The Next Wave of Integration : 
  Extended Enterprise
   The Shared-services business 
   needs (to selecting ERP solution)
   •The need to create an application framework to 
    improve customer order processing. Most companies, 
    having ignored their back-office systems for years, are 
    looking for solutions that will save them from their 
    neglect.
   •The need to consolidate and to unify relevant business 
    functions.
   •The need to integrate a broad range of disparate 
    technologies, along with the business processes they 
    support, into common processes and a common 
    technology platform.
   •The need to create a new technological foundation to 
    support next-generation e-commerce applications
   Build, Buy or Rent ?
    Many firms are deciding to buy –rather than 
    build or rent- commercial off-the-shelf (COTS) 
    software from third party vendors, because :
   •Only organizations with deep pockets can viably 
    maintain the high total cost of ownership and 
    complexity associated with developing and 
    maintaining custom-designed applications.
   •Companies realize that software development 
    may not be a core competency. It's estimated 
    that more than 70 percent of internal software 
    projects fail. To minimize this risk, companies 
    increasingly outsource software development 
    activities.
                          Next….
   •Many current applications are technically 
   outdated, and the ongoing redesign of business 
   processes makes existing software functionally 
   obsolete and a potential business impediment.
   •Off-the-shelf solutions integrate the best 
   business practices from a variety of industries. 
   The ability to incorporate these best business 
   practices into your firm's operations translates 
   into bottom-line improvements.
   The Capabilities of COTS ERP Solutions
     COTS ERP solutions are extremely sophisticated 
     and support effective e-commerce functionality 
     with the following features:
    •Consolidation of the back office. Consolidating 
     back-office functions allows companies to better 
     leverage their capabilities and to present a single 
     face to suppliers. The goal is to centralize 
     operations, which can be risky. Many companies 
     have tried-and failed-to consolidate their software 
     systems. Why is today's business environment 
     different? Because executive management is now 
     focused and paying attention to the benefits of 
     technology consolidation.
                             Next…..