Chapter 12- Interating the Oranization From End to End- Enterprise Resource Planning

Enterprise Resource Planning (ERP)

ü    - At the heart of all ERP systems is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

ü 

ü  -  ERP systems automate business processes

 

   ERP – bringing the organization together

-    Organization before ERP

-    ERP bring Organization together

ü  The Evolution of ERP

 

Integrating SCM, CRM, and ERP

ü    SCM, CRM, and ERP are the backbone of e-business

ü    Integration of these applications is the key to success for many companies

ü    Integration allows the unlocking of information to make it available to any user, anywhere,    anytime

ü  

     -SCM and CRM market overviews

General audience and purpose of SCM, CRM and ERP

Integration Tools

ü  Many companies purchase modules from an ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together

ü    Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications

ü    Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors

ü  Data points where SCM, CRM, and ERP integrate

 

Enterprise Resource Planning (ERP)

ü   ERP systems must integrate various organization processes and be:

·               Flexible

·               Modular and open

·               Comprehensive

·               Beyond the company

ü  Flexible – must be able to quickly respond to the changing needs of the organization

ü  Modular and open – must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.

ü  Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses

ü  Beyond the company – must support external partnerships and collaboration efforts

ü  Enterprise Resource Planning’s Explosive Growth

ü  SAP boasts 20,000 installations and 10 million users worldwide

·               ERP solutions are growing because:

·               ERP is a logical solution to the mess of incompatible applications that had sprung  up in most businesses

·               ERP addresses the need for global information sharing and reporting

·               ERP is used to avoid the pain and expense of fixing legacy systems