Systems integration (SI), a huge and interesting topic! Again, let’s start with the definition. From my understanding, SI is a process to connect different systems used by different departments or functions, making them work together in unity. The purpose of SI is to provide the precise information to the right people in the shortest time thereby permitting the business to react faster to changes within the global environment and remain competitive.
There are two approaches to process SI. First, integrate existing disparate systems. Second, abandon the old systems and implement an enterprise resource planning (ERP) or enterprise system (ES). To choose the right approach really depends on the financial situation and the complication of the business process. For small businesses to integrate an existing system should be a cost-effective way. But for a larger company the problem with integration of disparate systems is that many businesses have spent millions of dollars to improve their current systems but end up with some unsolvable technical problems. To re-engineer an existing system could be more challenging than to install a new one. So I believe ERP is a better solution for mid-size and large companies, especially with the improved flexibility of ERP software. Instead of buying the whole package companies need only to install one or two modules (such as finance or HR) while leaving the others for later.
By undertaking ERP, businesses can benefit from different ways such as integrating customer order information and financial information; reducing inventory; speeding up business processes, etc. However, some costs maybe under estimated while business expects the benefit from ERP, such as training, integration and testing, customization, and data conversion. Also, as ERP focuses on the improvement of the internal business process, employees may have to understand the new set of process, change their old methods of doing their work in order to adapt in with a newly-installed ERP system. Failure to do so may result in a waste of this huge technological investment.
ABC: An Introduction to ERP
http://www.cio.com/article/40323/ABC_An_Introduction_to_ERP/8
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Hi Melinda,
You have brought up some very good points on the topic of System Integration (SI). I agree with you that SI is a must for an organization to differentiate from others or to keep up with the changes in order to be competitive in modern business world. Because quick response to the market, effective customer service, e-commerce, keeping up with customer or supplier’s technical requirement largely depend on effective integrated information system.
You also mentioned that the change management of human behavior with the change of technology. I think this is a very critical part of SI. As investment on SI is usually relatively huge for an organization no matter which approach it adopts – ether ERP for a large organization or integrating disparate systems a small or medium business. All levels of employees of an organization should be prepared and get ready for the new system both technically and psychologically. Change management is an important element of successfully implementing an integrated system.
Geoffrey
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