6th European Conference - Academic Conferences

Tridip Bardhan et al.
2005).Thus, the need to develop a comprehensive framework incorporating a compendium of
organizational factors during the selection of an EI strategy is indispensable (Giachetiti, 2004).
The methodology discussed in this paper utilizes multi-criteria analysis principles, specifically integrating
ANP method with Delphi technique. Analytic Network Process (ANP) developed by Saaty (1980) was
chosen for its ability to incorporate multiple factors with different relative weights and with dependencies
characteristics. This gives the decision makers the ability to prioritize the importance of one factor over
another. ANP has been used in complex problems involving technology selection, and thus it is not a far
to see that it may be applicable in this situation. To further improve the results on using ANP within this
context, Delphi technique is applied. The Delphi technique improves the process by facilitating active
participation and consensus among evaluation process partakers representing different organization’s
functions.
The paper proceeds with an overview on EI, followed by methodology and a case study.
2. An overview of Enterprise Integration (EI)
Frye and Gulledge (2007) termed EI as “alignment of strategies, business processes, information
systems, technologies, and data across organizational boundaries to provide competitive advantage”.
Lack of this alignment is source of many organizational problems. The process of achieving integration
involves all managerial and technological factors that enable cross-functional process integration (Frye
and Gulledge, 2007). Integration is approached in various ways and at various levels, such as, physical,
application, business and can also be achieved through enterprise modeling approach or any
methodological approach facilitating consistent enterprise-wide decision making (Chen et al., 2008). EI is
also classified on whether it involves integrating processes and applications within or outside
organizational boundaries. Inter-organizational enterprise integration, attempts to integrate business
processes between enterprises (B2B), such as Supply Chain Management systems (SCMs), or electronic
purchasing processes (e-procurement). Intra-organizational integration is the integration of applications
within the organization, attempting to integrate custom applications and packaged systems (Silveira and
Pastor, 2006)
Lammer et al (2008) acknowledged existence of a number of integration approaches and concepts,
differentiated by integration’s level and architecture. However, Spackman et al (2004) and Chandra et al
(2009) argued that beyond the marketing hype; “there is a great deal of overlap between the integration
approaches”. Thus, at highest level of integration, while devising integration strategy for the enterprise,
there are limited numbers of overall approaches available (Spackman and Speaker, 2004). EI
approaches can therefore be broadly narrowed down into four basic categories, including (Spackman and
Speaker, 2004; Chandra and Juarez, 2009): (i) Point-to-point based integration; (ii) ERP integration; (iii)
Enterprise Application Integration (EAI) approach; (iv) and Service oriented integration approach.
In early stages of integration project, determination of strategic integration approach is among the most
important and challenging planning task. Decisions made during this process impacts negatively or
positively most of the subsequent development activities, and consequently overall success and quality of
the resulting system. This decision activity is usually complicated by the fact that it involves different
participants, contributing in decision making process and who have different goals, criteria and perception
about certain alternatives. The activity is further challenging as it comes in early stages of project
lifecycle, hence hard to reason about the consequences of the decision made (Al-Naeem et al., 2005).
2.1 Factors Influencing adoption of particular integration approach
EI projects are strategic investments, and should be closely linked to organization vision, goals and
strategies. These projects involve high expenditure, risk and with great impact in almost every
organization’s aspects. Various organizations develop and implement integration projects motivated by
completely different integration drivers. The initial rationale for EI adoption influences problem definition,
methods of achieving goals and other subsequent activities (Wei et al., 2005).
Lam et al (2007) categorized integration drivers into two categories namely; organizational drivers and
project drivers. Puschmann et al (2001) identified five integration drivers including; software, financial,
internal and external drivers. Themistocleous (2001) argued that many organizations are driven to
integration initiatives based on organizational, operational, technical and strategic perceived benefits.
These drivers and benefits should be taken into consideration when an enterprise is devising and
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