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

CHAPTER 12

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

Enterprise Resource Planning (ERP)

·         It serves as the organization’s backbone in providing fundamental decision making support.

·         It enables people in different business areas to communicate.

·         ERP system helps an organization to obtain operational efficiencies, lower costs, improve supplier and customer relations, and increase revenues and market share.

·         The heart of an ERP system is a central database that collects information from and feeds information into all the ERP system’s individual application components (called modules), supporting diverse business function such as accounting, manufacturing, marketing, and human resources.

·         ERP automates business processes such as order fulfillment- taking an order from a customer, shipping the purchase, and then billing for it.

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

•  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

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

integration Tools

·         An integrated enterprise infuses support areas, such as finance and human resources, with a strong customer orientation.

·         Integration are achieved using:

§   Middleware- several different types of software that sit in the middle of and provide connectivity between two or more software applications. It translates information between disparate systems

·         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.

 Integration between SCM, CRM, and ERP Applications.

·         Companies run on independent applications, such as SCM, CRM, and ERP. If one application performs poorly, the entire customer value delivery system is affected.