CHAPTER 12

 Integrating The Organization From The End To End - Enterprise Resource Planning





Enterprise Resource Planning (ERP)
  • Serve as the organization's backbone in providing fundamental decision-making support.
  • 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 SYSTEM 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
  • Allows the unlocking of information to make it available to any user, anywhere, anytime
  • Integration of these applications is the key to success for many companies







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)

  • Flexible – must be able to quickly respond to the changing needs of the organization
  • 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.

  •  Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses
  • Beyond the company – must support external partnerships and collaboration efforts



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