PhilCST

PHILIPPINE COLLEGE OF SCIENCE & TECHNOLOGY

OLD NALSIAN ROAD, BRGY. NALSIAN, CALASIAO, PANGASINAN

SYSTEM INTEGRATION
AND ARCHITECTURE
1
MODULE 1, LESSON 1:
OVERVIEW OF SYSTEM INTEGRATION
By: MS.RACHELLE N. NOBLE, MIT
 PhilCST
PHILIPPINE COLLEGE OF SCIENCE & TECHNOLOGY
OLD NALSIAN ROAD, BRGY. NALSIAN, CALASIAO,
PANGASINAN

WHAT IS SYSTEM INTEGRATION?

Systems integration means that you
allow an heterogeneous Information Systems integration is a key issue
System (IS) to communicate or for an organization for its growth
integrate and share information (or
data) seamlessly with one another.
ENTERPRISE RESOURCE PLANNING (ERP)
 FUNCTIONAL SILOS
Silos are basically compartmentalized operating units isolated from their
environment.

Horizontal Silos Vertical Silos

 reflects the breaking of complex  Organizations also divided roles in
tasks into smaller manageable tasks hierarchical layers from strategic
that could be assigned to a group of planning to management control and
people who could then be held operation control.
responsible.
INFORMATION SYSTEMS IN ORGANIZATIONS
 Information Systems are a critical component of a successful
organization today.
 Information Systems play a major role in primary and secondary
activities of an organization’s value chain.
 Information Systems provide a high level of computer automation to
support business functions
 Information systems provide analytical and decision making support
for management, which is generally categorized into three levels-
Strategic, Middle, and Operational.
 Each business functions and management levels has different
information requirements.
 FUNCTIONAL SILOS IN ORGANIZATION
Each functional area has different
information requirements.
needs and report

Each functional area in an organization

also has multiple levels of
ch requiring different levels of analysis and details of information.

To increase efficiency and productive,

organizations developed various
information systems to support each
major activity and responsibility.
MANAGEMENT PYRAMID WITH INFORMATION REQUIREMENTS
IS AS CATEGORIZED BY FUNCTIONAL AND HIERARCHICAL MODELS
INFORMATION SILOS AND SYSTEMS INTEGRATION
 Over time, organizations created a hodgepodge of independent
nonintegrated systems ultimately creating bottlenecks and
interfering with productivity.
 Organizations need to be agile and flexible and will require their
information systems to have integrated data, applications, and
resources from across the organization.
 A silo information system is inefficient, inaccurate, and expensive.
 To compete effectively, organizations have to be customer focused.
 The cross-functional integration can involve people and resources
from various functional departments working together, sharing
information at any level of the organization.
 SYSTEMS INTEGRATION
Logical or human level
Develop information systems that allow organizations to share data
with all of its stakeholders based on need and authorization.
Management needs to change organizational structures, processes, and employee roles and respo

ity between heterogeneous systems.

ing involves changing the mindset of the employees in the organization, encouraging and enablin
 BENEFITS AND LIMITATIONS OF SYSTEMS INTEGRATION

BENEFITS LIMITATIONS
Increased Revenue and Growth High Initial Set-up Costs
Leveling the Competitive Environment Power and Interdepartmental Conflicts
Enhanced Information Visibility Long-term and Intangible ROI
Increased Standardization Creativity Limitations
 IMPLICATIONS FOR MANAGEMENT
Silos do not work. Remedies can consist of:
 Develop policies on ethical usage
System integration has many hidden of information.
benefits.  Install proper security software
and hardware (like firewalls).
System integration has many challenges.  Allocate resources for training
and education on accessing
Systems integration raises many new information.
ethical issues.
 INTEGRATED SYSTEMS - ENTERPRISE RESOURCE PLANNING (ERP)

Integrate departments and

ation into a single infrastructure sharing a common database and serving the needs of each depar

ERP systems replace an assortment of systems that

typically existed in organizations.

ERP solves critical problem of integrating information

from different sources and makes it available in real-
time.
ERP AND SYSTEMS INTEGRATION
ERP systems are integrated, multi-module application software packages
designed to serve and support several business functions across an
organization.
ERP systems are typically commercial software packages that facilitate
collection and integration of information related to various areas of an
organization.
ERP systems enable the organization to standardize and improve its
business processes to implement best practices for its industry.
ERP systems are the first generation of enterprise systems meant to
integrate data and support all the major functions of organizations.
ERP systems integrate various functional aspects of the organization as
well as systems within the organization of its partners and suppliers
 ERP’S ROLE IN LOGICAL INTEGRATION
ERP systems require An ERP systemimplements
organizationsto focuson best practices via specific built-in steps for processing a custom
order entry.
business process rather than on functions.
routing through
departments.
ERP systems come with built-in communication of output to various parties.
processes for a wide variety of
common business functions.
 ERP’S ROLE IN PHYSICAL INTEGRATION
An organization may have to A good ERP implementation Improved efficiency with a
upgrade or install middleware or improves operational efficiency paperless flow and electronic data
get rid of their legacy system’s with better business processes interchange (EDI) or business-to-
hardware and software. that focuses on organizational business (B2B) commerce
Integration is also required at the goals rather than on individual environment with partners.
Data level, Client level, and at the departmental goals.
Application level.
 IMPLICATIONS FOR MANAGEMENT
In theearlydaysofERP ERP systems implementation is a It is important to evaluate and
and the magnitude of issues an organization complex organizational
has to consider during, andlearn
activity.
before, from the successes and
after implementation.
failures.
ERP systems implementation
requires strong project
management oversight.
 EVOLUTION OF ERP
TIMELINE SYSTEM PLATFORM
Inventory Management & Mainframe legacy systems using third generation
1960S Control software-(Cobol, Fortran)
1970S Materials Requirements Mainframe legacy systems using third generation
Planning (MRP) software-(Cobol, Fortran)
Materials Requirements Mainframe legacy systems using fourth
1980S generation database software and manufacturing
Planning (MRP-II) applications.
Mainframe client-server systems using fourth
1990S Enterprise Resource Planning generation database software and package
software.
Client-server systems using Web platform, open
2000S Extended ERP or ERP-II source with integration to fifth generation
applications like SCM, CRM, SFA.
E-BUSINESS AND ERP

BUSIN
ESS
ERP
STRAT e.Business
Internal Process
External Process
(Goal: Integration EGY (Goal: Integration
and efficiency)
ALIGN and effectiveness)
 ERP SYSTEMS COMPONENTS

HARDWARE SOFTWARE DATABASE

PROCESSES PEOPLE
ERP ARCHITECTURE
 The architecture of an ERP system influences the
cost, maintenance, and the use of the system.
 The ERP architecture helps the implementation team
build the ERP system for the organization.
 If purchased, ERP architecture is often driven by
the vendor (Package-Driven Architecture).
 There are two types of architectures.
— Logical focuses on the supporting needs of the
end users.
— Physical focuses on the efficiency of the system.
LOGICAL ARCHITECTURE OF AN ERP SYSTEM
TIERED ARCHITECTURE EXAMPLE OF ERP SYSTEM
SYSTEM BENEFITS OF AN ERP SYSTEM
BENEFITS
Integration of data and Improvements in
applications maintenance and support

Consistency of the Enhanced

user interface
security of data and applications
SYSTEM LIMITATIONS OF AN ERP SYSTEM
Complexity of installing, configuring, and
Tedious and complex process
maintaining the system increases
IT hardware, software, and people
resources can be cumbersome and
difficult to attain
Produces resistance and
reduce productivity
BUSINESS BENEFITS OF AN ERP SYSTEM
B E N E F Sharing
Agility of the organization
I T S of information
across functional areas

Linking and exchanging

Better customer service
information in real-time

Enhanced efficiency of business processes

BUSINESS LIMITATIONS OF AN ERP SYSTEM

Costly and time Upheaval and resistance

consuming to the new system
ERP IMPLEMENTATION

ERP IMPLEMENTATION
SOFTWARE AND VENDOR SELECTION
 It is best for an organization that does not have the
experience in developing ERP systems to purchase
one on the market.
 Before selecting a vendor, the organization must
carefully evaluate its current and future needs in
enterprise management systems.
 Review the organization’s existing hardware, network,
and software infrastructure, and the resources
available for the implementation. .
VENDOR EVALUATION
 Business functions or modules
 Features and integration capabilities
 Financial viability of the vendor
 Licensing and upgrade policies
 Customer service and help desk support
 Total cost of ownership
 IT infrastructure requirements
 Third-party software integration
 Legacy systems support and integration
 Consulting and training services
 Future goals and plans for the short and long term
 OPERATIONS AND POST-IMPLEMENTATION
 Going live (“Go-live”) is one of the most critical points in a project’s success.
 It is vital to focus the efforts of all project teams to ensure that task and activities are
completed before going live.

Training for end-users

Reactive support
Five areas of
stabilization Auditing support
Data fix to resolve data
migration and errors New features and
functionalities
 PEOPLE AND ORGANIZATION

Project management

Consultants

Change Management

Business Process Re-

engineering
Global, Ethical and Security
Management
ERP VENDORS
 ERP VENDORS
ERP vendors with over 12 million users. Its solutions are for all types of industries and for every major market.
Theworld’sthirdlargestproviderof
enterprise software. It delivers integrated
enterprise solutions insupplychain,
customer relationship and suppliers
management.
As the second largest ERP vendor, Oracle provides solutions divided by industry category and promises long-term support for cu
Formerly Microsoft Business Solutions or Great Plains, Microsoft Dynamics is a comprehensive business-management solution b
Industry-tailored software solutions that include enterprise performance management, distribution, financials, human resource
PhilCST
PHILIPPINE COLLEGE OF SCIENCE & TECHNOLOGY
OLD NALSIAN ROAD, BRGY. NALSIAN, CALASIAO, PANGASINAN

END OF MODULE 1, LESSON

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