CHAPTER 12 - INTEGRATING THE ORGANIZATIONS FROM END TO END - ENTERPRISE RESOURCES PLANNING

ENTERPRISE RESOURCES PLANING  ( ERP )

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

ERP system automate business processes , for example order fulfillment 

• When a CSR takes an order from a customer, he or she has all the information necessary to complete the order 
• Since the company is using an ERP , everyone else in the company will automatically see the information that the CSR types into ERP system
• To determine where an order is at any point in time ,  user only needs to log in to the ERP system and track it down 

BRINGING THE ORGANIZATION TOGRTHER

ERP - The organization before ERP

• In most organizations , information has traditionally been isolated within specific departments whether on an individual database , in file cabinet or on an employee's PC

Disadvantages

• Updated issues
• Redundancy
• Inaccurate information across database
• Different formats of information in the different database
• Inability to access other department information and not being provided with a 360 degree view of the organization
• Different customer information in different database
• Customer contact from multiple departments with different messages

BRINGING THE ORGANIZATION TOGETHER

ERP - bringing the organization together

• ERP enables employees across the organization to share information across a single , centralized database

Disadvantages :

• Not as flexible and her more difficult to change 
• Might not meet all department needs as well as an individual specific system
• Multiple access levels increases security issues 
• Ethical dilemmas from accessing different department information such as payroll

THE EVOLUTION OF ERP

INTEGRATING SCM , CRM , ERP

• SCM, CRM, and ERP are the backbone of e-business
• Integration of these application is the key to success for many companies
• Integration allows the unlocking of information to make it available to any user, anywhere, anytime
• Many ERP vendors offer SCM and CRM  components
• These modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM

A good analogy is to brand-name foods at a grocery store

• A grocery store such as Tesco , maintains all types of products 
• Tesco offers its own, products such as Tesco spaghetti and Tesco's paper towels ( these are known as name brand products and usually offer a cost advantages )
• The store also carries products that are specific to a manufacture , such as San Remo's spaghetti and Scott's Paper towels
• ERP vendors carry SCM and CRM components , but they are usually not as good as the vendors that specialize in SCM and CRM components

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 cendors 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 application
• Enterprise application integration ( EAI )middleware - packages together commonly used functionality which reduced the time necessary to develop solution that integrate applications from multiple vendors

Data points where SCM,CRM anf ERP integrate

ERP system must integrate various organizations processes and be :

• 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 partnership and collaboration efforts

ENTERPRISE RESOURCES PLANNING'S EXPLOSIVE GROWTH

SAP boasts 20000 installation and 10 millions users worldwide

ERP solutions are growing because

• ERP is a logical solution to the mess of incompatible applications that had sprung up in most business
• ERP addresses the need for global information sharing and reporting 
• ERP is used to avoid the pain and expenses of fixing legacy systems 

 

 

THANK YOU :)