Your Data Wants to Integrate
Your Data Wants to Integrate
System integration is the act of centralizing information across your entire organization. Domino’s Pizza is an excellent example of both vertical and horizontal integration with its latest technologies. The company has begun deploying autonomous robots to deliver pizza. The robots collect data directly from customer interactions, sending that data upwards to the management level IT systems for insights. That flow of data from the operational level to the higher informational level is known as vertical integration.
Domino’s is also implementing horizontal integration — or in other words, the flow of data across the organization’s supply chain. The company launched an artificial intelligence model across its network in order to improve efficiency across the supply chain and logistics portion of the company.
The whole idea behind system integration is to connect different departments, locations, and levels through technology. It breaks down the silos of information that arise in an organization. Ultimately, it enables greater efficiencies and deeper insights into the company’s operations.
The concept is incredibly important in any industry, but manufacturers are the main ones leading the charge in adoption.
Coca Cola recently implemented horizontal integrations to minimize stock shortages across its network of manufacturers. A network of 70 manufacturers are responsible for 160,000 bottles of Coca Cola per day. Through a blockchain enabled system, one location facing a supply shortage can seamlessly find another location in the network to help fulfill an order. Blockchain ensures each transaction is completely secure while at the same time boosting the efficiency and output of the supply chain.
Tesla developed its own Enterprise Resource Planning (ERP) type software to enable vertical integration throughout the company. The system, called “Warp,” manages everything from order processing, to manufacturing workflows, to supply chain management. Warp is a very efficient way to shorten the feedback loop between customers and engineers, thus allowing for quicker turn arounds on updates for customers.
Pepsico has vertically integrated its delivery process. The company purchased 200,000 RFID and GPS equipped shells for stacking beverages on pallets. RFID and GPS collect data on how many shells went out and how many came back. All of the data is vertically integrated so that operations managers can get a snapshot of where losses are occurring and figure out ways to reduce it as much as possible.
At A4 Systems, we develop cyber physical systems to integrate both vertically and horizontally where needed. Whether that be grabbing data from the operational level in order to integrate into higher level IT systems, or streamlining data flow across departments and supply chains.
This article is part of a series of nine articles entitled, “The 9 Pillars of Digital Transformation.” A4 Systems is a world-class team of cyber physical system product developers. We transform quality data into primary competitive advantage by implementing the 9 pillars into our projects and solutions.
Keep an eye out for the other articles here.