
Inside the Business Applications Network Cloud are the business systems that run your Supply Chain. They include systems to manage inventory, manufacturing, purchase orders, manufacturing orders, transfer orders, sales orders, warehouse management systems, financials, transportation, delivery and time reporting/payroll. These applications are tightly integrated into each other directly or indirectly. Each application, with multiple integration points, is impacted by any change to another application inside the cloud. This is a typical Business Applications Network Cloud. It is complex and inflexible. Making a change to, or inside of, the cloud is very risky and costly. This is known as Integration Risk.
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ARC Reports: “…. upgrades were historically so costly and time consuming, that users refused to take advantage of such opportunities. Instead, they would keep a warehouse management system (WMS) for 10 years or more and when they had decided the WMS no longer fit their needs they would begin the process of selecting a new system….. users complain that highly functional traditional solutions lack flexibility in supporting ongoing change.” ARC Insights
Insight# 2005-42ec
Sept. 21, 2006
“Packaged applications…by default cannot deliver on innovative business processes. The applications can only implement those processes that customers have asked the vendor to develop (this is the nature of how software matures). By the time a capability is available in a product, the process is a best practice, not an innovation.”
The 2005 AMR Research Warehouse Management System Selection Guide by Greg Aimi, Bob Locke, and Joe Souza