CHAPTER 12: INTEGRATING THE ORGANIZATION FROM END TO END- ENTERPRISE RESOURCES PLANNING

·         The heart of and 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 functions such as accounting, manufacturing, marketing and human resources

·         Roles information plays in ERP system:

o   Its serve as the organization’s backbone in providing fundamental decision-making support

o   ERP system provide a foundation for collaboration between departments, enabling people in different business areas to communicate

o   To obtain operational efficiencies, lower costs, improve supplier and customer relations and increase revenues and market share, all units of the organization must work together harmoniously toward congruent goals

·         Application such as SCM, CRM and ERP are the backbone of Ebusiness. Integration allows the unlocking of information to make it available to any user, anywhere and anytime.

·         These modules are NOT functional or flexible as the modules offered by industry leaders of SCM and CRM

·         To qualify as a true ERP solution, the system not only must integrate various organization process, but also must be:

o   Flexible

o   Modular and open

o   Comprehensive

o   Beyond the company

·         Primary users and business benefits of strategic initiatives:

         Enterprise application                           Primary user                           Primary business benefit      - CRM                                                - sales, marketing,                     - sales forecast, sales strategies,

                                                                 Customer service                      marketing campaign

   -SCM                                                 - customer, Resellers,                - market demand, resource and

                                                                 Partners, Suppliers                    capacity constraints, real-time

                                                                 Distributors                               scheduling

    -ERP                                                 -  Accounting, Finance,              - forecasting, planning, purchasing,

                                                                 Logistics, Production                 material management,

            Warehousing, Inventory,      

            Distribution