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

Integration Tools
Data points where SCM, CRM, and ERP integrate

Enterprise Resource Planning

(ERP)
ERP systems must integrate various
organization processes and be:
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 businesses
Beyond the company- must support
external partnerships and collaboration
efforts

Enterprise Resource
Plannings 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