chapter 12

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

• ERP systems automate business processes

Bringing the Organization Together

• ERP – The organization before ERP

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

• 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

Enterprise Resource Planning (ERP)

ERP systems must integrate various organization processes and be:

• Flexible
• Modular and open
• Comprehensive
• Beyond the company

Enterprise Resource Planning’s Explosive Growth

SAP boasts 20,000 installations and 10 million users worldwide

ERP solutions are growing because:

1. ERP is a logical solution to the mess of incompatible applications that had sprung  up in most businesses
2. ERP addresses the need for global information sharing and reporting
3. ERP is used to avoid the pain and expense of fixing legacy systems

Our intuition about the future is linear. But the reality of information technology is exponential, and that makes a profound difference. If I take 30 steps linearly, I get to 30. If I take 30 steps exponentially, I get to a billion.

Ray Kurzweil