Systems Integrator - Say What?
by
Terry White
The term Systems Integrator, or SI for short, has not been well defined in the IT industry. It's an "I know it when I see it" term. It sounds simple: Systems Integrator - integrator of systems. But, what's a system? What parts are being integrated? Who's making sure it all works?
Several organizations I've worked with have studied this subject at various times over the years and have not yet found a consistent industry accepted definition - from neither client or service provider.
I found one definition in an IT industry magazine article that said something like "... a company that derives more than 25% of its revenue from Systems Integration activities." That’s really clear and I can even measure it – I think. I'd say my company meets that definition, but so do many others.
Another problem with the term is that its definition is actually changing as technology provides us with the ability to expand our reach and new business models allow us to collaborate in different ways.
When the term was coined, it really was as simple as it sounds. The technology to perform system integration was budding but it was an easy to grasp concept - integrating systems. People who performed systems integration could call themselves system integrators. Now it's a phrase that is used to describe many activities and at the same time one big one.
The term Prime Contractor is more synonymous with Systems Integrator. But even that comparison is rapidly changing as sub-contractor and outsourcing models have emerged that are very different than the traditional prime contractor and sub contractor relationship.
Being a Systems Integrator in today's world requires a breadth and depth of knowledge, skill, formal processes and experience to perform effectively. In the IT field it requires understanding of the IT industry and as well the client's business and industry.
Many companies are claiming that they perform System Integration work and can provide System Integrator services. Many use the term in the same sentence with outsourcing, or even as a synonym to outsourcing. It's not the same.
This is tough work and those companies, no those people, that do this well are really well-rounded experts in many fields. They also have networks of other people, or companies, that they can leverage to supplement their capabilities for specific activities. They don't necessarily have to do it all but they have to make sure everything gets done.
The availability of reference models for the IT industry such as what is offered in the CMMI and libraries of accepted best practices such as ITIL (IT Infrastructure Library) have given the System Integrator a set of standard processes, terms, and roles to leverage. These do make it easier to enter the market, but scope and scale are the variables that need to be managed.
ITIL uses the term "Management" in several of its elements but stops short of defining management of integration between the elements. It does highlight many of the connections between the elements. This maybe fine if the entire set of services is managed by one organization or IT vendor. Having one IT vendor is becoming more rare as IT outsourcing and multi-vendor IT outsourcing is becoming the norm.
It is important to think of System Integrator services as a wide array of services - Program Management, Technical Leadership/Governance, Project Coordination, Requirements Management, Deployment Management, Information Assurance and Transition Management.
Companies should give some thought about what level of Systems Integrator services they need to ensure success of their IT programs and projects. Companies that decide to offer Systems Integrator services need to properly set expectations both among their team members and with their clients.
I view System Integrator services as both a set of high level coordination services as well as lower level, detailed, execution services to ensure that the program/project is executed effectively.
In the near future I don't see a single System Integrator engaged on a particular program or project. I see companies with a portfolio of well defined System Integration services. They are likely to offer a range of capability that span the full-service down to niche capabilities. Companies seeking to hire one or more system integrators will decide between what capabilities to retain in house that provide them a competitive advantage and which ones they need to bring in from outside that are not their core competency.
Carnegie-Mellon IT Services Qualifications Center (ITsqcM) is working on client and supplier models for IT services outsourcing. Maybe these models will ultimately define the scope of the Systems Integrator as well as the responsibilities of the companies who hire them.
Multi-vendor System Integrator services are starting to emerge as a response to companies who want the benefits of outsourcing but still want one entity responsible and accountable for the success of their IT initiatives. This is also driven by global corporations who can't find IT service companies with the same geographic presence as themselves.
In this model, all service providers must operate in a matrix fashion with formal agreements to the client as well as multiple lines and levels of reporting between each other. One challenge in this model is to have processes and information paths in place to ensure that one failed system or missed deadline does not put the entire enterprise in peril. Another is to clearly define roles and responsibilities between all involved - some of which aren't necessarily embedded in a contract. Contracting for this type of model can also be tricky. All suppliers will contract individually with the client but should there also be formal contracts between the IT suppliers? Who is the real client in this type of arrangement? The answer to that question may be "it depends."
I'm still thinking about what model of Systems Integrator, Outsourcer or Prime/Sub Contractor will really work well in a global setting, what technology and tools will be needed and what advancements in technology will continue to change the way we provide these types of services. What do you think?
