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Importance of integration to companies

Organization exist to achieve some purposes or some adjectives. Some companies produce

products and deliver directly to customers. The others productions are used to create others

products or services to provide the manufacturers . Although they exist for many different

purposes and variety in the size and complexity or locate in different countries, they all use

processes and enterprise systems for their activities and to achieve their goals.(sg!

Business process is the task or activities which produce desire outcomes. Everyprocess is triggered by some event like receiving customer order or recognizingthe need to increase inventory (SGK)

"usiness #rocess Integration ("#I! is the synchronization of a company$s internal operations

%ith those of its other divisions and its trading partners &y connecting disparate systems in

real'time. ( http://www.lansa.com/resources/jargonbuster.htm )

Importance of Business process integration to the information

Easier to evaluate the customers

hen customers &uy products from a company, all the data relating to them %ill &e saved on

the company)s master data&ase a&out their name, the products they &ought, the integrated

customer data help enterprise to evaluate %hich group of customers &ring the most

profita&le to the company, the &uying trends of them, %hat they need from their products.

Therefore, they can analyse the customer data and perform a suita&le mareting plan for

each maret share.

*oca'*ola is a glo&al corporation %hose &ranches are located in every corner of the %orld.

 According to statistic data in +-+ a&out the %orld)s consumption of *oe products, some!" servings o# $%&uid%ounce beverages were consumed per person in the 'eico

which ranked the rst in the proportion o# world *oca%*ola consumption. +nd thenet country is *hile with the result is !$,.

( http://www.statista.com/statistics/271156/per-capita-consumption-of-soft-

drinks-of-the-coca-cola-company-by-country/  +ccording to this database-

*oca%*ola can use it to evaluate the most valuable market share in the world andthen they can apply suitable strategies #or each market to gain the maimum prot

 

Simplify the system

"usiness process integration also simplifies the structure of the system &ut mae the

process %ors more efficiently %ith higher performance. Although each company code %orsas an independent unit, their data could &e used %ithin company codes. or example *oca'

*ola Singapore and *oca'*ola Thailand are t%o of *oca'*ola company codes, %hich have

separate financial statements. /o%ever *oca'*ola Thailand customers are *oca'*ola

Singapore customers &ecause the customer$s information is saved in the data&ase %hich

could &e entered &y any company code. Therefore it is very simple to manage the

customer$s data %ithout duplicating the information %hich could cause errors in the revenue

in financial statements. So that, the more simple the system, the easier to manage it.

Reduce extra costs

ne database #or every company code could save a lot o# cost relating tomaintenance- synchronization services.

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Importance of Business process integration to the peopleIncrease productivity

ith an integration system, data entry manually has &een decreased. It also reduce the

human errors rics and allo% the staff to spend more time on customers focus then

administrative ones.

Quickly identify problems and solve them.

ith "usiness Integrated #rocess, Identifying a pro&lem is faster. or illustration, %hen

selling a product to a customer, the process starts from receiving customer$s purchase order

to create invoice and receive the payment. hen a pro&lem occurs for example, the %rong

0uantity or %rong good$s type, they can identify %hen the purchase order is received, thecontent of it and %hen and %ho pic the product from %arehouse. Therefore, they can

identify errors occurred from %hich plant, and %ho cause the pro&lem.

Decision making

ith the optimism of the system and updated information, administrators are a&le to give the

most accurate decision for the production plan to increase revenue and reduce cost. *oca'

*ola has several type of plants so they can decide %hich factory produce ra% materials and

%hich produce finish goods.

Importance of Business process integration to the software and hardware aspect 

ne so#tware #or entire business process helps the company easier to manageand reduce the cost #or maintenance. it also re/uire less people to manage-optimize #or the entire business system.

0e can see Business process integration is very important. 0ith lack o#integration- many problems occur.

Enterprise systems are one o# the most comple and power#ul in#ormationsystems which are used today. 1he architecture- in other words- the structure o#it re#ers to the technical structure o# the so#tware- how people use it- and how itinteracts with the hardware. Enterprise resource planning systems are the

world2s largest and comple enterprise systems which #ocus on intra companyprocesses.

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3n the #ollowing part- 3 aim to show the problem arises without Business processintegration and how E45 system address these integration issues.

ERP and solution for poor performance.

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Enterprise has to buy raw materials #rom many vendors. 1here#ore- a hugeamount o# input data o# vendors as well as documents needs to be processes.0hen a company is lack o# integration- the data could be #ragmented and i# thissituation continues #or a long period o# time- the per#ormance o# the companycan be a6ected in a negative way.

7et2s take a look at a case study o# Sony *orporation- whose head/uarter islocated in 'intao- 8apan. Sony is a company which is a leading manu#acturer o#electronics- videos- communications and video game consoles- with a sloganSony. 7ike no other. Sony corporation is the electronics business unit and theparent company o# the Sony group. +t the beginning- due to lack o# integration-Sony #aced many problems9 Because o# the silo culture which means theirdepartments or sectors doesn2t share in#ormation with each other although theybelongs to the same company. So that- this model hindered the company #romaccessing the product. +nother #actor is they were lack o# coordination andcommunication across divisions.

+#ter studying deeply about their system and their re/uirement- there were a#ew solutions which are chose base on top o# 'icroso#t *ommerce Server and'icroso#t S:7 Server technologies. 'icroso#t *ommerce Server containsimportant parts which are used #ro establishing and epanding the #ocus on theonline customers. 3t also allow #or product catalog setup and personalization.Besides- 'icroso#t S:7 server permits etensive 7+5 and data mining#unctionality- thereby #acilitating better decision making.

 1he new solution brought many benets to Sony. 1hey attracted more onlinecustomers and create di6erent eperiences #or customers which encourage themto shop online more. 3t provided centralized management and reporting by

system administrators resulting in more active involvement and e6ectivemonitoring. (http9;;www.slideshare.net;5arimal5atel;erp%case%study%on%sony%corporation<net=slideshow>?)

Cost structure too high and uncompetitive performance with invisibility

of info

@or a system without consistency- the cost that enterprise has to pay to maintainit is not a small amount at all. 3n another hand- we can see that is a wasteinvestment with low per#ormance.

0e can see how 'al%Bar- 3nc ('B3) got success#ul result #rom 3mplementation.'ar%Bal was #ounded by 8im Balogh and it is located in *hagrin @alls hio. 'ar%Bal is a compounder and molder o# the thermoset composite products. Since?A- 'al%Bal has designed and produced high /uality materials andcomponents. 1his company also invested in electrical- transportation- industrialmarketplaces #rom #our #acilities in Corth +merica.

+ #ew years ago- 'B3 eperienced a big problem due to the customized (+S!%Based) E45 so#tware which was out dated. 'B3 couldn2t complete necessarytasks in manu#acturing and it was very diDcult #or them to compete with othercompanies in the rapidly changed speed economy. +#ter each year- the cost to

operate the old system was higher due to the #act that it needed a specialsupport to maintain as well as to update it. @urthermore- the old system also

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lacked o# necessary services like the automatic transmission o# advancedshipping notices and e% invoices- which are very crucial to the business activities.

  1he outdated structure also could be seen in the inventory control. 1hey hadto manually scan inventory #rom the shop &oor which consumed a lot o# time andthe errors occurred was unavoidable. ue to this inconvenience and unreliablesystem- a #ull physical inventory had to be per#ormed once a month because theinventory was invisibility. +ll the sta6s had to manually check the inventorylevels and that task wasted a lot valuable time #or the production. +notherdiDculty 'B3 had to #ace was managing the consigned inventory by the oldsystem was very diDcult because it did not #ollow or keep track o# which materialwas on hand at the customer site and there were no method to add or reducevendor managed inventory based on shipments and consumption.

+nd again- this old E45 system provided poor3y the number o# reporting tools aswell as unable to have the #orecast #unction. 'ost month%end activities re/uiredat least two weeks to nish. 1here were also occurred many bugs in the internal

system communication which resulting in poor customer service because salesperson on the road could not access important order status in#ormation and theresu3t was it took a lot o# time to response to the customers.

'B3 had two options9 continue using the outdated system or investing in a newE45 system. @inally- 'B3 decided to nd a new supplier who could give anoptimal solution #or their situation which could process more transactions #or ashorter time while still a33ow 'B3 continue to sale without epanding sta6 #ordata management.

Enterprise3: was installed at the head/uater o# 'B3 in hio and thenimplemented at 'B32s #our #acilities. @ollowing the implementation- 'B3 started tosee positive resu3ts.

 1hrough 3:'S2 robust and native E3 module- 'B3 is now can 

connect to itsclients demand planning system. 0ith a real time process system- orders #romtheir customers are automatically sync into Enterprise3:. 1here#ore- the time toprocess these orders is shortened. utbound E3 #unctionality embedded with anew #eature o# auto invoicing in Enterprise3: can allow their sta6s to transmitmore than ? invoices within a couple o# minutes. 'B3 has reduced an averageamount o# invoice aging due to the rapidly in resolving the price or /uantitydiscrepancies rather than discovered weeks later.

0ith a new 3:'S2 0arehouse 'anagement System ( 0'S)- 'Bl now has abilityto track the movement or the change o# the inventory #rom the smallest part toevery bo within their plants. 0ith the assistance o# barcode labelling andscanning technology- their sta6s will no longer have to manually classi#y theinventory items every month. 1his techni/ue saved plenty o# time #or the labor.3n addition- 'B3 optimized business activity monitoring system- the l:+lert couldcheck any problem occurred that need to be investigated such as negativeinventory. 1he visibility o# the new system have improved with real%time plant&oor production calculating and have ability to access remotely.( http://www.i!ms.com/company/mar-bal/inde".html  

ERP system can solve invisible information.

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0ithout an integrated system- the company has to #ace a hard situation9 the lacko# readily available in#ormation. 1here#ore- this situation will have a negativeimpacts on the relation between customers and the suppliers. @or illustration- wecan take a look at 'onaco 1elecom2s situation be#ore and a#ter applying E45solutions.

( http://www.bettererpsystems.com/benl/docs/cases/monaco-

telecom.pdf

'onaco 1elecom is the main telecommunication provider in 'onaco- which was#ounded in ?AA by 'onaco2s Government. 1his company is part o# *able F0ireless group and the global leader in providing telecom services #or small tomedium size economies. 1his company integrated telecom companies in countries around the world.

3n H,- 'onaco 1elecom took part in an etensive corporate reorganization inorder to improve the per#ormance and to epand their products and their market

share. 1he company started to invested in its internal system in H to improveits service. +s a part o# 'onaco 1elecom2s reorganization- the e6orts they #ocusmore on the administrative than the value%driven. Iowever- they still used thelegacy nance system. 1he negative aspect o# this system was it had lack o#integration #unctions but many manual control inter#aces and processes.

 1here#ore- that system was very comple- rigid and low per#ormance. 1hey alsogave some in%house built solutions but the limited impacts were still therebecause all the important processes were manually controlled.

 1he nance and purchasing teams realized that the legacy system was outdatedand unsatis#actory and it was the main reason which caused the lack o# readilyavailable in#ormation- reporting and analysis #or operational divisions. 3t alsocaused directly to the relationship between the company and their customers

 1hey needed a &eible E45 system which could be elastic enough to t all theneeds o# every department in the group. 1hey also needs to easily consolidate allthe data #rom these multiple entities.

  ue to the low per#ormance o# the legacy system which they used to operatethere business processes- 'onaco 1elecom decided to re%organize their systemstructure by replacing an outdated legacy nancial tool by a new integrated E45system which is more &eible and very easy to use. 0ith all these re/uirements-'onaco 1elecom chose +vanade as their integration partner. 1hey used 'icroso#t

ynamics +J with +vanade2s help. 3t was considered as the best valueproposition. 3ncluded in the solution were 4etail 5ro in order to manage sales inthe company2s retail outlets- and 4e: 7ogic- which is used to manage thepurchasing approval cycle on the corporate 3ntranet.

 1he visibly positive e6ect o# 'icroso#t ynamic +J was the international easilyand rapidly deployed. *omparing to others E45 products on the market- thissolution has its own advantage due to the &eibility to t the company2s specicdemands while other products were heavier and the #unctions were not as&eible as ynamic +J.

 1oday- with the new E45 system- 'onaco 1elecom has a success#ully business in

a highly competitive international 1elco marketplace. 1his new E45 solution can

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help the company to put place in the #oundation o# an integrated nance#unction which can support them through the #uture o# the company.