough competition from imitators and manufacturers toys. In an
effort to reduce costs, The Group decided to initiate a gradual restructuring process that
continues today.
In 2006, the company announced that a large part of its production would be outsourced to the
electronics manufacturing service companyFlextronics. The decision to outsource production
came as direct consequences of an analysis of Legos total supply chain. So, in order to reduce
labor costs, manually intensive processes were outsourced, keeping only the highly skilled
workersin Billund.
Legos workforce was gradually reduced from 8300 employees in 2003 to approximately 4200 in
2010.
Additionally, production had to be relocated to places closer to its natural markets. As a
consequence of all these changes, Lego transformed itself from a manufacturing firm to a
market-oriented company that its capable of reacting fast to changing global demand.
Legos structuring process, coupled with double digit sales growth in the past few years, has led
to the companys expansion abroad and made its workforce more international. These changes
presently supply chain and human resources challenges to the company. The supply chain had to
to be reengineered to simplify production without reducing quality. Improved logistics planning
allowed Lego to work more closely with retailers, suppliers, and the new outsourcing companies.
Therefore, HR department also need play more role inside the company. So, in order to solve this
solution, LOGO choose move to SAP business suite software.

Competitor
Automoblox

Meccano

Vtech

Q1: Explain the role of the

database in SAP's three-tier system

 SAPs 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.
The crucial role of the database is to work as storage of
information system, where the relational databases contain tables
that store data on Legos products, daily operations, the supply
chain, and thousands of employees.
The usage of SAP query tool allows you to access data and extract
reports generated from the database.

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 application servers (the

second tier in the system)
receiver 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.

Q2: Explain why distributed architectures are

flexible

 A distributed database can reside on network servers on the

Internet, on corporate intranets or extranets, or on other
company networks.
Because they store data across multiple computers,
distributed databases can improve performance at end-user
worksites 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.

Q3: Identify some of the businesses

intelligence features included in SAPs
business software suite.

Q4: What are the main advantages and disadvantages of

having multiple databases in a distributed architecture?
Explain

THANK YOU