SYSTEMS INTEGRATION IN THE CZECH PRACTISE

 

 

Jan Pour and Jiří Voříšek

Prague University of Economics

Department of Information Technologies

W. Churchill Sq. 4

130 67 Prague 3

Czech Republic


Published: October 1996

 

 

 

Key words: Information system, application software package, systems integration, prototyping,  software architecture, information technologies.

 

Abstract: The paper is dealing with some problems of IS/IT development in a company. The first one are the scope and levels of the systems integration. The second one is a role of application software package (ASW) in the systems integration.. The last part of the paper summarizes some trends of application software packages having to determine the new perspectives of IS/IT.

 

 

 

The Goals and Means of Systems Integration

Systems integration is a trend enforcing itself in the world of computers with the great dynamic. Its significance in solving the current problems of information systems is quite apparent.

 

Systems integration is a specific way of IS/IT development. Its goal is to create and maintain a complex and integrated IS/IT of a company by means of integration of various components and services of different suppliers.

 

When we are talking about a complex and integrated IS/IT then we mean such IS/IT that:

·       supports business goals and priorities of a company,

·       gives complex and relevant information both of the company and its development, and of the external environment of the company (clients, suppliers etc.),

·       supports all relevant business processes both internal (financial management, manufacturing, personal management, stocks, sales and purchase analysis) and external (on-line links to clients, suppliers, banks etc.),

·       is integrated in all significant dimensions of IS/IT (data, functions, software, hardware organizational aspects, qualification of users, methods of development, implementation and operation) [Vorisek, Riha 1993],

·       has a simple, well designed global architecture which effectively combines various IT architectures (e.g. three tiers architecture, client/server architecture, distributed architecture),

·       is built as a construction of interconnected application software packages and specialized software modules, frequently from various developers (software houses),

·       is usually based on the heterogenous hardware aimed to reach the most effective relation price/performance and to gain an independence on the only one IT manufacturer,

·       has a standardized user interface,

·       is usually built as a distributed system with an optimal location of data and procedures within a network.

 

Information system of the features mentioned above is permanently  being developed by an integrated complex of activities, including:

·       making an information strategy,

·       the design, implementation, and installation of different IS projects formulated in the information strategy and completing separate building block of the global IS/IT architecture,

·       the installation and integration of hardware and technological software (operating systems, database management systems, office information system etc.),

·       the training of all types of users,

·       the permanent consultation for users (hot-line),

·       the management of IS/IT operation,

·       the management of IS/IT maintenance and further development.

These activities are based on various methodologies, methods, and adequate CASE tools [Vorisek, Pour, 1994].

 

 

Levels of Systems Integration

In practice, the systems integration is understood very differently. It is restricted often only to integration of various hardware and software components of IS/IT. In the MDIS methodology (Multidimensional Development of IS/IT [Vorisek, Riha, 1993]), which is being developed at our department, the systems integration includes more levels - see Fig.1.

 


The first level is the integration of visions and ideas of company top managers. This kind of integration is produced during brainstorming and common discussions of managers, event. with  external consultants.

 

Such discussions are basically aimed at specification of the role of IS/IT for business and creation of value system of a company, respectively genetic code of organization [Voříšek,1993]. The consistent value system and the well defined role of IS/IT in a company are very significant for formulating and implementing of strategic intentions in IS/IT. If the integration at this level is not achieved it is very likely that the investments in IS/IT will not result in any benefit.

 

The integration of an information strategy with the business strategy is the second level of integration. The integration of both strategies is necessary in order to support the business goals by the IS/IT. The integration is achieved by following steps:

·      the requirements on IS/IT,  are derived from the SWOT analysis and from the goals of a business strategy,

·      the requirements are analysed and at the basis of this analysis the desired functions of IS/IT are specified,

·      the functions and connected data are divided into several blocks with limited number of links. These block are the „stones“ of the IS/IT global architecture,

·      according to business priorities separate IS projects are defined. The goal of each project is the development/purchase and implementation of one block of  IS/IT architecture and its integration into existing IS/IT.

 

The integration of a company into external word is the next level of integration. The goal of this integration is to create links between the company and its external partners (suppliers, customers, banks, etc.) with the help of IS/IT. With the increasing role of  the Internet, WWW, and other means of communications this level of integration is more and more important.

 

The integration of the internal company processes is realized by the BPR (Business Process Re-engineering) and is aimed at following goals [Donovan,1994]:

·      to shorten the time of the processes in order to achieve quick response of a company to external events,

·      to minimize the use of company resources during the processes,

·      to achieve the highest quality of products and services by process optimization.

 

The last level of integration is the technological integration which includes:

·      the integration of various hardware components from different vendors into company computer network,

·      the integration of the software products that implement separate blocks of IS architecture,

·      the integration of all databases of a company,

·      the standardization of user interface,

·      the integration of different methods and tools of IS/IT development.

 

 

Major Steps in Development of  Integrated IS/IT

To create and maintain IS/IT which is integrated at all levels mentioned above is very difficult task. It requires a lot of financial and human resources. It is not possible for small and medium enterprises (and very often for the large ones as well) to complete this task without external help. Therefore, more and more enterprises develop their IS/IT with the help of external firm - system integrator. If this scheme of IS/IT development is used then the major steps are following:

 

1. Update of business strategy according to the latest SWOT analysis

This step ensures that the information strategy will take into account all main business goals, priorities, and requirements.

 

2. Development of the information strategy

Development of the information strategy is crucial step of whole procedure [Daniels,1994], because it is responsible for all five levels of IS/IT integration, for the design of the global IS/IT architecture, and for the specification of all IS/IT projects.

 

3. Call for tender

The document „Call for Tender“ is based on the information strategy and its goal is to define all requirements on the system integrator and its services. The main differences between the call for tender and the information strategy are following:

·      it does not include such information that could be abused by the competitors,

·      it includes precise description of the desired structure of the proposal (if the proposals in the tender are not in the same structure, it is very difficult or even impossible to evaluate the proposals with the use of  the standard set of criteria),

 

4. Evaluation of proposals with the use of a set of evaluation criteria

Evaluation criteria and their weights are another success factors of the whole procedure. They are used in this step and following three steps in order to select the best system integrator and the best IS/IT components which will realize the role of separate blocks of IS/IT architecure. In this step about 4 to 6 proposals are selected, the other are rejected.

 

5. Evaluation of references

The future customer of system integrator has to be sure that the system integrator is not only able to write high quality proposal, but also, that the software package functions will be efficient for the company and that the system integrator is able to realize the projects in planned time and within planned budget. The best way of evaluation of this criteria is to analyze other implementations of the software package.

 

6. Evaluation of presentations

Even if the references are excellent it does not give the certainty that the implementation of  new IS/IT will be successful. Another success factor are the abilities of the system integrator team. The presentation of a proposal is the first step in evaluation of the team abilities. After this step only two system integrators and their proposals advance to next evaluation step.

 

7. Feasibility study

During feasibility study both system integrators obtain all information necessary for design and implementation of the new IS/IT (they get the information strategy, they do interviews with the management and employees). The feasibility study has to main goals:

·      to update the proposal according to new information and to develop a prototype of decisive parts of future system,

·      to evaluate the cooperation of the customer and system integrator team.

 

8. Contract

After evaluation of the feasibility studies the winner of the tender is determined. Writing a contract with the  winner of tender is the last step of the tender process. The tender is followed by the realization of IS/IT projects according to the feasibility study and contract.

 

 

Application Software - the Key Determinant for Systems Integration

There are many criteria significant for the selection of the best systems integrator of company’s IS/IT. For example we use in the evaluation process set of more than one hundred criteria hierarchically organized into several groups. The most important groups are following:

·       references and other basic characteristics of a systems integrator (Syst.integ.),

·       the architecture of the proposed IS/IT (Concept),

·       application software package and its functions (ASW),

·       technological software products (databases, operating systems, office information system,...- SW),

·       hardware and communication network (HW),

·       services, including training, consultancy, hot line, etc. (Service).

 

 

 


The key point of these criteria and components of systems integration is  still the application software package. The position of ASW in the development or innovation processes of IS/IT also describes the ranking of significance of the criteria defined for the evaluation of systems integrators' proposals (see the graph in the Fig. 2). The percentage values are the means of weights which were defined by the different customers, information managers and consultants during 15 Czech tenders, which the department of IT at PUE has been participating in.

 

The application software is still playing a decisive role in the field of informatics. The quality of a systems integrator, the quality and experience of its people, the number and significance of references is the second most important  success factor of IS/IT. The global architecture of IS/IT is also one of the important components. Hardware and technological software, despite of fast advances, are not seen as a basically determining elements for the selection.

 

The business is very strongly dependent on the quality of the application software. Most management procedures, the culture of the business, the competitiveness of a company are, among others, determined by the information technologies [Beddie, Raeburn,1990]. The business is closely connected with the development of the application software and thus application software determines the future of business directions.

 

Problems of Application Software Packages Implementation

There are still many problems related to the use of application software packages. These issues have a great impact on the development, customization and use of the ASW. The most significant issues are:

(1)   Before the selection of the application software package, a clear business concept and IS/IT architecture must be defined. The relationships of IS/IT and the basic goals of business must be determined. It is very important now, in the turbulent market environment. Yet, often this part of the selection process presents difficulties and may lead to failure of the entire selection process.

(2)   The specific issue of the Czech Republic as a transforming country are many significant and frequent changes in the legislative system with all negative impacts on the software development.

(3)   New application software brings to the company also new management procedures and standards, organization schemes, data flows and structures. This changes ought to be implemented very carefully. Therefore, the appropriate strategy of the software introduction must be defined and implemented.

(4)   There is a lack of marketing analysis focused on the  needs of customers and on the other hand the evaluation of available software products. Such marketing studies provided by private companies has of course little publicity and most customers don't know where to look for such information.

(5)   We regard the systems integration as a collection of products and services, where training and consultancy services play a very important role. Just the quality of these types of activities are rather poor. Emphasizing IT opposite to ASW functionality and principles of business is basically the failure.

(6)   The rapid IT development, permanently new versions of operating systems and databases, problems with maintaining basic standards, new development tools etc. create a great pressure on the application developers. That pressure impacts their priorities (functionality vers. IT).

(7)   The quality of the application software is influenced by the new higher demands of basic software on the hardware features. This issue is very often underestimated resulting in well designed functions of ASW being depreciated by the inadequate response time, capacity problems etc.

(8)   A professional restructuring is needed in the field of ASW. There is still a lack of good project managers, "customizers", consultants oppose to developers.

(9)   The next specific problem in the Czech Republic, very often discussed, is a low level of the communication infrastructure with all known negative aspects.

 

We could list here other issues determining success or failure of the application software implementations and IS/IT in general. Yet, we have to realize that the IT market and all types of businesses in the Czech Republic has been newly and very rapidly formed. The progress must go on and we have to create all needed conditions for the further development. Some proposals are mentioned in the conclusion of this paper. Next, we summarize some perspectives of the application software.

 

 

Trends in Application Software

In the previos paragraph we stated that application software because of its close relationship with the business influences the future of business. So we have to study very hard the possible software developments. We must be able to prepare the staff step by step for the future changes. In the recent years the following major changes have taken place:

·       relational databases and open systems environment have become the technological platform most frequently used for applications development,

·       increasing functionality, mainly in the support of international features of software,

·       three tiers architecture and client/server architecture are becoming the basic technological environment [Salas,1995].

 

What future trends can we expect in the this field ? The next five points represent our opinions.

 

(a) Functionality

The functionality will be still the decisive aspect of the ASW. From this point of view we expect that:

·       a higher priority will be attached to the support of market analysis and management of external activities of a company. The software should give more accurate picture of external environment rather than of inside processes,

·       the application software must support the management of large international companies, that means:

m      increasing number of languages configurable during the run time,

m      multi-currency,

m      multi-company running on the same system,

m      flexibility to the legislation standards,

m      flexibility to the local customs,

·       in the manufacturing modules will be provided in wider range:

m      Just-in-Time (JIT),

m      Total Quality Management (TQM),

·       modelling tools will be implemented more extensively than in the present systems.

 

(b) Architecture

We expect significant changes in the architectures of the application software packages:

·       the architecture must be flexible enough to anticipate organization changes and very rapid technological changes. It is solved e.g. by the special interface modules to the DBMS or operating systems,

·       to ensure more flexibility and reliability of the ASW it is required to include some functions of metainformation systems directly into the ASW. A comprehensive description of the organization chart, positions, IT resources etc. can contribute to increase such parameters of the ASW,

·       the software must be designed for the next modifications and must be opened to additional functions developed by the customer. The qualification of the customers is constantly increasing and they must have the opportunity to develop their own procedures and to become more independent,

·       the architecture must be opened:

m      to the new products within IS/IT (see the next paragraph),

m      to the external databases (mostly public marketing, technological etc. databases),

m      to the "mobile databases", that means databases running on the notebooks and laptops of travelling agents, company representatives and so on. These databases and software products must be an integral part of the whole information system,

 

The trends mentioned above are documented on the next figure.

 

Here are some notes to the figure:

·       standard user interface should unify the end user interface to various products, e.g. by the new types of integrated office systems (see later),

·       application software modules represents modules such as general ledger, payables, assets etc.

·       E/I means interface modules to the "External sources" (external databases, "mobile databases", modules supporting the interorganization systems, EDI etc.),

·       I/I means standard interface modules to the internal but special software products, such as EIS, DSS, CAD etc.,

·       MtS (meta information system) should be conceived here as a kernel of the ASW and IS/IT,

·       on the other hand the flexibility and reliability of a system are supported by modules providing the "single" interface of ASW to the technological environment (databases,...). These interfaces should be performed by only one (or limited number) of special modules.


 

Especially new business trends toward the virtual companies will have special demands on the ASW architecture, where the permanently changing interconnections of the company with its business partners is the basic principle. That means the needed "connectivity" of our application software to others including their databases. Today it seems to be only a vision, but in practise it will totally change all main principles of IS/IT processes.

 

(c) Integration

Trends to integration is the basic topic of most present discussions. The integration of IS/IT must be primarily based on the integration of application software itself and the integration with other products, which involves:

·       integration to the various components of the Office Information Systems (OIS), mainly:

m      word processing,

m      spredsheets,

m      workflow,

·       integration with special modules or software products supporting top management - Executive Information Systems (EIS),

·       integration with special modules supporting Electronic Data Interchange (EDI), incl. the solution of the requested communication standards,

·       providing of Electronic Point of Sales (EPOS),

·       integration with other special applications, such as CAD etc.

 

The brief survey of these integration links shows the graph on the figure 4.


Fig. D:  The integration of ASW with other SW products

 

Conclusion

In conclusion we specify some tasks that public institutions, universities have to fulfill in systems integration:

·       the universities have to look for new priorities and structures for university curricula covering the increasing needs for the new types of specialists,

·       it is needed to map the application software market permanently and to enable the better orientation of our customers in finding the most suitable software,

·       we have permanently to look for the ways to the new software for the new business, but the business people must be always aware of the fact that the application software determines the business.

 

So, it looks really like the systems integration and application software will determine the ways to the future.

 

 

References

1.    Beddie,L., Raeburn,S.: Computer Integrated Business, Prentice Hall, 1990

2.    Daniels, N.C.: Informatin Technology - The Management Challenge, Addison-Wesley, 1994

3.    Donovan,J.J.: Business Re-engineering with Information Technology, Prentice Hall, 1994

4.    Keeling,D.: Trends in Business Computing, 1994, Conspectus, May, 1994

5.    Polák,J., Kafka,J.: Trends in Information Technology in Central and Eastern Europe, Systems Integration'95, proceedings of the conference SI'93, Prague, 1995

6.    Pour,J.: Perspectives of Systems Integration", proceedings of the conference SI'93, Prague, 1993

7.    Robb,A.F.: The Management Guide to the Selection and Implementation of Computer Systems, NCC Blackwell, 1992

8.    Salas, A.: Computing Architectures: Choosing the right way for you, proceedings of the conference SI'95, Prague, 1995

9.    Sheppard,J.: Strategic Management of Information Technology Investments, Peijie Wang, 1992

10.Voříšek,J.: The Strategy of Information Systems", proceedings of the conference SI'93, Prague, 1993

11.Voříšek,J., Riha,K.: Design and Management Dimensions of Large Information Systems - The Czech-Lands Perspective, Conference on the Theory, Use, and Interactive Aspects of Methodologies, Heriot-Watt University, Edinburgh, 1993

12.Voříšek,J., Pour,J.: Metainformation System - Tool of System Integration, Conference on the Theory, Use, and Interactive Aspects of Methodologies, Heriot-Watt University, Edinburgh, 1994