MGT 300 - Chapter 12

Integrating the Organization from End to End – Enterprise Resources Planning

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

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

Enterprise Resource Planning (ERP)

*ERP systems must integrate various organization processes and be:

·         Flexible

• ·         Modular and open
• ·         Comprehensive
• ·         Beyond the company

Enterprise Resource Planning (ERP)

*Flexible – must be able to quickly respond to the changing needs of the organization

*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

*Comprehensive – must be able to support a variety of organizational functions for a wide range of business

*Beyond the company – must support external partnerships and collaborations efforts

Enterprise Resources Planning’s Explosive Growth

*SAP Boasts 20,000 installations and 10 million users worldwide

*ERP solutions are growing because:

·         ERP is a logical solutions to the mess of incompatible applications that had sprung up in most information

·         ERP addresses the need for global information sharing and reporting

·         ERP is used to avoid the pain and expense of fixing legacy systems