MGT 300

IT in BUSINESS

PN. INTAN LIANA SUHAIME

 Chapter 12

Integrating the Organization from

End to End – Enterprise Resource
Planning
 Learning Outcomes

12.1 Describe the role information plays in enterprise

resource 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
 Enterprise Resource Planning (ERP)

At the heart of all ERP systems is a database, when a

user enters or updates information in one module, it is
immediately and automatically updated throughout the
entire system
Enterprise Resource Planning (ERP)

ERP systems automate business processes

Bringing the Organization Together

ERP – The organization before ERP

Bringing the Organization Together

ERP – bringing the organization together

The Evolution of ERP
 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
 Integrating SCM, CRM, and ERP

SCM and CRM market overviews

 Integrating SCM, CRM, and ERP

 General audience and purpose of SCM, CRM and 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
 Integration Tools

 Data points where SCM, CRM, and ERP integrate

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.
Enterprise Resource Planning (ERP)

Comprehensive – must be able to

support a variety of organizational
functions for a wide range of businesses
Beyond the company – must support
external partnerships and collaboration
efforts
 Enterprise Resource Planning’s
Explosive Growth

SAP boasts 20,000 installations and 10 million

users worldwide

ERP solutions are growing because:

 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
THANK YOU