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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.(sgk)
Business process is the task or activities which produce desire outcomes. Every
process is triggered by some event like receiving customer order or recognizing
the need to increase inventory (SGK)
Business Process Integration (BPI) is the synchronization of a companys internal operations
with those of its other divisions and its trading partners by 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
When customers buy products from a company, all the data relating to them will be saved on
the company's master database about their name, the products they bought, the integrated
customer data help enterprise to evaluate which group of customers bring the most
profitable to the company, the buying trends of them, what they need from their products.
Therefore, they can analyse the customer data and perform a suitable marketing plan for
each market share.
Coca-Cola is a global corporation whose branches are located in every corner of the world.
According to statistic data in 2012 about the world's consumption of Coke products, some
745 servings of 8-fluid-ounce beverages were consumed per person in the Mexico
which ranked the first in the proportion of world Coca-Cola consumption. And the
next country is Chile with the result is 486.
( http://www.statista.com/statistics/271156/per-capita-consumption-of-softdrinks-of-the-coca-cola-company-by-country/) According to this database,
Coca-Cola can use it to evaluate the most valuable market share in the world and
then they can apply suitable strategies for each market to gain the maximum profit
----------------In the following part, I aim to show the problem arises without Business process
integration and how ERP system address these integration issues.
Enterprise has to buy raw materials from many vendors. Therefore, a huge
amount of input data of vendors as well as documents needs to be processes.
When a company is lack of integration, the data could be fragmented and if this
situation continues for a long period of time, the performance of the company
can be affected in a negative way.
Lets take a look at a case study of Sony Corporation, whose headquarter is
located in Mintao, Japan. Sony is a company which is a leading manufacturer of
electronics, videos, communications and video game consoles, with a slogan
Sony. Like no other. Sony corporation is the electronics business unit and the
parent company of the Sony group. At the beginning, due to lack of integration,
Sony faced many problems: Because of the silo culture which means their
departments or sectors doesnt share information with each other although they
belongs to the same company. So that, this model hindered the company from
accessing the product. Another factor is they were lack of coordination and
communication across divisions.
After studying deeply about their system and their requirement, there were a
few solutions which are chose base on top of Microsoft Commerce Server and
Microsoft SQL Server technologies. Microsoft Commerce Server contains
important parts which are used fro establishing and expanding the focus on the
online customers. It also allow for product catalog setup and personalization.
Besides, Microsoft SQL server permits extensive OLAP and data mining
functionality, thereby facilitating better decision making.
The new solution brought many benefits to Sony. They attracted more online
customers and create different experiences for customers which encourage them
to shop online more. It provided centralized management and reporting by
system administrators resulting in more active involvement and effective
monitoring. (http://www.slideshare.net/ParimalPatel/erp-case-study-on-sonycorporation?next_slideshow=1)
Without an integrated system, the company has to face a hard situation: the lack
of readily available information. Therefore, this situation will have a negative
impacts on the relation between customers and the suppliers. For illustration, we
can take a look at Monaco Telecoms situation before and after applying ERP
solutions.
( http://www.bettererpsystems.com/benl/docs/cases/monacotelecom.pdf)
Monaco Telecom is the main telecommunication provider in Monaco, which was
founded in 1997 by Monacos Government. This company is part of Cable &
Wireless group and the global leader in providing telecom services for small to
medium size economies. This company integrated telecom companies in 33
countries around the world.
In 2006, Monaco Telecom took part in an extensive corporate reorganization in
order to improve the performance and to expand their products and their market
share. The company started to invested in its internal system in 2007 to improve
its service. As a part of Monaco Telecoms reorganization, the efforts they focus
more on the administrative than the value-driven. However, they still used the
legacy finance system. The negative aspect of this system was it had lack of
integration functions but many manual control interfaces and processes.
Therefore, that system was very complex, rigid and low performance. They also
gave some in-house built solutions but the limited impacts were still there
because all the important processes were manually controlled.
The finance and purchasing teams realized that the legacy system was outdated
and unsatisfactory and it was the main reason which caused the lack of readily
available information, reporting and analysis for operational divisions. It also
caused directly to the relationship between the company and their customers
They needed a flexible ERP system which could be elastic enough to fit all the
needs of every department in the group. They also needs to easily consolidate all
the data from these multiple entities.
Due to the low performance of the legacy system which they used to operate
there business processes, Monaco Telecom decided to re-organize their system
structure by replacing an outdated legacy financial tool by a new integrated ERP
system which is more flexible and very easy to use. With all these requirements,
Monaco Telecom chose Avanade as their integration partner. They used Microsoft
Dynamics AX with Avanades help. It was considered as the best value
proposition. Included in the solution were Retail Pro in order to manage sales in
the companys retail outlets, and ReQ Logic, which is used to manage the
purchasing approval cycle on the corporate Intranet.
The visibly positive effect of Microsoft Dynamic AX was the international easily
and rapidly deployed. Comparing to others ERP products on the market, this
solution has its own advantage due to the flexibility to fit the companys specific
demands while other products were heavier and the functions were not as
flexible as Dynamic AX.
Today, with the new ERP system, Monaco Telecom has a successfully business in
a highly competitive international Telco marketplace. This new ERP solution can