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Friday, 1 April 2016

CHAPTER 12: INTEGRATING THE ORGANIZATION FROM END TO END – ENTERPRISE RESOURSE PLANNING



Enterprise Resource Planning (ERP)
  • 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 systems automate business processes




 Integrating SCM, CRM, and ERP

  • SCM, CRM, and ERP are the backbone of e-business
  • Integration of these applications is the key to success for many companies
  • Integration allows the unlocking of information to make it available to any user, anywhere, anytime
  • SCM and CRM market overviews





  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
  •   Data points where SCM, CRM, and ERP integrate



Enterprise Resource Planning (ERP)

  • ERP systems must integrate various organization processes and be:
    • Flexible
    • Modular and open
    • Comprehensive
    • Beyond the company

  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.
  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









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