Enterprise Resource Planning (ERP) 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 Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

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

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

ERP systems can automate business processes

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

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

Top ERP vendors & their major components

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

SCM and CRM market overviews

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

General audience & purpose of SCM, CRM & ERP

Data points where SCM, CRM, and ERP integrate

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

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