Integrated Information Systems

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Table of Contents

Introduction
Literature Review
(Body)
Application of Integrated Information Systems (Case Studies)
Conclusion
References

Introduction

A recent case study investigating worker performance in more than 1500 organizations showed that disorganized work practices accounted for close to 50% of an organizations inefficiency (Business Case Studies, 2012, p. 1). This case study also revealed that in a year, an employee wasted about 98 working days because of inefficient organizational practices.

Nationally, the case study also revealed that the United Kingdom (UK) reported the highest level of inefficiencies in their organizations. Employees also reported efficient performance in only 48% of their time. They wasted about 52% of their time in organizational inefficiencies (Business Case Studies, 2012, p. 1). The strongest reason identified for this inefficiency was the lack of proper systems for managing information and communication.

The need to have an efficient platform for managing information and communication births the need to have an effective integrated information system (Lee, 2004). An integrated information system platform mainly aims to improve the level of organization within different companies.

This platform also aims to help organizations achieve their key objectives. Since integrating information systems are ICT-centered, they handle larger quantities of information, have a high accuracy level, reduce the cost of organizational processes, and improve the quality of services offered to customers (Lee, 2004).

Different organizations and institutions can therefore reap the benefits of adopting integrated information system technologies by controlling their operating costs and using multifunctional devices in an integrated manner (Ranjan, 2011). Broadly, societies also gain from embracing integrated information systems because they help people to be effective members of the society.

This paper seeks to explain the dynamics surrounding the implementation of integrated information systems for different organizational processes. The paper also explores case studies where the adoption of integrated information systems occurred to show how this development improved their productivity and organizational efficiencies.

Comprehensively, this paper shows that integrated information systems provide a holistic conceptualization of organizational activities to not only provide a generic and well-documented approach for undertaking business processes, but also to provide a powerful tool for effective business process modeling.

Literature Review

The increasingly competitive landscape of the business environment has forced many organizations to reconsider the best ways for improving their competitive edges. Naumann (2002) explains that an important strategy of improving an organizations competitive edge is the adoption of integrated information system technology. In fact, Naumann (2002) believes that this tool is the most important management tool that can effectively improve an organizations competitive edge in todays fast-paced business environment.

Over the past few years, there has been a shift in business ideology from adopting information technology for individual purposes to embracing integrated information systems for purposes of redesigning and integrating different organizational functions.

Through this redefinition of core business processes come a renewed focus on key management concepts, such as, business process reengineering, cycle time reduction, workflow automation, supply chain management, and group coordination and collaboration (Business Case Studies, 2012, p. 1).

Information technology cross-functional organization forms the bedrock for the realization of the above managerial innovation practices. To this extent, Naumann (2002) perceives an integrated information system platform as the main infrastructure requirement for improving organizational performance.

Future identification of the importance of an integrated information system provides a framework for the future improvement of organizational process (either gradually or radically). Such improvements may happen through total quality management approaches and similar managerial tools.

Researchers have frequently used business process re-engineering methods to explain the importance of having an efficient integrated information system (Business Case Studies, 2012). In fact, Naumann (2002) says that high failure rates often characterize initial business process reengineering efforts (because of the lack of an effective information exchange platform).

The lack of an effective integrated information system normally limits the scope and success of developing process innovations that ordinarily transcend different organizational processes. Additionally, Naumann (2002) adds that the failure of organizations to allocate enough resources to overhaul their information technology infrastructure renders it economically unwise to undertake business process reengineering efforts.

The relationship between business process re-engineering and integrated information systems are however deeper than most researchers depict them to be. This relationship deepens from the role of business process reengineering initiatives to increase new investments in integrated information systems.

These new investments aim to introduce common definitions within the information technology platform (and the free sharing of data across different business functions) (Business Case Studies, 2012). While adopting information integration systems across the entire scope of business operations, different organizations still choose to adopt integrated information systems across specific business processes.

Beyond one organization, integrated information systems may also pose several advantages to an industry. For the realization of significant success in the adoption of integrated information systems, well-coordinated supplies of coordinating operations need proper establishment. Such an integrative system helps to improve the efficiency of not only the supply chain, but also the entire industry, if all the firms choose to embrace a common structure for the integration of such a system (Joshi, 1998).

Many managers have always supported the importance of integrated information systems before scholars and professionals attached importance to integrated information systems and workflow automation. For example, an independent comparison of the activities of German and British firms show that British firms were losing their competitive edge to German firms by increasing their functional competitiveness (Business Case Studies, 2012).

Comprehensively, the adoption of an integrated information system leads to the reversal of such trends by redefining organizational functional boundaries and the integration of organizational processes. The establishment of mechanisms for the integration of organizational activities therefore forms the main structure of integrated information systems because through this platform, it is easy to coordinate the different activities to achieve organizational goals.

Such an integrated information system platform is crucial for organizations that intend to manage their operations by increasing their responsiveness and reducing their overall cost of operations (Joshi, 1998). Comprehensively, the adoption of an integrated information system does not only apply to intra-organizational activities, but also inter-organizational activities.

(Body)

Infrastructure Support

While the importance and applicability of an integrated information system surfaces prominently in this paper, one key issue that underscores the success of an integrated information system is the infrastructure support that supports this platform.

An effective integrated information system is one that has a sound infrastructure that outlines the available technology and information available to ensure this platform complements the achievement of organizational goals. Joshi (1998) believes that an effective integrated structure of information systems consist of three components enterprise architecture, information architecture, and the computing and network infrastructure.

Enterprise structure

The enterprise structure is a high-level conceptualization of an organizations process that defines the organizations hierarchal control and its components. This structure also represents the different functions and business processes of an organization in the same regard. This analysis also includes the identification of business objects and events that may occur within a business (plus the cross-functional interaction of these workflows) (Joshi, 1998).

Logical level

The second part of the framework occurs at the logical level where objects and events in the business environment provides an enterprise-wide data model that highlights the relationship between these objects and the events characterizing the business environment. The same model also outlines the business rules and constraints that outline the actions of businesses in this closed sphere of business operations.

This model works on a platform that contains interrelated pieces of information that provides a central resource for the functions of the integrated information system. This central resource may distribute across several nodes of an organization to allow users to share the same data using common definitions and formats. This information-sharing platform is a critical component of logical integration (Joshi, 1998).

Computing and Networking Architecture

The third part of the IT infrastructure is the computing and networking architecture, which normally occurs at the physical level of developing integrated information systems. The computing and network architecture defines the layout and computing architecture of integrated information systems.

The computing and networking architecture is widely associated with information storage and the specification of arrangements for providing telecommunication interconnections (Joshi, 1998). The telecommunications interconnection may serve different clients and servers (computer nodes), both in and out of the organization. A structured framework, developed by the international standards organization (IS0), for accomplishing this objective exists.

A vital part of the computing and network architecture is the availability of software and other programming tools that provide a complete software project environment that simplifies information exchanges throughout the organization. Several software application interfaces include the application of different software interfaces that provide simplified and integrated applications.

In this regard, Joshi (1998) says, user interface applications can transparently provide access to different databases on different platforms and present a cross-functional integrated view of the organizational mode to users who are unconstrained by organizational boundaries, as departures functions and physical locations (p. 22).

The common basis of ensuring such integrated information platforms work is the introduction of common definitions and standards within the platform. Several companies, in a range of industries, have demonstrated their success in this integration because the use of a commonly developed standard of definitions and middleware provides the right framework for the implementation of integrated information systems.

Application of Integrated Information Systems (Case Studies)

Canon

Founded as a technology company in 1933, Canon has grown to be a popular global company that produces high-tech technology gadgets, such as, copiers and digital imaging systems (Business Case Studies, 2012, p. 2). With the global push to embrace sustainable business practices and products, Canon has been at the forefront in embracing environmentally friendly technologies.

This commitment highlights one of Canons core business principle, which is to market itself as a sustainable future technology company that can be floated in the market quickly and reach the highest technology specifications. To achieve these objectives, the company embraces integrated information system technologies. In fact, some experts believe that Canons integrated information system is a key component of the companys business success (Business Case Studies, 2012, p. 2).

Characterized by a huge flow of information through emails, online feedbacks, and other documentations, Canon realized the need to introduce a new set of skills and technologies that cater for the potential information overload that the company experiences.

Key to the success of this strategy is the ability of the company to have the right technological expertise and distribution capability to distribute these pieces of information throughout all business functions. This way, Canon has been able to improve its main business processes, by making them more efficient and profitable.

After realizing the importance of embracing an integrated information system technology, Canon is set to be a business leader in revolutionizing the information management systems of other organizations. Indeed, some observers believe companies, which intend to lead other companies in developing superior quality products and services need to be innovative and accommodating of good business practices (Business Case Studies, 2012, p. 2).

World Bank

The World Bank is a global financial institution that offers financial assistance to different governments around the world. The global financial institution mainly focuses on providing loans to developing countries to reduce their poverty levels (Rainer, 2010, p. 295). The World Bank experienced a radical transformation of business processes, from an organization that provides low-interest loans to a global financial institution with decentralized services, through a knowledge-sharing framework.

Therefore, at the core of the companys activities stem the willingness to empower its clients (mainly comprising of technologically disenfranchised countries). To achieve this goal, the bank had to overhaul its information technology infrastructure to provide its clients with the necessary technological tools needed to fight poverty and address other pressing social and economic issues (Rainer, 2010, p. 295).

Initially, World Bank had a disconnected IT infrastructure, which consisted of about 65 different legacy systems, 100 databases, and over 90 different business functions (Rainer, 2010, p. 295). As a complication of the banks IT infrastructure, every field office had a different approach to their I.T processes.

These field offices therefore had no common platform for communicating with the headquarters, or with other field offices. In fact, field managers had to mail proposals to Washington (the head office) and have them approved, then mailed back to the respective field office (Rainer, 2010, p. 295). This process ordinarily took many weeks to complete.

Based on the backdrop of these challenges, the bank adopted an integrated information system where field office operations could be relayed to Washington (in real-time) using one IT platform. A series of processes improved from this upgrade. They included procurement processes, materials management, project management and financial reporting processes.

The introduction of the integrated information system technology occurred in different phases where the bank introduced a document management system, a global network, and a knowledge management system, before it could connect with field offices in remote parts of the world (where the banks presence was needed the most) (Rainer, 2010, p. 295). Today, the integrated information system forms a critical part of the banks operational practice.

Construction Industry

The construction industry poses unique dynamics to the implementation of integrated information systems because it normally produces customized one-time order products (Dikba_, 2004). Although the construction industry shares similar dynamics with the manufacturing industry, some of the products realized from this industry may take years to produce.

Similarly, the construction industry is unique because it ordinarily involves unique projects that may involve different parties at once. This dynamic complicates the implementation of integrated information systems because different parties may come from different organizations (driven by different objectives regarding one project) (Dikba_, 2004).

This dynamic exposes the fragmented and inefficient nature of the construction industry. These dynamics also show that the construction industry is technologically averse and its failure to realize the full potential of an integrated information system hinders its productivity and quality. Nonetheless, these challenges have led the construction industry to seek new methods of resolving these issues.

The use of an integrated information system solves some of these problems. One significant contribution of integrated information systems in the construction industry is the introduction of the enterprise resource planning (ERP) technique. Dikba_ (2004) considered the introduction of the ERP technique as the best innovative technology to happen in the 90s.

Software service providers, such as, Oracle, and SAP have offered integration solutions to large manufacturing firms, with significant success. In fact, a recent survey by Dikba_ (2004) says that about 19% of firms in the construction industry adopted the ERP technique.

In another survey, Dikba_ (2004) reported that about 70% of the fortune 5000 companies had adopted integrated information systems, or were in the process of doing so. The introduction of the integrated information system has offered a real-time solution to integration problems in the construction industry. Service vendors (such as, oracle) have also made handsome profits from developing tailor-made integrated information softwares in the construction industry.

Challenges of Adopting Integrated Information Systems

Many researchers have extensively researched the implications of adopting integrated information systems. The acceptance of this technology platform is especially interesting many researchers because no matter how perfectly the new technology integrates with an organizations activities, if the users do not accept it, it will not serve its purpose (Arshad, 2008).

To this extent, researchers have tried to predict the user acceptability of integrated information systems by using applicable theories, such as, the theory of planned behavior, and the theory of reasoned action to explain the adoption of integrated information systems. These theories demonstrate that the introduction of integrated information systems may be problematic if users do not fully embrace them. Therefore, there needs to be a strong commitment to include all stakeholders (including users) when introducing such a system.

Another problem associated with the introduction of integrated information systems stem from the complex design process required to develop this system. Ordinarily, the process of designing the integrated information system is cumbersome and sophisticated. From this complexity, recent reports show that the initial implementation of integrated information systems normally fails (Arshad, 2008).

Popular opinion would stipulate that since administrators know the causes of system failure, it should not be very difficult to prevent such failures; however, integrated information systems normally involve the interaction of different factors, which make it difficult to identify the source of the failure. Normally, the situation exacerbates when the initial problem is not correctly fixed and another problem develops from the initial problem.

Comprehensively, the adoption of an integrated information system brings several risks (tangible and intangible). Joshi (1998) especially cautions companies against adopting this sophisticated integrated information system without carrying out an effective planning exercise to investigate how the new system integrates with the companys key functions. The absence of this planning exercise may increase the amount of risk involved in the implementation of this system.

In fact, since integrated information systems may involve the reorganization of business processes, it is crucial to assess the implications for the introduction of this system. In addition, Joshi (1998) highlights that integrated information systems require more time, money and effort to implement. A recent study showed customers spending five times more money for the implementation of integrated information systems (compared to the amount of money they would spend on the purchase of a software license).

Moreover, Arshad (2008) says that positive outcomes from the implementation of this process may take years before they materialize.

Seeing the Bigger Picture

The main aim of having an integrated information system is to piece together different parts of an organizations information system. For example, having one central copier system replaces the need to have several such systems, serving the same purposes. In an organizational setting, employees may access one central PC to read faxed messages instead of using different machines for the same purpose.

This way, it is easy to see how integrated information systems help to streamline company operations in an efficient manner. To people who actively engage in organizational operations (such as staff), integrated information systems help to reduce the time needed to gain access to information, reduce the tasks needed to gain access to information, reduce the paperwork needed in an organization, provides a secure system that protects data. Employees therefore have a broader picture of organizational activities.

Conclusion

Integrated information systems are pivotal to the future development of most companies/industries. More so, the importance of integrated information systems in todays globalized world is profound because companies increasingly face an increased flow of information from various operational centers.

Therefore, as companies continue to expand their outreach throughout the world, integrated information systems help them to organize and streamline their activities for increased efficiency. This efficiency comes with less time wastages and cost saving advantages. Indiscriminately, integrated information systems offer these advantages to most types of organizations, irrespective of the industry.

This paper also shows that different organizations adopted integrated information systems with huge success. This paper gives examples of the adoption of this technology in the construction and technology industries. The paper also demonstrates how integrated information systems work at an institutional level (World Bank).

The adoption of integrated information systems at Canon provides a classic example of how companies may improve their competitive edge and become industry leaders at the same time. Indeed, through the adoption of integrated information systems, Canon has been able to support other companies in developing sophisticated industry standards in product development.

Through such an inter-organizational approach, integrated information systems provide a workable tool for industry development. Albeit successful, the adoption of integrated information systems in the construction industry shows that the implementation of technology platforms mirror the same challenges facing the introduction of other technologies in the organization.

The acceptability of an integrated information system surfaces as an important challenge for companies that intend to introduce this system as part of its organizational process. Concisely, it would be fruitless to introduce the system if the users are not going to appreciate it. To this extent, this paper proposes the incorporation of different stakeholders before introducing integrated information systems in organizations.

Similarly, this paper proposes the proper assessment of the implications of adopting integrated information systems in the organization because its introduction requires more time, money, and technical knowhow to integrate the system in the organization. Comprehensively, as companies enjoy the endless advantages of embracing integrated information systems, they need to assess the pros and cons of doing so.

References

Arshad, S. (2008). Systemic Problems in Information Technology Adoption and Use: A Systems Thinking Perspective. Sydney: Edith Cowan University.

Business Case Studies. (2012). Integrated information systems: seeing the whole picture. Web.

Dikba_, A. (2004). Ework and Ebusiness in Architecture, Engineering and Construction: Proceedings of the 5th European Conference on Product and Process Modelling in the Building and Construction Industry Ecppm 2004, 8-10 September 2004, Istanbul, Turkey. London: Taylor & Francis.

Joshi, K. (1998). Cross Functional Integration: The role of Information Systems. Journal of Information technology Management, 9(3), 21-28.

Lee, J. (2004). Evaluating business process-integrated information technology investment. Business Process Management Journal, 10(2), 214 233.

Naumann, F. (2002). Quality-Driven Query Answering for Integrated Information Systems. New York: Springer.

Rainer, K. (2010). Introduction to Information Systems: Enabling and Transforming Business. London: John Wiley & Sons.

Ranjan, S. (2011). AERIS: an integrated domain information system for aerospace science and technology. Program: electronic library and information systems, 45(2), 199 212.

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