Best of Breed Component-Based ERP Solutions
Krishna Narsimhan
Origin Technology in Business, Inc.
10 Carlson Court, Suite 800
Toronto, Ontario M9W 6L2
Phone: 416 798 1110 ext. 4474
Fax: 416 798 0222
E-mail:
BEST OF BREED COMPONENT-BASED ERP SOLUTIONS
1 Introduction
In the ERP users market, large enterprises often have a multitude of assorted business applications, with each having different business transformation and IT requirements. For example, application requirements for Engineering, Manufacturing, Service & Maintenance, Sales & Marketing, and Finance within the Aerospace & Defense Industry are vastly different from that within other market verticals such as Electronics, Process, Automotive, and Utilities. Even within the same industry, requirements vary between enterprises. As a result, functional gaps often exist between the ERP package and an enterprise’s business process.
While many of the ERP software vendors have incorporated vertical-specific functionality to close these functional gaps, I have yet to see an off-the-shelf, standalone ERP system that addresses ALL business requirements. And hypothetically, even if all business requirements were able to be addressed by a single ERP system today, there is always a requirement for future enhancements to existing functionality.
2 The Business Problem
3 Method to Enhance Functionality
A common method used in the past to enhance functionality has been to modify the ERP packages through customization. However, this has never been a sensible approach as it defeats the underlying principle of buying commercial software solutions. A more pragmatic method to close functional gaps is to select one ERP package to act as an enterprise backbone, with specialized and more powerful software solutions integrated into the backbone to address specific business requirements.
4 Impact of Best-of-Breed Solution on the IS Organization
5 Elements of a Component Architecture Solution
At the heart of a component architecture solution is an ERP system, such as Baan, to act as a backbone. The backbone is the primary information system and acts as a repository and communication line between all the specialized Bolt-on applications.
Bolt-on applications are software which perform specialized functions not generally available within the ERP package. They could also substitute existing ERP functions to provide a more powerful functional offering. Bolt-on applications can be classified as:
Middleware plays a significant role in the realization of an seamless integrated solution. Middleware is often used to engage two software solutions in an integrated fashion such that they can address a cross-functional business need, where a business scenario may extend beyond the boundaries of one software package to another. The integration techniques and middleware to be employed to achieve this have to be sound. In addition, it must provide the enterprise with the ability to upgrade any of their integrated software solution components without a major effort and time investment. Several Middleware standards have emerged, with two standards that are quite prominent today:
Middleware software’s that comply with the above standards are available in the marketplace for integration of applications.
6 Integration Methods
To illustrate the various methods available for integrating an ERP system with bolt-on applications, the Baan ERP software will be used as an example.
ASCII Integration
Exchange Tool Integration
EDI Integration
DDL Integration
BDB / SQL Calls
The BDB/SQL library when included in the "C" program allows SQL statements to read and write in the database using the correct Baan database driver to ensure referential integrity.
DDC Integration
Orbix Integration
OLE Integration
Direct Database Integration
7 Scope of Integration Services
Today, many IT service providers are able to address the consulting requirements for most software solutions, as long as they are used in a single-mode and standalone fashion. However, many providers lack the expertise and knowledge to assist in the integration of a seamless enterprise-wide solution. IT service providers must possess more than just ERP implementation skills, but expertise in the various bolt-ons and middlewares. Therefore, Integration Services will be involved in providing customers with the following services.
Application Integration Consulting
Application Integration Consulting is a specialized skill which provide identification and understanding of integration points between Baan and bolt-on applications. Supplemented by industry-specific knowledge, this consulting service assists clients in the building of cross-functional process flows with different package solutions to create one seamless system.
An example of an Application Integration Consultant skill-set would be the ability to consult on the integration between Baan and the i2 solution for customers in the automotive industry. Within this vertical, the ability to manage the supply chain is a very critical process that requires the use of both packages.
Technical Integration Consulting
Technical Integration Consulting is another specialized skill which provides customer organizations with the know-how and expertise regarding the technical aspects involved in the evaluation and utilization of Middleware products. A Technical Integration Consultant must also be able to construct the integration architecture, based on the work performed by Application Integration Consultants. Whilst the focus for the Application Integration Consultant is the application interaction and the process flows, the Technical Integration Consultant approaches the entire integration from a systems viewpoint and delivers the integrated solution.
As with any project-based services, Project Management will be required to plan, manage, and execute Integration Services. As Software Integration is often a sub-project within a larger ERP implementation, the Integration Project Managers will fulfill their roles under the direction of the overall Program Management.
In addition to general project management skills, an Integration Project Manager will require skills and knowledge in the difference elements within a component architecture environment, as well as the respective resources to realize their integration. The role of the Integration P.M. is further complicated by the fact that Integration Services often sits on the critical path of the overall ERP implementation. Therefore, an Integration P.M. not only has responsibility of the on-time delivery of the integration project, but has direct influence on the outcome of the entire implementation.
As Integration Services mature in the marketplace, opportunities will arise to create standardized component architectures packages for the various vertical industries. As some bolt-ons are more suitable for one vertical than others, a "Best-Practice" approach can be taken to create standard, ready-to-use, integration templates. These C Off The Shelf (COTS) applications will provide the following benefits:
On the other hand, for the organization involved in the standardization of integration between COTS applications, there will be several challenges :
8 Future Trends
