Business Driven Technology Unit 3 Streamlining Business Operations Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Unit Three Chapter Nine – Enabling the Organization – Decision Making Chapter Ten – Extending the Organization – Supply Chain Management Chapter Eleven – Building a Customer-centric Organization – Customer Relationship Management Chapter Twelve – Integrating the Organization from End to End – Enterprise Resource Planning

Chapter 12 Integrating the Organization from End to End—Enterprise Resource Planning

LEARNING OUTCOMES Describe the role information plays in enterprise resource planning systems Explain the business value of integrating supply chain management, customer relationship management, and enterprise resource planning systems

Enterprise Resource Planning 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

Enterprise Resource Planning ERP systems automate business processes

Bringing the Organization Together The Organization Before ERP

Bringing the Organization Together The Organization After 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

Integrating SCM, CRM, and ERP 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 Enterprise application integration (EAI) middleware

Integration Tools Data points where SCM, CRM, and ERP integrate

Core and Extended ERP Components Core ERP component – traditional components included in most ERP systems and they primarily focus on internal operations Extended ERP component – extra components that meet the organizational needs not covered by the core components and primarily focus on external operations

Core and Extended ERP Components

CORE ERP COMPONENTS Three most common core ERP components Accounting and finance Production and materials management Human resource

CORE ERP COMPONENTS Accounting and finance component – manages accounting data and financial processes within the enterprise with functions such as general ledger, accounts payable, accounts receivable, budgeting, and asset management

CORE ERP COMPONENTS Production and materials management component – handles the various aspects of production planning and execution such as demand forecasting, production scheduling, job cost accounting, and quality control

CORE ERP COMPONENTS Human resource component – tracks employee information including payroll, benefits, compensation, performance assessment, and assumes compliance with the legal requirements of multiple jurisdictions and tax authorities

Extended ERP Components Extended ERP components include: Business intelligence Customer relationship management Supply chain management Ebusiness

Extended ERP Components Ebusiness components include elogistics and eprocurement Elogistics – manages the transportation and storage of goods Eprocurement – the business-to-business (B2B) purchase and sale of supplies and services over the Internet

ERP Benefits and Risks (Costs) Common ERP benefits Integrate financial information Integrate customer order information Standardize and speed up manufacturing processes Reduce inventory Standardize human resource information

LEARNING OUTCOME REVIEW Now that you have finished the chapter please review the learning outcomes in your text