Enterprise Resource Planning (ERP)

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CHAPTER 12

• Enterprise Resource Planning (ERP)

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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

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Overview

• Enterprise resource planning systems serve as the
  organization's backbone in providing fundamental
  decision-making support
• This chapter discusses
• ERPs explosive growth
• Using ERP to connect corporations
• Integrating SCM, CRM, and ERP

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• 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

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ERP systems can automate business processes
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Overview

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

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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

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Top ERP vendors their major components
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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

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SCM and CRM market overviews
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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

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General audience purpose of SCM, CRM ERP
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Data points where SCM, CRM, and ERP integrate
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Revving Up Sales at Harley-Davidson

1. Explain how an ERP system can help
   Harley-Davidson gain business intelligence in its
   operations
2. Assess the business benefit for Harley-Davidson
   in integrating its CRM, SCM, and ERP systems

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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