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

Learning Outcomes

1.Describe the role information plays in enterprise resource planning systems

2.Identify the primary forces driving the explosive growth of enterprise resource planning systems

3.Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

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

Bringing the Organization Together

- ERP – The organization before ERP

- ERP – bringing the 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:

1. Flexible - must be able to quickly respond to the changing needs of the organization
2. 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. 
3. Comprehensive - must be able to support a variety of organizational functions for a wide range of businesses
4. Beyond the company - must support external partnerships and collaboration efforts