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Hallo…let’s
move on to chapter 12… J
Enterprise Resource Planning (ERP)
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.
Figure
1: ERP integration data flow
v ERP automates business
processes such as order fulfillment- taking an order from a customer, shipping
the purchase, and then billing for it.
Bringing the
Organization Together
Figure 2: ERP Process Flow
· ERP enables employees across the organization to share information
across a single, centralized database.
· With extended portal capabilities, an organization can also
involve its suppliers and customers to participate in the workflow process,
allowing ERP to penetrate the entire value chain, and help the organization
achieve greater operational efficiency.
Figure 3: The Organization before ERP
The Evolution of ERP
Although ERP solutions
were developed to deliver automation across multiple units of an organization,
to help facilitate the manufacturing process and address issues such as raw
materials, inventory, order entry, and distribution, ERP was unable to extend
to other functional areas of the company such as sales, marketing, and
shipping. It could not tie to any CRM capabilities that would allow
organizations to capture customer-specific information, nor did it work with
websites or portals used for customer service or order fulfillment.
Figure 4: ERP-
Bringing the Organization Together
Figure 5: The Evolution of ERP
Integrating SCM, CRM, and ERP
SCM, CRM AND ERP are the backbone of e-business.
Integration of SCM, CRM, and ERP is the key to success for many
companies.
Integration allows the unlocking of information to make it available
to any user, anywhere, anytime.
2 main competitors in
ERP market:
i.
Oracle
ii.
Sap
Figure 6: SCM market overview
Figure 7: Primary Users and Business Benefits of Strategic Initiatives.
Integration Tools
Ø 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.
E.g.:
If we want to download video from YouTube, so we need to have YouTube
downloader. Thus, YouTube downloader is the middleware as to download the
video.
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(combine) applications
from multiple vendors.
Figure 8: Integration between SCM, CRM and ERP
application
Enterprise Resource Planning’s
Explosive Growth
Reasons of ERP being proven to be such a powerful
force:
i.
ERP is a logical solution to the mess of incompatible applications
that had sprung up in most businesses.
ii. ERP addresses the need for global information sharing and
reporting.
iii. ERP is used to avoid the pain and expense of fixing legacy systems
To qualify as a true ERP solution, the system not only
must integrate various organization processes, but also must be:
Flexible: an ERP system should be flexible in order to respond to the
changing needs of an enterprise. Modular and open: an ERP system has to have open system architecture, meaning that
any module can be interfaced with or detached whenever required without
affecting the other modules. The system should support multiple hardware
platforms for organizations that have a heterogeneous collection of systems. It
must also support third- party add-on components. Comprehensive: an ERP system should be able to support a variety of
organizational functions and must be suitable for a wide range of business
organizations. Beyond the company: an ERP system must not be confined to organizational boundaries
but rather support online connectivity to business partners or customers.
v Everyone involved in
sourcing, producing, delivering the company’s product works with the same
information, which eliminates redundancies, cuts wasted time, and removes
misinformation.
ERP solution 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
expenses of fixing legacy systems.
That’s all okey…. Wanna to take a
rest…
See u again….bubye...
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