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
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·
ERP
systems automate business processes
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·
ERP
– bringing the organization together
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- Organization
before ERP
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- ERP
bring Organization together
The Evolution of ERP
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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
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·
General
audience and purpose of SCM, CRM and ERP
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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
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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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