CHAPTER 12 : INTEGRATING THE ORGANIZATION FROM END TO END - ENTERPRISE RESOURCE PLANNING

Enterprise Resource Planning (ERP)
·        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
·         ERP systems automate business processes
·         ERP – bringing the organization  together

-                                                                                                                       Organization before ERP
-                                                                                                                ERP bring Organization together

  
The Evolution of ERP
  
Integrating SCM, CRM, and ERP
·         SCM, CRM, and ERP are the backbone of e-business
·         Integration of these applications is the key to success for many companies
·         Integration allows the unlocking of information to make it available to any user, anywhere, anytime
·         SCM and CRM market overviews
            
·         General audience and  purpose of  SCM, CRM and ERP
·        


 Integration Tools
·         Many companies purchase modules from an  ERP vendor, an SCM vendor, and a CRM vendor and must integrate the different modules together
-          Middleware – several different types of software which sit in the middle of and provide connectivity between two or more software applications
-          Enterprise application integration (EAI) middleware – packages together commonly used functionality which reduced the time necessary to develop solutions that integrate applications from multiple vendors

·         Data points where SCM, CRM, and ERP integrate
 

Enterprise Resource Planning (ERP)
·         ERP systems must integrate various organization processes and be:
-          Flexible – must be able to quickly respond to the changing needs of the organization
-          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.
-          Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses
-          Beyond the company – must support external partnerships and collaboration efforts

Enterprise Resource Planning’s Explosive Growth
·         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

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