Managing Automation - November 2008 - (Page 37)

[ INTEGRATION ] Transformation TechWatch Integration SaaS-based B2B integration services that was just completing an integration between its platform and NetSuite. Mad Croc became the first production user of the EDI integration, which supports basic documents, such as invoices and purchase orders. Now, Andrews says, Mad Croc is anxious for SPS to add support for a wider range of EDI documents, including those supporting drop shipments and advance shipment notification. Andrews isn’t the only one likely to be pushing vendors for better B2B integration links to SaaS applications. Unfortunately, SaaS application vendors and providers of B2B gateways are just beginning to address the requirements of manufacturers such as Mad Croc for the kind of advanced EDI and other B2B integration capabilities that have long been standard features of on-premise enterprise applications. more B2B integration. NetSuite, for example, recently enhanced its SaaS ERP with light manufacturing and supply chain management functionality. Plexus Systems has provided INTEGRATION REMAINS SaaS ERP and MES applications for A TOP CONCERN For which of the following reasons are some time. QAD provides onyou not at all interested in software-asdemand versions of its enterprise a-service? applications. And SAP has promised that its coming Business ByDesign Integration issues 65% SaaS suite will support supply chain 2008 management, manufacturing, and 58% 2007 warehouse and logistics manageTotal cost concerns ment, among other things. 58% 2008 At the same time, several emerg54% 2007 ing vendors are beginning to deliver Lack of customization SaaS applications that go well be50% 2008 yond sales force automation and 48% 2007 HRM. SmartTurn Inc., for example, is a 4-year-old provider of SaaS Security concerns More companies “say they’re willing to inventory and warehouse man47% 2008 agement applications for manu55% 2007 buy into SaaS to cover a wide range of facturers with networks of smallComplicated pricing models business processes, even manufactur- er warehouses. CoreSense Inc. 43% 2008 ing.” — Ian Finley, AMR Research provides SaaS inventor y man40% 2007 agement with a retail focus. And Can’t find the application we need “Initially, when the whole software-as-a-service 3PL Central Inc. provides on-demand 40% 2008 model came out, it was seen as a way for small logistics and warehouse manageand mid-sized companies to get applications on ment for third-party logistics and 28% 2007 the cheap,” says Richard Douglass, global manwarehouse operators. Application performance ufacturing executive at B2B integration software As manufacturers contemplate us38% 2008 vendor Sterling Commerce. “B2B integration ing such SaaS systems to automate 43% 2007 wasn’t a chief concern.” supply chain, order, warehouse, Source: Forrester Research Indeed, experts say, because most of the early logistics management, and other SaaS focus was on internal business processes, processes that touch external supsuch as sales force automation and human repliers and customers, B2B integration is looming sources management, there wasn’t a big requireas a larger concern (see chart, this page). ment for B2B integration in connection with SaaS INTEGRATION-AS-A-SERVICE applications. Most SaaS vendors tended to focus first on enterprise application integration rather Of course, the idea of providing B2B integrathan B2B integration. tion as an outsourced service is nothing new. But that’s beginning to change because manVendors such as Sterling Commerce, GSX, ufacturers such as Mad Croc are increasingly, Descartes, and Inovis for years have provided considering using SaaS applications to automate value-added networks (VANs) as shared, hosted functions such as material management, supply services that integrate business partners using chain management, and warehouse manageEDI and other protocols. ment, all of which typically require significant But, exper ts say, traditional VANs aren’t B2B integration. exactly suitable for creating B2B connections “We’re seeing more companies say they’re between SaaS applications. VANs tend to be exwilling to buy into SaaS to cover a wide range of pensive and to charge based on traffic and transbusiness processes, even manufacturing,” says action volume, so costs can be unpredictable. Ian Finley, an analyst at AMR Research. “Of VANs also can require significant up-front spendcourse, saying you’re willing to do it and doing it ing on ser vices. Users of SaaS applications, are two different things. But more companies are however, are typically buying into a per-user definitely open to the idea.” subscription pricing model that emphasizes simAnd vendors are beginning to offer SaaS applicity and cost predictability. So SaaS application plications that automate processes requiring users will require an “integration-as-a-service” Industries snap shot 37 November 2008

Table of Contents Feed for the Digital Edition of Managing Automation - November 2008

Managing Automation - November 2008 Contents Take 1 At One-Year Mark, Wonderware President Focuses on Empowering Plant Operators Oracle Demos Fusio Apps, Reveals Delays Baan Founder Says BPM Will Replace ERP Emerson Talks Wireless at Annual User Group Event Merger Complete, Intercim Focuses on Collaboration Notes Cover Story: The New Supply Chain Reality Special Report: Keep Out Integration: The On-Demand Interchange Industries: Ending the Endless Waves of Paper Product Scan Advertiser Index Next

Managing Automation - November 2008

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