Chapter 12 – Integrating the Organization from End to End – Enterprise Resource Planning

Integrating SCM, CRM, and ERP

v  SCM, CRM, and ERP are the backbone of e-business

v  Integration of these applications is the key to success for many companies

v  Integration allows the unlocking of information to make it available to any user, anywhere, anytime

Integration Tools

v  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)

v  ERP systems must integrate various organization processes and be:

·         Flexible

·         Modular and open

·         Comprehensive

·         Beyond the company

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

v  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

v  Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses

v  Beyond the company – must support external partnerships and collaboration efforts

Enterprise Resource Planning’s Explosive Growth

 

v  SAP boasts 20000 installations and 10 million users worldwide

v  ERP solutions are growing because:

·         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