Chapter 4: Systems Integration Challenges And Drivers (Part 1) PDF

CHAPTER 4: Systems Integration: Challenges and Drivers (Part 1) SYSTEMS INTEGRATION AND ARCHITECTURE FUNCTIONAL SILOS According to Webster’s dictionary, “silos are an airtight pit or tower for preserving products. Silos are basically compartmentalized operating units isolated from their...

CHAPTER 4: Systems Integration: Challenges and Drivers (Part 1) SYSTEMS INTEGRATION AND ARCHITECTURE FUNCTIONAL SILOS According to Webster’s dictionary, “silos are an airtight pit or tower for preserving products. Silos are basically compartmentalized operating units isolated from their environment.” FUNCTIONAL SILOS Functional silos, often simply called "silos," are a common organizational problem where different teams or departments operate independently, with limited communication and collaboration. This creates a segmented structure where information doesn't fl ow freely between groups. Essentially, each department acts as its own isolated unit, hindering overall effi ciency and productivity function smoothly. HORIZONTAL SILOS In the early 1900s, a management philosopher named Henry Fayol was the first person to divide functionalized organization into five basic areas: planning, organizing, coordinating, commanding, and controlling. Fayol’s classification was extended and conceptualized in the 1930s by Luther Gulick4 into the functional model of POSDCORB (planning, organizing, staffi ng, directing, coordinating, reporting, and budgeting). VERTICAL SILOS In addition to the functional or horizontal division, organizations have also seen a vertical or hierarchical layering of management functions. In the late 1960s, Robert Anthony,6 an organizational researcher, at Harvard University, found that organizations also divided responsibility in hierarchical layers from strategic planning to management control and operation control. Information Systems in Organization An information system is an organized set of components for collecting, transmitting, and storing, and processing data in order to deliver information for action. It is important to stress that in business firms and other organizations, this information is necessary for both operations and management. Most information systems in today's organizations are built around the information technologies of computers and telecommunications. They are computer-based information systems. Impact of Information Systems in Organization Competitive Advantage and Market Positioning Increased Productivity and Cost Reduction Enhanced Customer Relationship Management Data Analysis and Business Intelligence Management Pyramid A management pyramid, also called a hierarchical structure, is an organizational structure where there is one leader on top with increasingly larger tiers of management teams below them. You can envision the structure of these kinds of organizations to resemble the shape of a pyramid. Each level of management is responsible for the tier directly underneath them. Rather than the person on top overseeing what everyone does, employees work more closely with the managers directly above them. It is each level's responsibility to pass down the expectations or messaging of those directly in charge of them. Management Pyramid Management Pyramid with Information Requirements Information Silos An information silo is an information management system that is unable to freely communicate with other information management systems. Communication within an information silo is always vertical, making it diffi cult or impossible for the system to work with unrelated systems. Information silos can exist within a variety of businesses. Information silos are created when management does not believe there to be enough benefit from sharing information, and access to information might not be useful to personnel in other systems. System Integration In today's fast-paced business environment, companies are constantly searching for ways to improve their operations. One of the most effective ways to do this is through systems integration. Systems integration refers to the process of connecting different systems and applications within an organization to create a seamless fl ow of information. This integration can happen between different departments, systems, or even with external vendors. Benefits of System Integration Improved Data Accuracy: One of the major benefits of systems integration is that it improves data accuracy. When different systems are not integrated, it can lead to data silos, where each system has its own data set. This can lead to discrepancies in data, making it diffi cult for businesses to make informed decisions. With systems integration, data is synced across all systems, ensuring that everyone has access to the same accurate information. Increased Effi ciency: Another benefit of systems integration is increased effi ciency. When systems are integrated, it eliminates the need for manual data entry, reducing the risk of errors and saving time. It also eliminates the need for employees to switch between different systems, reducing the time it takes to complete tasks. Benefits of System Integration Cost Savings: Systems integration can also lead to cost savings for businesses. By eliminating the need for manual data entry and reducing the risk of errors, businesses can save money on labor costs. It can also lead to cost savings by improving inventory management, reducing the risk of stockouts and overstocking. Improved customer experience: Systems integration can also lead to an improved customer experience. By integrating customer data across different systems, businesses can get a better understanding of their customers, allowing them to provide personalized experiences. REFERENCES https://www.umsl.edu/~joshik/msis480/chapt01.htm https://www.studocu.com/ph/document/isabela-state-university/information-s ystems/module-2-system-integration/57282127/download/module-2-system-in tegration.pdf https://blog.smart-tribune.com/en/information-silo/