Web application ‘ the internet-aided, second-category business model ‘ adopts an inward-facing approach. The web application model seeks to optimise business processes throughout the value chain and thus complements the outward-facing web publishing model. The web applications offered by software houses fall into three product categories: customer relationship management (CRM), enterprise resource planning (ERP) and supply chain management (SCM). CRM, ERP and SCM applications are confronted by the problem that IT structures in companies have expanded over time in most cases as stand-alone solutions and have seldom been rigorously integrated via

software layers and interfaces to form a comprehensive solution. In many companies the different IT applications can at best be described as a loosely stitched patchwork quilt. The use of proprietary program codes, the incompatibility of diverse software applications, Byzantine licence conditions and overloaded functionalities thus lead to inefficiencies and the limited adoption of these software solutions in the value chain.

System integration is gaining increasing importance for software houses given the inefficiencies generated by operating web applications side by side. In this regard the Enterprise Application

Integration (EAI) approach is the first area receiving special attention. Conventional EAI boosts process and resource efficiency by thoroughly reorganising corporate structures. Sales, materials management, production and accounting, and the CRM, SCM and ERP applications on which they are based, have to be geared towards the specifications of the EAI application.

Software is no longer merely the means for executing predefined processes; it assists in the structuring of these processes. On the one hand, this fundamental approach enables EAI to achieve the direct, seamless integration of business processes into the value chain. But, on the other hand, this approach is based on a capex budget that is higher than many companies can afford.

New strategies are needed given these inefficiencies associated with web applications. The big, international software houses are currently expanding their product ranges well beyond their original core activities. Comprehensive modular software applications are particularly attractive. The logical consequence is that the inexpensive system integration provided by web services will become a more important element of the offerings of software houses. The integration of IT systems that companies have hitherto operated side by side will become the dominant software trend. In particular the growing interaction between machines will substantially expand the scope of

applications. Even though web services have not yet managed to establish themselves in the commercial market, they are highly promising applications. For manufacturing companies and modern service providers, software houses are changing from product vendors into providers of comprehensive solutions.

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