MGT300 - Chapter 12

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INTEGRATING THE ORGANIZATION FROM END TO END - ENTERPRISE RESOURCES PLANNING



What is ERP?

ERP is an Enterprise Resource Planning which 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. Integrating 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 and 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(EA) 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



ERP systems must integrate various organization processes and be:
  • Flexible
  • Modular and open
  • Comprehensive
  • Beyond the company

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 interfaced with or detached whenever required without affecting the other modules.

3. Comprehensive

Must be able to support the variety of organizational functions for a wide range of businesses

4. Beyond the company

Must support external partnerships and collaboration efforts




Enterprise Resource Planning's Explosive Growth

ERP solutions are growing because:
  • ERP is logical to the mess of incompatible applications that had sprung up in most businesses
  • ERP addresses the need for global information shairng and reporting
  • ERP is used to avoid the pain and expense of fixing legacy systems 

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