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In: Operations Management

Discuss the need to integrate the ERP with SCM and CRM solutions ( text should be...

Discuss the need to integrate the ERP with SCM and CRM solutions ( text should be on atleast 1- 1.5 pages of word file)

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Expert Solution

CRM (Customer Relationship Management) and SCM (Supply Chain Management) are two other types of enterprise software that are widely used in corporations and non-profits. While the key goal of ERP is to improve and optimize internal business processes, CRM seeks to improve customer relationships, and SCM aims to facilitate collaboration between organizations, suppliers, manufacturers, distributors and partners.
ERP for systems perspective, as often as IT concepts and other businesses, is defined in many different ways. A good definition should have several goals:

1. He answers, "What is ...?"
2. It provides the basis for defining more detailed concepts in the field - ERP-Software. E. ERP- System, ERP-implementation
It provides a general basis for comparison with related concepts - CRM, SCM, etc.


3. It helps answer important questions in the field - the benefits of ERP Causes of ERP errors. Etc.

Integrate the ERP with SCM and CRM solutions based on system theory can serve these purposes.
ERP is a system with its goals, components and limitations.

Purpose of the ERP System - The purpose of the ERP is to improve and optimize internal business processes, which generally requires a complete reorganization of current business processes.

ERP System Components - An ERP system component is an integrated component of the Management Information System (MIS).

ERP Software - Software based on ERP module is the core of the ERP system. Each software module automates the business activities of functional areas within the organization.  

Common ERP software models, This includes product planning, purchasing of parts, inventory control, product distribution, tracking, ordering, finance, accounting, and the HR aspects of the organization.


Business Process - Business processes within an organization fall into three levels - strategic planning, management and operations management. ERP is popular as a solution to support or optimize business processes at all levels. Much of ERP success is limited to a combination of different functional areas.


ERP Users - ERP System Users are employees of organizations of all levels, from employees, supervisors, middle managers to managers.
Hardware and Operating Systems - Many major ERP systems are based on UNIX. Windows NT & Linux is another popular operating system for run applications. The legacy ERP system can use other operating systems.

Boundaries of an ERP System - The boundaries of an ERP system are usually smaller than the boundaries of the organizations implementing the ERP system. In contrast, the boundaries of supply chain and e-commerce systems extend to suppliers, distributors, partners and customers. However, in practice, many ERP implementations involve integrating ERP with external information systems.


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