Subscribe to our e-mail newsletters
For more info on a specific newsletter, click the title. Details will be displayed in a new window.
ROI (Return on Investment)
IT Management
Computerworld Daily News (First Look and Wrap-Up)
Computerworld Blogs Newsletter
The Weekly Top 10
More E-Mail Newsletters 
Computerworld 2007Subscribe to Computerworld
40 years of the most authoritative source of news and information for IT leaders.

EAI follow-up: Piecing it all together

Maria Trombly   Today’s Top Stories    or  Other ROI Stories  
 

Sign up to receive Security Resource Alerts

July 07, 2003 (Computerworld) -- A year after Steve Kaufman and his staff at Goshen, Ind.-based health care insurer Mennonite Mutual Aid Association (MMAA) launched a massive enterprise application integration (EAI) project (see story), the results are in, and the news is mostly good.
The company's goal was to use tools from Vitria Technology Inc. in Sunnyvale, Calif., to integrate core insurance applications running on IBM AS/400s with applications running on Windows NT servers and to more than double its system-to-system interfaces over the next five years.
The project is being driven by the approach of the October 2003 deadline associated with the Health Insurance Portability and Accountability Act of 1996 (HIPAA), which requires the use of a set of specific standards for the electronic exchange of data.
"We finished our first project in August of last year, the HIPAA 834 group enrollment transaction, and now we're working on the most complicated transaction," says Kaufman, MMAA's director of IT architecture. That's the 837/835 transaction, in which MMAA receives a health claim from a provider and then tells the provider how it's going to pay the claim. This is also the transaction with the highest volume.

Steve Kaufman of Mennonite Mutual Aid Association (MMAA)
Steve Kaufman of Mennonite Mutual Aid Association (MMAA)
MMAA has also completed an interface from a Windows NT SQL Server database to an AS/400 DB2 database, connecting the company's two main databases.
On the downside, initial plans to double the number of system-to-system interfaces have been slowed. "Our organization had plans for CRM, and those were cut back quite a bit with the whole economic situation, so that's going to slow down how many interfaces we put in," Kaufman explains.
Remaining Attractive
Another EAI user, Corporate Express Inc., an office supplies distributor in Broomfield, Colo., has improved customer service by almost doubling the number of interfaces to business partners, from 120 to more than 200. Its aim was to cut costs both internally and for its customers so it would remain attractive as a preferred supplier.
Andy Miller of Corporate Express
Andy Miller of Corporate Express
The company has also completed a handful of other EAI projects in the past year, including integrating its PeopleSoft ERP system and its warehouse management system.
"The integration effort is probably even more successful than we planned," says Andy Miller, vice president of technical architecture at Corporate Express. "We didn't think that we would replace as many legacy interfaces as we did. We actually went back to quite a few older interfaces between applications and retrofitted them."
One of the results was that the company set a new record for online sales this past January, selling more than $7 million in office products online in one day. Online sales now represent more than 50% of its total sales.
In addition, Corporate Express' integrated business-to-business systems, which include EDI and XML interfaces with customers' e-procurement systems, achieved a new daily high of more than $2 million. Corporate Express has integrated with more than 250 customer e-procurement systems, including platforms such as SAP AG, Oracle Corp., Ariba Inc. and Commerce One Inc. The company expects its 2003 e-commerce sales to exceed $1.5 billion.
Corporate Express is using integration technology from Fairfax, Va.-based WebMethods Inc.
By the end of 2003, Miller says, he expects to complete five more strategic EAI projects that will, among other things, expand the company's products and enhance its delivery capabilities.
"We haven't measured it officially, but we know of cases where we've won business because of our integration capability with customers," he says.
Looking ahead, Tom Dwyer, an analyst at Boston-based Aberdeen Group Inc., predicts that worldwide spending on integration software and services will continue to grow faster than overall technology spending for one simple reason: It's cheaper to integrate existing applications with new ones than to rip everything out and start fresh.
Trombly is a freelance writer in Belchertown, Mass. You can contact her at maria@trombly.com.



Print this Story Send Us Feedback E-mail this Story Digg! Digg this Story Slashdot this Story
Corporate Express Inc.
Mennonite Mutual Aid Association
Piecing It All Together
"Today's US college business professors, hopefully, aren't all like the one who is teaching a Florida university's business major. Maybe..." Read more...
"For the first time in 30 years, there were no public offerings from a venture backed company. Look for more..." Read more...
Read more Management posts or See all Blogs
Microsoft promises four patches next week
Google gives away home-cooked Web application security scanner
Storm botnet stages Fourth of July attacks
More top stories...
Microsoft trumpets security additions in upcoming IE8
Apple cuts price of high-end SSD MacBook Air by $500
Ultrathin showdown: Apple MacBook Air vs. Lenovo ThinkPad X300 vs. Toshiba Portege R500
All it takes is a couple hours and about $125 to breathe new life into an old laptop. Here's how.
Is Microsoft's Golden Age over? What are Gates' most memorable quotes? Find out in Computerworld's complete coverage of the end of the Bill Gates era at Microsoft.
There are some things your CIO definitely doesn't want to hear. Also don't miss the flipside, Five things you should always tell your boss.
With its latest version, Mozilla's browser continues to raise the bar for what Web browsers should be.
Reviews, analyses, how-tos, visual tours, hot issues and predictions about Microsoft's new OS.
Four years from now, the IT field will be a vastly different place. Will you be ready?
All Zones
Application Performance Zone
Business Continuity Zone
Data Center Management Zone
Enterprise-Class Security Zone
The File Data Management Zone
Grid Computing on Windows Zone
Security Management Zone
ITIL Best Practices Zone
The SAS Zone
Storage Virtualization Zone
Business Intelligence and Analytics Zone

Ads by TechWords

See your link here
Does collaboration drive business success?
Get this white paper now!
(Source: Microsoft Office Live Meeting) Collaboration occurs at the intersection of an enterprise's technology and culture. Discover how these two critical factors affect the quality of collaboration in Meetings Around the World: The Impact of Collaboration on Business Performance. You'll learn why enterprises need to work collaboratively - and examine how collaboration impacts business success.
Download this white paper go
A Leader in Healthcare IT: Marshfield Clinic Case Study
A Leader in Healthcare IT: Marshfield Clinic Case Study
View this webcast now!
Go to the webcast 
Managing For Agility
Get the full Computerworld report for a limited time, compliments of Computerworld and IBM.
Today's corporations need to bend without breaking. Agile IT operations can deliver products and services promptly, and then they can update and improve and reconfigure those resources as need be. But only good management practices will keep it all working together. In this Executive Briefing, we'll look at best practices for providing and managing IT in an on-demand world.
Download this executive briefing download
White Papers
Read up on the latest ideas and technologies from companies that sell hardware, software and services.
Deploying Virtualized NetWare on Linux Whitepaper
Toward More Flexible, Next-Generation Collaboration Solutions
Driving Business Success Through Workgroup Choice and Flexibility
View more whitepapers