Go to main Enterprise Ireland site
 
Advanced Search
 
 

 
 
 
Key Messages
How-To Guides
Case Studies
Assessment Tools
Solutions Providers
Library







Advanced How To Guides

Systems Integration

Approaches To Integration

Most real-world scenarios in a typical SME involve multiple applications that run on distinct physical machines across the enterprise network, are developed in different languages and run on different operating systems (Windows, various favours of Unix including Solaris, HP-UX, AIX, Linux, as well as legacy operating systems such as VAX VMS, MV-S, etc.). As such, the typical scenario for integration involves the flow of data between applications distributed across a heterogeneous network.

Businesses today are coping with changes in the way they interact with their customers. Improving customer knowledge enables the company to maximise the value of each - companies are investing in integrated customer relationship management (CRM) solutions for this purpose. Companies are also experiencing changes in the manufacturing process, moving from mass manufacturing to stock to mass customisation and manufacturing to order. This requires visibility into the entire value chain, integrating front-end order systems with backend production systems. Companies are becoming motivated to integrate their value chains as they aspire to become real-time enterprises. This involves making the end-to-end process across the value chain, from requisition to payment, as fast and efficient as possible. The concept of the "Real-time Enterprise" is gaining acceptance as companies seek to accelerate business processes and reduce business cycle times. And there is plenty of evidence from companies already moving down this path that there are substantial rewards for doing so.

Enterprise business integration is a means to an end. The first key to success is to recognise that in today's business environment the integration process begins with understanding the problems the business is trying to solve. While an agile infrastructure, enabled by integration, can have substantial impact on the overall success of the business, technology alone has no value - two companies in the same business sector can use the same technology and have very different results.

Point-to-point hard coding and screen mapping (sometimes also referred to as "screen scraping") are relatively inexpensive and easy processes which enhance a computer system into doing something the designers hadn't given us the power to do in the first place. For example, integrating separate Stock and Accounts systems could be achieved by scheduling a task to run every night to download a copy of the day's stock transactions, and generating a journal to reflect the summary values in the Accounts system. More ambitious processes can involve automatically copying supplier price list data from their Web site and using it to update internal Purchasing system data files. However, such solutions have definite downsides, not least of all because they rely on the source data always being in the same format, or being displayed in the same place on the screen. They can be difficult or impossible to change, and are good only in limited scenarios.

Data integration
involves simultaneously updating similar data fields in more than application. For example, a process could be put in place to automatically update customer information in an Accounts Payable system when the Order Processing system data is modified, e.g. putting the customer on hold for delivery and payment. While more useful than hard coding and screen mapping, and less costly than more full-blown systems, it bypasses the target applications' logic, making it ideal only when data synchronisation is the primary business driver.

Functional integration brings the logic of the target system or systems into play. In the Accounts Payable / Order Processing scenario above, one system might have a field value "H" indicating that the customer is on hold, while the other might have a field value "N" indicating that deliveries are not allowed. Functional integration involves validating and, if necessary, transforming data before updating each system. It is more adaptive than the other forms, but is harder and more expensive to implement. Still, when integrating three or more systems, or when the applications involved may change, functional integration may be the way to go.

Process integration is needed to see business processes end-to-end. It offers better management capabilities, and can offer business users more of a business view of the process, rather than just providing an IT management eye on things. While more complex and expensive, process integration can also generate large returns on investment by optimising business processes and reducing business cycle times. Simply put, process integration is the big leagues. But it's complex and expensive.

B2B integration enable companies to goes even further, integrating their systems with those of their suppliers, partners and customers, and interactively share data, develop plans and create products online. It provides a very high ROI by cutting cycle times among partners and suppliers and optimising the supply and value chains. It also cuts transaction costs by trimming transaction cycle times and cutting down on errors.

Integration is far more than just connecting data and information sources. Successful integration means that the information delivered to people must be in a context which is truly useful. Information is their lifeblood - they spend increasingly more time hunting for it when it isn't made available to them in the proper context. A good analogy is a newspaper - virtually all of the information in the daily newspaper is available somewhere on the Internet . But to hunt through the millions of sites to gather the information to you is impractical. Instead, we rely on the newspaper editors to cull through the sea of news and place it in the proper context for us.
Delivering content in context is the only way to reduce the real costs of company personnel hunting for what they need. If SMEs can deliver information in context, and reduce the time personnel spend searching, they will have that much more time to do useful work with relevant information. Companies that are working with full sets of consistent, timely information can use Knowledge Management (KM) and Business Intelligence (BI) processes to make faster, more informed decisions, and develop more knowledge-based long term strategies.

All signs point to the business requirement to make information and content available in the proper context, and to design Web applications and portals that consider not only how content will be created and published, but where and when it will be used.

Surveys have shown that a majority of companies spend between 60 and 80 percent of their integration budget on consulting services, most of which go towards programming the infrastructure to connect and transfer data through the enterprise. The reason for these continued high costs lies in the fact that in real-world implementation conditions, current integration solutions suffer from some critical problems resulting in rigid, complex implementations that are difficult to maintain and modify, leading to delayed projects, poor return on investment, and major cost over-runs.

The most successful implementations are those that meet the business requirements and contribute to the overall success of the business. They measure their success with metrics reflecting Key Performance Indicators (KPI). These KPIs are business measurements of performance over a wide range of categories, such as revenue, service delivery, stock quantities, cost, contract management, and service quality - not IT metrics. Meeting business expectations requires correctly defining the drivers, intent, scope and metrics that measure success.

<<<Previous Start of Guide Next>>>


National Development Plan The Programmes of Enterprise Ireland are co-funded by EU Structural Funds