Chapter 12 : Integrating the Organization from End to End - ERP

Enterprise Resource Planning

• 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

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.
• Middle ware – several different types of software which sit in the middle of and provide connectivity between two or more software applications.
• Enterprise application integration (EAI) middle ware – 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 systems must integrate various organization processes and be :

1. Flexible Modular and open
2. Comprehensive
3. Beyond the company

Enterprise Resource Planning's Explosive Growth

• SAP boasts 20,000 installations and 10 million users worldwide.
• ERP solutions are growing because : 

1. ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses.
2. ERP addresses the need for global information sharing and reporting.
3. ERP is used to avoid the pain and expense of fixing legacy systems.