UNIT 3: CHAPTER 12

Integrating the Organization from End to End – Enterprise Resource Planning

Enterprise Resource Planning (ERP)

When user enters or updates information in one module, it immediately and automatically updated throughout entire system.

Organizational before ERP

Information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or employee’s PC.

Disadvantages

• Update issues
• Redundancy
• Inaccurate information across database
• Different formats of information in the different database
• Different customer information in different databases
• Customer contact from multiple department with different message

Organizational after ERP

Enables employees across the organizational to share information across a single, centralized database.

Disadvantage

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

Integrating SCM, CRM, and ERP

Backbone of the e-business and key to success. It allows the unlocking of information to make available to any user, anywhere, and anytime. Many ERP vendors offer SCM and CRM component. Typically not as functional or flexible as the modules offered by industry leaders who is specialize in SCM and CRM.

Integration Tools

Middleware

Different types of software which is 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 time necessary to develop solutions that integrate applications from multiple vendors.

ERP must integrate various company process and be:

Flexible

Able and quickly in respond to the changing needs of the company.

Modular and open

Have an open system architectures, at any module can be interface, with or detached whenever requires without affecting other modules.

Comprehensive

Able to support variety of organizational functions for a wide range of businesses.

Beyond the company

Must support external partnerships and collaboration efforts.

ERP’s Explosive Growth

SAP boasts 20,000 installations and 10 million user worldwide.

ERP solutions growing because:

• A logical solution to the mess of incompatible applications that had sprung up in the most businesses
• Addresses the need for global information sharing and reporting
• Used to avoid the pain and expense of fixing legacy systems