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Evaluating the integration of supply chain
information systems: A case study
Marinos Themistocleous a
, Zahir Irani a,*, Peter E.D. Love b
a
Information Systems Evaluation and Integration Network Group (ISEing), Department of Information Systems and Computing,
Brunel University, Uxbridge UB8 3PH, UK
b
We-B Centre, School of Management Information Systems, Edith Cowan University, Churchlands, Perth, WA 6018, Australia
Available online 6 November 2003
Abstract
Supply chain management (SCM) is the integrated management of business links, information ļ¬‚ows and people. It is
with this frame of reference that information systems integration from both intra- and inter-organisational levels be-
comes signiļ¬cant. Enterprise application integration (EAI) has emerged as software technologies to address the issue of
integrating the portfolio of SCM components both within organisations and through cross-enterprises. EAI is based on
a diversity of integration technologies (e.g. message brokers, ebXML) that diļ¬€er in the type and level of integration they
oļ¬€er. However, none of these technologies claim to be a panacea to overcoming all integration problems but rather,
need to be pieced together to support the linking of diverse applications that often exist within supply chains. In ex-
ploring the evaluation of supply chain integration, the authors propose a framework for evaluating the portfolio of
integration technologies that are used to unify inter-organisational and intra-organisational information systems. The
authors deļ¬ne and classify the permutations of information systems available according to their characteristics and
integration requirements. These, classiļ¬cations of system types are then adopted as part of the evaluation framework
and empirically tested within a case study.
 2003 Elsevier B.V. All rights reserved.
Keywords: Supply chain; Enterprise application integration; Evaluation
1. Introduction
Many deļ¬nitions exist in the normative litera-
ture for supply chain management. A deļ¬nition
reported by Lambert and Cooper [14] supports
better the issues discussed in this paper. According
to this deļ¬nition
Supply chain management is the integration of
key business processes from end user through
original suppliers that provides products, ser-
vices and information that add value for cus-
tomers and other stakeholders.
Lambert and Cooper [14, p. 66]
A supply chain can be described as a network of
relationships/connections between partners such as
suppliers and customers. Many authors including
Gunnarsson and Jonsson [9] have seen increased
collaboration among the partners of a supply
*
Corresponding author. Tel.: +44-1895-816211; fax: +44-
1895-816242.
E-mail address: zahir.irani@brunel.ac.uk (Z. Irani).
0377-2217/$ - see front matter  2003 Elsevier B.V. All rights reserved.
doi:10.1016/j.ejor.2003.08.023
European Journal of Operational Research 159 (2004) 393ā€“405
www.elsevier.com/locate/dsw
chain as a signiļ¬cant element in improving the
management of the chain. Kalakota and Robinson
[13] suggest that signiļ¬cant improvements in sup-
ply chain management can be achieved through
the integration of business processes and infor-
mation ļ¬‚ows of the trading partners. Some of the
beneļ¬ts that are associated with the integration of
supply chain systems include (a) gaining competi-
tive advantage; (b) reducing operational costs and
(c) achieving better collaboration and coordina-
tion among supply chain partners.
The integration of IS applications is an obstacle
to many businesses, as supply chain partners
consist of independent systems, that in many cases
can not communicate one another. These auton-
omous and in many cases heterogeneous systems
are historically not designed to collaborate with
other applications, as supply chain partners have
tended to develop their own systems independently
and without any coordination. However, this
strategy may result in a lack of enterprise archi-
tecture, common deļ¬nitions, structures, protocols
and business concepts [6]. This is further compli-
cated by information systems being based on a
plethora of diļ¬€erent standards, computing lan-
guages, platforms and operating systems, which
cause various integration problems such as in-
compatibility. There is also the complexity of ex-
isting information systems, which in many cases
have ļ¬xed and rigid structures for messages, in-
terfaces and databases. Moreover, there is a lack
of documentation, especially as legacy systems
have often emerged over the time without any
focus strategy. Many legacy systems have existed
in organisations for more than 25 years and their
technical documentation was either not created or
lost during the years. As a result, the integration of
applications along a supply chain is a diļ¬ƒcult and
complex task.
Intra and inter-organisational integration is
increasingly being achieved through enterprise
application integration (EAI), which incorporates
functionality from disparate applications and
leads to cheaper, more functional and manageable
IT infrastructures [13,16,26]. Application integra-
tion is based on a diversity of technologies such as
message brokers, adapters and ebXML to incor-
porate systems. These technologies achieve inte-
gration at diļ¬€erent levels i.e. data, message, object,
interface and/or process level. Nevertheless, there
is no single integration technology that eļ¬ƒciently
supports all integration levels [6,21]. Clearly, some
integration technologies are more eļ¬€ective at one
level of integration where others are at another.
Therefore, a permutation of EAI technologies may
be needed to overcome integration problems.
However, there remains much confusion regarding
the permutations of integration technologies that
can be used to piece together information systems.
The reason for this is that there are integration
technologies that overlap in functionality but diļ¬€er
in the quality (e.g. portability, ļ¬‚exibility, scalabil-
ity) and eļ¬ƒciency of their solutions. Moreover, the
majority of applications that are pieced together
diļ¬€ers in integration requirements, which means
that the permutation of integration technologies is
not only based on their functionality, but also on
integration requirements and constrains.
This paper investigates the integration of supply
chain management systems through EAI technol-
ogies. In doing so, Section 2 reviews the literature
on supply chain management. Section 3 introduces
EAI with Section 4 introduces the evaluation
framework for assessing integration technologies.
In Section 5 the proposed framework is tested
through the use of empirical data.
2. Supply chain management
The need for improvements in supply chain
management is not a new one but has existed for
some time. During the last 20 years, organisations
have achieved savings for supply chains through
business process reengineering (BPR) and just-
in-time techniques. According to Gjerdrum et al.
[8] such approaches focus at a single-enterprise
level and therefore, while lacking of focus on the
multi-enterprise supply chain optimization.
Many authors have discussed the issue of multi-
enterprise collaboration to improve supply chain
management. According to DƕAmours et al. [4] a
collaborative approach is more proļ¬table than
other alternatives. However, DƕAmours et al. [4]
mention that the impact of information sharing in
networked organisations needs to be fully under-
394 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
stood. The reasons for this are that many para-
meters such as strategy, control and human and
organisational are aļ¬€ected by the sharing of in-
formation and business processes. Some of these
factors may lead to conļ¬‚icts among the staļ¬€ or/
and the departments of a single organisation or
between the departments of coupling partners [25].
Clearly, this is a research issue that should be
further analysed and understood without restrict-
ing the adoption of integrated supply chain sys-
tems.
DƕAmours et al. [4] advise that inter-organisa-
tional systems should be implemented to facilitate
the electronic exchange of information ļ¬‚ows. In
support of this, Thonemann [30] suggests that in-
formation sharing is a signiļ¬cant area which is
related with improvements in supply chain man-
agement. Typical information sharing practices
include production schedules, demand forecasts
and sharing of point-of-sale data. Integration of
such information ļ¬‚ows may result in handling high
degrees of complexity.
The need for integrating supply chains has been
explored by Bartezzaghi [1] and Spekman et al.
[23], who suggest a more integrated and collabo-
rative business model with a delegation of core
processes. Such an approach could allow organi-
sations to combine local and global information to
obtain multi-focused, ļ¬‚exible processes. In addi-
tion, Spekman et al. [23], Gattorna [7] and Chris-
topher [3] suggest that the integration of supply
chains at a multi-enterprise level results in a
competitive advantages and increases the overall
performance of the supply chain.
Gattorna [7] states that information technology
(IT) and their associated systems have transformed
the way companies use their supply chain, conse-
quently resulting in competitive diļ¬€erentiation.
Similarly, Christopher [3] suggests that future
competition will not be company against company
but rather, supply chain against supply chain. This
clearly presents interesting challenges when it co-
mes to the integration of intra- and inter-organi-
sational supply chain systems. As companies
strengthen their relationships and collaborate at
an inter-organisational level, the chain itself gains
more links and therefore, increases management
and coordination eļ¬€orts.
An enterprise is no longer viewed as a single
corporation; it is a loose collection of trading
partners that can contract with manufacturers,
logistics companies, and distribution organisations
[12,13]. Therefore, a comprehensive integration of
business processes and both intra- and inter-
organisational applications is required to support
long-term coordination, survival and growth. Such
integration increases the automation of business
processes and signiļ¬cantly reduces manual tasks,
redundancy of data and functionality. Also, an
integrated inter-organisational IT infrastructure
signiļ¬cantly reduces costs (e.g. maintenance,
management, operational) and supports the
achievement of competitive advantages through
improving real-time response.
3. Integrating the supply chains through enterprise
application integration
For many years, organisations have focused on
electronic data interchange (EDI) technology to
improve the automation of inter-organisational
business processes and supply chains. Although
organisations have gained signiļ¬cant beneļ¬ts from
the use of EDI, they turned to the use of the
Internet due to EDI limitations (e.g. high cost,
non-ļ¬‚exible technology) [24]. However, not all
information systems can be integrated over the
Internet (e.g. legacy systems) [15].
During the 1990s, enterprise resource planning
(ERP) technology was introduced as an integrated
approach to systems integration. ERP systems
support generic processes that attempt to integrate
the supply chains. At intra-organisational level
this can be achieved more easily in cases where
enterprises replace most of there IS with ERP
modules. In such a scenario, ERP systems provide
an integrated environment that supports supply
chain management. As a result, ERP systems can
improve customersƕ and suppliersƕ satisfaction and
increase overall productivity. However, ERP sys-
tems have their own limitations as these sys-
tems need to be customised to fully support
business processes and supply chains. Customisa-
tion is a diļ¬ƒcult task that causes signiļ¬cant
integration problems as ERP systems are complex,
M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 395
non-ļ¬‚exible and often not designed to collaborate
with other autonomous applications. According to
a survey published by Themistocleous et al. [28]
companies experience signiļ¬cant diļ¬ƒculties when
they customise (72%) or integrate (82%) their ERP
systems with existing IS solutions. In addition,
ERP systems co-exist along side other IS and thus,
the integration of intra- and inter-organisational
supply chains remains a signiļ¬cant problem for the
majority of companies.
As the demand for integrating both intra- and
inter-organisational systems and supply chains
emerges, there is a need to use a technology that
addresses integration problems and achieves busi-
ness processes integration. This can be achieved
through EAI that eļ¬ƒciently integrates functional-
ity from disparate systems of a supply chain. As
illustrated in Fig. 1, supply chain partners like
producers, wholesalers, retailers and customers
can use EAI technology at both intra-organisa-
tional and inter-organisational level.
ā€¢ EAI can be used to piece together all intra-
organisational applications of supply chain
partner (e.g. producer). In doing so, a common
integrated IT infrastructure is build based on
EAI technology. Then, all the applications like
orders, production, shipping, inventory, etc.
are integrated with EAI infrastructure. Such
an infrastructure allows the members of an in-
ternal supply chain to exchange data as well
as to better coordinate and integrate the tasks
of their chain.
ā€¢ At inter-organisational level, all the members of
a supply chain like wholesalers, producers, cus-
tomers and retailers build a common EAI archi-
tecture that uniļ¬es all the IS that automate their
supply chains. As a result, they connect their in-
ternal EAI infrastructures with the external. A
critical issue that should be addressed at both
levels deals with the control and the ownership
of the business processes of a supply chain. This
issue is in accordance with supply chain litera-
ture as it well discussed by many authors like
Bartezzaghi [1], DƕAmours et al. [4].
The type (loose, tight) of the integration forms
another critical issue that should be addressed by
organisations when taking decisions for integrat-
ing their supply chains. Based on these two types
of integration supply chain partners can form: (a)
loose-coupled training partnerships through which
share information or (b) tightly integrated chains
where there is a higher degree of process depen-
dency. The diļ¬€erences among the types of
integration are well discussed in literature with
Themistocleous and Irani [27] summarising these
in Table 1.
On the tight type, integration is signiļ¬cant fac-
tor, with a number of enterprises sharing common
data and processes. In this case, enterprises at-
tempt to function as one (virtual) organisation.
For instance, a food retailer and its suppliers in-
tegrate their IT infrastructures to control and im-
prove promotion management. Suppliers might
gain access to retailer IT infrastructure and re-
trieve information relating to their own products
and promotions. Suppliers could analyse the
availability and sales of their products, and replace
them according to the agreement they have with
Orders
Production
Inventory
Shipping
EAI
PRODUCER
Finance
Suppliers
Marketing
Customers
EAI
WHOLESALER
Orders
Stocks
Invoices
Sales
EAI
RETAILER
Legacy 1
ebusiness
ERP
Legacy x
EAI
CUSTOMER
S
U
P
P
L
Y
C
H
A
I
N
I
N
T
E
G
R
A
T
I
O
N
EAI
Fig. 1. Supply chain integration through EAI technology.
396 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
the retailer. In such a scenario, both suppliers and
retailer share common business processes and IT
infrastructures.
From a technical perspective, Themistocleous
et al. [29] propose that EAI is achieved at three
integration layers namely:
ā€¢ Transportation layer, which transfers the infor-
mation from source application to the integra-
tion infrastructure and from the latter to the
target application.
ā€¢ Transformation layer that translates the infor-
mation from source application format to target
system structure.
ā€¢ Process automation layer, which integrates the
business processes and controls the integration
mechanism.
Application elements like data, objects and
processes are transferred from the source applica-
tion to the target through the integration layers.
The source and target applications can be systems
that are based on packaged (e.g. ERP), custom
(e.g. legacy) and e-business (e.g. e-store) catego-
ries. The authors have conducted an extensive re-
view of the normative literature and analysed 15
case studies (e.g. General Motors, Bosch Group,
Fujitsu Corporation). In doing so, identifying
the permutations of system types that are pieced
together in inter-organisational supply chains.
Table 2 illustrates that organisations integrate the
three aforementioned system types (custom,
packaged and e-business solutions) by making all
(seven) unique permutations. Based on these per-
mutations, the authors deļ¬ne classiļ¬cations of
system types that are integrated a supply chain
with Table 2 explains these classiļ¬cations.
4. Evaluation framework
This paper has highlighted that integration is an
obstacle for most organisations, yet many tech-
nologies claim to overcome integration problems.
However, it appears that there is no single inte-
gration technology (e.g. ebXML, .net) that sup-
port all integration problems. Therefore,
permutations of integration technologies can sup-
port inter-organisational EAI. However, since
there are many technologies available there is a
resulting large number of permutations available
to support integration eļ¬€orts. The authors of this
paper therefore propose a framework to support
the selection of appropriate permutations of inte-
gration technologies when organisations seek to
integrate one or more classiļ¬cations of system
types.
Table 1
Loose and tight type of integration
Loose integration Reference
Focuses on exchangingā€“sharing data among partners Kalakota and Robinson [13]
Low degree of processes dependency Loinsky [18]
Low degree of integration Brown [2]
The development of a homogeneous integrated cross-enterprise infrastructure is not
important
Helm [10]
Asynchronous communication Puschmann and Alt [20]
Tight integration Reference
Focuses on integrating cross-enterprise business processes and systems Themistocleous et al. [28]
Highest degree of processes dependency Kalakota and Robinson [13]
High degree of integration Brown [2]
The development of a homogeneous integrated cross-enterprise infrastructure is
important
Helm [10]
Synchronous communication Puschmann and Alt [20]
Source: Themistocleous and Irani [27].
M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 397
Table 2
Classiļ¬cations of system types that are integrated
Classiļ¬cations of system types Description
Custom-to-custom
integration
Intra-organisational EAI requires the integration of applications on both enterprise and cross-
enterprise level. In incorporating all required systems, many custom applications like legacy
applications and data warehouses are integrated in a common infrastructure, to fully automate
business processes. As custom systems were not developed to collaborate with other systems, they
have limited points of access-integration. In particular, databases and user interfaces are the only
possible points of integration in the majority of custom applications. A typical scenario of this
classiļ¬cation could be the incorporation of legacy systems that deal with promotions management
(e.g. stocks, suppliers accounts). In this case, data from databases and user interfaces should be
extracted and sent from one organisation (e.g. retailer) to another (e.g. supplier). Therefore,
technologies that extract data from a database or a screen are needed to support this classiļ¬cation
of systems
Custom-to-packaged
integration
This is a common approach when organisations adopt EAI since packaged applications like ERP
systems have in many cases failed to achieve integration and co-exist alongside custom
applications. A typical scenario of this type could be the integration of a legacy system that deals
with production, and an ERP module that handles customer orders or suppliersƕ details/accounts.
Although, ERP systems were not designed to incorporate other autonomous applications, a
diversity of approaches techniques and tools can be used to achieve integration between ERP
systems and disparate applications. From a technical perspective, the incorporation of ERP
systems can be achieved on various levels including data, objects/components, and at an interfaces
level
Custom-to-e-business
integration
Many e-business solutions require close collaboration with legacy applications to support e-
business enabled processes and tasks. As a result, custom applications (e.g. stocks) are
incorporated with ebusiness systems to integrate and automate inter-organisational business
processes. Likewise, in many cases the functionality of an ebusiness solution is used to support
custom systems. For instance, an e-store updates a custom system that deals with stock
availability. The information provided by the e-business solution is critical not only for the
functionality of stock application but also for the whole supply chain as it supports the automation
and integration of speciļ¬c business processes. Technologies that support the incorporation and
exchange of data, objects, and interfaces are required to support this classiļ¬cation of systems
Packaged-to-packaged
integration
In this case disparate packaged systems such as diļ¬€erent versions of an ERP system or diļ¬€erent
ERP modules that exist in one organisation are uniļ¬ed into a common integrated infrastructure.
APIs are provided by ERP systems to allow other applications to access ERPs functionality or
data. Data, messages or objects can be inputted or outputted to an ERP system through APIs.
Therefore, the packaged to packaged incorporation requires APIs as well as technologies that
support the extraction and transmission of data, messages and objects
Packaged-to-e-business
integration
Organisations take advantage of EAI and electronic commerce technology when they integrate
their e-business solutions with packaged applications as ERP systems can be used as back-oļ¬ƒce
system to support the e-business functionality (front-end application). In this case, processes that
deal with e-sales, e-procurement and e-supply chain management are integrated with packaged
systems. E-business applications are often based on distributed object technologies (DOT) (e.g.
enterprise Java beans, CORBA, DCOM/COM) and/or internet oriented languages/standards (e.g.
XML, HTML). Thus, technologies that piece together data, objects, interfaces and messages are
signiļ¬cant for the integration of packaged and e-business integration
Ebusiness-to-ebusiness
integration
In this approach, an e-business application is integrated and supports the functionality of another
e-business solution. For example an electronic point of sales is incorporated with e-supply chain
management to share data that are important for the latter application (e.g. customer orders,
customer details, etc.). The integration of e-business applications can be facilitated by message
based technologies (e.g. XML), distributed object technologies (e.g. CORBA), and database
oriented technologies (Java database connectivity, JDBC)
Custom-to-packaged-
to-e-business
integration
Such approach focuses on the development of an integrated infrastructure that integrates processes
and applications on departmental, enterprise or cross-enterprise level. The types of systems that
are incorporated require integration technologies that support all integration levels. Therefore,
technologies that facilitate the data, object, interface and message level are required
398 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
The proposed framework evaluates integration
technologies and thus, highlighting possible per-
mutations of integration technologies available. As
explained in Section 3 application elements (data,
objects, processes) are extracted from one appli-
cation and converted through the three integration
layers (transportation, translation and process
automation) before reaching the target applica-
tion. In addition, the systems that are integrated
follow one or more permutations of system types
described in Table 2. This indicates that applica-
tion elements, integration layers and classiļ¬cations
of system types that are integrated in inter-
organisational EAI should be adopted as evalua-
tion criteria of the proposed framework. The
explanation for this decision is that organisations
need to clarify which technologies support the in-
tegration of their supply chain systems. In doing
so, organisations need to investigate which tech-
nologies support the integration of application
elements, permutations of system types and inte-
gration layers. The proposed evaluation frame-
work is summarised in Table 3.
The ranking of integration technologies follows
a low (), medium (
f
), high (d) scale of ranking
similar to the scale used by Miles and Huberman
[19]. In addition, two other symbols are used for
ranking. The symbol ()) indicates that there is no
available information where the symbol (Ā·) codes
that an integration technology does not support
the integration of a speciļ¬c classiļ¬cation. Table 4
presents the proposed novel evaluation frame-
work. The assessment of integration technologies
in Table 4 is based on evidences derived from an
extensive literature review.
5. Case data and analysis
The authors of this paper conducted a case
study to test the proposed evaluation framework.
Since, the authors cannot generalise the data de-
rived from a single case study, they suggest that
the proposed framework will allow others to relate
their experiences to those reported herein. Hence,
this paper oļ¬€ers a broader understanding of the
phenomenon of EAI evaluation. The empirical
data presented here were collected using various
data collection methods such as interviews, docu-
mentation, and observation. The bias that is con-
sidered to be a danger in using a qualitative
research approach is overcome in this research
through data triangulation. For the purpose of this
paper, three types of triangulation are used
namely: (a) data [5]; (b) methodological and, (c)
interdisciplinary triangulation [11].
The company studied is a large multinational
that operates in more than 130 countries and its
annual turnover was ā‚¬33.8 billions. The authors
use the name PRODUCER to refer to this com-
pany. PRODUCER is divided into four business
units/sectors namely: (a) automotive equipment;
(b) communication technology; (c) consumer
goods and, (d) capital goods. It has an IT infra-
structure that consists of more than 2000 legacy
systems, 100 ERP applications and 125 e-business
modules. The company run a pilot project to test
whether EAI supports a robust IT infrastructure
that achieves: (a) closer collaboration with cus-
tomers and suppliers and, (b) better coordination
of business processes and supply chains. The pro-
ject was focusing on the integration of 12 business
processes including supply chain management,
customer and supplier relationship management.
At a technical level, EAI was adopted to piece
together PRODUCERƕs customers and suppliers
with its business units. For that reason, PRO-
DUCER developed one EAI infrastructure in each
business unit and one among business units, cus-
tomers and suppliers. As illustrated in Fig. 2, the
EAI infrastructure integrates the SAP R/3 system
with custom-built systems that deal with material
management. At an inter-organisational level, it
incorporates systems that are based at PRO-
DUCERƕs suppliers and customers and are used to
Table 3
Proposed evaluation criteria
Evaluation criteria
Application
elements
Integration
layers
Classiļ¬cation of system
types
ā€¢ Data
ā€¢ Objects
ā€¢ Processes
ā€¢ Transporta-
tion layer
ā€¢ Transforma-
tion layer
ā€¢ Process auto-
mation layer
ā€¢ Custom-to-custom
ā€¢ Custom-to-packaged
ā€¢ Custom-to-e-business
ā€¢ Packaged-to-packaged
ā€¢ Packaged-to-e-business
ā€¢ Custom-to-packaged-e-
business
M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 399
Table 4
Evaluation of integration technologies
Category of
integration
technolo-
gies
Integration
technolo-
gies
Evaluation criteria
Applications elements Integration layers Classiļ¬cations of system types
Data Objects Process Trans-
portation
Transla-
tion
Process
automa-
tion
Custom-
to-cus-
tom
Custom-
to-pack-
aged
Custom-
to-e-busi-
ness
Pack-
aged-to-
packaged
Pack-
aged-to-
e-busi-
ness
E-busi-
ness-to-
e-busi-
ness
Custom-
to-pack-
aged-to-
e-busi-
ness
Database
oriented
middleware
ODBC d    U 
f
f
f
d d d d
JDBC d    U  
f
f
f
f
d
f
Message
oriented
technolo-
gies
RPC U   d         
MOM U   d  
f
f
f
   
Message
broker
U  U d d d d d d d d d d
XML U U  d d    d d d d d
Transaction
based tech-
nologies
TPM U   U  
f
     
Application
serves
U U  U   
f
f
f
d d
f
Distributed
object tech-
nologies
CORBA U d ā€“ U U ā€“
f
f
f
d d d
f
DCOM/
COM
U d ā€“ U ā€“ ā€“ 
f
f
d d d
f
EJB U d ā€“ U ā€“ ā€“  
f
f
d
f
Interface
oriented
technolo-
gies
Screen wrap-
per
U U   U  d d d    d
APIs U U ā€“ ā€“ U ā€“ ā€“
f
 d d d d
Adapters U U   U  ā€“
f
f
d d d d
400
M.
Themistocleous
et
al.
/
European
Journal
of
Operational
Research
159
(2004)
393ā€“405
automate common business processes. SAP R/3
and its module that supports advanced planner
optimiser (APO) function in an integrated way,
since SAP R/3 is an integrated suite. This means
that all SAP modules are internally integrated with
the core system. Also, APO is uniļ¬ed with material
management and other systems (e.g. customers)
through the integration infrastructure.
5.1. Evaluation
The following subsection contributes towards
the assessment of the novel evaluation framework
that was proposed in Section 4. In achieving this,
those evaluation criteria considered to support the
assessment of integration technologies are identi-
ļ¬ed, when seen from a multiple-stakeholder per-
spective. These views were seen from those
stakeholders that were involved in the evaluation
and implementation of EAI, as it was not possible
to interview all stakeholders. The stakeholders
that were interviewed using a structure interviews
included: (a) an external consultant (EC); (b) an
integrator (Int.) and, (c) the project manager (PM)
of the project. In addition, a total of 8 other
stakeholders were also interviewed during the case
study (unstructured interviews).
Although the organisation has developed its
own evaluation framework when assessing inte-
gration technologies it was unable to provide any
information on its framework due to conļ¬denti-
ality reasons. Nonetheless, there is much confusion
regarding integration technologies, and the com-
pany has invested in time and knowledge to de-
velop its evaluation framework. Therefore, the
case company believes that the framework repre-
sents a kind of competitive advantage.
Interviewees were asked to identify the impor-
tance of the evaluation criteria and then, to assess
the integration technologies using the three cate-
gories of evaluation criteria (see Table 3). All in-
terviewees found the proposed framework as one
that allows them to clarify many diļ¬ƒculties in se-
lecting integration technologies. Nearly, all of
them pointed out the importance of criteria such
as the types of systems that are integrated or the
integration layers. However, not all interviewees
share the same perceptions regarding the integra-
tion of custom-to-custom applications. External
consultant reported that this is of low signiļ¬cance
with project manager and integrator saying that it
is of medium and high importance, respectively.
The external consultant reported that custom-to-
custom applications incorporation (as a criterion)
EAI - Integration Infrastructure
Customer 1 Customer x Supplier 1 Supplier x
Business Unit 1
SAP R/3
Material
Managemen
t
Material
Managemen
t
Material
Management
SAP APO
Business Unit x
SAP R/3
Material
Managemen
t
Material
Managemen
t
Material
Management
SAP APO
Multiple
Custom systems
Multiple
Custom systems
Fig. 2. Pilot projectā€“supply chain integration.
M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 401
is not important for their organisation, since this
type of integration is required in only a few cases.
Interviewees mentioned that organisations should
not focus on one or another category of evaluation
criteria when assessing integration technologies
but, take all of them into consideration. More
speciļ¬cally external consultant said that
All sets of criteria are too important for the
evaluation of integration technologies. I believe
that organisations have to consider all these cri-
teria and assess technologies in a similar way.
In addition, interviewees found the proposed
framework very helpful and they reported that it
improves IT sophistication and supports decision
making for EAI adoption. The reasoning is that
the proposed framework supports decision-
making and allows the IT departments, to better
understand the capabilities of integration tech-
nologies, as well as their integration requirements.
Moreover, they express their intention to adopt
the proposed framework.
Then interviewees were asked to evaluate the
integration technologies using the three catego-
ries of criteria identiļ¬ed in Section 4. The in-
tervieweesƕ evaluation results show that there is
no single technology that supports the integra-
tion of all applicationsƕ elements. This is in ac-
cordance with literature ļ¬ndings like Sharma et
al. [22] and, indicates that a combination of
technologies is required to facilitate the integra-
tion of data, objects and processes. When the
project manager was asked to comment his an-
swers he said:
Many technologies support the integration of
data, objects and processes. Some of these tech-
nologies such as message brokers and adapters
are more powerful solutions than others . . . It is
diļ¬ƒcult to say which is the best using this table
[Table 6]. First of all we have to understand
the applicability of each technology and thatā€™s
why we have to map them against integration
layers . . . Integration layers allow us to see
which technologies support a layer. In each
layer we have to seek for technologies that sup-
port all applications elements.
Thereafter, interviewees were asked to assess
integration technologies using the second category
of evaluation criteria (integration layers). The in-
terviewees reported that practically message bro-
kers are not used to support transportation layer
although they can support it. This is attributed to
that developers preferring to use message brokers
for the translation and process automation layer
and adopt other technologies for transportation
layer. In addition to the aforementioned integra-
tion layers, interviewees consider connectivity as an
integration layer. When an external consultant was
asked to explain more this perception, he said:
We consider connectivity as an important inte-
gration layer. This layer [connectivity] is
responsible for creating the connections-inter-
faces among the applications and the central
integration infrastructure. Through these con-
nections application elements are passed from
one system to the transportation layer. Then
transfers these elements to the central integra-
tion infrastructure where transformation and
process automation are taken place.
Then, interviewees were asked to assess the in-
tegration technologies based on the third category
of evaluation criteria (system types). Based on
their answers, it appears that message brokers
support the integration of all system types. This is
in line with both the literature [15,17,21,22] and
practice with EAI vendors using message brokers
as the main integration engine of their EAI solu-
tions. Adapters and XML appear to support all or
nearly all system types.
6. Concluding comments
This paper has highlighted the importance of
improving supply chain management through the
integration of business processes and information
systems. However, there remains no single inte-
gration technology that addresses all integration
problems. As a result, multiple permutations of
technologies need to be used to solve integration
problems. Yet, there is a plethora of IS with dif-
ferent integration requirements that need to be
402 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
integrated. This means that the permutation of
integration technologies used to unify applications
are not only based on their functionality but also
on integration requirements, and constrains of
existing IS infrastructures. Therefore, organisa-
tions are often left questioning how to navigate
through the permutations of integration technol-
ogies needed to integrate the disparate appli-
cations that often exist within businesses and
cross-enterprises.
This paper has introduced an approach to re-
duce the confusion surrounding inter-organisa-
tional application integration. In support of this,
the types of IS that are often integrated have been
classiļ¬ed as
(a) custom-to-custom;
(b) custom-to-packaged;
(c) custom-to-e-business;
(d) packaged-to-packaged;
(e) packaged-to-e-business;
(f) e-business-to-e-business and
(g) custom-to-packaged to e-business inter-organ-
isational EAI.
Through deļ¬ning the types of IS, much of the
confusion surrounding inter-organisational EAI
is reduced. The reason for this is that the generic
characteristics of each type and its integration
requirements are described. As a result, organi-
sations can more easily subsume their systems in
one or more of these classiļ¬cations and start
studying in detail their integration requirements.
To integrate their applications, organisations
need to select a number of integration technol-
ogies. In support of this, the authors propose an
evaluation framework to assess EAI technologies.
The framework correlates the capability of inte-
gration technologies to the types of information
systems that are pieced together in inter-organi-
sational EAI. The proposed framework con-
ļ¬rmed that
ā€¢ the classiļ¬cation of custom to custom EAI can
be integrated more eļ¬ƒciently when message
brokers and screen wrappers are used. In those
instances that custom applications allow access
to databases, ODBC drivers can also facilitate
the extraction and inputting of data from cus-
tom applications database.
ā€¢ the classiļ¬cation of custom to e-business appli-
cations can be integrated using a permutation
of XML, message brokers and screen wrappers
can be adopted to achieve integration. Nonethe-
less, CORBA or COM/DCOM can also accom-
modate the integration of this classiļ¬cation of
system types. CORBA and COM/DCOM can
be combined with XML to support objects inte-
gration.
ā€¢ in those instances that custom, packaged and e-
business solutions are integrated, Application
programming interfaces (APIs) can be com-
bined with XML, CORBA, COM/DCOM, mes-
sage brokers and screen wrappers to piece
application together.
To validate the proposed framework, the au-
thors conducted a case study. In doing so, allowing
others to relate their experiences to those reported
in above. It is not the intention of this section to
oļ¬€er prescriptive guidelines to the evaluation of
EAI technologies but rather, describe case study
perspectives that allow others to relate their ex-
periences to those reported. A number of conclu-
sions have been extrapolated from the empirical
data and include
ā€¢ The organisation took the decision to evaluate
integration technologies before the implementa-
tion of EAI projects. The company has devel-
oped an evaluation framework for the
assessment of integration technologies. It ap-
pears that the organisation invested money and
time to develop their frameworks, understand
and evaluate EAI technologies. Moreover, they
believe that such a framework is an important
decision-making tool that inļ¬‚uenced their deci-
sions to adopt EAI technology.
ā€¢ Empirical evidence indicates extensions to the
framework for the evaluation of integration
technologies proposed in Section 4. The organi-
sation suggested additional criteria for the pro-
posed framework included the connectivity
layer.
ā€¢ The proposed framework can be used as a deci-
sion-making tool and supports the adoption of
M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 403
integration technologies. In support of this, the
case company expressed its intention to adopt
the proposed framework, which indicates the
importance of such a framework.
The novelty of the proposed framework con-
tributes towards a better understanding of the
capabilities of each technology, and allows deci-
sion-makers to clarify the confusion surrounding
integration technologies. Such a framework can be
used as a frame of references to highlight possible
combinations of integration solutions that can
address the integration of information systems.
Also, the proposed framework improves IT so-
phistication since it contributes to understanding
the capabilities of integration technologies.
Acknowledgements
The authors are most grateful to anonymous
referees that have made numerous contributions to
the development of this paper. Also, the Guest
Editor, Prof. Gunasekaran for his helpful and
constructive comments, which improved this
manuscript. Finally, the authors would like to
acknowledge the Engineering and Physical Sci-
ences Research Council (EPSRC) Grant (GR/
R08025).
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  • 1. Evaluating the integration of supply chain information systems: A case study Marinos Themistocleous a , Zahir Irani a,*, Peter E.D. Love b a Information Systems Evaluation and Integration Network Group (ISEing), Department of Information Systems and Computing, Brunel University, Uxbridge UB8 3PH, UK b We-B Centre, School of Management Information Systems, Edith Cowan University, Churchlands, Perth, WA 6018, Australia Available online 6 November 2003 Abstract Supply chain management (SCM) is the integrated management of business links, information ļ¬‚ows and people. It is with this frame of reference that information systems integration from both intra- and inter-organisational levels be- comes signiļ¬cant. Enterprise application integration (EAI) has emerged as software technologies to address the issue of integrating the portfolio of SCM components both within organisations and through cross-enterprises. EAI is based on a diversity of integration technologies (e.g. message brokers, ebXML) that diļ¬€er in the type and level of integration they oļ¬€er. However, none of these technologies claim to be a panacea to overcoming all integration problems but rather, need to be pieced together to support the linking of diverse applications that often exist within supply chains. In ex- ploring the evaluation of supply chain integration, the authors propose a framework for evaluating the portfolio of integration technologies that are used to unify inter-organisational and intra-organisational information systems. The authors deļ¬ne and classify the permutations of information systems available according to their characteristics and integration requirements. These, classiļ¬cations of system types are then adopted as part of the evaluation framework and empirically tested within a case study. 2003 Elsevier B.V. All rights reserved. Keywords: Supply chain; Enterprise application integration; Evaluation 1. Introduction Many deļ¬nitions exist in the normative litera- ture for supply chain management. A deļ¬nition reported by Lambert and Cooper [14] supports better the issues discussed in this paper. According to this deļ¬nition Supply chain management is the integration of key business processes from end user through original suppliers that provides products, ser- vices and information that add value for cus- tomers and other stakeholders. Lambert and Cooper [14, p. 66] A supply chain can be described as a network of relationships/connections between partners such as suppliers and customers. Many authors including Gunnarsson and Jonsson [9] have seen increased collaboration among the partners of a supply * Corresponding author. Tel.: +44-1895-816211; fax: +44- 1895-816242. E-mail address: zahir.irani@brunel.ac.uk (Z. Irani). 0377-2217/$ - see front matter 2003 Elsevier B.V. All rights reserved. doi:10.1016/j.ejor.2003.08.023 European Journal of Operational Research 159 (2004) 393ā€“405 www.elsevier.com/locate/dsw
  • 2. chain as a signiļ¬cant element in improving the management of the chain. Kalakota and Robinson [13] suggest that signiļ¬cant improvements in sup- ply chain management can be achieved through the integration of business processes and infor- mation ļ¬‚ows of the trading partners. Some of the beneļ¬ts that are associated with the integration of supply chain systems include (a) gaining competi- tive advantage; (b) reducing operational costs and (c) achieving better collaboration and coordina- tion among supply chain partners. The integration of IS applications is an obstacle to many businesses, as supply chain partners consist of independent systems, that in many cases can not communicate one another. These auton- omous and in many cases heterogeneous systems are historically not designed to collaborate with other applications, as supply chain partners have tended to develop their own systems independently and without any coordination. However, this strategy may result in a lack of enterprise archi- tecture, common deļ¬nitions, structures, protocols and business concepts [6]. This is further compli- cated by information systems being based on a plethora of diļ¬€erent standards, computing lan- guages, platforms and operating systems, which cause various integration problems such as in- compatibility. There is also the complexity of ex- isting information systems, which in many cases have ļ¬xed and rigid structures for messages, in- terfaces and databases. Moreover, there is a lack of documentation, especially as legacy systems have often emerged over the time without any focus strategy. Many legacy systems have existed in organisations for more than 25 years and their technical documentation was either not created or lost during the years. As a result, the integration of applications along a supply chain is a diļ¬ƒcult and complex task. Intra and inter-organisational integration is increasingly being achieved through enterprise application integration (EAI), which incorporates functionality from disparate applications and leads to cheaper, more functional and manageable IT infrastructures [13,16,26]. Application integra- tion is based on a diversity of technologies such as message brokers, adapters and ebXML to incor- porate systems. These technologies achieve inte- gration at diļ¬€erent levels i.e. data, message, object, interface and/or process level. Nevertheless, there is no single integration technology that eļ¬ƒciently supports all integration levels [6,21]. Clearly, some integration technologies are more eļ¬€ective at one level of integration where others are at another. Therefore, a permutation of EAI technologies may be needed to overcome integration problems. However, there remains much confusion regarding the permutations of integration technologies that can be used to piece together information systems. The reason for this is that there are integration technologies that overlap in functionality but diļ¬€er in the quality (e.g. portability, ļ¬‚exibility, scalabil- ity) and eļ¬ƒciency of their solutions. Moreover, the majority of applications that are pieced together diļ¬€ers in integration requirements, which means that the permutation of integration technologies is not only based on their functionality, but also on integration requirements and constrains. This paper investigates the integration of supply chain management systems through EAI technol- ogies. In doing so, Section 2 reviews the literature on supply chain management. Section 3 introduces EAI with Section 4 introduces the evaluation framework for assessing integration technologies. In Section 5 the proposed framework is tested through the use of empirical data. 2. Supply chain management The need for improvements in supply chain management is not a new one but has existed for some time. During the last 20 years, organisations have achieved savings for supply chains through business process reengineering (BPR) and just- in-time techniques. According to Gjerdrum et al. [8] such approaches focus at a single-enterprise level and therefore, while lacking of focus on the multi-enterprise supply chain optimization. Many authors have discussed the issue of multi- enterprise collaboration to improve supply chain management. According to DƕAmours et al. [4] a collaborative approach is more proļ¬table than other alternatives. However, DƕAmours et al. [4] mention that the impact of information sharing in networked organisations needs to be fully under- 394 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
  • 3. stood. The reasons for this are that many para- meters such as strategy, control and human and organisational are aļ¬€ected by the sharing of in- formation and business processes. Some of these factors may lead to conļ¬‚icts among the staļ¬€ or/ and the departments of a single organisation or between the departments of coupling partners [25]. Clearly, this is a research issue that should be further analysed and understood without restrict- ing the adoption of integrated supply chain sys- tems. DƕAmours et al. [4] advise that inter-organisa- tional systems should be implemented to facilitate the electronic exchange of information ļ¬‚ows. In support of this, Thonemann [30] suggests that in- formation sharing is a signiļ¬cant area which is related with improvements in supply chain man- agement. Typical information sharing practices include production schedules, demand forecasts and sharing of point-of-sale data. Integration of such information ļ¬‚ows may result in handling high degrees of complexity. The need for integrating supply chains has been explored by Bartezzaghi [1] and Spekman et al. [23], who suggest a more integrated and collabo- rative business model with a delegation of core processes. Such an approach could allow organi- sations to combine local and global information to obtain multi-focused, ļ¬‚exible processes. In addi- tion, Spekman et al. [23], Gattorna [7] and Chris- topher [3] suggest that the integration of supply chains at a multi-enterprise level results in a competitive advantages and increases the overall performance of the supply chain. Gattorna [7] states that information technology (IT) and their associated systems have transformed the way companies use their supply chain, conse- quently resulting in competitive diļ¬€erentiation. Similarly, Christopher [3] suggests that future competition will not be company against company but rather, supply chain against supply chain. This clearly presents interesting challenges when it co- mes to the integration of intra- and inter-organi- sational supply chain systems. As companies strengthen their relationships and collaborate at an inter-organisational level, the chain itself gains more links and therefore, increases management and coordination eļ¬€orts. An enterprise is no longer viewed as a single corporation; it is a loose collection of trading partners that can contract with manufacturers, logistics companies, and distribution organisations [12,13]. Therefore, a comprehensive integration of business processes and both intra- and inter- organisational applications is required to support long-term coordination, survival and growth. Such integration increases the automation of business processes and signiļ¬cantly reduces manual tasks, redundancy of data and functionality. Also, an integrated inter-organisational IT infrastructure signiļ¬cantly reduces costs (e.g. maintenance, management, operational) and supports the achievement of competitive advantages through improving real-time response. 3. Integrating the supply chains through enterprise application integration For many years, organisations have focused on electronic data interchange (EDI) technology to improve the automation of inter-organisational business processes and supply chains. Although organisations have gained signiļ¬cant beneļ¬ts from the use of EDI, they turned to the use of the Internet due to EDI limitations (e.g. high cost, non-ļ¬‚exible technology) [24]. However, not all information systems can be integrated over the Internet (e.g. legacy systems) [15]. During the 1990s, enterprise resource planning (ERP) technology was introduced as an integrated approach to systems integration. ERP systems support generic processes that attempt to integrate the supply chains. At intra-organisational level this can be achieved more easily in cases where enterprises replace most of there IS with ERP modules. In such a scenario, ERP systems provide an integrated environment that supports supply chain management. As a result, ERP systems can improve customersƕ and suppliersƕ satisfaction and increase overall productivity. However, ERP sys- tems have their own limitations as these sys- tems need to be customised to fully support business processes and supply chains. Customisa- tion is a diļ¬ƒcult task that causes signiļ¬cant integration problems as ERP systems are complex, M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 395
  • 4. non-ļ¬‚exible and often not designed to collaborate with other autonomous applications. According to a survey published by Themistocleous et al. [28] companies experience signiļ¬cant diļ¬ƒculties when they customise (72%) or integrate (82%) their ERP systems with existing IS solutions. In addition, ERP systems co-exist along side other IS and thus, the integration of intra- and inter-organisational supply chains remains a signiļ¬cant problem for the majority of companies. As the demand for integrating both intra- and inter-organisational systems and supply chains emerges, there is a need to use a technology that addresses integration problems and achieves busi- ness processes integration. This can be achieved through EAI that eļ¬ƒciently integrates functional- ity from disparate systems of a supply chain. As illustrated in Fig. 1, supply chain partners like producers, wholesalers, retailers and customers can use EAI technology at both intra-organisa- tional and inter-organisational level. ā€¢ EAI can be used to piece together all intra- organisational applications of supply chain partner (e.g. producer). In doing so, a common integrated IT infrastructure is build based on EAI technology. Then, all the applications like orders, production, shipping, inventory, etc. are integrated with EAI infrastructure. Such an infrastructure allows the members of an in- ternal supply chain to exchange data as well as to better coordinate and integrate the tasks of their chain. ā€¢ At inter-organisational level, all the members of a supply chain like wholesalers, producers, cus- tomers and retailers build a common EAI archi- tecture that uniļ¬es all the IS that automate their supply chains. As a result, they connect their in- ternal EAI infrastructures with the external. A critical issue that should be addressed at both levels deals with the control and the ownership of the business processes of a supply chain. This issue is in accordance with supply chain litera- ture as it well discussed by many authors like Bartezzaghi [1], DƕAmours et al. [4]. The type (loose, tight) of the integration forms another critical issue that should be addressed by organisations when taking decisions for integrat- ing their supply chains. Based on these two types of integration supply chain partners can form: (a) loose-coupled training partnerships through which share information or (b) tightly integrated chains where there is a higher degree of process depen- dency. The diļ¬€erences among the types of integration are well discussed in literature with Themistocleous and Irani [27] summarising these in Table 1. On the tight type, integration is signiļ¬cant fac- tor, with a number of enterprises sharing common data and processes. In this case, enterprises at- tempt to function as one (virtual) organisation. For instance, a food retailer and its suppliers in- tegrate their IT infrastructures to control and im- prove promotion management. Suppliers might gain access to retailer IT infrastructure and re- trieve information relating to their own products and promotions. Suppliers could analyse the availability and sales of their products, and replace them according to the agreement they have with Orders Production Inventory Shipping EAI PRODUCER Finance Suppliers Marketing Customers EAI WHOLESALER Orders Stocks Invoices Sales EAI RETAILER Legacy 1 ebusiness ERP Legacy x EAI CUSTOMER S U P P L Y C H A I N I N T E G R A T I O N EAI Fig. 1. Supply chain integration through EAI technology. 396 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
  • 5. the retailer. In such a scenario, both suppliers and retailer share common business processes and IT infrastructures. From a technical perspective, Themistocleous et al. [29] propose that EAI is achieved at three integration layers namely: ā€¢ Transportation layer, which transfers the infor- mation from source application to the integra- tion infrastructure and from the latter to the target application. ā€¢ Transformation layer that translates the infor- mation from source application format to target system structure. ā€¢ Process automation layer, which integrates the business processes and controls the integration mechanism. Application elements like data, objects and processes are transferred from the source applica- tion to the target through the integration layers. The source and target applications can be systems that are based on packaged (e.g. ERP), custom (e.g. legacy) and e-business (e.g. e-store) catego- ries. The authors have conducted an extensive re- view of the normative literature and analysed 15 case studies (e.g. General Motors, Bosch Group, Fujitsu Corporation). In doing so, identifying the permutations of system types that are pieced together in inter-organisational supply chains. Table 2 illustrates that organisations integrate the three aforementioned system types (custom, packaged and e-business solutions) by making all (seven) unique permutations. Based on these per- mutations, the authors deļ¬ne classiļ¬cations of system types that are integrated a supply chain with Table 2 explains these classiļ¬cations. 4. Evaluation framework This paper has highlighted that integration is an obstacle for most organisations, yet many tech- nologies claim to overcome integration problems. However, it appears that there is no single inte- gration technology (e.g. ebXML, .net) that sup- port all integration problems. Therefore, permutations of integration technologies can sup- port inter-organisational EAI. However, since there are many technologies available there is a resulting large number of permutations available to support integration eļ¬€orts. The authors of this paper therefore propose a framework to support the selection of appropriate permutations of inte- gration technologies when organisations seek to integrate one or more classiļ¬cations of system types. Table 1 Loose and tight type of integration Loose integration Reference Focuses on exchangingā€“sharing data among partners Kalakota and Robinson [13] Low degree of processes dependency Loinsky [18] Low degree of integration Brown [2] The development of a homogeneous integrated cross-enterprise infrastructure is not important Helm [10] Asynchronous communication Puschmann and Alt [20] Tight integration Reference Focuses on integrating cross-enterprise business processes and systems Themistocleous et al. [28] Highest degree of processes dependency Kalakota and Robinson [13] High degree of integration Brown [2] The development of a homogeneous integrated cross-enterprise infrastructure is important Helm [10] Synchronous communication Puschmann and Alt [20] Source: Themistocleous and Irani [27]. M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 397
  • 6. Table 2 Classiļ¬cations of system types that are integrated Classiļ¬cations of system types Description Custom-to-custom integration Intra-organisational EAI requires the integration of applications on both enterprise and cross- enterprise level. In incorporating all required systems, many custom applications like legacy applications and data warehouses are integrated in a common infrastructure, to fully automate business processes. As custom systems were not developed to collaborate with other systems, they have limited points of access-integration. In particular, databases and user interfaces are the only possible points of integration in the majority of custom applications. A typical scenario of this classiļ¬cation could be the incorporation of legacy systems that deal with promotions management (e.g. stocks, suppliers accounts). In this case, data from databases and user interfaces should be extracted and sent from one organisation (e.g. retailer) to another (e.g. supplier). Therefore, technologies that extract data from a database or a screen are needed to support this classiļ¬cation of systems Custom-to-packaged integration This is a common approach when organisations adopt EAI since packaged applications like ERP systems have in many cases failed to achieve integration and co-exist alongside custom applications. A typical scenario of this type could be the integration of a legacy system that deals with production, and an ERP module that handles customer orders or suppliersƕ details/accounts. Although, ERP systems were not designed to incorporate other autonomous applications, a diversity of approaches techniques and tools can be used to achieve integration between ERP systems and disparate applications. From a technical perspective, the incorporation of ERP systems can be achieved on various levels including data, objects/components, and at an interfaces level Custom-to-e-business integration Many e-business solutions require close collaboration with legacy applications to support e- business enabled processes and tasks. As a result, custom applications (e.g. stocks) are incorporated with ebusiness systems to integrate and automate inter-organisational business processes. Likewise, in many cases the functionality of an ebusiness solution is used to support custom systems. For instance, an e-store updates a custom system that deals with stock availability. The information provided by the e-business solution is critical not only for the functionality of stock application but also for the whole supply chain as it supports the automation and integration of speciļ¬c business processes. Technologies that support the incorporation and exchange of data, objects, and interfaces are required to support this classiļ¬cation of systems Packaged-to-packaged integration In this case disparate packaged systems such as diļ¬€erent versions of an ERP system or diļ¬€erent ERP modules that exist in one organisation are uniļ¬ed into a common integrated infrastructure. APIs are provided by ERP systems to allow other applications to access ERPs functionality or data. Data, messages or objects can be inputted or outputted to an ERP system through APIs. Therefore, the packaged to packaged incorporation requires APIs as well as technologies that support the extraction and transmission of data, messages and objects Packaged-to-e-business integration Organisations take advantage of EAI and electronic commerce technology when they integrate their e-business solutions with packaged applications as ERP systems can be used as back-oļ¬ƒce system to support the e-business functionality (front-end application). In this case, processes that deal with e-sales, e-procurement and e-supply chain management are integrated with packaged systems. E-business applications are often based on distributed object technologies (DOT) (e.g. enterprise Java beans, CORBA, DCOM/COM) and/or internet oriented languages/standards (e.g. XML, HTML). Thus, technologies that piece together data, objects, interfaces and messages are signiļ¬cant for the integration of packaged and e-business integration Ebusiness-to-ebusiness integration In this approach, an e-business application is integrated and supports the functionality of another e-business solution. For example an electronic point of sales is incorporated with e-supply chain management to share data that are important for the latter application (e.g. customer orders, customer details, etc.). The integration of e-business applications can be facilitated by message based technologies (e.g. XML), distributed object technologies (e.g. CORBA), and database oriented technologies (Java database connectivity, JDBC) Custom-to-packaged- to-e-business integration Such approach focuses on the development of an integrated infrastructure that integrates processes and applications on departmental, enterprise or cross-enterprise level. The types of systems that are incorporated require integration technologies that support all integration levels. Therefore, technologies that facilitate the data, object, interface and message level are required 398 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
  • 7. The proposed framework evaluates integration technologies and thus, highlighting possible per- mutations of integration technologies available. As explained in Section 3 application elements (data, objects, processes) are extracted from one appli- cation and converted through the three integration layers (transportation, translation and process automation) before reaching the target applica- tion. In addition, the systems that are integrated follow one or more permutations of system types described in Table 2. This indicates that applica- tion elements, integration layers and classiļ¬cations of system types that are integrated in inter- organisational EAI should be adopted as evalua- tion criteria of the proposed framework. The explanation for this decision is that organisations need to clarify which technologies support the in- tegration of their supply chain systems. In doing so, organisations need to investigate which tech- nologies support the integration of application elements, permutations of system types and inte- gration layers. The proposed evaluation frame- work is summarised in Table 3. The ranking of integration technologies follows a low (), medium ( f ), high (d) scale of ranking similar to the scale used by Miles and Huberman [19]. In addition, two other symbols are used for ranking. The symbol ()) indicates that there is no available information where the symbol (Ā·) codes that an integration technology does not support the integration of a speciļ¬c classiļ¬cation. Table 4 presents the proposed novel evaluation frame- work. The assessment of integration technologies in Table 4 is based on evidences derived from an extensive literature review. 5. Case data and analysis The authors of this paper conducted a case study to test the proposed evaluation framework. Since, the authors cannot generalise the data de- rived from a single case study, they suggest that the proposed framework will allow others to relate their experiences to those reported herein. Hence, this paper oļ¬€ers a broader understanding of the phenomenon of EAI evaluation. The empirical data presented here were collected using various data collection methods such as interviews, docu- mentation, and observation. The bias that is con- sidered to be a danger in using a qualitative research approach is overcome in this research through data triangulation. For the purpose of this paper, three types of triangulation are used namely: (a) data [5]; (b) methodological and, (c) interdisciplinary triangulation [11]. The company studied is a large multinational that operates in more than 130 countries and its annual turnover was ā‚¬33.8 billions. The authors use the name PRODUCER to refer to this com- pany. PRODUCER is divided into four business units/sectors namely: (a) automotive equipment; (b) communication technology; (c) consumer goods and, (d) capital goods. It has an IT infra- structure that consists of more than 2000 legacy systems, 100 ERP applications and 125 e-business modules. The company run a pilot project to test whether EAI supports a robust IT infrastructure that achieves: (a) closer collaboration with cus- tomers and suppliers and, (b) better coordination of business processes and supply chains. The pro- ject was focusing on the integration of 12 business processes including supply chain management, customer and supplier relationship management. At a technical level, EAI was adopted to piece together PRODUCERƕs customers and suppliers with its business units. For that reason, PRO- DUCER developed one EAI infrastructure in each business unit and one among business units, cus- tomers and suppliers. As illustrated in Fig. 2, the EAI infrastructure integrates the SAP R/3 system with custom-built systems that deal with material management. At an inter-organisational level, it incorporates systems that are based at PRO- DUCERƕs suppliers and customers and are used to Table 3 Proposed evaluation criteria Evaluation criteria Application elements Integration layers Classiļ¬cation of system types ā€¢ Data ā€¢ Objects ā€¢ Processes ā€¢ Transporta- tion layer ā€¢ Transforma- tion layer ā€¢ Process auto- mation layer ā€¢ Custom-to-custom ā€¢ Custom-to-packaged ā€¢ Custom-to-e-business ā€¢ Packaged-to-packaged ā€¢ Packaged-to-e-business ā€¢ Custom-to-packaged-e- business M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 399
  • 8. Table 4 Evaluation of integration technologies Category of integration technolo- gies Integration technolo- gies Evaluation criteria Applications elements Integration layers Classiļ¬cations of system types Data Objects Process Trans- portation Transla- tion Process automa- tion Custom- to-cus- tom Custom- to-pack- aged Custom- to-e-busi- ness Pack- aged-to- packaged Pack- aged-to- e-busi- ness E-busi- ness-to- e-busi- ness Custom- to-pack- aged-to- e-busi- ness Database oriented middleware ODBC d U f f f d d d d JDBC d U f f f f d f Message oriented technolo- gies RPC U d MOM U d f f f Message broker U U d d d d d d d d d d XML U U d d d d d d d Transaction based tech- nologies TPM U U f Application serves U U U f f f d d f Distributed object tech- nologies CORBA U d ā€“ U U ā€“ f f f d d d f DCOM/ COM U d ā€“ U ā€“ ā€“ f f d d d f EJB U d ā€“ U ā€“ ā€“ f f d f Interface oriented technolo- gies Screen wrap- per U U U d d d d APIs U U ā€“ ā€“ U ā€“ ā€“ f d d d d Adapters U U U ā€“ f f d d d d 400 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
  • 9. automate common business processes. SAP R/3 and its module that supports advanced planner optimiser (APO) function in an integrated way, since SAP R/3 is an integrated suite. This means that all SAP modules are internally integrated with the core system. Also, APO is uniļ¬ed with material management and other systems (e.g. customers) through the integration infrastructure. 5.1. Evaluation The following subsection contributes towards the assessment of the novel evaluation framework that was proposed in Section 4. In achieving this, those evaluation criteria considered to support the assessment of integration technologies are identi- ļ¬ed, when seen from a multiple-stakeholder per- spective. These views were seen from those stakeholders that were involved in the evaluation and implementation of EAI, as it was not possible to interview all stakeholders. The stakeholders that were interviewed using a structure interviews included: (a) an external consultant (EC); (b) an integrator (Int.) and, (c) the project manager (PM) of the project. In addition, a total of 8 other stakeholders were also interviewed during the case study (unstructured interviews). Although the organisation has developed its own evaluation framework when assessing inte- gration technologies it was unable to provide any information on its framework due to conļ¬denti- ality reasons. Nonetheless, there is much confusion regarding integration technologies, and the com- pany has invested in time and knowledge to de- velop its evaluation framework. Therefore, the case company believes that the framework repre- sents a kind of competitive advantage. Interviewees were asked to identify the impor- tance of the evaluation criteria and then, to assess the integration technologies using the three cate- gories of evaluation criteria (see Table 3). All in- terviewees found the proposed framework as one that allows them to clarify many diļ¬ƒculties in se- lecting integration technologies. Nearly, all of them pointed out the importance of criteria such as the types of systems that are integrated or the integration layers. However, not all interviewees share the same perceptions regarding the integra- tion of custom-to-custom applications. External consultant reported that this is of low signiļ¬cance with project manager and integrator saying that it is of medium and high importance, respectively. The external consultant reported that custom-to- custom applications incorporation (as a criterion) EAI - Integration Infrastructure Customer 1 Customer x Supplier 1 Supplier x Business Unit 1 SAP R/3 Material Managemen t Material Managemen t Material Management SAP APO Business Unit x SAP R/3 Material Managemen t Material Managemen t Material Management SAP APO Multiple Custom systems Multiple Custom systems Fig. 2. Pilot projectā€“supply chain integration. M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 401
  • 10. is not important for their organisation, since this type of integration is required in only a few cases. Interviewees mentioned that organisations should not focus on one or another category of evaluation criteria when assessing integration technologies but, take all of them into consideration. More speciļ¬cally external consultant said that All sets of criteria are too important for the evaluation of integration technologies. I believe that organisations have to consider all these cri- teria and assess technologies in a similar way. In addition, interviewees found the proposed framework very helpful and they reported that it improves IT sophistication and supports decision making for EAI adoption. The reasoning is that the proposed framework supports decision- making and allows the IT departments, to better understand the capabilities of integration tech- nologies, as well as their integration requirements. Moreover, they express their intention to adopt the proposed framework. Then interviewees were asked to evaluate the integration technologies using the three catego- ries of criteria identiļ¬ed in Section 4. The in- tervieweesƕ evaluation results show that there is no single technology that supports the integra- tion of all applicationsƕ elements. This is in ac- cordance with literature ļ¬ndings like Sharma et al. [22] and, indicates that a combination of technologies is required to facilitate the integra- tion of data, objects and processes. When the project manager was asked to comment his an- swers he said: Many technologies support the integration of data, objects and processes. Some of these tech- nologies such as message brokers and adapters are more powerful solutions than others . . . It is diļ¬ƒcult to say which is the best using this table [Table 6]. First of all we have to understand the applicability of each technology and thatā€™s why we have to map them against integration layers . . . Integration layers allow us to see which technologies support a layer. In each layer we have to seek for technologies that sup- port all applications elements. Thereafter, interviewees were asked to assess integration technologies using the second category of evaluation criteria (integration layers). The in- terviewees reported that practically message bro- kers are not used to support transportation layer although they can support it. This is attributed to that developers preferring to use message brokers for the translation and process automation layer and adopt other technologies for transportation layer. In addition to the aforementioned integra- tion layers, interviewees consider connectivity as an integration layer. When an external consultant was asked to explain more this perception, he said: We consider connectivity as an important inte- gration layer. This layer [connectivity] is responsible for creating the connections-inter- faces among the applications and the central integration infrastructure. Through these con- nections application elements are passed from one system to the transportation layer. Then transfers these elements to the central integra- tion infrastructure where transformation and process automation are taken place. Then, interviewees were asked to assess the in- tegration technologies based on the third category of evaluation criteria (system types). Based on their answers, it appears that message brokers support the integration of all system types. This is in line with both the literature [15,17,21,22] and practice with EAI vendors using message brokers as the main integration engine of their EAI solu- tions. Adapters and XML appear to support all or nearly all system types. 6. Concluding comments This paper has highlighted the importance of improving supply chain management through the integration of business processes and information systems. However, there remains no single inte- gration technology that addresses all integration problems. As a result, multiple permutations of technologies need to be used to solve integration problems. Yet, there is a plethora of IS with dif- ferent integration requirements that need to be 402 M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405
  • 11. integrated. This means that the permutation of integration technologies used to unify applications are not only based on their functionality but also on integration requirements, and constrains of existing IS infrastructures. Therefore, organisa- tions are often left questioning how to navigate through the permutations of integration technol- ogies needed to integrate the disparate appli- cations that often exist within businesses and cross-enterprises. This paper has introduced an approach to re- duce the confusion surrounding inter-organisa- tional application integration. In support of this, the types of IS that are often integrated have been classiļ¬ed as (a) custom-to-custom; (b) custom-to-packaged; (c) custom-to-e-business; (d) packaged-to-packaged; (e) packaged-to-e-business; (f) e-business-to-e-business and (g) custom-to-packaged to e-business inter-organ- isational EAI. Through deļ¬ning the types of IS, much of the confusion surrounding inter-organisational EAI is reduced. The reason for this is that the generic characteristics of each type and its integration requirements are described. As a result, organi- sations can more easily subsume their systems in one or more of these classiļ¬cations and start studying in detail their integration requirements. To integrate their applications, organisations need to select a number of integration technol- ogies. In support of this, the authors propose an evaluation framework to assess EAI technologies. The framework correlates the capability of inte- gration technologies to the types of information systems that are pieced together in inter-organi- sational EAI. The proposed framework con- ļ¬rmed that ā€¢ the classiļ¬cation of custom to custom EAI can be integrated more eļ¬ƒciently when message brokers and screen wrappers are used. In those instances that custom applications allow access to databases, ODBC drivers can also facilitate the extraction and inputting of data from cus- tom applications database. ā€¢ the classiļ¬cation of custom to e-business appli- cations can be integrated using a permutation of XML, message brokers and screen wrappers can be adopted to achieve integration. Nonethe- less, CORBA or COM/DCOM can also accom- modate the integration of this classiļ¬cation of system types. CORBA and COM/DCOM can be combined with XML to support objects inte- gration. ā€¢ in those instances that custom, packaged and e- business solutions are integrated, Application programming interfaces (APIs) can be com- bined with XML, CORBA, COM/DCOM, mes- sage brokers and screen wrappers to piece application together. To validate the proposed framework, the au- thors conducted a case study. In doing so, allowing others to relate their experiences to those reported in above. It is not the intention of this section to oļ¬€er prescriptive guidelines to the evaluation of EAI technologies but rather, describe case study perspectives that allow others to relate their ex- periences to those reported. A number of conclu- sions have been extrapolated from the empirical data and include ā€¢ The organisation took the decision to evaluate integration technologies before the implementa- tion of EAI projects. The company has devel- oped an evaluation framework for the assessment of integration technologies. It ap- pears that the organisation invested money and time to develop their frameworks, understand and evaluate EAI technologies. Moreover, they believe that such a framework is an important decision-making tool that inļ¬‚uenced their deci- sions to adopt EAI technology. ā€¢ Empirical evidence indicates extensions to the framework for the evaluation of integration technologies proposed in Section 4. The organi- sation suggested additional criteria for the pro- posed framework included the connectivity layer. ā€¢ The proposed framework can be used as a deci- sion-making tool and supports the adoption of M. Themistocleous et al. / European Journal of Operational Research 159 (2004) 393ā€“405 403
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