System integration

Vertical integration (as opposed to "horizontal integration") is the process of integrating subsystems according to their functionality by creating functional entities also referred to as silos. This approach incorporates the requirements of each lifecycle stage of the industrial asset when integrating systems and subsystems. The key output is a standardized data architecture that can function throughout the life of the asset. A common data format is an integration method to avoid every adapter having to convert data to/from every other applications' formats, Enterprise application integration (EAI) systems usually stipulate an application-independent (or common) data format. The EAI system usually provides a data transformation service as well to help convert between application-specific and common formats. This is done in two steps: the adapter converts information from the application's format to the bus' common format. Then, semantic transformations are applied on this (converting zip codes to city names, splitting/merging objects from one application into objects in the other applications, and so on). ==Challenges of integration==

System integration can be challenging for organizations and these challenges can diminish their overall return on investment after implementing new software solutions. Some of these challenges include lack of trust and willingness to share data with other companies, unwillingness to outsource various operations to a third party, lack of clear communication and responsibilities, disagreement from partners on where functionality should reside, high cost of integration, difficulty finding good talents, data silos, and common API standards. These challenges result in creating hurdles that "prevent or slow down business systems integration within and among companies". Clear communication and simplified information exchange are key elements in building long term system integrations that can support business requirements. == Benefits of integration ==

On the other hand, system integration projects can be incredibly rewarding. For out-of-date, legacy systems, different forms of integration offer the ability to enable real-time data sharing. This can enable, for example, publisher-subscriber data distribution models, consolidated databases, event-driven architectures, reduce manual user data entry (which can also help reduce errors), refresh or modernize the application's front-end, and offload querying and reporting from expensive operational systems to cheaper commodity systems (which can save costs, enable scalability, and free up processing power on the main operational system). Usually, an extensive cost-benefit analysis is undertaken to help determine whether an integration project is worth the effort. ==See also==