System Integration Overview and Technologies

Connecting systems effortlessly allows users to communicate and interact with ease.
System integration merges all the physical and virtual components of an organization.
ERP systems act as the linking software to connect numerous systems within a business.
Silos are segregated units that prevent efficient communication and data flow.
Horizontal silos are categorized by functions like planning, organizing, coordinating, commanding, and controlling which were defined by Henry Fayol and expanded by Luther Gulick in the 1930s.
Vertical silos divide responsibilities hierarchically across strategic, managerial, and operational levels.
Information systems cater to the evolving information needs of organizations and assist in business processes.
System integration impacts managers by implementing rules for ethical information usage.

The development of ERP systems has progressed over time, starting with inventory management and evolving through various stages from the 1960s to the 2000s.
1960s: Inventory management and control systems were implemented, utilizing mainframe legacy systems and third-generation software.
1970s: Materials Requirements Planning (MRP) was introduced, building on mainframe legacy systems with third-generation software.
1980s: Material Requirements Planning evolved to MRP-II, leveraging mainframe legacy systems and fourth-generation database software.
1990s: Enterprise Resource Planning (ERP) emerged as a dominant solution, dedicated to connecting various systems.
2000s: Extended ERP or ERP-II expanded on existing functionalities, adopting client-server systems and web platforms.

Information-oriented integration focuses on enabling easy data flow between systems through coupling and cohesion.
Coupling: Applications are connected and rely on each other for functionality.
Cohesion: Applications and databases maintain distinct identities to ensure logical agreement.
Information Producers and Consumers: Entities generating and consuming information are known as source and target systems, respectively.
Examples of systems that create and consume data include databases, applications, user interfaces, and embedded devices.

ERP systems are comprised of various components: hardware, software, processes, information, and people.
ERP architecture, including logical and physical aspects, influences the budget, operation, and deployment of the system.
Logical Architecture: Focuses on the supporting framework and relationships between components.
Physical Architecture: Emphasizes the efficiency and implementation of the system's tangible elements.

A tiered architecture example of an ERP system includes:
- Presentation Logic Tier: The user interface layer responsible for presenting information.
- Business Logic Tier: Handles business rules, decision-making, and application logic.
- Data Tier: Manages data storage, retrieval, and manipulation.

SAP: The world's most popular ERP software, offering products suitable for a wide range of industries.
Oracle/Peoplesoft: The second largest ERP provider, offering solutions categorized by industry specialization.
Microsoft Dynamics: Previously known as Microsoft Business Solutions or Great Plains, providing a complete business management system.
Infor: The world's third largest corporate software vendor, delivering integrated supply chain solutions.
Lawson: Focusing on enterprise performance management systems.

Steps to Approach Information Integration
- Identify the Data: Determine the specific data required for integration.
- Catalog the Data: Create a comprehensive inventory of data elements, their sources, and formats.
- Build the Enterprise Data Model: Develop a standardized representation of data for the entire organization.
- Design and Implement Data Integration Processes: Create mechanisms to move and transform data between systems.
- Test and Deploy: Ensure seamless data flow and validate the accuracy of integrated data.

E-Business: Focuses on linking a business with external entities, utilizing disruptive technology to transform operations.
ERP: Focuses on integrating internal systems, leveraging adaptive technology to merge early data processing with current functionalities.

Implications of System Integration for Management:
- Decision-making: Improved information access empowers better decisions.
- Business Processes: Streamlined workflows enhance operational efficiency.
- Customer Service: Enhanced communication and data access lead to superior customer experiences.
- Cost Reduction: Elimination of redundancies and improved efficiency decrease costs.
- Compliance: System integration facilitates data governance and regulatory compliance.

Logical Integration: ERP solutions force companies to standardize processes by integrating all levels of their operations, involving order input, routing through departments, and output transmission to stakeholders.
Physical Integration: Upgrading or implementing middleware is often required for ERP solutions to seamlessly connect different platforms. Key components of physical integration include data integration, client integration, and application integration.