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PramodKumaretal./InternationalJournalofEngineeringScienceandTechnologyVol.2(5),2010,768-772INTEGRATIONOFE-BUSINESSWITHERPSYSTEMS*Prof.PramodKumar,Tula’sInstitute,Dehradun-248007(Uttrakhand)(India)(Deptt.OfComputerScience)**Dr.M.P.Thapliyal,HNBGarhwalUniv,Srinagar(India)(Deptt.OfComputerScience)AbstractItisveryimportantforthebusinessesinourcountrytounderstandtheconceptsandtermsofe-businessandtostartapplyingthem.Inthe1990's,ERPsystemswereintroducedtofulfillsomeofthetechnologicalrequirementsacrossfunctionalareaswithinacorporateboundary.Moreover,withtheexponentialgrowthofInternettechnologyandtheemergenceofe-business,thefocusofERPsystemshaschangedfromanintegratedfunctionalfocuswithinanorganizationtoonereachingoutsidetheorganizationthroughoutthevaluechainsystem.ItisexpectedthatanERPsystemcanfacilitateane-businesseffortofanorganization.Inordertoserveasaplatformfore-business,anERPsystemmustalsobeabletobeextendedtosupportarangeofexternalconstituentsforafirm.TheprocessmustinvolveaninvestigationofERPtechnologicalfactorsalongwithanyotheremergingEnterpriseSystemssolutionofthefirm.ThisarticleofferashortbutconciseperspectiveaboutERPsystemsusedtodayine-businessallovertheworld.Keywords:ERPimplementation,fundamentalissues,systemintegration,managementsupport,E-BusinessE-BusinessBasicsE-businessstandsfor“electronicbusiness,”whichinvolvescommunicationsanddoingbusinesselectronicallythroughtheInternet.E-businessisdefinedas“theuseofelectronicallyenabledcommunicationnetworksthatallowbusinessenterprisestotransmitandreceiveinformation”(FellensteinandWood,2000).Itcansignificantlyimprovebusinessperformancebystrengtheningthelinkagesinthevaluechainbetweenbusinesses(B2B)andconsumers(B2C).Besidesincreasingefficiencyinselling,marketingandpurchasing,e-businessachieveseffectivenessthroughimprovedcustomerservice,reducedcostsandstreamlinedbusinessprocesses.Furthermore,ebusinesscreatesastrategic,customer-focusedbusinessenvironmentforsharedbusinessimprovements,mutualbenefitsandjointrewards.CompaniesusetheInternettoimplementcustomer-relation-management(CRM)andsupply-chain-management(SCM)capabilities,whichenablethemtolinktheiroperationsseamlesslywithcustomersandsuppliers.Bydefinitionsandbytheirrespectivefunctions,traditionalERPsystemstakecareofinternalvaluechain(i.e.,withinacompany)wherease-businessesestablishthevaluechainacrossthemarketandtheindustries.Moreandmorecompaniesconstructtheirsystems’architecturesbyintegratingERPsystemswithe-business.TheyuseWeb-basedinterface(corporateportals)withoutsideentitiesplusadd-onmodulessuchasCRM,SCM,etc.intheintegration.BusinessNetworkingModelforERPANDe-BusinessIntegrationERPisastructuredapproachtooptimizingacompany’sinternalvaluechain.Thesoftware,ifimplementedfullyacrossanentireenterprise,connectsthevariouscomponentsoftheenterprisethroughalogicaltransmissionandsharingofdata(Norrisetal.,2000,pp.12-13).Whencustomersandsuppliersrequestinformationthathavebeenfullyintegratedthroughoutthevaluechainorwhenexecutivesrequireintegratedstrategiesandtacticsinareassuchasmanufacturing,inventory,procurementandaccounting,ERPsystemscollatethedataforanalysisandtransformthedataintousefulinformationthatcompaniescanusetosupportbusinessdecision-making.ERPsystems,ifimplementedsuccessfully,enhanceandredesignbusinessprocessestoeliminatenon-value-addedactivitiesandallowcompaniestofocusoncoreandtrulyvalue-addedactivities.ThefollowingaretwoexampleswhereERPsystemshavedramaticallyincreasedtheefficiencyandproductivityofcompanies:IBMhasusedERPtoreducetheISSN:0975-5462768PramodKumaretal./InternationalJournalofEngineeringScienceandTechnologyVol.2(5),2010,768-772processingtimeforupdatingpricingdatafrom80daystofiveminutesandChevronhasusedERPtodecreaseitsannualpurchasingcostby15%.Toaddressthechallengesdescribedabove,wehavedevelopedaconceptualmodelwhichhelpstofocusonrelevantelementstowardsprovidingasolution.Itfocusesonstandardization,andoutsourcingorpartneringrequiredforBusinessNetworking.BusinessNetworkingisdefinedasthedesignandmanagementofIT-enabledrelationshipsbetweeninternalandexternalbusinesspartners.ElementsofaBusinessNetworkingModelInatraditionalbusinessprocess,afteracustomerorderisreceived,theorderinformationflowsfromdepartmenttodepartmentthroughorderentry,manufacturing,warehousing,distributionandfinanceuntiltheproductisdeliveredtothecustomerandthepaymentisreceived.Thekeyelementsofthevaluechainhavebeencontrolledbyseparateanddisparateinformationsystemsthatcouldnotcommunicatewithoneanother.Notonlydidthecompaniesnottakeanintegratedviewoftheirownbusinessprocesses,buttheyalsohadanequallyvagueunderstandingofhowtheirsystemsrelatetothesystemsoftheirsuppliers,competitors,businesspartners,distributorsandcustomers.Hence,thesetransactionsaretypicallycarriedoutwithminimalornosharedbusinessprocesses.Inrecentyears,therehasbeenarevolutioninsystemsplanninganddesign.Managementtakesanintegratedcompany-wideviewofitsITinvestmentsandchoices,andimplementsanERPsystemthatintegratesthecorebusinessprocessesofanentirecompanyintoasinglesoftwareandhardwaresystem.Customer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