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An Empirical Study

An Empirical Study

of the Current State of

B2B Integration in Practice

Norbert Frick

Institute for IS Research

University of Koblenz-Landau, Germany

Petra Schubert

Centre for Applied Information and Communication

pp

Technologies – CAICT

(2)

Research Question / Motivation

Is there a relationship between the industry

t /

iti

i th

l

h i

f

sector/position in the supply chain of a

company and the choice of the technical

integration of the information systems?

integration of the information systems?

(3)

Uniform Case Structure

1 The Portrayed Company

1.1 Background, Industry, Products and Target Group

2 Reason for the Project

2.1 Starting Position and Reason for the Project

3 Individual Title for the Solution

3.1 Business View/Objectives Products, and Target Group

1.2 Company Vision 2.2 Introduction of Business Partners 1.3 Meaning of IT

and E Business

Reason for the Project

3.2 Process View 3.3 Application View

5 Experiences 6 Success Factors

and E-Business

4 Implementation and Operation

3.4 Technical View

5.1 User Acceptance 5.2 Fulfillment of Objectives and Changes

6.1 Specialties of the Solution 6.2 Reflection of „Yearly Focus Topic“ 4.2 Project Management/

Change Management 4.1 Investment Decision

5.3 Investment, Profitability and Financial Ratios 4.4 Regular Maintenance

4.3 Programming and

Roll-out of the Software 6.3 Lessons Learned

(4)

Criterion 1: Direction of Integration

Vertical Integration

The partners are in the same industry

sector but at different positions in the

l

h i

supply chain

Horizontal Integration

The partners are in the same industry

sector and at the same position in the

supply chain

supply chain

Diagonal Integration

The partners are in different industry

sectors and at different positions in the

supply chain

© 2009 Prof. Dr. Petra Schubert, CAICT, CBS | 4

(5)

Criterion 2: Integration Scenarios

1.

Parallel use of different information

t

l

t

l

t

systems, manual external system access

2.

Parallel use of different information

t

systems,

EDI with direct partner integration

3

Parallel se of different information

3.

Parallel use of different information

systems,

EDI provided by an intermediary

EDI provided by an intermediary

4.

Joint use of a self-operated, central ERP

system

system

5.

Joint use of a central system operated by

an intermediary

© 2009 Prof. Dr. Petra Schubert, CAICT, CBS | 5

(6)

Scenario 1: Parallel use of different

information systems, manual external

y

,

system access

Initiating partner Connected partner

Browser

Collaborative business process Complementary process

ERP client Browser ERP client

Portal ERP system O d t ERP system O d t Communication component Access to ERP data Order management Accounting Further ERP functions Order management Accounting Further ERP functions

ERP DB Portal DB ERP DB Documents

Material master data Customer data Order entry data

Material master data Customer data Order entry data

(7)

Scenario 2: Parallel use of different

information systems, EDI with direct

y

,

partner integration

Initiating partner Connected partner

ERP client ERP client

Collaborative business process Complementary process

Integration gateway

Integration

ERP system ERP system

Integration g gateway Integration Order management Accounting Further ERP functions Order management Accounting Further ERP functions ERP DB ERP DB

Material master data Customer data Order entry data

Material master data Customer data Order entry data

(8)

Scenario 3: Parallel use of different

information systems, EDI provided by

intermediaries

Initiating partner Intermediary Connected partner In some cases: Further intermediaries Complementary process Collaborative business process

ERP client ERP client

VAN

Format Data transfer

ERP system ERP system

Format transformation

Order entry data

Integration gateway Integration functions VAN VAN Order management Accounting Further ERP f ti Order management Accounting Further ERP f ti ERP DB ERP DB Format transformation Data transfer Digital signature

ERP functions ERP functions

Invoice data Digital signature

Archiving

Material master data Customer data Order entry data

Material master data Customer data Order entry data

(9)

Scenario 4:

Joint use of a self-operated, central

ERP system

Locations Sales force Service partner Initiating partner Business process Citrix client/ Collaborative business process ERP-Client p Business process Citrix client/ Business process Citrix client/ Citrix client/ Browser ERP system C e t Terminal server/ Citrix Presentation Server Citrix client/ Browser Citrix client/ Browser Server Customers Web server Order management Accounting Further ERP f ti ERP-DB Business process Browser ERP functions Browser Material master data

Customer data Order entry data Order entry data

(10)

Scenario 5: Joint use of a central

system operated by an intermediary

Supplier Intermediary Customer Order processing Platform operation Order entry

Browser Browser/ ERP client Browser/ ERP client Central platform ERP system ERP system p ERP DB ERP DB Order management Accounting Further ERP functions DB

Material master data Customer data Order entry data

(11)

Case Profiles

Industry

44 “Wholesale and Retail Trade”

30 “Manufacturing”

Direction of integration

82 vertical integration

14

14 horizontal integration

16 diagonal integration

(12)

Integration Scenarios

Organizational Integration - Integration Scenario

Number of Integration Scenarios K = 112

45 50 47 25 30 35 40 28 Scenario 1 Scenario 2 Scenario 3 10 15 20 25 16 15 Scenario 4 Scenario 5 0 5 10 Integration Scenarios 6

(13)

Direction of Integration

(14)

Industry Analysis

(15)

Conclusions 1/2

Integration Scenario and Direction of

I t

ti

Integration

For all directions of integration scenario 2 is the

most commonly adopted

most commonly adopted.

For vertical integration projects scenario 1 and 2

are the most common.

For horizontal integration projects scenario 2 is

the most common. In addition horizontal

integration projects also appear more likely to

integration projects also appear more likely to

implement scenarios 4 and 5 more often than

vertical or diagonal integration project

Diagonal integration projects prefer scenario 2

(16)

Conclusions 2/2

Integration Scenario and Industry Sector

Wholesale/retail companies use integration

scenario 2 slightly more than manufacturing

companies

p

Manufacturing on the other hand shows a slight

preference for scenario 4 in comparison to

holesale/retail

wholesale/retail

There is no evidence from the current study that

wholesale/retail nor manufacturing companies

g

p

use scenario 5. It will be interesting to look for

the reasons for this in future research.

(17)

Thank you for your attention.

Norbert Frick

Institute for IS Research

University of Koblenz-Landau, Germany

Petra Schubert

Centre for Applied Information and Communication

pp

Technologies – CAICT

References

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