business and system integration
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TRANSCRIPT
E-Business & Business Systems Integration Define EAI, ERP, message broker, application server Discuss the need to link business integration with
system integration Discuss the history of business and system
integration Discuss the characteristics, advantages and
disadvantages of ERP and EAI Compare and contrast ERP and EAI as integration
solutions Discuss the application of ERP and EAI to E-Business
XML and Databases
Types of Databases XML-Enabled Native XML
Types of XML documents Data-centric: use software built into database or
third-party middleware to transfer data between XML documents and databases
Document-centric: use Content Management Systems; store content fragments (procedures, chapters, glossary, entries)
XML- Enabled DatabasesXML is not stored internallyUse relational or object-oriented modelsUse middleware
To store: accepts XML, parses it into chunks that fit database schema
To retrieve: piece back togetherDon’t retain XML’s hierarchical structureTranslation needs considerable processing,
especially for large or complex documents
Native XML XML is actually stored as XML internally
new; questionable scalability; performance No need to translate between XML and database
Can either store entire document in text form structure of document to database (i.e., map DOM to
tables like elements, attributes, text); don’t need to know schema (DTD)*
map structure of data in the document to the database (i.e., orders, items, and parts tables in sales order)
Business Integration M. Lynne Markus: CAIS 4-10
Creation of tighter coordination among discrete business activities conducted by different individuals, work groups or organizations so that a unified business process is formed.
Needs to be linked to systems integration
Why Integrate Business?Decentralized company with different
product lines Multidivisional petroleum products company Elf
AtochemDistribution company with offices in many
geographic locations selling the same product at different prices Cardinal Health
‘Available to Promise’ Hewlett-Packard and ‘global inventory visibility’
History of Business Integration
Reasons Phenomenal growth of small companies after
WWII Decentralization
Counter forces Business process reengineering - BPR Supply chain management - SCM Customer relationship management - CRM Y2K
Systems Integration
Creation of tighter linkages between different computer-based information systems and databases
Often required for business integrationMany e-commerce orders had separate
system for trackingOne solution: software bridge or interface
Broad Systems Integration Solutions
Enterprise Resource Planning System (ERP) or Enterprise System SAP R/3, Oracle, PeopleSoft, JD Edwards,
BaanEnterprise Application Integration
(EAI) ‘Re-architect’ the system Requires middleware
Definitions
ERP - A large highly complex software program that integrates many business functions under a single application; uses common database
EAI - A set of technologies that allow the movement and exchange of information between different applications and business processes within and between organizations; middleware focus
ERP
70% of Fortune 1000 companies have either begun implementing ERP or plan to do so in next few years
Link multiple functions, i.e.,logistics, human resources, accounting and financials, sales, distribution
Use a common databaseOriginal focus on internal integration
Advantages of ERPConsolidates business functionsintegrate broad range of disparate technologies, along
with the processes they supportCreate a new foundation on which next-generation
applications can be developedReplace creaky legacy systemsExcellent internal data and process integrationProvide greater controlImprove integration of decisions throughout organizationImprovements through adoption of best practices
Disadvantages of ERPOften requires extensive organizational change - hence
business involvement in justification and implementation
Some processes are not supported by ERP; some legacy systems are usually retained
Does not provide integrated reporting and analysis environment for internal and external data
Very expensiveAppropriate implementation strategy is neededBusiness units must use common data names and
business processes
ERP ApproachesCustomCommercial off-the-shelf (COTS)
Cheaper Faster to avoid outdated systems Reflect best business practices Software development is core competency of
vendor Not designed especially for organization No competitive advantage Example: SAP/R3
Future ERP Directions
Components, not modulesIncremental migration, not massive
reengineeringDynamic configurations of ERP, not static
configurationsManagement of multiple strategic
sourcing and partnership relationships more supply chain planning more e-business interfaces
EAI‘Re-architect’ systems so that an intermediate
layer is created between applications programs and databases
Application programs are modified to ‘call’ the middleware, which then ‘calls’ the databases
Middleware focusLimited business process change required35% development time is devoted to
interfaces; EAI focuses on interfaces
Advantages of EAI
Allows particular program to be replaced without changing the database
Reduces maintenance; only interface between each program or database and middleware needs to be maintained
Achieves internal data integration and supports process integration without replacement of legacy systems
Supports ‘best-of-breed’
Disadvantages of EAIStill in ‘shakedown’ stage (less mature than ERP)
vendor proliferation ‘experimental’ support for n-way integration
Requires vas amount of technical expertiseMore difficult for multiple applications (though
works well with pairs of systems)Requires some modification of source systemsProcess integration requires organizational
change and business involvementProprietary technology (not open)
Future EAI DirectionsMovement away from point-to-point solutions
(message queuing or remote procedure calls) to multipoint solutions (message brokers, application servers) Application servers + message brokers
Missing link in supply chain integration and interorganizational ERPs
Zero Latency enterprise: any application (or transaction) has access to any other application or data store instantaneously
Application Servers
Servers that provide not only for the sharing and processing of application logic, but also the connect to back-end resources usually provide mechanisms to deploy
application to Web platforms Nothing new
Message Brokers
Intelligent intermediary tat directs the flow of messages between applications provides rules processing, intelligent routing,
message routing, message warehousing, and message transformation services
middleware of middleware asynchronous store and forward (application
need not be session connected)
History of Unintegrated Systems
1982 - mirage of integrated systemsBusiness need for integration not perceived‘Management by magazine’Capacity constraints of early systems
systems built to serve small parts of business computers were extremely expensive
Integrated enterprise systems only address 70% needs of average organization
Internal data can’t satisfy all needs; External data is often purchased
Integrated Systems for E-BusinessSell-side e-business tools
CRM software data mining electronic ‘storefronts’ Call-center management software
Buy-side E-business tools SCM software Procurement software Exchanges
Interorganizational purchasing exchanges for commodity products
Exchanges for trading partnerships
ERP is the backbone of E-business (Kalakota & Robinson, pg. 166)
ERPs and E-BusinessERPs have had internal not external focus
slow to react to sell-side and buy-side ecommerce
Need for ERPs to interact with other ERPsHow to link? (in-house, ERP vendors, single source)PeopleSoft
Significantly less proprietary than SAP Like SAP uses standard relational databases PeopleSoftEDI interface helpful for business data
exchangeSAP
SAP and E-BusinessOriginal SAP R/3 did not contain interfaces to
interact with other systemsOpportunities for B2B integration through Business
Application Programming Interface (BAPI) standardNiche systems
Supply Chain Cockpit - SCM Enterprise information portal - mySap.com Setting up exchanges for vertical industry groups -
mySap.com
May not be wise to install SAP in companies with acquisition strategy
EAIs and E-BusinessInter-Enterprise Application Integration
EAI is good at integrating various applications and data stores
can extend its reach outside the enterprise to include both trading partners
link ERP systems (i.e., SAP and Baan) Saturn: suppliers must tie into their systems
Focus on major business processesExtend systems to suppliers and customers
must agree on communication standards and middleware
Business and System Integration
Need to link New focus on business
disintegration? Virtual Organizations Oursourcing “quick connect, quick disconnect”