1. Enterprise Resource Planning (ERP)
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