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The role and importance of B2B conection in an international corporation

The role and importance of B2B conection in an international corporation

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Published by armand.faganel9465
International and global acting companies and corporations need appropriate information connections helping them to assure quick and reliable information flow which is crucial in business decision process. “Business to business” connections enable business processes simplifications on the border of business system. Activities related to transformation of business process (or system) outputs that are on the other hand inputs in another business process (or system) can be optimized using direct information connection between companies with following benefits: reduced manual working hours for this activities, less mistakes in data transition and higher data reliability, reduced information flow time and as final effect possibility for faster decision making. The issue presents real life case how to connect companies inside International Corporation using Baan information business support application, possible information connections with customers and suppliers, analyze economics effects and impact of such relations on business opportunities.

Key words: ERP, Information connections, Information flow, Baan (SSA ERP LN)
International and global acting companies and corporations need appropriate information connections helping them to assure quick and reliable information flow which is crucial in business decision process. “Business to business” connections enable business processes simplifications on the border of business system. Activities related to transformation of business process (or system) outputs that are on the other hand inputs in another business process (or system) can be optimized using direct information connection between companies with following benefits: reduced manual working hours for this activities, less mistakes in data transition and higher data reliability, reduced information flow time and as final effect possibility for faster decision making. The issue presents real life case how to connect companies inside International Corporation using Baan information business support application, possible information connections with customers and suppliers, analyze economics effects and impact of such relations on business opportunities.

Key words: ERP, Information connections, Information flow, Baan (SSA ERP LN)

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Published by: armand.faganel9465 on Nov 03, 2009
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THE ROLE AND IMPORTANCE OF BUSINESS TOBUSINESS CONNECTION IN AN INTERNATIONALCORPORATION
Armand FaganelUniversity of Primorskaarmand.faganel@fm-kp.si Andreja JesenkoAlcan Tomos d.o.oandreja.jesenko@alcan.com Benjamin BukovecOmikron d.o.o.benjamin.bukovec@omikron.si
 
 Abstract
 International and global acting companies and corporations need appropriateinformation connections helping them to assure quick and reliable information flowwhich is crucial in business decision process. “Business to business” connectionsenable business processes simplifications on the border of business system. Activitiesrelated to transformation of business process (or system) outputs that are on the other hand inputs in another business process (or system) can be optimized using direct information connection between companies with following benefits: reduced manualworking hours for this activities, less mistakes in data transition and higher datareliability, reduced information flow time and as final effect possibility for faster decision making. The issue presents real life case how to connect companies inside International Corporation using Baan information business support application, possible information connections with customers and suppliers, analyze economicseffects and impact of such relations on business opportunities.
 Key words:
ERP, Information connections, Information flow, Baan (SSA ERP LN)
1
 
Enterprise resource planning or ERP
Enterprise Resource Planning or ERP was born in the early 1960s. At that time MaterialRequirements Planning or MRP was the initial effort. Application software serves as themethod for planning and scheduling materials for complex manufactured products.Enterprise resource planning is a term derived from material resource planning. ERPsystem is an integrated software package that unites several of the most importantdemands needed to run an enterprise. ERP software can aid in the control of many business activities, like sales, delivery, billing, production, inventory management,human resources management, strategic management. Enterprise resource planningsystems are cross-functional and enterprise wide like business processes are. Allfunctional departments that are involved in operations or production are integrated inone system. In case of a multinational company it makes possible connections and data
 
exchange also on a worldwide global scale. People from different parts of the world areconnected and working together on multilingual platforms. This enterprise resource planning software is developed currently mainly by: Baan (the Netherlands) (renamedin SSA ERP LN), Oracle (USA), Peoplesoft (USA), SAP (Germany).ERP should be understood not just as software tools and implementations. ERP isn't likeany other software project. It doesn't merely change employees' computer screens theway previous generations of software did; it changes the way they do their jobs. ERP project teams are not just installing software; they are reinventing how the companydoes business (Koch, 1999a). Actually it is a management system for continuousimprovement. ERP implementation helps organizations set the stage for maximumeffectiveness. It offers an opportunity for business processes reengineering. Most ERPsystems are enhancing their products to become "Internet Enabled'' so that customersworldwide can have direct access to the supplier's ERP system.
2
 
ERP can improve a company's business performance
ERP's true ambition is the enterprise. It attempts to integrate all departments andfunctions across a company onto a single computer system that runs off a singledatabase so that the various departments can more easily share information andcommunicate with each other, have an overall look and data for quick decision: for instance in sales they can follow manufacturing process or someone in finance canfollow stock in warehouse. This way company is performing faster and more effective.Most ERP software is flexible enough that you can install some modules without buyingthe whole package it depends on company profile and structure. That integratedapproach can have a tremendous payback if companies implement the softwarecorrectly (Koch, 2005). Where integration is not placed most paper based informationare on the journey from in-basket to in-basket around the company causing delays, often being keyed and rekeyed what invites errors and new delays. In the company there is notruly data what is the current status of the process realisation. The worst result are lostorders.ERP’s modules structure is linked to business processes and follows process flow. For company success is the most important order fulfilment process. Improving the waycompany takes a customer order and processes it into an invoice and revenue is themanagement key task. ERP takes a customer order and provides a software road mapfor automating the different steps along the path to fulfilling it. People in differentdepartments all see the same information and can update it. Data are routed via the ERPsystem to the next process step and can be easily tracked down. Customers get their orders faster and with fewer errors than before. But there are still some “buts”. ERPdiscipline as in time and correct data input, regular check points control to discover  possible obstacles in process flow are conditional. ERP itself is not the magic solutionfor improvements. Skilled personnel avared of importance of their role in processes andconsequences in case their job is not done responsible and correct are one of the keysuccess factors. People have to make decisions that have never had to make before, andthe answers affect the customers and every other department in the company. ERPscreen makes them businesspeople (Koch, 2005). Business processes in the company
 
are connected and output of one or more is input in another process. Responsibility,accountability, and communication are requirements for all employees.The opportunity ERP implementation brings is process reengineering. The software isless important than the changes companies make in the ways they do business (Koch,2005). If you use ERP to improve the ways of doing the business you will see valuefrom the software. If you simply install the software without changing the ways peopledo their jobs, you may not see any value at all—indeed, the new software could slowyou down by simply replacing the old software that everyone knew with new softwarethat no one does. This could be a trap on the project road map. People must be involvedin improvements planning and be included in project team work as source of new ideas.
3
 
Hidria company profile
Slovenian global corporation Hidria consists of over 30 companies in Slovenia and inmostly all continents of the world. Five major companies of Hidria are located inSlovenia: AET, Hidria Perles, IMP Klima, Rotomatika and Tomos, with productionfacilities in Tolmin, Kranj, Godovi
č
, Idrija, Spodnja Idrija, Jesenice and Koper and intowns of Epe in the Netherlands and Quito in Ecuador. Holding Hidria (now Hidria)was foundet in 1989. In 1997 AET Tolmin and Tomos were integrated into HidriaCorporation, in 2000 Iskra ERO (now Hidria Perles and 2001 IMP TIO. Hidria wellthought vision of a successful development has been created through strategic thinkingand in 2002 was founded the National Institute for Air-Conditioning, Heating andVentilating, a development & technological centre, first in range of five developmentand technological centres Hidria is growing up in next years. In the beginning of 2005Development & technological centre for ignition systems and electronics was foundedin Tolmin.Participate in the global economy as a business group highly dedicated to a constantdevelopment with a focus on technology and business orientation. Hidria is dedicated toa creation of a strong international corporation, corporation of globally recognized andrespected brands that plays an important role in global competition. Global economy ismoving toward globalization and as a small nation we must think and act globally.Hidria's sales and distribution centre network is wide-spread from the USA, Ecuador,Columbia, Peru, Australia, Hong Kong to Great Britain, Portugal, the Netherlands,Poland, Germany, Switzerland, Croatia, Serbia and Bosnia and Herzegovina.
4
 
Introducing ERP in Hidria corporation
Strategic management is the way an organization maps the strategy of its futureoperations and includes three complementary activities:1. long-range planning,2.
 
response management – as soon as a significant change occurs, the system becomes unstable and it is necessary to adjust some or all internal components,organization need to respond by critical response activities (long term strategiesand daily business activities),3.
 
innovation – one of the most important business concepts, strongly related toinformation technologies (applications, reengineering, business intelligence).

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