Chapter 12 : Integrating the Organization from End to End - Enterprise Resource Planning

Enterprise Resource Planning

  • Enterprise resource planning system are the organization's backbone in providing fundamental decision-making support
  • The heart of an ERP system is a central database that collects information from and feeds information into all the ERP systems's individual application components (called modules), supporting diverse business functions such as accounting, manufacturing, marketing and human resources

ERP process flow

Bringing the organization together

  • ERP enables employees across the organizations to share information across a single, centralized database
      • ERP - Bringing the Organization Together
      The organizaton before ERP

      The evolution of ERP


      • Originally, ERP solutions were developed to deliver automation across multiple units of an organization, to help facilitate the manufacturing process and adress issues such as raw materials, inventory, order entry, and distribution
      Integrating SCM, CRM, and ERP
      • Integration allows the unblocking of information to make it available to any user, anywhere and anytime
      Integration tools

      • Integration achieved using 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 represents a new approach to middleware by packaging together commonly used functionality, such as providing prebuilt links to popular enterprise applications, which reduces the time necessary to develop solutions that integrate applications from multiple vendors
        Primary users and business benefits of strategic initiatives

        Integrations between SCM, CRM and ERP applications