Systems Integration

LEARNING OBJECTIVES
• Understand the impact of organizational structure on
information systems.
• Find out about the types of functional silos
in organizations.
• Learn about the evolution of information systems technology
generations and architectures and its influence on the silo
environment.
• Know what systems integration is and why it is important for
organizations.
• Understand the role of enterprise resource planning (ERP)
systems in systems integration.
LEARNING OBJECTIVES
•Systems Integration:
Logical Vs. Physical SI
•ERP and Systems Integration
•Implications for Management
Systems Integration: Logical Vs. Physical SI

Logical
logical or human level, systems integration means developing
information systems that
allow organizations to share data with all of its stakeholders
based on their need and authorization
Systems Integration: Logical Vs. Physical SI

Physical
Physical or technical level, systems
integration means providing seamless connectivity between
heterogeneous application systems.
Systems Integration: Logical Vs. Physical SI

Logical and Physical

Teamwork is essential if organizations want to break-up functional
silos and have workers from all levels of management collaborate
on solving organizational problems
8 Steps in Integrating Systems

1. Resource categorization
2. Compliance and standards
3. Legacy systems support
4. Middleware tools
5. Authentication and authorization policies
6. Centralized IT services and help desk support
7. Backup, recovery, and security policies
8. Hardware and software standardization policies
Benefits of System Integration

1. Increased Revenue and Growth.

2. Leveling the Competitive Environment.
3. Enhanced Information Visibility.
4. Increased Standardization.
Limitations of System Integration

1. High Initial Setup Costs.

2. Power and Interdepartmental Conflicts.
3. Long-term and intangible ROIs.
4. Creativity limitations.
Limitations of System Integration

1. High Initial Setup Costs.

2. Power and Interdepartmental Conflicts.
3. Long-term and intangible ROIs.
4. Creativity limitations.
ERP AND SYSTEMS INTEGRATION

Enterprise resource planning (ERP) systems are integrated,

multimodule application software packages designed to serve and
support several business functions across an organization.

ERP system is a strategic tool that helps the organization improve its
operations and management by integrating business processes and
helping to optimize the allocation of available resources.
ERP’s Role in Logical and Physical Integration

Logical Role
1. ERP systems require organizations
to focus on business process rather
than on functions.
2. ERP systems come with built-in processes
for a wide variety of common
business functions.
3. An ERP system implements the best
practices via specific built-in
steps for processing a customer order.
ERP’s Role in Logical and Physical Integration

Physical Role
1. An organization may have to upgrade or install
middleware and plan for the removal of their legacy
system’s hardware and software.

2. Layered systems architecture must be

adopted to integrate the systems
into a common enterprise platform.
ERP’s Role in Logical and Physical Integration

NOTE
Integration is also required at the

Data level (i.e., by transforming all the data resources into one
database),

Client level (i.e., by standardizing on all the client platforms)

Application level (i.e., via common user–interface design,

back-end access to the system infrastructure, and backup and
recovery plans).
IMPLICATIONS FOR MANAGEMENT

1. Silos do not work.

2. System integration has many hidden benefits.
3. System integration has many challenges.
4. Systems integration raises many new ethical issues.
QUESTIONS?
 ACTIVITY
1. Refer to the Air Cargo case in this chapter. Discuss the silo problem at ACI and
how it was solved via the e- Enterprise system.
2. Refer to the Air Cargo case in this chapter. Discuss both short-term and
long-term benefits of the e- Enterprise system.
3. Why do you think functional silos are not appropri_x0002_ate for today’s
organizations? Discuss your answer from organizational and technical
perspectives.
 ACTIVITY
4. What is the relationship between the logical and physical system
integration? Why is it important for organizations to have both
together?
5. Why is business process re-engineering needed for implementing an
ERP?
6. Discuss the role of management in systems integration in terms of
the ethical and other challenges they face during the systems
integration process.