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capability. Enterprise capability helps in moving from a functional view of a predetermined core
competency-driven enterprise to a service-oriented view of a flexible and innovation-driven open-
ended Web-based enterprise.
The decoupling of the enterprise process and enterprise capability provides the enterprise
with the flexibility to adapt processes to business changes while simultaneously making them
immune to changes in the implementation platforms or technologies. Consequently, we move
from applications that are designed as tightly coupled and inflexible software islands to those
that are loosely coupled flexible ensemble of interfaces enabling the leveraging of enterprise
capabilities.
Enterprise component architecture provides a framework for reuse and integration of preexist-
ing internal legacy components and external off-the-shelf components as well as newly developed
components to deliver an effective enterprise solution. The most successful component strategy
would be the one that enables reconfigurations or integration of components to best leverage their
capabilities to achieve the most effective response to the changes in the business environment. This
is what we turn to in the following section.
10.2 enterprise Application integration (eAi)
In these times of market change and turbulence, enterprises are confronted with the increasing
need to interconnect disparate systems to satisfy the need of the business. It is estimated that
35%-60% of an organization's IT resources are spent on integration (see Chapter 2, Section 2.4.2
“Extended Collaborative Enterprise”). E-business application integration is the creation, main-
tenance, and enhancement of leading-edge competitive functionality of the enterprises' business
solutions by combining the functionality of the existing legacy applications, Commercial Of-
The-Shelf (COTS) software packages, and newly developed custom applications via a common
middleware.
Enterprise Application Integration (EAI) provides components for integrating SAP eBusiness
Applications with external applications and technologies within the enterprise and is designed to
work with third-party products.
By employing EAI effectively, an enterprise can leverage its existing enterprise-wide informa-
tion assets, that is, customer relationships,
To provide new products and services easily and quickly
To streamline its internal process and operations
To strengthen supply relationships
To enhance customer relationships
Figure 10.1 shows the N-tier architecture of current applications like SAP CRM.
As EAI enables enterprise-wide integration of diverse applications across various products and
divisions, EAI affords the enterprise a 360-degree view of its customer relationships across mul-
tiple channels of interaction. Every customer perceives the enterprise as a whole and also expects
to be recognized and valued by the enterprise as a whole. As we have seen in Chapter 1, familiar-
ity with customer's earlier interactions and purchases helps frontline members of the enterprise
to create opportunities for selling other products or additional add-ons and services to the earlier
purchases.
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