Business transactions between independent business entities require the thoughtful integration of it systems, for example, as well as between a company and its customers, suppliers, or other business partners, such as co-producers and banks (Luftman). Consequently, effective system integration is important for both economic and strategic business reasons. In this regard, Luftman reports that, "External systems integration involves many technologies and business arrangements with different pros and cons, but they can be grouped in two broad categories: one-to-one or one-to-many approaches that link an individual company with its business partners and hub-and-spoke approaches that provide the possibility of many-to-many connections" (Luftman, p. 252).
Since the introduction of computers several decades ago, the increasing computerization of business organizations has experienced a sequence of transformations as a result of the rapid development in information technology and increasingly complex business needs (Yang & Lu, 2005). As these authors point out, "The continuous e-revolution of business processes has encountered a number of challenging technological issues, but none more critical than the incompatibility and importability which currently exist between information systems and applications" (Yang & Lu, p. 3). Well-managed information systems integration is desirable for several reasons:
It provides timely and accurate information for analysis and decision making by both management (e.g., data warehousing applications) and customers (e.g., product catalogs);
It provides a single authoritative source of information for use in performance measurement and the audit process; and,
It facilitates interaction between software programs in order to achieve program and business process integration (Luftman).
According to Yang and Lu, notwithstanding the desirability of effectively managed system integration, there are a number of obstacles and constraints to the process that will affect a significant percentage of businesses today. As these authors point out, "Enterprises must incessantly upgrade and integrate their e-infrastructures in order to maintain their competitive advantage" (Yang & Lu, p. 4). Clearly, keeping up with such rapid rates of change in technology has represented an enormous challenge for most businesses, as well as accounting for a great deal of investment in time and resources. In this regard, Yang and Lu emphasize, "One major roadblock to integration is that there is usually an inherent heterogeneity of system platforms and software applications existing within the same enterprise and among collaborative partners. Thus, it is common that enterprises must spend an astronomical amount of time and money to link the new and legacy systems in order to exchange data, information and knowledge" (p. 4). No savvy business manager wants to spend "an astronomical amount of time and money" to achieve these goals, though, but there are some guidelines and best practices available to help companies of all types better manage this integration.
In their book, the Business of Systems Integration, Prencipe, Davies and Hobday (2003) identify five skills that underlie effective systems integration as follows:
Understanding of underlying technological disciplines and therefore ability to integrate them;
Technological understanding of the entire system behavior in terms of relevant parameters;
Ability to design the entire system;
Ability to design most key components of the system; and,
Ability to assemble components interface (p. 374).
If these skills do not exist in-house, careful consideration should be given to either training personnel for this purpose or outsourcing this function so that integration is accomplished in a seamless fashion rather than in bits and spurts while the company's it function founders. Depending on the size and type of business involved, this can be a challenging endeavor or a fairly straightforward one, but there are some common issues involved in the process that are discussed further below.
Managing Information Resources and Technologies for Developing Systems
Thinking outside the box" has become a popular catchphrase in recent years, but in the case of managing information resources and technologies for developing systems, it is highly appropriate because of the dynamic nature of the enterprise. For example, according to Earl (2003), "Whether firms choose to integrate their formal business and it strategies or not, they certainly need to integrate their business and it thinking. As the theory and practice of strategy making, in both the business and it domains have evolved, it is perhaps useful to consider it and business working together to assess portfolios of opportunities" (p. 51). For example, in his recent study, "Integrating Instructional Technology with Information Technology and Its Implications for Designing Electronic Learning Systems," Abdelraheem (2005) reports that, "By examining today's technologies in different aspects, one can observe a growing interest in introducing new disciplines. Among these new disciplines: food technology, biotechnology, engineering technology, computer technology, instructional technology and information technology and many more. The common factor in all these disciplines is technology application" (p. 125). This common factor is the core of managing information resources and technologies for...
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