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The fundamental nature of information systems (IS) has gradually, but irrevocably, changed. Enterprises used to write most of their application software themselves. But now the IS department's primary job is to manage applications and ensure they work together smoothly through integration. Improving this application integration depends on an IS organization's ability to address a number of critical factors. We outline seven building blocks for successful application integration. Key Findings
The primary job of the IS department is now to manage applications, rather than to write new applications. New application development is only 18% of 2010 IT budgets. Application support which includes maintaining and enhancing legacy applications, selecting, installing, tailoring and maintaining packaged applications and integrating new, purchased and legacy applications with each other also accounts for 18% (see "IT Key Metrics Data 2010: Key Industry Measures: Cross Industry Analysis: Current Year"). When the majority of integration work for a company is funneled through the integration competency center (ICC), the company: Saves an average of 30% in integration application and data interface development time and costs. Saves 20% in maintenance costs. Achieves 25% reuse of integration components. Enables top-performing ICCs to save even more. Integration project costs often run between $250,000 and $1 million over several years, which means that the potential savings can easily be $100,000 or more.
Recommendations
Deploying integration technology in the absence of a strategy is a poor approach to improving integration development and maintenance costs.
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Establishing an ICC to set up best practices, technology standards and governance, justifying it based on business benefits, not just savings to IT, ensures that the ICC uses integration "city planning," which employs: Appropriate governance Integration technology architecture standards Best practices Obtain best practices from your application integration technology provider. If you use a system integrator to install your products and complete initial interfaces, harvest best practices from those projects.
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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TABLE OF CONTENTS
Analysis ....................................................................................................................................... 4 Introduction...................................................................................................................... 4 Critical Success Factors................................................................................................... 5 Vision .................................................................................................................. 5 Strategy .............................................................................................................. 5 ICC ..................................................................................................................... 6 Typical Roles .......................................................................................... 7 The ICC and Integration as a Service ...................................................... 7 Governance ........................................................................................................ 8 Best Practices and Metrics .................................................................................. 8 Measuring Your Processes ..................................................................... 9 Standard Technology Architecture ..................................................................... 10 Application Integration Technology .................................................................... 10 Recommended Reading ............................................................................................................. 11
LIST OF TABLES
Table 1. RACI Chart for Application Integration Governance ......................................................... 8
LIST OF FIGURES
Figure 1. Gartner's Critical Success Factors for Application Integration ......................................... 4
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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ANALYSIS
Introduction
The fundamental nature of IS has gradually, but irrevocably, changed. Enterprises used to write most of their application software themselves. With the advent of distributed computing in-house and fourth-generation languages (4GLs), application development has proliferated. More recently, mergers and acquisitions have added to the enterprise's application portfolio. Yet, in many organizations, application systems primarily exchange data through batch file transfer if they exchange data at all. The rising complexity of business applications, together with the need to change directions, has frequently changed this. It has become too hard, costly, time-consuming and risky for enterprises to write new, custom applications every time business needs change, so most large systems are purchased. However, a single application system rarely fulfils all business needs. As a result, an enterprise's applications are almost always heterogeneous, yet they aren't autonomous. Processes are integrated and data and transactions are constantly transferred among different systems within an enterprise or with other enterprises. Today, the primary job of the IS department is to manage applications, rather than write new applications. More than 90% of the work of the typical IS staff involves maintaining and enhancing legacy applications, selecting, installing, tailoring and maintaining packaged applications, and integrating new, purchased and legacy applications with each other. Because application integration is a fact of life, the interfaces created can either be of high value which typically means implemented using some form of commercial off-the-shelf (COTS) middleware and reusable for more than one project or a millstone around IT's neck. Today, many organizations seek to improve application integration to reduce the number of interfaces and the time it takes to develop interfaces. Improving application integration depends on addressing a number of critical factors. The seven building blocks for success are illustrated in Figure 1, and explained in the following sections. Figure 1. Gartner's Critical Success Factors for Application Integration
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Strategy
A strategy is a plan of action intended to accomplish a specific goal. Today, virtually every project deploying an application involves integration. Companies have integrated their applications since the 1950s. Initially, the strategy employed by most enterprises was to allocate the responsibility for developing interfaces each project deploying an application. The result was a set of slow, arm's-length, point-to-point interfaces implemented using technologies such as batch file transfer. In the mid-1990s, demand for up-to-date information grew, and enterprises became increasingly frustrated with the number of interfaces being maintained. Consequently, a mediated, message-
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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at-a-time approach to integration (where appropriate) became more popular. Architectural patterns, such as hub and spoke, were implemented using multiple types of middleware for mediation such as message brokers, which ultimately evolved into the use of enterprise service bus (ESB) suites. Although modern, mediated approaches to integrating applications have been with us since the mid-1990s, organizations still have problems with the large number of interfaces and the time it takes to build and deploy them. Deploying technology, by itself, is a poor strategy for improving the implementation of interfaces. An effective strategy for integration is established by using these critical success factors: Establish an ICC. Develop an integration "city plan" consisting of: Policies that implement the necessary governance A set of best practices that is continually refined by measuring the result of applying the best practices in integration projects A technology architecture that establishes standards for the technologies to be used during application integration Have integration competency staff drive the selection of the integration technologies that are to be deployed. We explain each of these in greater detail in the following sections.
ICC
The integration of applications will be a major endeavor for most enterprises into the near future. An ICC provides an organizational platform to address the different integration issues through a common set of well-defined technologies, best practices and policies. This leads to reduced cost and risk, better manageability and significant economies of scale in terms of technology and skills. The ICC should have full responsibility for coordinating and overseeing application integration from strategic planning to operating the integration infrastructure. Key objectives include: Get application integration recognized as the formal discipline it needs to be. Combine the skills and processes associated with application integration into a single group, making better use of resources. Build and develop skills, capability and best practices for building interfaces and monitoring the operation of those interfaces. Monitor and assess integration technology and tools, and establish a flexible set of approved tools. Lead and support integration projects with the cooperation of application developers. Some of the resources needed to pursue these objectives can be outsourced to other internal IT groups (e.g., IT operations), or to external service providers. However, the ICC should keep governance and control of the relevant processes through proper controls specified in formal SLAs with the service provider.
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Typical Roles
The typical roles fall into three categories: Operations: System Administrator: Ensures that integration tools have adequate system resources. Ensures that policies are enforced. Database Administrator: Ensures that the database in integration tools has adequate resources. Tool Technician: Ensures the appropriate operation of integration tools; debugs problem reports. Administration: ICC Manager: Communicates vision; demonstrates business value. Project Manager: Plans integration projects; maintains project plans and project metrics. Methodologist: Specifies and maintains best practices. Asset Manager: Maintains integration artifacts and metadata. Engineering: Business Analyst: Develops process models to document interface requirements. System and Data Architect: Develops information models to document interface requirements. Software Engineer: Develops adapters and implements integration logic. Domain Expert: Counsels software engineering in application logic. Quality Assurance (QA): Tests that interface components function appropriately, and that the resultant system works as required.
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Governance
Governance helps an enterprise effectively and efficiently allocate resources to achieve business results, using a set of policies, procedures and rules. The leader of an ICC can use the disciplines of governance to create a framework for how best to run an enterprise application integration project. "Application Governance Key Initiative Overview" provides a framework the ICC leader can use to determine your organization's readiness to accept governance. The correct governance will be in part determine by your organizational structure. Table 1 provides an example of a responsible, accountable, consulted and informed (RACI) chart for decisions that must be made for integration projects. Table 1. RACI Chart for Application Integration Governance
Decision Which interfaces to do? Responsible Enterprise architects, data architects, application developers Enterprise architects, data architects Accountable Enterprise architects Consulted Application owners, application managers, security experts, database experts Application owners, application managers, security experts, database experts Application developers, security experts, database experts Informed All ICC staff
Enterprise architects, ICC administration, application developers, integration project owner Enterprise architects, application developers, application owners, IT budget committee Enterprise architects, data architects, application developers
If a new interface is agreed on, all ICC staff; If not, the owners of the interface that will be extended Application developers, interface owner
Who will pay for the development and maintenance of the interface?
Application owners, application managers, security experts, database experts Application owners, application developers, operations, security experts, database experts
Do not attempt to apply all aspects of a software engineering methodology to an integration project; however, such methodology may be useful. The methodologies can serve as a starting point from which you can cut unneeded activities and add typical integration activities. The resulting practices should be considerably shorter than your starting point. Example areas for which best practices can be developed include: City planning architecture consultation and definition Technology evaluation and vendor selection Integration infrastructure design and implementation Interface repository management Resource and skills planning Administration processes (billing, chargeback, etc.) Incident and problem management Quality of service and performance management Pilot management Actual integration of applications (design, development and rollout) Conflict resolution to address conflicting goals and priorities Incorporation of appropriate integration standards (for example, the use of ACORD for integrating applications used in the insurance vertical).
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Support for fundamental Web services standards Implementation of service bindings An architecture that enables users to extend the processing of in-flight messages Support for typed messages that are foundational to multiple forms of mediation As a result, integration suites are now a proper superset of ESBs. To implement this new set of functionality, integration suite vendors are transitioning to new OSGi-compliant architectures that are "service-oriented inside." Also, the new architecture now is offered via new packaging that enables consumers to buy the capabilities they require when they require them.
RECOMMENDED READING
"IT Key Metrics Data 2010: Key Industry Measures: Cross Industry Analysis: Current Year" "Application Governance Key Initiative Overview" "Cost Cutting Through the Use of an Integration Competency Center or SOA Center of Excellence" "The Enterprise Service Bus: Communication Backbone for SOA"
Evidence
Budget metrics were obtained from the research for "IT Key Metrics Data 2010: Key Industry Measures: Cross Industry Analysis: Current Year." Other information in this research has been compiled from more than 10 years of Gartner consulting experience, Gartner client inquiries and vendor interviews.
Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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Publication Date: 10 November 2010/ID Number: G00208847 2010 Gartner, Inc. and/or its Affiliates. All Rights Reserved.
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