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
Bringing the Organization Together
- ERP – The organization before ERP
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
- 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
Enterprise Resource Planning (ERP)
ERP systems must integrate various organization processes and be:
- Flexible
- Modular and open
- Comprehensive
- Beyond the company
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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