Enterprise Application Integration: Streamlining Business Processes
Enterprise Application Integration (EAI)
EAI solutions provide an integrated approach to connecting the different components of IT infrastructure—people, applications, platforms, and databases—to enable secure intra- and inter-enterprise collaboration. EAI solutions enable an organization to integrate business processes internally and externally with business partners to create dynamic environments that support current and evolving business requirements, thereby creating a global organization. EAI assists in unrestricted sharing of data and business processes among any connected applications or data sources in the enterprise without making major changes to the applications or data structures. EAI integrates multiple, independently developed applications using incompatible technologies into a single enterprise-wide system with information flowing seamlessly.
Reasons for the Emergence of EAI
- Mergers & Acquisitions
- E-Business
- Industry regulation & de-regulation
- Business Process Automation
- Growth in implementation of ERP packages
- Supply Chain Management & Customer Relationship Management
- Zero Latency Enterprise
- Reduction of business process life cycle
- Intranet/Internet explosion
Trends in EAI
The initial focus of EAI was at the data level, i.e., moving or replicating data among databases, but it is evolving into business process automation. The present EAI technology is different from earlier EAI solutions as its focus is on integrating enterprise applications and not data or an assortment of different application types. Also, the EAI solution can be reused for many other needs, not just on the same platform but also across heterogeneous platforms and networks and between multiple suppliers’ packaged applications.
The other differences between past and present EAI solutions are that the integration is now at the business process and practices level, not at the application level or database level, and the middleware is transparent to the user, so specific expertise in particular application-infrastructure technologies is not required.
Enterprise Application Integration Trends:
- Point-to-point Interfaces
- Integration with Packaged integration brokers ERP & E-Business
E-Business and EAI
E-business stands for ‘electronic business’, which involves communications and doing business electronically through the Internet. E-business is defined as the use of electronically enabled communication networks that allow business enterprises to transmit and receive information.
It can significantly improve business performance by strengthening the linkages in the value chain between businesses (B2B) and consumers (B2C). Besides increasing efficiency in selling, marketing, and purchasing, e-Business achieves effectiveness through improved customer service, reduced costs, and streamlined business processes. Furthermore, e-Business creates a strategic, customer-focused business environment for shared business improvements, mutual benefits, and joint rewards.
Companies use the Internet to implement customer relationship management (CRM) and supply chain management (SCM) capabilities, which enable them to link their operations seamlessly with customers and suppliers.
For example, a beverage manufacturer with 40% growth and Rs. 700 crore in annual sales revenue sells its products through 150 distributors nationwide as well as general stores and cafes in the country. By using an ERP system and e-Business platform, the salespersons can track sales and promotions through the Internet and are provided assistance and suggestions to enhance their performance. The salespersons and distributors have access to commission reports, and they can track and adjust sales orders. Through consolidating its financial, compensation, sales, and depletion data into a single report, the organization prevents out-of-stock and partial shipments. The increased need for more labor force to handle customer service issues in the past was also eradicated by integrating the ERP system with e-Business.