THE MAKING OF CHAPTER 12

Integrating the Organization from End to End – Enterprise Resource Planning

Enterprise Resource Planning (ERP)

Ø  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

Ø  ERP systems automate business processes

Ø  ERP – bringing the organization together

Organization before ERP

ERP bring Organization together

  
The Evolution of ERP

  Integrating SCM, CRM, and ERP

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

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

Ø  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

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

Ø  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)

Ø  ERP systems must integrate various organization processes and be:

·         Flexible

·         Modular and open

·         Comprehensive

·         Beyond the company

         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