Are Enterprise Resource Planning Systems the Right Tool for Today’s Trading Networks?

With the increased pace and volatility of business, access to timely, accurate operational information is more critical than ever. And as globalization and outsourcing have extended supply chains to every corner of the world, the sources of this information are increasingly outside the four walls of a single enterprise.

These changes are driving the rise of a new class of enterprise software, the business network, built from the ground up to solve problems that Enterprise Resource Planning (ERP) systems were never meant to address.

ERP systems were created to harmonize and manage business processes within the four walls of the enterprise, a job they do fairly well. These systems were not, however, designed to manage the complex, crossenterprise interactions that characterize the modern supply chain.

The right tool for managing a global supply chain must reflect and accommodate the nature of that supply chain. Ideally, it will take the form of a cloud-based business network that connects and coordinates all of the participants on a common platform. By providing a shared space for communication, collaboration, and the execution of shared business processes, the business network addresses the complications that can arise from the interdependence of a number of partners and allows them to collectively respond to the challenges and opportunities that emerge in the course of operations.

Business networks supplement ERP systems, rather than replacing them. The ERP system remains the system of record and the guardian of the internal processes of the enterprise, while the business network provides the system of process, the platform for working with trading partners to meet customer needs profitably and expeditiously.