Module:1

Overview of Systems
Integration:
Importance,
Challenges and
Evolution

1 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure on
Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Understand the role of Enterprise Resource Planning
(ERP) systems in systems integration.
2 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure on
Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Understand the role of Enterprise Resource Planning
(ERP) systems in systems integration.
3 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
SYSTEMS INTEGRATION
• The process of creating a complex information system
that may include designing or building a customized
architecture or application, integrating it with new or
existing hardware, packaged and custom software, and
communications.

• Systems integration means that you allow a

heterogeneous IS to communicate or integrate and
share information (or data) seamlessly with one
another.

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IMPORTANCE OF SYSTEMS INTEGRATION
AGGREGATION & STREAMLINING

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IMPORTANCE OF SYSTEMS INTEGRATION
DATA ACCESIBILITY

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IMPORTANCE OF SYSTEMS INTEGRATION
ELIMINATES REPETITIVE MANUAL DATA
ENTRY

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IMPORTANCE OF SYSTEMS INTEGRATION

CENTRALIZED SYSTEM

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LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure
on Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Resource Planning (ERP) systems in systems
integration.
10 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
IMPACT OF SYSTEMS INTEGRATION
Transaction Cost Theory:

This theory states that

organizations grow in
size because they can
obtain certain
products or services
internally at lower cost
than by using external
firms in the
marketplace.

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IMPACT OF SYSTEMS INTEGRATION
Agency Theory:

This theory views the

firm as a nexus of
contracts among self-
interested individuals,
who must be carefully
supervised to ensure
they pursue the
interests of the
organization.

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IMPACT OF SYSTEMS INTEGRATION
Flattening Organizations:
Behavioral researchers
have theorized that
information technology
facilitates flattening of
hierarchies by broadening
the distribution of
information to empower
lower-level employees and
increase management
efficiency.

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IMPACT OF SYSTEMS INTEGRATION
Organizational Resistance & The Mutually
Adjusting Relationship Between Technology
and the Organization:

Implementing information
systems has consequences
for task arrangements,
structures, and people.
According to this model, to
implement change, all four
components must be
changed simultaneously.

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LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure on
Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Resource Planning (ERP) systems in systems
integration.
15 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
IMPACT OF SYSTEMS INTEGRATION
BENEFITS LIMITATIONS
Increased Revenue and Growth High Initial Set-up Costs

Leveling the Competitive Power and Interdepartmental

Environment Conflicts (due to the sharing of
information)
Enhanced Information Visibility Long-term and Intangible ROI
(Usually several years)

Increased Standardization Creativity Limitations (Restricts

Creativity and Independence)

16 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure on
Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Resource Planning (ERP) systems in systems
integration.
17 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
FUNCTIONAL SILOS
• SILOS are basically compartmentalized
operating units isolated from their environment.

• FUNCTIONAL SILOS in a business are

teams of employees, grouped by function, that
all operate separately from each other, without
cross-collaboration.

• DATA SILOS is a repository of data that's

controlled by one department or business unit
and isolated from the rest of an organization

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FUNCTIONAL SILOS
HORIZONTAL SILOS:
• Division of functionalized organization into basic areas.

• The POSDCORB (Planning, Organizing, Staffing,

Directing, Coordinating, Reporting and Budgeting)
categorization by Luther Gulick led to a set of formal
organization functions such as control, management,
supervision, and administration starting in late 1930s.

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FUNCTIONAL SILOS
HORIZONTAL SILOS:

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FUNCTIONAL SILOS
VERTICAL SILOS:
• Organizations also
divided roles in
hierarchical layers
from strategic
planning to
management
control and
operation control.

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BUSINESS PROCESS
• The problem of functional silos gave birth to business
process re-engineering (BPR).

• The cross-functional business process can involve

people and resources from various functional
departments working together, sharing information at
any level of the organization.

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BUSINESS PROCESS

The cross-functional
organizational
structure breaks the
functional silos by
opening up the
informational flows
from one department
to another.

23 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

LEARNING OBJECTIVES:
• Know what Systems Integration is and why it is
important for organizations.
• Understand the Impact of Organizational Structure on
Information Systems.
• Discuss the Benefits and Limitations of Systems
Integration.
• Find out about the Types of Functional Silos in
Organizations.
• Learn about the Evolution of Information Systems
Technology Generations and Architectures
• Resource Planning (ERP) systems in systems
integration.
24 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
EVOLUTION OF INFORMATION SYSTEM
DOS: DOS (Disk Operation System) was the name
of an OS distributed by Microsoft and formed the
base of the computers until the early 1990s. It was
much due to this OS that computers managed to
become popular.

Main characteristics of Information Systems from this

time were:
1. Text only display (no graphical artifacts, images, etc.)
2. UI using the keyboard and keystroke commands
3. Information Systems were basically used for very
repetitive and transactional tasks
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EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this
time were:
4. Information Systems were basically designed as
substitutes of the still present Typewriter.
5. Used only by big corporations and specific market niches
6. Main programming languages: Clipper and COBOL
7. Main data storage structure: DBF and text files
8. Focus on the operator — There were professionals
whose sole function was to operate the Information
Systems
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27 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
EVOLUTION OF INFORMATION SYSTEM
WINDOWS AGE: Microsoft Windows came as a
replacement for DOS. It changed the paradigm of
the relationship between user and computer, with
the use of the mouse, and the graphical approach.
Main characteristics of Information Systems from this
time were:
1. Display with graphics — Windows
2. The use of the mouse pointer. (slow adaptation)
3. Windows forms paradigm
4. The use of Information Systems for Management
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EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this time
were:
4. Banking systems
5. Industrial automation
6. Information systems became largely available to all
businesses
7. Main programming languages: Visual Basic, Delphi, Java, C++
8. Main data storage as relational databases: Oracle, SQL
Server, Paradox, Access, DB2, Sybase, outros
9. Focus on the employee: general staff replaced the specialized
operator. 29 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
30 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall
EVOLUTION OF INFORMATION SYSTEM
WEB AGE: The advent of the Internet and its
omnipresence forced another major evolutionary
milestone for Information Systems. Web-based
systems, that either run inside a web browser or
utilize Internet protocols, become more and more
the norm.
Main characteristics of Information Systems from this
time were:
1. Use of the web browser as a platform (application within
an application)
2. Highly customized and interactive UI, web form
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paradigms
EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this time
were:
3. B2B Information Systems — handling business between
companies
4. B2C Information Systems — Online sales to customers
5. SaaS — Software as service
6. Web 2.0 — collaboration systems
7. Main technologies: HTML, Javascript, CSS, ASP, ASP.NET,
PHP, JSP, PL e ColdFusion

32 Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall

EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this time
were:
8. Main databases: SQL Server, Access, MySQL, Oracle, etc.
9. Focus on the end-user: The end-user himself became an
operator of the Information System. For example: At an online
shirt store, the end-user generates the purchase order himself,
processes the payment, chooses the delivery method
(logistics), all this without having a company employee attached
to the process.

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EVOLUTION OF INFORMATION SYSTEM
MOBILE AGE: Mobility brought true omnipresence
for computing devices and included the final layer of
people that didn’t have access to Information
systems thus far.

Main characteristics of Information Systems from this

time were:
1. Reduced user real estate: designers have to be very
diligent with the user experience in such limited spaces
2. The main goal is to create highly specialized
applications, that perform one task in the best and fast
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possible manner (for example: Grab)
EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this time
were:
3. Remote data storage: That means that the app in the device
is just a client, considering that the data and even processing is
done remotely.
4. Main technologies: Java for Android, Objective-C or Swift for
iOS (Apple), and C# for Windows Phone.
5. Databases: same as in the web age, like MySQL, MariaDB,
PostgreSQL but new data structures and no-SQL.

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EVOLUTION OF INFORMATION SYSTEM
Main characteristics of Information Systems from this time
were:
6. Focus on the end-user: The same as for the web Information
Systems, but at an exponential exhaustive level as the user is
in some way, always-on, always-connected, anywhere,
everywhere.

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END OF MODULE

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