62 ERP Internet and WWWERP II ERP Demystified

ERP II • By extending the existing applications to support e-commerce, organizations could not

ERP II (contd. ) • The main reason why ERP II came into existence

Review Questions 1. Explain the growth and popularity of Internet and its impact on

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ERP II • By extending the existing applications to support e-commerce, organizations could not only leverage existing investments in their ERP solution but also speed the development of their e-commerce capabilities. • ERP needs to be tightly integrated with the Internet and WWW or World Wide Web, in order to take advantage of that powerful medium. • Since most of the business transactions are conduced over the Internet and most information is accessed and disseminated over the organization’s portal on the WWW, these two media are becoming important for organizations. • With the advancements in encryption technologies and Internet security, conducting business over the Internet is becoming safer. So extending the ERP applications to the Internet and WWW is the next logical step for organizations. • ERP systems are used to integrate and optimize an organization's internal manufacturing, financial, distribution and human resource functions. In contrast, ERP II addresses the integration of business processes that extend across an enterprise and its trading partners. • ERP II forms the basis of Internet enabled e-business and collaborative commerce. ERP Demystified (Second Edition). Copyright 2008, Alexis Leon. All rights reserved.

ERP II (contd. ) • The main reason why ERP II came into existence was the need to look at a way to give customers and partners access to scheduling, delivery, inventory, manufacturing, invoicing and planning information. • Over the last few years, solutions like CRM and SCM have leveraged the Internet to support these processes. ERP II incorporates them all in a single package. • To be globally competent, an organization needs to open and reach out to its collaborative partners. ERP II enables businesses to compete by providing information on-line and adding real value to businesses of all types and sizes. • ERP II is a solution that includes the traditional materials planning, distribution, and order-entry functionality strengthened by capabilities like customer relationship management (CRM), human resources management (HRM), document/ knowledge management (KM) and workflow management. Such a system can quickly, accurately and consistently operate an entire organization. • With ERP II the customer, the vendor, the supplier and the company all work in unison. • The strongest features of ERP II are its web-centricity and designed-to-integrate architectures. ERP Demystified (Second Edition). Copyright 2008, Alexis Leon. All rights reserved.

Review Questions 1. Explain the growth and popularity of Internet and its impact on ERP systems. 2. Explain the importance of the integration of ERP with Internet and WWW. 3. What is ERP II? Explain its importance and advantages. 4. Discuss the best practices of ERP II. ERP Demystified (Second Edition). Copyright 2008, Alexis Leon. All rights reserved.