SUMMARY OF MGT300 INFORMATION TECHNOLOGY IN BUSINESS

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. For example, order fulfillment :

When a CSR takes an order from a customer, he or she has all the information necessary to complete the order (the customer’s credit rating and order history, the company’s inventory levels, and the delivery schedule).
Since the company is using an ERP, everyone else in the company will automatically see the information that the CSR types into the ERP system.
When one department finishes with the order, it is automatically routed via the ERP system to the next department.
To determine where an order is at any point in time, a user only needs to login to the ERP system and track it down.

Bringing the Organization Together

ERP – The organization before ERP

In most organizations, information has traditionally been isolated within specific departments, whether on an individual database, in a file cabinet, or on an employee’s PC.

Disadvantages :

Update issues
Redundancy
Inaccurate information across databases
Different formats of information in the different databases
Inability to access other department information and not being provided with a 360 degree view of the organization
Different customer information in different databases
Customer contact from multiple departments with different messages

ERP - bringing the organization together

ERP enables employees across the organization to share information across a single, centralized database.

Disadvantages :

Not as flexible and far more difficult to change
Might not meet all department needs as well as an individual specific system
Multiple access levels increases security issues
Ethical dilemmas from accessing different department information – such as payroll

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.
Many ERP vendors offer SCM and CRM components.
These modules are typically not as functional or flexible as the modules offered by industry leaders who specialize in SCM and CRM.
SCM and CRM market overviews.

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.
Data points where SCM, CRM and ERP integrate.

Enterprise Resource Planning (ERP)

ERP system must integrate various organization processes and be :c

Flexible – must be able to quickly respond to the changing needs of the organization
Modular and open – must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.
Comprehensive – must be able to support a variety of organizational functions for a wide range of businesses.
Beyond the company – must support external partnerships and collaboration efforts.

Enterprise Resource Planning’s Explosive Growth.

- 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.

Monday 25 December 2017