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
💜 Bringing the Organization Together
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| Organization before ERP |
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| ERP-Bringing the organization together |
The Evolution of ERP
Integrating SCM, CRM, and ERP
- 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 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
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| Data points where SCM, CRM, ERP intergrate |
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.
- 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
Enterprise Resource Planning’s Explosive Growth
💜 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
The End of Chapter 12 💜
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