Businesses today are operating under silos of technologies and systems. Conducting business with disparate systems may have worked in the past, however, with the increasing complexity of IT systems and new technology delivery options such as SaaS web-based ERP applications, achieving excellence and optimal performance is becoming more and more difficult. Rising costs, lower margins, and increasing demands from customers are pressuring companies to take a look at ERP vendors with unified ERP modules to take advantage of new enterprise technologies that will deliver not only performance excellence but cost savings and automation processes that will keep to business competitive in today’s challenging marketplace.
Legacy systems that have been continually built upon, rather than stripped out and re-implemented from scratch with a newer system has been a major unknown burden for companies. Process inefficiencies have surprising not gone unnoticed by operations and IT managers yet the costs and risk of disrupting the business with a new ERP implementation, or the perceived reluctance of company employees in readily adopting and utilizing new systems have driven companies farther and farther down the hole as they chose the alternative path of building new ERP modules and technologies on top of their older systems. While this strategy may have saved costs in the very short term, the long term impact from not completely operating under a unified ERP system hinder businesses from building a competitive advantage.
To address this common dilemma, IT managers are taking a step back and designing an IT architecture for their ERP software that is built on an SOA, or services oriented architecture that make the IT backbone more flexible and capable of migrating to future innovations and IT technologies already on the market that are critical in order to keep up with the competition. ERP solutions that have a service oriented architecture enable businesses to stay on the forefront of technology and performance excellence by implementing the best of the best when it comes to IT strategies and business process outsourcing and consolidation.
With ERP software and ERP modules, this flexible technology design is referred to as ESA, or enterprise services architecture. Companies like SAP, the largest ERP vendor is assisting businesses to develop a roadmap for their IT architecture to embrace new technologies and innovations down the road. Recognizing the importance of ESA architecture, other ERP vendors are letting companies test drive new enterprise system modules by replicating live enterprise services and showing how a company could better migrate to new technologies such as web-based applications and SaaS, software as a service, apps.
IT managers are able to visualize how enterprise services architecture for their ERP systems can extend current business processes across new businesses, consolidate IT and business processes to achieve economies of scale, replace customized in house programming with modular driven functionalities, more flexible interfaces, and significantly decrease the complexity of technology integration architecture.
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