Enterprise application integration recommendations for Argot International

Software Recommendation

Argot International Technology Solutions

Argot International is a 2,000 employee company based in Peoria, Illinois. The company is in the business of manufacturing specialtiy machines for the agricultural and food processing industry. They currently purchase components and materials from an international base of 150 vendors. It purchases specialty tools and complete units from Japan. Argot markets its products primarily through a conglomerate of 70 wholesalers, with some direct sales to clients. Direct sales are accomplished by mailing to a targeted list of 2,000 potential customers.

Currently, the company operates using an intranet to connect various areas. The areas are financial/accounting, marketing, engineering, research and development, and inventory management. These systems function independently from one anther, save for the company intranet. Argot has retained our services as a consultant to advise them as to how to better manager their limited resources. Argot operates in a highly competitive environment and currently is experiencing cash flow difficulties. The following outlines how Argot can achieve the monumental task of better managing their resources on a limited budget.

Recommendations

Argot's key strength, at this point, is that it does have an intranet. However, this system is not being utilized to its full potential. It is relegated primarily to message delivery. Each of the departments are still isolated as far as operations are concerned. A sense of familiarity and comfort regarding the old system permeate the company. However, today's business world requires greater speed and efficiency than it did in the past. Increasing competition from Germany and Japan mean that Argot must step up to current standards in order to remain competitive. This also reflects in the company image as well. Clients expect a product manufacturer, such as Argot to have the latest innovations, when they operate 10 years behind the times, it shows in other ways as well. Enterprise Application Integration (EAI) would not only reduce costs by increasing efficiency, it would also increase the brand image of the company as well.

General Philosophy

EAI uses software and computer systems architectural principles to integrate a number of computer applications (Gian, 2003). Argot already has existing systems and software that might help to cut the costs of implementation of EAI. An evaluation of existing components and resources could help to alleviate some of the initial costs of implementation. It is suggested that applications are chosen from three categories: Supply Chain Management, Customer Relationship Management, and Business Intelligence. These areas were found to be the lacking the greatest efficiency. Properly deployed EAI architecture will divert human resources from information transfer to value creation (Gian, 2003). They can focus on producing a quality product and satisfying the customer, rather than spending their time on tasks that could be easily automated. EAI would mean a cost advantage by increasing productivity and operational efficiency. The initial costs would soon be recovered in increased production, sales, and efficiency.

The EAI methodology is cost effective, as existing systems can often be integrated in an effective manner. Currently, operations at Argot resemble silos. Each section of the organization operates independently of the other areas. Departmental lines are well defined. Therefore, so is the information generated by them (Gian, 2003). This type of operational methodology promotes teams within each department, but it hampers the development of organizational level goals and thinking. In order to create a greater competitive advantage, the entire organization must function as one big team. Information sharing across departments is an important part of the ability to build and entire organizational team.

All interconnectivity is not EAI. As a system begins to integrate, if it does not proceed in an organized fashion that takes a top-down approach to the information structure, it soon becomes a tangles mess. EAI is a method that takes a systematic approach to data and process integration (Gian, 2003). EAI philosophy will be the key philosophy governing this integration project.

Dashboards

One of the key software additions that is recommended is an executive dashboard. This is a business management tool that is used to visually ascertain the current status of "health" of the business using key indicators (Kawamoto & Mathers, 2007). This type of software can provide instantaneous data from a number of sources and will provide action notices and summaries of financial results. This information is necessary, especially with Argot working with such as tight budget. There are thousands of dashboards available, and many are highly customizable to the needs of the company. There are dashboards available for every imaginable department as well, as those that integrate these types of data (Kawamoto & Mathers, 2007). A dashboard would allow the executives to assess the information from various departments all at once so that they can react to changing conditions faster.

Software Recommendations

There are many companies offering business integration software. At this point, we will only touch on some of the choices that are available. Further system analysis, with a focus on compatibility issues will be conducted as the time to make the final purchase draws near. Apache is one of the more popular systems for achieving integration. Service mix is one of their more popular software products (Apache, 2007). Iona Technologies also has several systems available including Artix, Celtix Enterprise, Orbix, amd Orbacus (Iona Technologies, 2007). Currently, Argot uses primarily IBMs. Therefore, IBM Websphere might be a good choice for compatibility reasons (IBM, 2007). These packages may be cost prohibitive in this case. However, there are also choices from smaller software companies that might be more compatible with the budget. EnterpriseWeb 2.0 by Active Grid is one possible choice (Active Grid, 2007). Iway service manager is another lower cost package that might fit well with the old system (!way, 2007). Sterling commerce specializes in highly integrated systems that offer the highest degree of integration and will have to be considered as well.

Building Relationships with Customers

Building relationships with customers is important in any business. However, in the world of the specialty manufacturing these relationships are particularly vital. Having a good relationship with a customer can mean the difference between a good reference and a bad references among those in a similar business. The internet can play an important role in building this relationship. One of the key advantages in this respect it that the Internet allows the customer to interact directly with the company. A web presence will also open new marketing opportunities, as the world can search for and find Argot's products.

Ethical Issues

There are several ethical considerations that must be considered when deciding to institute a new piece of technology. EAI philosophy and the resulting integration of information will mean sharing between established silos. Within Argot each individual department is accustomed to functioning independently. They have developed their own culture and politics, as well as their own style of information handling. There may be resistance from various departments in the willingness to share information. There will almost certainly be disagreements as to formatting and how the information will be used. These issues will mean changes, not only in the computer systems, but also in the corporate culture are well. These areas must be addressed along with the technical issues.

Introduction of the new technology will also means new job requirements as well. People are resistant to change by nature, but these changes are necessary to ensure that Argot gains and maintains a competitive edge long into the future. Management needs to stress the necessity of these changes to employees and assist them in making a smooth transition. Technological changes will require changes on many levels, not just in hardware and software. One of the keys is developing adequate training programs so that workers get off to a good start with the new system.

Benefits and Limitations of E-commerce

E-Commerce has several advantages and disadvantages. The key advantage is that it provides real-time access to necessary information among the various systems and departments. The second is that it streamlines business processes and raises organizational efficiency. This is the key benefit for the Argot International. Another advantages is that it maintains information integrity as it travels through the various systems. This system will also decrease the likelihood of costly human error due to missing or erroneous information.

The primary disadvantage of e-commerce is the high initial cost. This will be problematic for Argor International in its current state. However, there are some solutions that can help to reduce the impact of these costs, including using as much existing technology as possible. Building the system is time consuming and will be resource intensive in the beginning. However, at the current time, it appears that Argot is in need of a drastic change. Argot needs to streamline business processes and update their systems so that they can get ahead of the competition. The type of system that is being proposed is common in other parts of the world, including Argot's major competitors in Germany and Japan. Argot must make these changes in order to ensure that they will be able to compete in the future. EAI and vertical systems integration will ensure success and the ability to beat the competition in the future.