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B2B Integration : A Practical Guide to Collaborative E-commerce

B2B Integration : A Practical Guide to Collaborative E-commerce

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Components, Benefits, Challenges and Applications of <strong>B2B</strong> <strong>Integration</strong> 25<br />

2.1. The Word is Out<br />

The word is out: dynamic business collaboration on the Internet is a<br />

strategic imperative. There is a great hustle and bustle going on in<br />

IT and business divisions of all companies either <strong>to</strong> kick start or,<br />

having done so, <strong>to</strong> quickly finish the integration process that provides a<br />

seamless, end-<strong>to</strong>-end solution for integrating cus<strong>to</strong>mers, partners and<br />

suppliers.<br />

In this chapter, we will discuss all the major components of <strong>B2B</strong>i,<br />

the bot<strong>to</strong>m line benefits of <strong>B2B</strong>i <strong>to</strong> companies and the challenges that<br />

they may face in <strong>B2B</strong>i implementation. This is followed by an<br />

introduction <strong>to</strong> a few major applications enabled by <strong>B2B</strong>i, such as<br />

supply chain management (SCM), <strong>B2B</strong> exchanges and collaborative<br />

networks.<br />

2.2. <strong>B2B</strong>i Components<br />

<strong>B2B</strong>i consists of multiple components, each one being of different<br />

priority for different companies. It may not be possible <strong>to</strong> incorporate<br />

all the components in the first phase of <strong>B2B</strong>i implementation; however,<br />

it is prudent <strong>to</strong> at least include them in long-term <strong>B2B</strong>i goals.<br />

2.2.1. <strong>Integration</strong> patterns<br />

Companies can achieve <strong>B2B</strong>i using one or more of the following<br />

integration patterns (see Figure 2.1):<br />

• Data oriented integration;<br />

• Application oriented integration;<br />

• Portal oriented integration; and<br />

• Business process oriented integration.<br />

Most of the companies have <strong>to</strong> use a combination of these patterns<br />

<strong>to</strong> achieve integration with their trading partners. The choice of the<br />

integration pattern is based on several fac<strong>to</strong>rs, including the nature of<br />

integration agreement with the trading partners, degree of synchronization<br />

required, budget, short-term and long-term business goals.

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