Johannesburg, 28 Aug 2001
SA companies will not succeed in rolling out effective B2B e-commerce solutions unless they also upgrade their legacy IT systems.
So says Greg Vercellotti, SA sales and marketing manager, Dimension Data i-Commerce, who points out that most business` back-end systems can`t handle the real-time, online demands of true B2B.
"A recent survey conducted by JD Edwards found that 85% of local organisations are simply not ready for B2B e-commerce. The problem is that their legacy systems were designed as batch solutions. They were never intended for externalising the business, but rather to improve internal efficiencies.
"B2B e-commerce, on the other hand, is all about facilitating the flow of information between external business partners. In addition, it must allow for STP (straight through processing) where, for example, the order-entry system is seamlessly linked to the warehousing, stock control and accounts systems so that data received in order-entry automatically updates information in the other systems, triggering the correct business process.
"And if all the company`s IT systems are properly integrated, an order for replenishment of the stock used to fulfil the initial order should ideally be generated automatically - and in real-time - by the company`s e-procurement system and directed to the supplier`s order-entry system.
"Unfortunately, most legacy back-end systems are creaking under the load this places on them," he explains.
Vercellotti adds that using middleware to bridge the `gap` between dated, back-end legacy, batch systems and real-time, customer-facing B2B solutions is vitally important in the B2B value chain.
However, middleware alone will not do the job. Good middleware solutions and integration must be complemented by effective legacy and back-end applications.
The integration process between front- and back-end systems is simplified for corporates with relatively modern ERP systems, and these are blazing the trail for B2B e-commerce.
"A revival in demand for ERP solutions is on the cards as corporates, which recognise the value of the efficiencies offered by B2B, move to bring their back-end systems in line with the demands of their front-end solutions.
"But the days of the 18-month-long ERP implementation are over. Time to market remains a key element in the successful roll-out of any organisation`s B2B strategy. Today, that strategy - along with the B2B budget - must address back- as well as front-end systems," Vercellotti concludes.
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