E-commdrce and ERP
Introduction: Traditional companies must embrace the Internet to survive, but, at the same time, pure Internet companies benefit from the assets and infrastructure of their “bricksand-mortar” counterparts. The blending of Internet technologies and traditional business concerns is impacting all industries and is really the latest phase in the ongoing evolution of business. Today, the Internet is driving the current industry goals of a five-day OTD cycle, global reach and personalization. However, without connecting order delivery, manufacturing, financial, human resources, and other back office systems to the Internet, even companies with long track records of innovation are not likely to succeed. The most successful companies will be those that leverage their investment in Web based technologies by implementing e-business solutions supported by sound existing infrastructures based on well-functioning ERP systems. Today companies need to forge tighter links up and down the supply chain, from raw materials to customers. Of late, companies have increasingly turned to the Internet and Web-based technologies to accomplish this. But what they have found is that without Enterprise Resource Planning (ERP) software, sharing accurate information with their trading partners is impossible. Web-based technology puts life and breadth into ERP technology that is large, technologically cumbersome, and does not easily reveal its value. At the same time, ERP allows e-business to come into full flower, putting real substance behind that flashy web page. While ERP organizes information within the enterprise, e-business disseminates information far and wide. In short, ERP and e-business technologies supercharge each other. In light of the above, the objective of this paper is to: • Present a framework for understanding e-business opportunities within the context of a traditional enterprise and its infrastructure. • Examine the evolving relationship between E-Business and ERP, and to understand how companies are moving ahead to gain competitive advantage by using ERP to leverage and take advantage of the business opportunities opened up by the Internet and e-business. • To examine and discuss the role of ERP today and in the context of new business models that are enabled by e-business and associated technologies
and that represent the next step in organizational evolution – a step with potentially revolutionary impact. • To understand the latest developments in this area – especially analyzing the new developments and product offerings of the major ERP software vendors and understand what the present ERP vendors should do to provide true value to users from their software offerings. • To discuss recent developments in the area of e-Supply Chain and Supply Chain integration and other technological developments. • Understand the issues and challenges faced by organizations in moving to an ebusiness environment. This paper is broadly divided into the following sections: • • • • • • • • • • • • The evolving relationship between E-Business and ERP: Key developments Complementary Technologies of ERP and E-Business Software Provider Challenges Dominant Architecture in the ERP/E-Business Marriage Web Enabling ERP ERP and E-Commerce Portals Internet Procurement Advanced Planning and Scheduling (APS) E-Supply Chain and Supply Chain Integration Integrating the Supply Chain to reap the rewards: SCOR Model Moving to an e-business environment: Technology, Processes and People Other Technological Developments It is important to clearly define what we mean by ERP and what we mean by ebusiness. A formal definition for the same is provided here: ERP: ERP is a structured approach to optimizing a company’s internal value chain. The software, if fully installed across an entire enterprise, connects the components of the
enterprise through a logical transmission and sharing of common data with an integrated ERP1....
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