2. Understand Systems Integration Chao-Hsien Chu, Ph.D. School of Information Sciences and Technology The Pennsylvania State University How Hierarchy Why What

3. Integration Understand Systems Integration What ? Why ? Where ? How ? When ?Benefits Motivation Obstacles

4. Key Issues of Integration  How to identify your integration problem  When to apply EAI technology?  How to select the right/appropriate technology?  How to structure/architecture an EAI solution?  How to successfully apply the EAI methods and processes.

5. EAI Slogan/Reality EAI is the creation of new strategic business solutions by combining the functionality of an enterprise’s existing applications, packaged systems, and new code using a common middleware. Slogan:  The difficult we do immediately, the impossible takes a little longer. Reality:  It is more than difficult  It takes more than a little longer  It chews up more resources than expected

6. Today’s IT Situation  You are looking at a new business relationship but your partner is using software with which you can’t integrate.  You just acquire a new company and their software can’t talk to your software.  Your existing applications don’t talk to each other.  35% to 60% of an organization’s IT resources are spent on integration (Gartner Group).  EAI is often viewed as a specific product, not an architecture.  Process and technology go hand-in-hand for building successful system; however, process is often overlooked.

7. Why EAI?  Organization Boundary – Disparate Systems.  Systems Decomposition – Islands of Automation.  Globalization.  Mergers and Acquisitions.  Provide Information to Better Serve Customers - Customer Relationships.  On-line Business to Business Trading - Supply Chains; e-Commerce  Competitive Race - Improving Internal Processes; Reducing Time to Market.

8. Systems Decomposition Main source of Systems Integration

9. Failure to Integrate  Focus on task and individual over process and team  Grouping by function discourages  Lacks built-in mechanism for coordinating process flows  Coordination problems rise to level to far from origin  Loss of big picture; Overall performance hard to track

10. Failure to Communicate  Connectivity is more than technical issue  Organizational inertia and legacy systems  Standards cut both ways  Responsiveness is remote

11. Motivation for Integration Technological Problems: Y2K Disparate systems Poor quality of information Systems not integrated Difficulty of integrating acquisitions Obsolete systems Unable to support growth Operational Concerns: Poor performance High cost structure Not responsive to customers Unable to support strategies Inconsistent business processes Globalization

12. Technology Motivations 6 11 12 19 26 37 42 Y2K unable to support growth obsolete systems difficulty integrating acquisitions systems not integrated poor quality of information disparate systems

13. Operational Motivations 10 15 20 21 24 27 poor performance inconsistent business processes globalization unable to support strategies complex processes not responsive to customers high cost structure

14. Obstacles to Integration  Constantly Changing Technology  Lack of Standards  Political and Organizational Issues  Shift to Distributed Computing  Private Ownership of Data / Code  Chaotic Architecture  Skill Shortage  Security Concerns

15. What is the biggest headache surround software integration? Infoworld 8/10/01

16. Stage of XML Implementation Infoworld 9/17/01

17. Change management Staff inadequacy Training Resource allocation Obstacles to Integration PROCESSTECHNOLOGY Work flow management Reengineering Transition Efficiency Software development Systems integration Data & reporting Standard PEOPLE

18. Benefits of Integration 11 12 14 19 20 26 27 32 inventory reduction personnel reduction productivity improvements order mgmt improvements financial close cycle improvements IT cost reduction procurement cost reduction cash mgmt improvements revenue/profit increases

19. EAI Enables Customer Relationship Checking Savings Mortgage Stocks Car loansLifestyle Family Interests Age

20. Business Processes Integration Integration East Region Midwest Region South Region West Region Analytical Data

21. Examples of Benefits  Service Merchandizing - cost per order from $50 to $12 (saving $7.5 million/year)  RJR - $5-10 million/year  Westinghouse - elapsed time/order reduced from 15 days to 1/2 day (cost from $90 to $10)  Levi-Strauss - replenishment cycle from 14 days to three days

22. Problem Solving Approaches Handcrafted Approach: Batch file transfers under manual control Human activated. New Technologies: Object Oriented Technology. Application Servers – Web Services. Lightweight Directory Access Protocol (LDAP). Extensible Markup Language (XML).

23. The Web revolution 0%5%10%15%20%25%30%35% 40% Oct-98 Mar-99 Multiple applications in production Single applications in production Pilot application Evaluation stages No activity

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