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modules in SAP ERP and the abbreviations that are typically used for them.
For example, a person with expertise in the fi nancial accounting and manage-
ment accounting modules of SAP ERP is typically called a FICO expert based
on the abbreviations of the two modules.
As more companies acquired ERP systems, the next step in the evolu-
tion of ES was to connect these systems so they could support inter-company
processes—that is, processes that take place between and among companies.
Examples of inter-company systems are supply chain management (SCM)
and supplier relationship management (SRM) systems, which connect a
company’s ERP system to those of its suppliers. SCM connects a company
to other companies that supply the materials it needs to make its products.
Typical SCM systems help companies plan for their production requirements
and optimize complex transportation and logistics for materials. SRM systems
typically manage the overall relationships with the materials suppliers. SRM
systems contain functionality to manage the quotation and contracts processes.
These systems act as extensions to the procurement and material planning
processes of ERP systems.
On the other side of the manufacturing and sales processes, customer
relationship management (CRM) systems connect a company’s ERP sys-
tem to those of its customers. CRM systems provide companies with capa-
bilities to manage marketing, sales, and customer service. These systems are
an extension of the fulfi llment process of ERP systems. Product lifecycle
management (PLM) systems help companies administer the processes of
research, design, and product management. In effect, PLM systems help com-
panies take new product ideas from the virtual drawing board all the way to
the manufacturing facility.
The collection of these inter-company systems and the underlying intra-
company ERP system is called an application suite. Suite vendors, such as
SAP and Oracle, provide fairly comprehensive collections of applications that
offer an enormous amount of functionality and cover most of the standard
business processes.
Figure 2-4 identifi es the various capabilities that are part of an applica-
tion suite and illustrates how they connect to other members of a company’s
business network. It is important to note that one of the key benefi ts of utiliz-
ing a complete suite of software is that the data and processes are integrated
among the systems in the suite. That is, although they are separate systems,
they are designed so that they work together in an integrated manner.

Figure 2-4: The ES application suite

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