Friday, 20 September 2013

CHAPTER 12: Integrating the Organization from End to End – Enterprise Resource Planning

          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
haa83019_0314
          ERP systems automate business processes
haa83019_0315
·         ERP – The organization before ERP
          ERP – bringing the organization together

·         EVOLUTION OF ERP

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

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


0 comments:

Post a Comment

 
The Story Begins... Blogger Template by Ipietoon Blogger Template