CHAPTER 12 :INTEGRATING THE ORGANIZATION FROM THE END TO END (ENTERPRISE RESOURCE PLANNING)

LEARNING OUTCOMES 

12.1 Describe the role information plays in enterprise resourse planning systems.

12.2 Identify the primary forces driving the explosive growth of enterprise resource planning systems.

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

1)ENTERPRISE RESOURCE PLANNING (ERP)

⇨ERP systems is a database ,when users enters or updates information in one module ,it is immediately and automatically updated throughput the entire system.

⇨ERP systems are integrates database into one.

⇨It also can avoid redundancy and can save time.

➨ERP systems automate business processes.

➨Update the one only then it will automatically updated to all.

➨It more easier than traditional ,it also can save time .


2)Bringing the organization together.

➤It traditional ERP life cycle.

➤It more complicated and hard to get information.

➤It might be have redundancy or duplicate information.

➤ERP enables employees across the organization to share information across a single,centralized database.

Disadvantages :
➤Not as the flexible and more difficult to change,

➤Multiple access levels increases security issues must put passwords.

➤Ethical dilemmas from accessing different department information such as payroll.

3)ERP- The organization before ERP.

➦Traditionally, been isolated within specific departments,whether on an individual database,in a file cabinet ,or an employee's PC.

Disadvantages:
➦Update issue.
➦Redundancy.
➦Inaccurate information across databases.
➦Different formats of information in the different databases.

4)The Evolution of ERP

➨In future ERP they want to integrates as more real time information.


5)Integrating SCM,CRM,and ERP.

➔SCM,CRM and ERP :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 users, anywhere ,anytime.

➔Many ERP vendors offer SCM and CRM components they do not create systems they just buy it from other.

➜Thse modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM.

➤ERP vendors carry SCM and CRM components,but they are ususally not as good as the vendors that specialize in SCM and CRM components.(Siebel CRM,i2 SCM)

➨General audience and purpose of SCM,CRM,and ERP.

6)Integration Tools

➔Many companies purchase modules from an ERP vendor,an SCM vendor ,and a CRM vendor and must integrate the different modules together.

➔Midleware: different types of software which sit in the middle of and provide connectivity between 2 or more software applications.

➔Enterprise application integration(EAI) software: different vendor and integrates by different modules.

7)Enterprise Resource Planning (ERP)

⧫ERP systems must integrate various organization processes and be:


⇨Flexible:rapid changing and can get anywhere.

⇨Modular and open:update information and the changes that you do must not affect other modules.

⇨Comprehensive:support all activities in an organization.

⇨Beyond the company:Private and confidential must be cannot be access.Make sure external partnerships can reach certain information.

8)Enterprise Resource Planning's Explosive Growth 

➠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 & reporting.

➠ERP is used to avoid pain and expense of fixing legacy systems.