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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> 39<br />

2.4.6. Internal business process management<br />

<strong>B2B</strong>i cannot be achieved through the traditional thinking of the<br />

companies, which treats any integration issue as a technical issue that<br />

can be addressed with technical solutions. This approach ignores the<br />

root cause of the integration challenge — the lack of business process<br />

integration that the technology infrastructure supports. The main objective<br />

of BPM is <strong>to</strong> make business processes effective, efficient and flexible.<br />

A global 2000 company is typically crippled with redundant business<br />

units, performing redundant processes and using redundant data structures<br />

and systems. For example, they may have up <strong>to</strong> 12-15 different billing<br />

applications that replicate a majority of the business processes and<br />

about 95% of the billing data. The billing data for each such application<br />

usually resides in a separate database and is not accessible <strong>to</strong> other<br />

applications. The root cause of these redundancies is bad design of<br />

business processes and the redundant business units that use them.<br />

<strong>Integration</strong> of all such systems requires major business process<br />

reengineering, which is obviously met with severe resistance from<br />

employees.<br />

2.4.7. Inter-enterprise business process integration<br />

<strong>B2B</strong>i requires integration of inter-enterprise business processes. To<br />

achieve this, teams of business-unit and IT professionals from the<br />

trading partners have <strong>to</strong> get <strong>to</strong>gether regularly and redesign core business<br />

processes from a business-<strong>to</strong>-business integration perspective.<br />

Business process oriented integration happens at multiple levels,<br />

across multiple organizational units and it is an extremely daunting task<br />

<strong>to</strong> coordinate it. Several complex business processes such as materials<br />

planning and forecasting are not easily integrated among the trading<br />

partners.<br />

2.4.8. Internal resistance<br />

Even if the <strong>B2B</strong>i implementation team can guarantee the integration of<br />

legacy systems, heterogeneous cross-organization applications and<br />

business processes, there is no guarantee that <strong>B2B</strong>i implementation will

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