Oct 19, 2011

The need for integration of ERP and e-commerce

A, ERP and e-commerce relationships

    
ERP (Enterprise Resources Planning ERP) by the American management consulting firm GaRner Group Inc made in 1990, was originally defined as the application software, but quickly accepted by commercial enterprises around the world, now has become one of modern business management theory Its product development and design, job control, production planning, procurement of inputs, marketing, sales, inventory, financial and personnel aspects of the module and the corresponding part, to take an integrated approach to management optimization. E-commerce (Electronic Commerce, referred to as EC) is the worldwide trade in a wide range of business activities, the Internet open network environment, the browser-based Gen Service Applications friends way, buyers and sellers are not met to carry out various business activities, to achieve the consumer's online shopping, online transactions between merchants and online e-payment and a variety of business activities, transactions, financial activities and related service activities of a new integrated business model.
E-commerce and ERP are the business information system. E-commerce is built on the basis of ERP applications, e-commerce enterprises that ERP is the support system. But from another point of view, e-commerce and ERP can also be attributed to the same level of application, but focus is different - ERP system is MRP, MRP Ⅱ and other business management thinking to the development, management focused on the scope of the enterprise; e-commerce solution is the company's communication with the outside world, access and trade, focusing on the interaction with external main. E-commerce as a tool to play more the role of the ERP is to provide a management ideas and models.

    
Second, ERP integration and the importance of e-commerce

    
The enterprise, e-commerce and ERP systems as front and back, external and internal relations, the two are closely related. A successful enterprise information system during operation, the external and internal aspects of any of the changes should be quickly passed to other relevant links. For example, to get business on the Internet through e-commerce orders, order information will be immediately passed to the internal ERP system for procurement, production, finance, sales organization of the various departments of raw materials, capital, production and sale. If the business e-commerce front end and back-end ERP system out of touch, a lot of critical information and data to be enclosed in separate systems, from e-commerce (EC) platform to obtain sales orders, market information can not be promptly passed on to the background ERP system; Similarly, the absence of EC system and ERP system integration, front of the EC system can not read the ERP system in the price of the product, customer and other information, resulting in a mismatch between the front and back information. Logistics, capital flow and information flow is not an organic unity, data consistency, completeness and accuracy is not guaranteed, inter-repeat redundant work, can not make a timely and effective response to customers, so that enterprises in reduced efficiency and operationalcosts, and thus to bring their own great damage. Therefore, the enterprise e-commerce and ERP integration is imperative.

    
ERP and e-business integration, enterprise supply chain management, customer relationship management, business intelligence, e-commerce, office automation and other business functions fully integrated, resource sharing and data sharing, the process of the various departments within the enterprise will be more rational, standardized, convergence smoother, more productive, less inventory finance.Every level of leadership that can get the required information quickly and accurately, make the most of the market in time to reflect, in the shortest possible time to make the most effective decisions.

    
Third, ERP and e-commerce integration approach

    
"Integration" refers to the development of enterprises according to their strategic goals, planned to merge, remove or add some of the business. Through the integration to enable enterprises to improve production efficiency, adapt to the external environment, enhance the ability to resist risks. The integration of ERP and e-commerce is also carried out for these goals can be achieved from the following aspects:

    
(A) hardware and software reconfiguration. To ensure better integration of ERP and e-commerce, hardware and software is a basic reconstruction work, leave the base, ERP and e-commerce integration has become castles in the air. In the integration process, because the system's real-time requirements increase, data traffic increases, the response of the hardware and software along with improved speed and responsiveness, should be based on actual update part of the hardware.In the planning and development of ERP and e-commerce software interfaces should be set aside, to lay the foundation for future upgrades.

    
(B) Business Process Reengineering. In business processes, e-commerce sites should consider the management module, online sales module, purchase module and online money online payment module, ERP should give priority to purchasing, production planning, marketing, sales, inventory, finance and logistics, capital flowclosely related modules, ERP can not be confined to the enterprise's internal management, the system should be based on Internet / Intranet to achieve operations management, e-commerce system should be able to timely delivery of changes to the ERP system, and vice versa. Such as ERP are purchasing, production, sales, inventory, capital module, and e-commerce system with online sales, online purchases and online money payment module, there is some duplication between the two, during the integration should be the logistics and funding in the ERP modules for e-commerce system adds an entry and exit, into e-commerce supply chain management and financial modules into to achieve unified management.

    
(C) data sharing. If an enterprise to run several sets of software, sharing data between different software is very important, ERP and e-commerce must be achieved between data sharing, if not shared, is bound to affect the data transfer between the efficiency and quality, sometimes produce the wrong message. End database server to achieve e-commerce and ERP business data between the database server is a two-way communication system integration the main contents of system integration is key to the success. During integration, e-commerce database and ERP data between the database changes can be passed using the SOAP middleware communication technology, avoid data inconsistencies and update delays for businesses to make better business activities.

    
(D) personnel integration. Corporate decision-making in the promotion of integration, the firm's ideology all employees must have a correct understanding, enhance business learning to master complex knowledge. Managers to understand certain computer technology, technical personnel should have knowledge of management theory and business. If companies lack of versatile talents, can not effectively achieve the integration of ERP and e-commerce. System integration, the module responsible for the same or similar work should strengthen communication, coordination, such as corporate e-procurement and offline purchasing can purchase at a reasonable cost allocation procurement targets, reduce procurement costs and increase efficiency.

    
In this fully integrated support of the new system, consumers or customers in the showroom or via the Internet at the electronic store about product performance, price, through electronic means to issue orders to the manufacturer: the manufacturer issued by the EC-ERP system, procurement of materials and manufacturing instructions, complete material procurement through electronic means, to pay; after production, the last time the goods sent to the user, complete the online transaction settlement. It enables suppliers, manufacturers, distributors, customers tightly integrated supply chain to achieve the material does not flow continually asked to achieve zero inventory. In this way, companies can minimize operating costs, fast response to customer demand, improve market competitiveness and economic benefits.

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