BAXTER INTERNATIONAL , GE POWER SYSTEMS , AND CORPORATE EXPRESS:THE BUSINESS CASE FOR ENTERPRISE APPLICATION INTEGRATION… <br />CASE # 4<br />PAGE # 282<br />
PRESENTATION INCLUDES<br />Introduction of Baxter International<br />Introduction of GE Power Systems<br />Introduction of Corporate Express<br />EAI(Enterprise Application Integration)<br />How EAI works<br />Case Study Questions<br />
BAXTER INTERNATIONAL Inc.<br />INTRODUCTION<br /><ul><li>Baxter International was founded in 1931 by Davis Baxter, a medical doctor, as a manufacturer and distributor of intravenous therapy solutions.
In 1956 Baxter International introduced the first functioning artificial kidney
Baxter International Inc . is an American health care company with headquarters in Deerfield, Illinois. The company primarily focuses on products to treat hemophilia, kidney disease, immune disorders .</li></li></ul><li><ul><li> The company claims to have worldwide sales of $12.3 billion, across three manufacturing divisions (Bioscience, producing blood plasma proteins and the treatment of kidney disorders).
The company is also involved in the production of a vaccine for the H1N1 influenza.
1980’s and 1990’s the company expanded to deliver a wider variety of products and services (including vaccines, a greater variety of blood products) through acquisitions of various companies.
The company was involved in several controversies. In 2001, malfunctioning dialysis machines resulted in several deaths</li></li></ul><li>GE POWER SYSTEMS<br />INTRODUCTION<br /><ul><li>By 1890, Thomas Edison had brought together several of his business interests under one corporation to form Edison General Electric. At about the same time, Thomson-Houston Company, under the leadership of Charles A. Coffin, gained access to a number of key patents through the acquisition of a number of competitors. Subsequently, General Electric was formed by the 1892 merger of Edison General Electric and Thomson-Houston Company.
GE Power Systems is a leading supplier to the energy industry. Providing a comprehensive range of solutions for oil and gas, power generation and energy management we are uniquely prepared to fulfill world demand for reliable, clean and efficient energy.</li></li></ul><li>CORPORATE EXPRESS Inc.<br />INTRODUCTION<br /><ul><li> Corporate Express Inc, was founded by Jirka Rysavy in 1986 in Boulder, Colorado. Initially a regional office products retailer with 11 employees located in one small building.
Corporate Express Inc, is a Dutch company that supplies office products to businesses and institutions.
The company quickly established a program of strategic procurement solutions as an important industry innovation.</li></li></ul><li>Initial growth was rapid<br /><ul><li> In 1994, Corporate Express became a public company with reported revenues of $621 million.
Through acquisition of approximately 200 companies by the end of 1998.</li></li></ul><li>EAI(Enterprise Application Integration)<br /><ul><li> It is a software that integrates a variety of enterprise application clusters by </li></ul>letting them Exchange data according to rules derived from the business <br />process models developed by users. <br /><ul><li> Enterprise Application Integration (EAI) is defined as the uses of software and computer systems architectural principles to integrate a set of enterprise computer applications.</li></li></ul><li>Q : How does EAI work?<br /> A : In today’s competitive and dynamic business environment, applications such as Supply Chain Management, Customer Relationship Management, Business Intelligence and Integrated Collaboration environments have become imperative for organizations that need to maintain their competitive advantage. <br />Enterprise Application Integration (EAI) is the process of linking these applications and others in order to realize financial and operational competitive advantages.<br />
There are four major categories of EAI:<br /><ul><li>Database linking: databases share information and duplicate information as needed.
Application linking: the enterprise shares business processes and data between two or more applications.
Data warehousing: data is extracted from a variety of data sources and channeled into a specific database for analysis.
Common virtual system: the pinnacle of EAI; all aspects of enterprise computing are tied together so that they appear as a unified application. </li></li></ul><li>CASE STUDY QUESTIONS<br />QUESTION # 1 : <br />Why has EAI recently “become a critical part of the IT strategy at many organizations,” and a high ranking project of top IT executives?<br /><ul><li> It makes the organization more efficient.
Increases sales.</li></ul>Baxter International :<br /><ul><li>Customers can now place orders, check order status electronically instead of over the phone</li></li></ul><li>QUESTION # 2 :<br />What is the major difference in business value of the EAI projects at Baxter International, GE power, and Corporate Express?<br />BAXTER INTERNATIONAL<br /><ul><li> Baxter International launched the first phase of its EAI projects in 2003, using an integration platform based web Methods Inc. to link a Web-based customer service application to its ERP.
This projects allows their customers to place orders, check order status ,deliver schedules, and conduct other transactions electronically. </li></ul>GE POWER SYSTEMS<br /><ul><li> The benefits of this project is the ability to send data in real time from one system to another and also accuracy of the data.</li></li></ul><li>Question # 2 : Cont’d<br />CORPORATE EXPRESS<br /><ul><li> CE use this project to dramatically improve customer service by almost doubling the number of its Web-based interfaces to the systems of its business partners, from 120 to more than 200.
Corporate Express also integrated business-to-business systems, which include EDI and XML interfaces, and achieved more than $2 million. </li></li></ul><li>QUESTION # 3 :<br />What are some of the challenges in developing and implementing EAI systems? <br /><ul><li>They require specific skills and extensive coordination among multiple departments, which can be a major challenge in some organizations.
There are a lot of proprietary architectures (among systems to be connected) and you will need to put your technical staff through a great deal of training.
EAI systems are not only complex but they are also costly. Most large companies spend in the range of $200,000-$400,000 on an EAI project.</li></li></ul><li>QUESTION # 3 :Cont’d<br />How can companies meet these challenges?<br />BY TRAIN THEIR EMPLOYEES:<br /> As far as training is concerned, many companies (such as Baxter) have relied on outside EAI consultants to work with not only IT staffers, but also with people in other departments (such as customer service).<br />
Real World Activities<br />Examples of other companies that successfully integrate their applications on an enterprise level.<br /><ul><li> IBM Delivers Enterprise-Level Applications To Mobile DevicesPDA’s, laptops and smart phones.