Integrating the Organization from End-to- End – Enterprise Resource Planning CHAPTER 12 McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies,

Integrating the Organization from End-to-End – Enterprise Resource Planning

CHAPTER 12

McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.

LEARNING OUTCOMES

1. Describe the role information plays in enterprise resource planning systems.

2. Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems.

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ENTERPRISE RESOURCE PLANNING

• Enterprise Resource Planning systems serve as the organization’s backbone in providing fundamental decision-making support

• 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

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ENTERPRISE RESOURCE PLANNING

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ENTERPRISE RESOURCE PLANNING

• ERP systems automate business processes

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BRINGING THE ORGANIZATION TOGETHER

• The organization before ERP

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BRINGING THE ORGANIZATION TOGETHER

• ERP—bringing the organization together

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THE EVOLUTION OF ERP

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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

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INTEGRATING SCM, CRM, AND ERP

• General audience and purpose of SCM, CRM and ERP

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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 that 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 reduces the time necessary to develop solutions that integrate applications from multiple vendors

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INTEGRATION TOOLS

• Data points where SCM, CRM, and ERP integrate

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ENTEPRISE RESOURCE PLANNING

• ERP systems must integrate various organization processes and be:

– Flexible– Modular and open– Comprehensive– Beyond the company

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