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CHAPTER 12

CHAPTER 12. Enterprise Resource Planning (ERP). Learning Outcomes. Describe the role information plays in enterprise resource planning systems Identify the primary forces driving the explosive growth of enterprise resource planning systems

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CHAPTER 12

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  1. CHAPTER 12 Enterprise Resource Planning (ERP)

  2. Learning Outcomes • Describe the role information plays in enterprise resource planning systems • Identify the primary forces driving the explosive growth of enterprise resource planning systems • Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

  3. Overview • Enterprise resource planning systems serve as the organization's backbone in providing fundamental decision-making support • This chapter discusses • ERP’s explosive growth • Using ERP to connect corporations • Integrating SCM, CRM, and ERP

  4. At the heart of an ERP system is a database, when a user enters or updates information in one module, it is immediately and automatically updated throughout the entire system

  5. ERP systems can automate business processes

  6. Overview ERP systems must integrate various organization processes and be: • Flexible • Modular and open • Comprehensive • Beyond the company

  7. ERP Growth • There are an estimated 70,000 ERP installations worldwide with over 35 million users. 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

  8. Top ERP vendors & their major components

  9. The Connected Corporation • 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

  10. SCM and CRM market overviews

  11. Integrating SCM, CRM, & ERP 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– packaging together commonly used functionality, such as providing pre-built links to popular enterprise applications, which reduced the time necessary to develop solutions that integrate applications from multiple vendors

  12. General audience & purpose of SCM, CRM & ERP

  13. Data points where SCM, CRM, and ERP integrate

  14. Revving Up Sales at Harley-Davidson • Explain how an ERP system can help Harley-Davidson gain business intelligence in its operations • Assess the business benefit for Harley-Davidson in integrating its CRM, SCM, and ERP systems

  15. Hilton Purchases New Suite • Hilton deployed a new ERP that cost $4 million • The ERP system has increased processing efficiency by a factor of six • The ERP system is saving the company between $4.5 and $5 million annually

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