CHAPTER 12 : INTERGRATING ORGANIZATION FROM END TO END - ENTERPRISE RESOURCE PLANNING
ENTERPRISE RESOURCE PLANNING (ERP)
•ERP systems automate business processes, for example, order fulfillment.
- When a CSR takes an order from a customer, he or she has all the information necessary to complete the order (the customer’s credit rating and order history, the company’s inventory levels, and the delivery schedule).
- Since the company is using an ERP, everyone else in the company will automatically see the information that the CSR types into the ERP system.
- When one department finishes with the order, it is automatically routed via the ERP system to the next department.
-To determine where an order is at any point in time, a user only needs to login to the ERP system and track it down.
THE EVOLUTION OF 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.
1. Flexible
Must be able to quickly respond to the changing needs of the organization.
2. 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.
3. Comprehensive
Must be able to support a variety of organizational functions for a wide range of businesses.
4. Beyond the company
Must support external partnerships and collaboration efforts.1. ERP is a logical solution to the mess of incompatible applications that had sprung up in most businesses.
2. ERP addresses the need for global information sharing and reporting.3. ERP is used to avoid the pain and expense of fixing legacy systems.
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