letter. Now you can contact people around the globe and voice your
complaint or anger with a company or product. Companies have to listen,
making CRM the primary challenge facing organizations. Organizations are
discovering a wave of other key business areas where it is beneficial to build
strong relationships beyond customers. These include supplier relationship
management (SRM), partner relationship management (PRM), and employee
relationship management (ERM).
Learning Outcome 8.5: Identify the core and extended areas of
enterprise resource planning.
Enterprise resource planning (ERP) integrates all departments and functions
throughout an organization into a single IT system (or integrated set of IT
systems) so employees can make decisions by viewing enterprisewide
information about all business operations. Enterprise resource planning
systems provide organizations with consistency. They allow for the effective
planning and controlling of all the resources required to plan, source, make,
and deliver goods and services.
The first generation of ERP systems focused on improving the manufacturing
process through automation, primarily addressing back-o*ce business
processes such as inventory ordering and product distribution. The second
generation of ERP systems extended its reach into the front o*ce and
primarily addressed customer issues including marketing and sales. The third
generation of ERP systems, known as ERP-II, allows a company to compete
on a functional level, adopting an enterprisewide approach using the Internet
to connect all participants in the value chain. One of the biggest challenges
of an ERP system is cost. ERP systems contain multiple complex components
that are not only expensive to purchase, but also expensive to implement.
Costs can include the software itself, plus consulting charges, hardware
expenses, and training fees.
Applications such as SCM, CRM, and ERP are the backbone of ebusiness, yet
most organizations today have to piece together these systems. A firm might
choose its CRM components from Siebel, SCM components from i2, and
financial components and HR management components from Oracle.
Integrating all of these enterprise systems allows an organization to function
as a single unit meeting customer, partner, and supplier needs.
Learning Outcome 8.6: Discuss the current technologies
organizations are integrating in enterprise resource planning
The goal of ERP is to integrate all of the organizational systems into one fully
functioning, high-performance system that is capable of meeting all business
needs and user requirements. Of course, this goal is incredibly difficult to
achieve because businesses and technologies experience rapid change, and
ERP must support mobility, cloud, SaaS, and tiered architectures.