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

Enterprise Resource Planning

• Enterprise resource planning system are the organization's backbone in providing 

          fundamental decision-making support

• The heart of an ERP system is a central database that collects information from and feeds 

          information into all the ERP systems's individual application components (called modules), 

          supporting diverse business functions such as accounting, manufacturing, marketing and 

          human resources

ERP process flow

Bringing the organization together

ERP enables employees across the organizations to share information across a single, 

       centralized database

ERP - Bringing the Organization Together

The organizaton before ERP

The evolution of ERP

• Originally, ERP solutions were developed to deliver automation across multiple units of an 

          organization, to help facilitate the manufacturing process and adress issues such as raw 

          materials, inventory, order entry, and distribution

Integrating SCM, CRM, and ERP

• Integration allows the unblocking of information to make it available to any user, anywhere 

          and anytime

Integration tools

• Integration achieved using middleware - several different types of software that sit in the 

          middle of and provide connectivity between two or more software applications

• Enterprise application integration (EAI) middleware represents a new approach to 

          middleware by packaging together commonly used functionality, such as providing prebuilt 

          links to popular enterprise applications, which reduces the time necessary to develop solutions 

          that integrate applications from multiple vendors

Primary users and business benefits of strategic initiatives

Integrations between SCM, CRM and ERP applications

         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. Some organizations will begin with buying two modules, such as accounting and sales, and then will add modules, such as CRM and SCM, as they gain confidence in their current modules. (Implementing in small pieces or phases – companies do not want to buy the entire ERP and spend years implementing twenty different modules to find that it doesn’t meet their need)
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