March 1997, Volume 1, No. 1 What is a Systems Integrator? Who Knows?

For one thing, most SIs are not interested in limiting themselves to manufacturing. Instead, they place themselves into the category of "information systems integrators." That allows a lot of room for expansion and cross-industry operation. Banks and telecommunication companies are just as in need of information systems integration as manufacturing companies. When I see my monthly statements, I think they both may need it more.

Some companies do focus on manufacturing. Indeed, some are so closely associated with the shop floor that you might not think of them when doing an "enterprise" system project. That could be a mistake as companies such as Allen-Bradley and Siemens Automation are much more versatile than one might suspect from their traditional roots. After all, the programmable controllers these two giants are known for represent one of the earliest excursions of computer technology onto the shop and into the manufacturing enterprise. Don't be surprised when the control and instrument companies become major players in "information systems integration." Come to think of it, they already are.

In response to our query, "What is a systems integrator?" we got one answer that, without knowing the source, could have been written by a manufacturing pundit, if there was such a thing. Remember, this comes from someone on the inside, at MCI Systemhouse!

"The computer services industry is replete with a mind-numbing array of terminology which can plunge even the most bit and byte-savvy geek's propeller beanie into acronym-induced overload. Not so when it comes to the distinctions between systems integrators, VARs and technology consultants. Technology consultants came to the fore during the 1960s as time-share companies &emdash; those firms which housed massive, water-cooled mainframe computers on raised floors -- began to lose business because their clients brought systems in-house. The proud new owners of such equipment still needed outside consultative advice on system development, system operation and troubleshooting from technology consultants.

"Technology consultants have expanded the number of services they provide to include systems integration expertise which facilitates the creation of enterprise-wide systems of disparate technologies. Systems integrators, irrespective of brand name or vendor affiliation, expertly link together systems uniquely configured to address the specialized computing requirements of their clients.

"VARs, or value-added resellers, generally provide smaller-scale integration expertise tailored toward a particular industry or vertical market such as manufacturing, health care or finance. Unlike systems integrators, most VARs maintain strong ties with particular hardware and/or software vendors, often at the expense of providing objective solutions that best meet a customer's needs.

"Systems integrators as well often offer specialized expertise geared toward particular markets, whether industry, technology or function-oriented. Working with its MCI Communications Corp. parent, MCI Systemhouse strongly maintains its 'best customer interest' focus while extending a traditional systems integrator's offerings to include CTI expertise and solutions addressing the specialized needs of key clients."

Since SIs are often industry-focused, we turned to an industry-focused company with a new SI business unit. Ralph Zak, VP of marketing at Consilium, a major player in the world of process manufacturing, offers this discourse on SIs and their competitors within the specialized semi-conductor arena.

"The systems integrator typically performs two key functions in our business model for the semiconductor industry. Those functions are project management of the automation project and implementation at the detail level. In the modern automated semiconductor fab or foundry, the general manufacturing operations are managed by manufacturing execution systems (MES) software like our WorkStream DFS product line. WorkStream needs to have direct links to automated process equipment to track its activity, download recipes, and to link control functions to execution. These interfaces are historically developed over and over for each new plant. Our internal SI business will build standard, re-usable interfaces to the major process equipment supplier software and control systems.

"The other major elements will be linking MES to material handling systems to track the status of the equipment and to track the movement of materials through the systems, linking MES to reticle management systems, to material control systems, etc. All these interfaces need to be written and documented either as standard products or as custom software by the SI.

"A 'consultant' is someone who may be brought in to advise the plant owner on how the plant should operate, or may be used to write some of the interfaces if the customer manages the project. A 'VAR' is someone who is selling a particular product of a third party in conjunction with their own value-added products or services. Consilium acts as a VAR in distributing certain third-party automation software and database software on its SI projects, but we do so even when we do not take the SI responsibilities for project management or integration of the various applications for a particular plant.

"The value added of the SI is the taking of the responsibility (and risk) for the success of the automation project. A plant owner could manage the project by purchasing all the component software and equipment and writing or hiring contractors to write the integration software of all the elements. What Consilium is doing in the semiconductor automation arena is not dissimilar from what the Big Six do in the ERP world."

Although relatively new in the SI business, Consilium is moving quickly. Zak added, "We have several projects underway in Taiwan and two other major projects, one with Anam Semiconductor in Korea and another for which we do not yet have customer authorization to release their name."

And there is one of the problems in this side of the business: disclosure. Systems integrators are often on the leading edge of implementing systems in very serious competitive environments. As such, they are hesitant to disclose anything that will give their client's competitors an insight to what is being done. So we have big companies and small with important projects underway or recently completed that, for many reasons, can't talk about them. Makes for an interesting discussion: "Yes, we are a major SI but we can't prove it because our major clients refuse to let us." In the immortal words of Richard Nixon, "Trust me!"

One SI firm that is willing to discuss a specific project is Claremont Technology Group. Soren Andersen is Claremont's project director for Merix, a printed circuit board (PCB) manufacturer in Oregon. In discussing the general question of what makes a company a systems integrator, Andersen responded, "A systems integrator will typically provide a broad scope of services to its clients. Systems integration usually represents some automation of business processes through the use of computer systems, and incorporation of that automation into the normal business operations, to achieve a desired change. The market has driven the professionals involved in systems integration to go beyond the bare bones package implementations that the name implies, to include a range of consulting services. Systems integration and consulting go beyond the scope of the typical VAR as well. Systems integrators and consulting firms are typically able to evaluate a broad range of vendor offerings in an unbiased fashion rather than being limited to a select few. In the manufacturing environment, there are a number of ways to achieve a desired change through system work and the systems integrator should be open to them all."

When asked to discuss some specific cases, Andersen answered, "At Claremont we have helped a number of manufacturing clients in different ways. There are clients that have relatively straightforward manufacturing needs, and see a package solution as a way to achieve a benefit while having lower maintenance and support costs than a custom developed system might require. This is the case at Lucent Technologies, where Claremont is managing the implementation of a predominately Oracle-based package solution, to yield productivity improvements and smooth operations flow on the factory floor. Claremont also assists where Lucent is utilizing another package vendor, SAP, for divisions where that package's functionality set has a better match to operations. Both of these systems provide prompt benefits to business operations, and have the advantage of standardization to help keep ongoing costs in check.

"Other clients desire a specific competitive advantage, and a package solution for them would not provide the distinction. This is the situation at Merix, a manufacturer of high performance PCBs. They rely on their distinct manufacturing techniques for success, and will not change them to accommodate the constrained functionality that a package would provide. Claremont delivered a custom, state of the art integrated manufacturing execution system to satisfy their specific needs. Working in a partnership with Merix, Claremont managed the process of integrating business processes, technical products, and people to implement this large client/server system, a mission critical system servicing multiple sites with hundreds of users."

Since Andersen is the project director at the Merix operation, we asked about it. "The ability to properly execute a client/server systems integration project of this size rests on several factors: knowing the customer's business needs, providing an experienced team with the appropriate technical expertise, and applying client/server project management expertise. Claremont evaluated the business processes of multiple functional areas and sites within Merix. Key customer business processes, which are traditionally embodied in separate systems, were integrated (e.g., order processing through WIP tracking). Multi-site practices were consolidated into one common system delivering a broad range of functionality to all sites. In addition, interfaces were established, leveraging information to and from financial and MRP systems.

"Client/server technology requires a high degree of integration due to the fact that client/server components, both hardware and software, are usually from an array of different vendors (e.g. Microsoft, Oracle, Hewlett Packard). Contrast this against the monolithic systems of the past where a company could deal primarily with one or two vendors. In order to integrate the wide array of hardware, software, and networking components at Merix, Claremont brought in a team that was well versed not only in the components but also in how the different components will or will not work together."

What are the vital elements in a successful implementation? "Project management plays a critical role in planning, controlling and executing a successful implementation," Andersen replied. "In addition to managing the development cycle, Claremont also managed activities such as conversion from legacy systems, training of users and deployment of teams across different time zones. A consistent and repeatable project management methodology was used throughout the project to keep all activities synchronized and on schedule. For example, Claremont delivered the custom system on-time and on-budget by combining analytical expertise within the manufacturing arena, client/server development expertise, and project management. The custom developed manufacturing execution system, in this case, ensures that Merix will maintain a competitive advantage over its competitors.

"Systems integration brings together people, resources, business processes, technical products and project management methods to deliver IT solutions. Whether the choice is a package implementation or the development of a custom solution, systems integrators will use these techniques in achieving the customer's objectives."

In this competitive marketplace, the customer comes first with systems integrators. After all, SIs are an extension of the customer's operations during that critical time when the new is replacing the old, higher tech is moving older systems out and the whole company is vulnerable to catastrophe.

It's comforting to know that the SI will take the responsibility for the success of the project. We'll examine more of the SI philosophy in future issues to seek out the common ground among these uncommon companies.