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
The Evolution of ERP
INTERGRATING 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
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
Enterprise
Resource Planning (ERP)
•
ERP
systems must integrate various organization 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. Some organizations will begin with buying two modules, such as accounting and sales, and then will add modules, such as CRM and SCM, as they gain confidence in their current modules. (Implementing in small pieces or phases – companies do not want to buy the entire ERP and spend years implementing twenty different modules to find that it doesn’t meet their need)
- Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses
- Beyond the company – must support external partnerships and collaboration efforts
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