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

ENTERPRISE RESOURCE PLANNING (ERP)

When a users update information or data in one module, it is immediately and automatically updated throughout the entire system.

ERP systems automates business processes

BRINGING THE ORGANIZATION TOGETHER

ERP - the organization before ERP

Disadvantages

- Update issues

- Redundancy

- Inaccurate information across database

- Different customer information in different databases

- Different formats of information in the different databases

ERP - bringing the organization together

Disadvantages

- Not as flexible and far more difficult to change because of the standardized information

- Might not meet all department needs as well as an individual specific system 

- Multiple access level increases security issues 

- Ethical dilemmas from accessing different department information

THE EVOLUTION OF ERP

INTEGRATING SCM, CRM, AND ERP

General Audience and Purpose of SCM, ERP, and CRM

INTEGRATING TOOLS

An integrated enterprise infuses support areas, such as finance and human resources, with a strong customer orientation. 

Integration are achieved using:  

Middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications. It translates information between disparate systems.

Enterprise application integration (EAI) middleware- represents a new approach to middleware by packaging together commonly used functionality, such as providing prbuilt links to popular enterprise applications, which reduces the time necessary to develop solutions that integrate applications from multiple vendors.

Data point where SCM, ERP and CRM integrates.

ENTERPRISE RESOURCE PLANING (ERP)

Flexible- an ERP system should be flexible and quick in order to respond to the changing needs of an enterprise.

Modular and open- an ERP system has to have open system architecture, meaning that any module can be interfaced with or detached whenever required without affecting the other modules. The system should support multiple hardware platforms for organizations that have a heterogeneous collection of systems. It must also support third- party add-on components.

Comprehensive- an ERP system should be able to support a variety of organizational functions and must be suitable for a wide range of business organizations.

Beyond the company- an ERP system must not be confined to organizational boundaries but rather support online connectivity to business partners or customers.

ENTERPRISE RESOURCE PLANNING'S EXPLOSIVE GROWTH

Reasons of ERP being proven to be such a powerful force:

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