11 June 2020

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© DAS Consulting Australia Pty Ltd (DASC) 2020. Unauthorized use and/or duplication of this material without express and written permission from DASC or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to DASC with appropriate and specific direction to the original content.  

One of the biggest issues facing Change Management is how to maintain business functionality whilst upgrading your underlying data management. Many businesses rely on constant real time access to client information with very little scope for downtime. This has led to "Silo" systems where the business makes the decision to keep the old database for their essential client facing information, but upgrade other systems to something that meets the growing business needs.

 

A good example of this would be in banking. Banks have historically used Mainframe servers for transaction processing, which are secure and reliable, but costly to maintain. To reduces costs, and maintain security, a Bank may use Mainframes solely for customer accounts, but other software solutions for their internal systems such as communications and payroll. This creates a "silo" effect where systems stand alone and cannot talk to each other easily.  

 

Having multiple systems in play increases the complexity of your reporting structure, and the more complex a system, then the more costly it is. The expenses associated with maintaining multiple systems comes from two areas. The first one is how long it takes to consolidate the information that you need in your reporting structure; more time means more man-hours being used, as well as any opportunity cost associated with the time delay.  

 

The second cost in maintaining more than one system is maintenance. Every time one system is upgraded, all of the other systems, and how they interact, must also be considered. This leads to "bespoke" solutions for individual parts of the business so that they don't compromise each other, and we all know that bespoke equals expensive. 

 

S4/HANA is an SAP solution that can help with this. Rather than papering over the old system with yet another interface, implementing S4/HANA looks at redesigning the whole information system so that the business only has the single system to worry about. So rather than having to have to rely on interim results from three different reports, drawn from three different databases, from three different areas, entered by three different people, your business can look at the real time information by logging into the one system. It is quick, it is efficient, and going forward you only have to worry about one thing going wrong. 

 

© DAS Consulting Australia Pty Ltd (DASC) 2020. Unauthorized use and/or duplication of this material without express and written permission from DASC or owner is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to DASC with appropriate and specific direction to the original content.  

 

Is your business feeling the silo effect?

Silo-Effect

DAS Consulting


 

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