Enterprise Application

Integration Effects on
Business Process Efficiency
A case study of SabaFon

By
Nizar Abdulwahab Al-Moaid

Supervised By

Dr. Ahmed Bin Mubarak

This paper was submitted in partial fulfillment of the requirements for the Executive Master of Business
Administration (EMBA) degree at the Centre of Business Administration at Sana’a University, Sana’a,
Yemen, Oct 2009

i
 Dedication

To my father; the spirit

that has been inspiring
me all along the way.

To my mother, the
endless love, passion and
care

ii
Acknowledgements

All thanks – after Allah- to my wife for her marvelous support. To my brothers and sisters for
their endless encouragement. To all CBA professors, teachers, officers and the entire staff. To
SabaFon management specially Eng Fahed Al-Ariqi the IT Director and Eng Mohammed Kamal
the Technical Director for their sponsorship of this program.

Special thanks and gratitude to Dr. Ahmed Bin Mubarak who lightened the way in this research
from the very beginning. To all professors, managers and employees who helped me collect data
in this research.

To all intake 2 participants for giving me the honor to be one of this intake.

iii
Contents
Acknowledgements ...................................................................................................................................... iii
List of Figures ............................................................................................................................................. vii
List of Tables ............................................................................................................................................. viii
Terminologies and Abbreviations ................................................................................................................ ix
Abstract ......................................................................................................................................................... x
CHAPTER ONE INTRODUCTION ................................................................................................................ 1
1.1. Research Background ................................................................................................................... 1
1.2. The Research Problem .................................................................................................................. 1
1.3. The Importance of the Research ................................................................................................... 2
1.4. The Research Objectives ............................................................................................................... 3
1.5. Research Methodology ................................................................................................................. 3
1.6. SabaFon (The 1st GSM Operator in Yemen)................................................................................. 4
1.7. Research Limitation ...................................................................................................................... 4
1.8. Research Assumptions .................................................................................................................. 5
1.9. Summary ....................................................................................................................................... 5
CHAPTER TWO LITERATURE REVIEW ........................................................................................................ 6
2.1. Introduction ................................................................................................................................... 6
2.2. Business Process Efficiency.......................................................................................................... 6
2.2.1. Process and Business Process ............................................................................................... 6
2.2.2. Process Efficiency .................................................................................................................. 7
2.2.3. Efficiency Measures and Variables ....................................................................................... 7
2.2.4. Business Process Redesign and EAI ....................................................................................... 8
2.3. Enterprise Application Integration ................................................................................................ 9
.2.2.5 EAI History ........................................................................................................................... 11
2.2.6. EAI Impacts in BR, Customer Relation and Supply Chain .................................................... 12
2.2.7. Barriers of EAI ..................................................................................................................... 12
2.2.8. EAI Architectures................................................................................................................. 14
2.2.9. Coupling, White and Black Boxes ........................................................................................ 17
2.2.10. EAI Models .......................................................................................................................... 18
2.2.11. Breadth of Functional Integration....................................................................................... 20

iv
 2.2.12. Benefits of EAI ..................................................................................................................... 21
2.3. Service Quality in Telecom Industry .......................................................................................... 22
2.4. Scratch Cards .............................................................................................................................. 24
2.5. Similar Studies ............................................................................................................................ 25
2.5.1. Improving Business by Integrating the Procurement Process ............................................ 25
2.5.2. Effects of System Integration in an Organization ............................................................... 26
2.6. Summary ..................................................................................................................................... 26
CHAPTER THREE METHODOLOGY ......................................................................................................... 27
3.1. Introduction ................................................................................................................................. 27
3.2. Purpose of the research ............................................................................................................... 27
3.3. Research Problem ....................................................................................................................... 27
3.4. Research Question ...................................................................................................................... 28
3.5. Theoretical Framework of the Research ..................................................................................... 28
3.5.1. Synchronous (Real-time) ..................................................................................................... 28
3.5.2. Control ................................................................................................................................ 29
3.5.3. Data Quality ........................................................................................................................ 29
3.5.4. Transformation Error .......................................................................................................... 30
3.5.5. Process Cost ........................................................................................................................ 31
3.5.6. Efficiency Measures Matrix ................................................................................................. 31
3.5.7. Service Quality Determinants ............................................................................................. 34
3.6. Data Collection Instruments........................................................................................................ 35
3.6.1. Primary Data Source ........................................................................................................... 35
3.6.2. Secondary Data source ....................................................................................................... 36
3.7. Data analysis and presentation methods ..................................................................................... 37
3.8. Research Questions’ Answers. .................................................................................................... 37
3.9. Summary ..................................................................................................................................... 37
CHAPTER FOUR DATA ANALYSIS AND DISCUSSION ............................................................................... 38
4.1. Introduction ................................................................................................................................. 38
4.2. Data Analysis .............................................................................................................................. 38
4.2.1. Scratch Cards Selling Process .............................................................................................. 38
4.2.2. Checklist Dimensions .......................................................................................................... 43
4.3. Summary ..................................................................................................................................... 56

v
CHAPTER FIVE CONCLUSIONS AND RECOMMENDATION ...................................................................... 57
5.1. Introduction ................................................................................................................................. 57
5.2. Conclusion .................................................................................................................................. 57
5.3. Recommendation ........................................................................................................................ 58
5.4. Suggestion for future research .................................................................................................... 59
5.5. Summary ..................................................................................................................................... 59
References ................................................................................................................................................... 61
Appendix I .................................................................................................................................................. 64
Appendix II ................................................................................................................................................. 65

vi
List of Figures
Figure 2.1 Two Architectures of EAI.............................................................................................................. 9
Figure 2.2 Typical Information Systems (Stovepipes) ................................................................................. 11
Figure 2.3 EAI and IT Strategy ..................................................................................................................... 13
Figure 2.4 Point to Point Architecture ........................................................................................................ 16
Figure 2.5 Middleware Architecture ........................................................................................................... 17
Figure 2.6 EAI Provides one single layer in telecommunication environment ........................................... 22
Figure 2.7 Consolidated Service Quality Model .......................................................................................... 24
Figure 3.1 Research Model ......................................................................................................................... 33
Figure 4.1 Scratch Card Selling Process ...................................................................................................... 42
Figure 4.2 Data Quality Dimensions ........................................................................................................... 45
Figure 4.3 Process Cost Dimensions ........................................................................................................... 47
Figure 4.4 Transformation Error Dimensions ............................................................................................. 49
Figure 4.5 Control Dimensions .................................................................................................................... 51
Figure 4.6 Synchronous Dimensions ........................................................................................................... 53
Figure 4.7 All Dimensions Weights ............................................................................................................. 54
Figure 4.8 Variables Percentage ................................................................................................................. 55
Figure 4.9 Efficiency Measures Percentage ................................................................................................ 56

vii
List of Tables
Table 2:1 Number of Connections in Point-to-Point Architecture ............................................................. 15
Table 2:2 Functional Integration Approaches ............................................................................................. 21
Table 3:1 Matrix to Link Researcher Variables with Efficiency Measures ................................................ 31
Table 3:2 Research Model's Variables with Their Dimensions .................................................................. 32
Table 3:3 Mapping Between Research Variables and SERVQUAL Determinants.................................... 34
Table 3:4 Checklist Scale Reference Table ................................................................................................ 36
Table 3:5 Research Questions Answers ...................................................................................................... 37
Table 4:1 Data Quality Variable Data......................................................................................................... 43
Table 4:2 Process Cost Variable Data......................................................................................................... 45
Table 4:3 Transformation Error Variable Data ........................................................................................... 47
Table 4:4 Control Variable Data ................................................................................................................. 49
Table 4:5 Synchronous Variable Data ........................................................................................................ 51
Table 4:6 All Dimensions Weights ............................................................................................................. 53
Table 4:7 Variables Weights and Percentages ............................................................................................ 55
Table 4:8 Mapping between efficiency meansures and research variables ................................................ 55

viii
Terminologies and Abbreviations

EAI: Enterprise Application Integration

SCSP: Scratch Cards Selling Process

IT: Information Technology

IS: Information Systems

SOA: Service Oriented Architecture

ESB: Enterprise Service Bus

ERP: Enterprise Resource Planning

CRM: Customer Relation Management

IN: Intelligent Network

VAS: Value Added Services

BI: business Intelligence

BPM: Business Process Management

ix
Abstract
In the trend of hypercompetition in telecommunication, increasing investments in
Information Systems (IS) took place since it helps organizations automate its internal process
efficiency. Those, in turn, empower the organization’s competitive advantages. Besides that,
Information Systems (IS) enable decision makers to have the information as desired and when
desired. There are a lot of other major benefits of IS which contribute in the success and
sustainability of business. In the early 2002, Enterprise Application Integration (EAI) started to
evolve as a result of the multiple IT solutions. EAI is simply used to manage the messaging
between heterogeneous systems in a controllable and real-time manner.

From that point, and because of the researcher role in SabaFon, the researcher started
thinking about applying EAI and studying the cost and benefit of having such integration. Since
the topic is too broad to be studied in such research, the researcher has chosen to study it from
the business process effect point of view.

The purpose of the research is to find the effects of the EAI on the business process
efficiency. The research has chosen the Scratch Cards Selling process to be measured. For
measurement and assessment, the research developed a model based on Tenner and Detoro
Efficiency measures. Five variables developed by the researcher were used to link between
efficiency measures and EAI effects. The researcher adopted a qualitative approached. Data
collection were direct interviewees, Interviews were mainly designed to help the researcher
completed a checklist that contains all the five variables of the model. Other sources like systems
documentation and direct observation were used.

The research finding implied that there were effects in the business process efficiency with
the absence of real EAI. However, effects are not crucial. The researchers recommend SabaFon
and IT managers to implement EAI with the least cost and to change the IT architecture to be
process oriented in advance to EAI implementation. EAI also should be aligned with the IT
strategy and SabaFon strategy.

x
 1. CHAPTER ONE INTRODUCTION
1.1. Research Background
In hypercompetition market, it is so hard to sustain your competitive advantages. In
response, firms tend to innovate using information systems which play important role in
innovation process. However, multiple systems should act like one system otherwise chaos will
be the result. A typical telecom company normally has more than two heterogeneous systems
sharing one or more business processes. Each of which is independent with its own database and
user interface. Enterprise Application Integration (EAI) is simply making all those systems
acting as a single system. EAI is not an easy task to do. However, it is a good investment in the
organization since it will smooth and accelerate the business processes flows which will strongly
increase the efficiency of internal processes leading to more service quality and customer
satisfaction.

This research will primarily focus on the integration of all information systems in
SabaFon (Yemen Company for Mobile Telephony) that participate in the selling of scratch cards.
It will go in details with the business process and the role of each information system in each
process. It will assess the existing integration and its effects on the efficiency of the business
processes in the absence of real EAI. The efficiency will be measure and assessed using some
limited factors that are directly impacting the service quality from the customer perspectives. It
will also give recommendation to the managers and the process owners on the best and good
practices in implementing such integration.

1.2. The Research Problem

SabaFon has more than five main information systems running to cover most of all its
processes. Those systems were built gradually from the moment it has been launched in 2001.
Despite the systems that running the network (like the main switch system and the base stations
controllers systems) the Billing system and the Intelligent Network (IN is the system running and
charging prepaid subscribers) were the first to operate because of their importance for a telecom
like SabaFon. After less than one year, the ERP system was build with only the financial module.

1
In 2004, other modules in the ERP system were implemented like the Procurement and the
Inventory. Then the Document archiving system was implemented in 2005 to hold all customers
initial documents. Among those applications, up to 10 in-house developed applications were
developed to run different purposes in the company. The official website, customer Relation
Management and the Business Intelligence are the most important home-made applications.
Among all those applications, there were lots attempt of weak integrations in the form of e-mails
or spreadsheets which have not totally solved the problem.

The problem here, which is the main focus of the research, is that the management is not
sure about to what extent the existing integration is affecting the efficiency of the selling card
process. Further, if there is an impact, management wants to have the best positive impact on this
process using the right integration. The desired level efficiency here should be viable and
doable. Also, its benefit should exceed its cost.

1.3. The Importance of the Research

With the globalization, technology needs and customer bargaining power; competition is
getting harder and firms try to sustain by coming up with new and innovative ideas. Information
Technology (IT) is the enablers in automating business processes. Thus, the burden became
heavier to IT managers who always keep eyes on new technology in this field so that they will
always give value to their organizations by boosting efficiency in the business process. Having a
bunch of information system working solely is not the solution. In contrast, it could be the crisis.
Multiple resources of data may lead to bad quality of reports which – in turn- leads to wrong
decision making let alone time consuming. In addition, having “spaghetti” systems integration
might not tackle the above challenges. In fact, EAI is considered as a broad topic for such a
thesis. So that, we will try to capture it from a narrow point which is the contribution in the
process efficiency.

This research will help an operator such as SabaFon to enhance and increase the
efficiency of its business processes by applying recommendation in this thesis and by assessing
and advising decision makers to integrate all information system in charge of automating those
processes. In fact, the research will show and emphasize the impact and effects of the EAI to the
efficiency by linking the service quality in the customer perspectives and some selected
efficiency factors. It will also give SabaFon decision makers clues on how and when to start

2
implementing a project like EAI. As a result, SabaFon can meet their customers’ pursued quality
perspectives which will lead to more customer satisfaction and retention.

1.4. The Research Objectives

This research is aimed to formulate the problem that SabaFon decision makers face when
having multiple information systems and the result that affects the overall organization and its
competitive advantages in the hypercompetition era. Redundant data, mediation cost and double
channels or reporting give bad impact to executives when asking for particular information. After
formulating the problem, we will review all literature on this field. Empirical finding will take
place to compare the theoretical hypothesis with the finding results. Finally, we will try to come
up with recommendations for System Integration. The main objectives of the research can be
summarized below:

• Defining the Enterprise Application Integration and its importance for the
telecom organizations.
• Describe existing selling process within existing integration.
• Create a conceptual model that links all EAI with efficiency variables.
• Assessing SabaFon selling model according to the above model using
efficiency variables
• Help the management come up with better process with the implementation of
EAI

1.5. Research Methodology

Having clarified the research problem and objectives, an analytical research method built
on case study approached will be employed. The aim of the research methodology is to answer
the research question that are put by the researcher which is : What will be the effects of
Integration in the enterprise applications to Scratch Cards Selling process (SCSP) efficiency in
SabaFon?. The researcher has designed a research model to measure the efficiency of the selling
scarch cards process. This model was based on famous efficiency measures of Tenner and
Detoro. Measures were broken down to more variables and dimensions. Data collection tools
like interviewees, checklist, direct observation and documentations were employed to help the
research gather all information about those variables. More details about the research

3
methodology are in chapter 3. Note that the researcher used both terms: effects and impacts for
the same purpose.

1.6. SabaFon (The 1st GSM Operator in Yemen)

SabaFon is the Yemeni Company for Mobile Telephony. It provides Mobile phone
services to the whole public. It covers all cities in Yemen and all roads between cities. Its main
target is to deliver the latest GSM services to customer with the best quality and reasonable cost.
Its commitment –as its CEO declared:” Our commitment is to build a state-of-the-art GSM
telecommunications network that will facilitate long-term economic growth in Yemen” (SabaFon
2009).

Based on an agreement with the government, SabaFon and SpaceTel (known as MTN
Yemen today after MTN acquisition) started to be the only GSM provider for five years. The
government has its reason to do such an agreement. It might be cost or other policies. So
SabaFon and SpaceTel were supposed to be competitors. After four years of monopoly, in 2005,
Yemen Mobile was launched as a CDMA provider (Another technology than GSM). Finally, a
forth competitor (Y) has entered the market in 2007 as a third GSM provider. Indicators say that
it is the most likely operator in Yemen to be bought by external operator.

1.7. Research Limitation

To have an effective research we have narrowed the topic to cover only a particular
business process in SabaFon Company. Also, the EAI will be reviewed in the main and major
systems. Small solutions and programs will be ignored. The efficiency measurement also will
have limited variables for assessment. Those were internal causes for limitation. There are other
external causes like:

1. EAI is new field and there are no experts in Yemen.

2. Some of the applications are not open for integration for security reasons.
3. Some of the data in the collection process will be hard to be mined because of
SabaFon confidentiality rules.
4. The Scratch card selling process is long and very detailed, thus, we will cover it only
from the part the order issued till the subscriber charged.

4
 5. Lack of honest and commitment in interviews with competitors’ employees which
might not yield clear and useful data.
6. Since the process selected is internal process, B2B integration will be ignored

1.8. Research Assumptions

Business Process Improvement is related to EAI implementation. However, due to the above
limitation, we shall not consider doing process improvement and the research will focus on the
variables and factors that related directly to the application integration.

1.9. Summary
Many needs are eagerly pushing enterprises management to seek EAI because of the
business and customer needs which require high quality services. Providing services efficiently
has a major contribution in the customer satisfaction as well as organization productivity. As
information systems play the role that automate all business processes, EAI will make those
process more efficient in which it help system to communicate as one system. SabaFon SCSP is
running through many information systems. The study will review this process along with the
contribution of EAI to tackle the communication and messaging pitfalls among systems. Case
study research model will be used. Data collection will be via interviews, checklists,
documentations and direct observation.

5
 2. CHAPTER TWO LITERATURE REVIEW
2.1. Introduction
Many organizations have started to realize the importance of EAI after the emergence of the
enterprise and commercial packaged applications. This had forced lots of them to invest more
and more in EAI because of the return in efficiency they had. This chapter will try to cover a
literature review of all the concepts related to EAI, service quality and business process
efficiency. It will also cover previous studies to similar topics and how they are related to the
research problem.

2.2. Business Process Efficiency

IT software has been always the enabler of business process. Information systems improved
the flow of information between the customer and the service (Fließ and Kleinaltenkamp 2004).
Since the research is aimed to clarify the impacts of EAI to business process efficiency, it is
useful to review some literature on that regard. We start with the process and business process
definitions.

2.2.1. Process and Business Process

To achieve outputs to its customers, every enterprise has its own inputs to be processed and
generates certain outputs to be delivered to customers. Hammer has defined a process as a
collection of activities that takes one or more kinds of input and creates an output that is of value
to the customer (Hammer and Champy 2004). Tenner and Detoro have integrated some
definitions of a process and come up with this integrated definition: A process is one or more
tasks that add value by transforming a set of inputs into a specified set of outputs (good or
services) for another person (customer) by a combination of people, methods and tools (Tenner
and Detoro 2000). From the definitions above, a process has component: input, output,
transformation, customer and owner. Process owner is the person who has the responsibility and
authority for the operation and improvement of the process (Tenner and Detoro 2000).

Having a process defined, we move to business process definitions. A business process is

specific ordering of work activities across time and place, with a beginning, an end, and clearly
identified inputs and outputs (Grover and Kettinger 1995). Hammer also defined a business

6
process as a set of activities and tasks that takes resources as input to produce valuable output for
the customer (Hammer and Champy 2004). Sethi and King’s definition was more relevant to our
topic since they described it as patterns to perform work across departments and hierarchy (Sethi
and King 2003). Those patterns can be then enabled by information systems. All of the
definitions of a process agreed that a process should have input, output and some transition in
between to bring outcome. The process should have a process owner. Examples of business
process can be: Oder fulfillment, Supply chain or Recruitment.

Among all business processes, there are efficient and non efficient processes. The next section
defines efficiency in a process.

2.2.2. Process Efficiency

In the simplest of terms, efficiency is the elimination of waste of money, waste of people and
waste of time. It is a subordinate of effectiveness. It is about doing the things right. This can be
contrasted to effectiveness which is doing the right thing (Tenner and Detoro 2000). Jacobs
defines efficiency in a metrics point of view as the ratio of the actual output of a process relative
to some standard (Jacobs, Chase and Aquilano 2009). Thus, based on process definition above,
process efficiency is how to eliminate all wastes to reach the best relative ration between process
output and some standard. Accordingly, business process efficiency is the elimination of wastes
in money, time and labor in enterprise’s internal processes in a way that does not affect the
quality of the output.

Referring back to the impact of EAI on internal processes, it is clear that EAI affect
efficiency in which it smoothes the flow of information and eliminate the manual steps and the
redundant data (which treated as waste).

2.2.3. Efficiency Measures and Variables

Efficiency measures compare actual performance to the best possible (Tenner and Detoro
2000). The previous statement is more likely to be Jacobs’s definition of efficiency. To come up
with efficiency measures, Tenner and Detoro had divided efficiency measures into three
categories: Cost, variation and cycle time.

7
 • Cost Measures: Process cost refers to the monetary resources used during the
initiation and completion of a business process (Zaheer, Rehman and Saif 2008). Those
measures try to minimize resources consumed in a process.
• Variation Measures: Those measures try to minimize the waste associated with
adding fats into plans and designs that serve to cushion uncertainty (Tenner and Detoro
2000). Any business process should be designed to achieve outcomes to its customers.
The design should take into consideration all situations and circumstances. Like customer
demands, resource scarcity. Cost related to such a design is being measured by variation
measures.
• Cycle Time Measures: Cycle time refers to the amount of time between the
business process execution and its completion. Those measures try to reduce the total
elapsed time required to transform inputs to outputs. It is straightforward definition as
efficient process should take less time than other process with similar quality in
outcomes.

In this research, we have chosen to study the Selling Scratch Card process (which will be
discussed next section) and its efficiency with the existence of the EAI. The researcher will
select some variables that affect the efficiency of the mentioned process.

2.2.4. Business Process Redesign and EAI

When a company attempts to acquire an application, it does not seek business process
automation only; it also seeks the best practices in which a process should be run (Hammer
1990). Similarly, It is important to mention here that EAI implementation should be process-
based not connector-based. In other words, when integrating applications that run a business
process, EAI should go beyond connecting systems only and the implementer should take the
whole process into consideration before the implementation. EAI implementation will not
necessarily achieve business process management. It can be achieved through but there must be a
well defined strategy and component based IT architecture (Laroia 2002). Because of the
limitation mentioned in chapter 1, and because of the broad topic of process redesign, the study
will focus on the part of benefits from integrating the information systems and messaging among
them and will not go through process redesign.

8
 2.3. Enterprise Application Integration
There are many definitions we found while reviewing sources of information. We have
chosen below the best of them that matches our interests in this research. Enterprise Application
Integration (EAI) is the creation of new strategic business solutions by combining the
functionality of an enterprise’s existing applications, commercial packaged applications, and new
code using a common layer called middleware (Ruh 2000). Other definition says that Enterprise
Application Integration (EAI) is the process of linking enterprise applications in order to realize
financial and operational competitive advantages (Basics of Enterprise Application Integration
for Dummies 2009). Laudon defined EAI as a software package to connect disparate applications
or application clusters. This software enables multiple systems to exchange data through a single
software hub rather than building countless custom software interfaces to link each system.
Figure 2.1 presents the concept of a simple EAI with its two architectures. (Laudon and Laudon
2007).

Figure 2.1 Two Architectures of EAI

Source: Basics of EAI for Dummies 2009

We can see that the above definitions were taken from different perspectives. Some
definitions describe EAI as an art, others describe it as a technology and the last describes it as a
software package. Although most of them seem to be very technical definition, EAI can be
defined simply as connecting applications to act just like one single system by using an
independent software that provide services that mediates between applications. This independent
9
software is the middleware. A middleware is software that connects two otherwise separate
applications, enabling them to communicate with each other and to exchange data (Laudon and
Laudon 2007). According to Gartner 1, around 30% of implementing applications cost goes to
integration. Middleware solutions can reduce these costs by 1 third (Roch 2002).

Scattered applications are technically and functionally isolated. We call them “stovepipe
applications”. See figure 2.2. Stovepipe applications are applications that were developed to
support a specific business function (Ruh 2000). Business process management within the EAI
solutions makes it easy to automate cross-functional processes. For example, while ERP and
CRM vendors may offer workflow features, these features work only within their environment.
BPM should function across applications based on the EAI architecture. Automating cross-
functional activities enables corporations to manage processes by exception based on the real-
time events driven from the integrated environment. Process execution becomes automated,
requiring human interventions only for exceptions, manual tasks or approvals (Roch 2002).

1
Research Association that is concerned with IT projects. See www.gartner.com.

10
Figure 2.2 Typical Information Systems (Stovepipes)

Source: Ruh, William A. EAI. Wiley, 2000.

2.2.5. EAI History

In the last two decades, the need for business process enablers had driven most of IT
firms to come up enterprise solutions that carry the best practices of running multiple business
processes. In 1990, Enterprise Resources and Planning (ERP) vendors succeeded in integrating
most of the common processes that are being run in typical firm like the supply chain, back
office, manufacturing and financial processes with integrated packaged systems. Recently, in the
beginning of 2000, middleware solutions emerged as a result of increased heterogeneous
solutions (Roch 2002). Today, there are more than products for EAI. The most famous products
are Fusion Middleware from Oracle, BizTalk from Microsoft and IBM Middleware from IBM.

11
 2.2.6. EAI Impacts in BR, Customer Relation and Supply Chain
EAI helps an enterprise achieve a 360 degree view of relationships with its customers
(Ruh 2000). Customers are dealing with the enterprise as one entity not as a collection of
departments. When contacting customer service for a particular problem, they don’t have to
provide the same information as their cases go from one unit to another. There should a way to
have all customer information available in one central database like history of claims, services
previously bought and customer information. EAI enables such a central database. Just like a
customer, a supplier gets lots of benefits from EAI as it can get access to all information of
interest to speed up the supply chain process. Further, EAI helps improve internal processes as it
used to simply information flows among applications as well as reducing the manual steps to
avoid redundant entry of data. The latter impact is our focal point in this research.

Those impacts are the drivers that force lots of firms to seek integration among their
enterprise applications. It is important to mention here that a careful analysis of cost-benefit
should be conducted before taking the decision of implementing EAI. EAI is an investment, so if
it didn’t return value to the company, it is not worth it.

2.2.7. Barriers of EAI

Like most of IT projects, there are some barriers to implement successful EAI in
enterprise. However, those barriers can be tackled. Barriers can be (Ruh 2000):

1. The complexity of existing (or legacy) applications: most of legacy applications

were built to serve a particular problem or business solution. In many cases, the
architecture of those applications was not built to be integrated.
2. Absence of integration strategy from the beginning will make it hard to
implement integration since the architecture needs to be changed first. See figure
2:3.
3. Lack of Skills in this field: there are not much experts in the EAI field. Most of
EAI technologies are new. Further, with the rapid demand of EAI, the demand of
experts exceeds the supply.
4. Security issues: to integrate multiple applications, some of the applications (if not
all) should be opened to the other for integration purposes. If any of those

12
 applications contains confidential data, those data are in risk. If there is no strong
control, security will be a mess.
5. There is one important barrier that stands against the EAI in most of enterprises
especially in countries like Yemen where the IT consultancy business is not
mature yet which is cost. It is not a simple straightforward project and it needs –as
indicated above- solid experience in this field. On the other hand, with this
immature consultancy market, the scarcity of expert makes it very expensive to
get some.

Figure 2.3 EAI and IT Strategy

Source: Ruh, William A. EAI. Wiley, 2000.

Further, Boris Lublinsky and Michael Farrell have studied the most important reasons that make
EAI projects fail. Some of the reasons match Ruh barriers above. The researcher has briefed and
simplified them below (Lublinsky and Farrell 2002):

1. EAI implementation is complex and expensive more than expected.

2. Lack of cooperation and communication from business units.

13
 3. There are no standard methodology in EAI implementation.
4. Absence of entitlement of all applications to be integrated since the initial steps of EAI
implementation.
5. EAI implementation differs greatly from application implementation in which is EAI is
more design and less development.
6. Data representation model mismatches between applications complicate communications.
7. Finding a happy medium between message size and reuse is usually a challenging
proposition.
8. Transactions and data integrity among systems.
9. End-to-end system management and monitoring.
10. Scarcity in integration testing tools.

2.2.8. EAI Architectures

Some books divided EAI architecture into two types and then each type can be implemented
via different models. While others called those architecture topologies and divide them into
three. Each topology can be implemented via four methods or models. We have preferred for
simplicity to go with the architecture/model theory.

There are two types of logical integration architecture that EAI employs: Direct Point-to-
point and middleware-based integration (Lin 2005). The previous types were classified according
to the points of connectivity among applications. Note that the architecture only describes the
topology of the integration. Details of how applications are to be integrated or how they
communicate with each others are in the integration models. In the point-to-point architecture,
applications are connected directly to each others. While in middleware architecture, there is a
layer in which all applications connect. Applications connected to the middleware will send and
receive updates from other applications. Following are more details.

1. Direct Point-to-point Architecture

When only few applications to be integrated, this is the best architecture since each
application will be directly connected to the other (using one of the model that will be discussed
next section). The more applications added, the harder the integration because of the number of
links. See figure 2.4. Mathematically, number of links among applications in the point-to-point
architecture is the combination of n (number of applications) to chose two (there are always at

14
least two applications to be integrated) and reputation is not allowed. It can be described using
notation as C(n,2). See the formula below:

For example, if we have only two applications, then the formula can be:

C(2,2)= 2!/ 2! * (2-2)! = 2/2 = 1

The answer makes sense because only one link is needed. The table below shows how many
connections needed up to ten applications:

Table 2:1 Number of Connections in Point-to-Point Architecture

Applications Connection
2 1
3 3
4 6
5 10
6 15
7 21
8 28
9 36
10 45
Source: The Researcher

15
Figure 2.4 Point to Point Architecture

Source: Fenner, James. "Enterprise Application Integration Techniques."

It is clear from the table above that the number of links is extremely increased with the
increased number of integrations. That is why it is not recommended to use this architecture if
you have many applications. As we mentioned in chapter one; “spaghetti” network will be the
result. This kind of network – even if it is fast- is very hard to maintain.

2. Middleware-Based Architecture
A middleware is an intermediate layer provides generic interfaces through which the
integrated systems are able to communicate. Middleware (some literatures call it Bus) performs
tasks such as routing and passing data. Each of the interfaces defines a business process provided
by an application. Adding and replacing applications will not affect another application (Lin
2005). This layer is used to get rid of all links among systems like in the point-to-point
architecture. It is more effective, easy to maintain and independent of the number of applications.
Each application will be connected to this layer and communication will be the middleware
responsibility. Technically, the middleware is software that is designed to receive any application

16
output and process it to make an input for other application and vice versa. There are many types
of middleware’s which will be discussed in the EAI models.

Figure 2.5 Middleware Architecture

Source: Fenner, James. "Enterprise Application Integration Techniques."

2.2.9. Coupling, White and Black Boxes

Before we get the EAI models; there are some concepts that need to be defined like coupling,
white box and black box (Ruh 2000):

1. Coupling
Coupling defines the degree of integration. Loose coupling is where the integration is
dependent on a few discreet interfaces. Strong one is usually where implementation
dependencies occur. The most important outcome from EAI is to reduce the level of coupling
among software. Thus, the loose coupling, the better integration in result.

2. White and Black Boxes Integration

White box integration approach where the internals of the applications can be
exposed to create the integration. Those internals can be the database or the source code itself
whereby integrator can make the desired integration. Internals are hidden in the black box
integration and the integration can be only made through interfaces like APIs.

17
 3. Business Logic
Business logic is the code written to perform required business functions in an application. It
includes the process, workflow as well as the data manipulation and interpretation rules. When
implementing application for a certain purposes, all functional requirements and business needs
are then translated to a software code. This code represents the business rules.

2.2.10. EAI Models

An integration model is a prescribed approached and configuration used to integrate
software. It defines how applications will be integrated by defining the nature and mechanism for
integration (Ruh 2000). Each model has its own tools and aimed to reduce the time and cost to
increase the usability and flexibility of the integration. There are three models: Presentation,
Data and functional integration. Each one of them defers from the others by the level and layer in
which it works to integrate among systems. One or more models can be used for the EAI
implementation.

1. Presentation Model
A presentation integration model allows the integration of new software through the
existing presentations of the legacy software. This is typically used to create a new user interface
but may be used to integrate with other applications (Ruh 2000). In this model, integration
between applications will be done via user interface. So the result of the integration will be a new
small application. It is the simplest model of integration and it is useful when the integration can
be done only using the interface of the applications (like in black box integration). It is easy to be
accomplished, however, since the integration will be only via interface, only data related to that
interfaced can be accessed. It can also add performance bottleneck since the new application will
be a new added layer. To some extent, this model is expensive since it needs resources to build
the presentation interface.

2. Data Model
A data integration model allows the integration of software through access to the data that
is created, managed and stored by the software typically for the purpose of reusing or
synchronizing data across applications (Ruh 2000). The data model is a kind of integration in
which a direct access to the application database bypassing the interface and the business logic.
There is variety of techniques to achieve data integration. The most common techniques are:

18
File Spooling, Data replication and Direct Data Access. In file spooling, integration between two
applications will be via a process of exporting data from the source and import it (to a predefined
location) in the destination. A lot of integrator prefers this technique because it keeps data away
from security breaches. The second technique is replication in which a replica of both databases
is created. Whenever data change occurred; update will be invoked in both replicas. This way is
not recommended since its cost is high comparing with other techniques. The last one is a direct
data access in which different applications are directly accessing databases of other systems and
update them. This technique is effective in situation where real-time data is needed, however, it
is not recommended when secure data are being accessed.

3. Functional Model
A functional integration model allows the integration of software for the purpose of
invoking existing functionality from other new or existing applications. The integration is done
through interfaces to the software (Ruh 2000). Functional model is simply integrating
applications on the code level. Many applications are allowing access to its functionality through
programmatic interface called Application Programming Interface (API). Functional integration
is used when the integration is highly dependent on the business logic. In this case, data
integration is not recommended since the presentation is bypassed causing data inconsistency.
API act like the interface in which it deals with data to be change or updated.

Most of IT budget is spent on the creation and maintenance of business logic. That is why
functional integration is getting more popular in today’s EAI projects. This model of integration
usually based on a distributed middleware that communicate with all applications. A distributed
processing middleware is a type of software that facilitates the communication of requests
between software components through the use of defined interfaces or messages (Ruh 2000).

It is important to mention here that the integrator can use more than one architecture along
with different models depending on the business and the nature of the application. For example,
for few applications where real-time is extremely important, point-to-point is more effective
since it is faster than the middleware. As we mentioned earlier, too many applications will
require having middleware layer. Despite the speed of the data level integration, data model is

19
impossible with black box integration and the only way is to use API or other tool of functional
integration. When dealing with secure data of applications, data model with file spooling is good
choice (Ruh 2000).

2.2.11. Breadth of Functional Integration

As functional integration is more flexible than other types of integration; it can be achieved
via three different approaches. Each approach is suitable for certain business need. The three
approaches are: data consistency, multistep process and plug-and-play component (Ruh 2000).

1. Data consistency integration

It is integration through the code of an application where the purpose is to access or update
data. The integration facilitates the communication of data action (Ruh 2000). Although it seems
like data integration, data consistency integration updates only data through permission that is
being controllable via the application. Thus, if integration is to update customer data in two
applications, all data regarding the customer will be updated accordingly unlike the data
integration where the full control resides in the integration itself. Paths among applications here
are simple. For complicated integration paths, this approach is not recommended since the link
between applications is one way. Request is forgotten once received.

2. Multistep Process Integration

Also known as straight-through processing, it is the integration of applications where there is
not only communications of requests but also the coordination and management of these requests
across applications (Ruh 2000). Depending on the business process, the request will start running
through applications using the correct order of precedence without human intervention. When
more than one application are running or participating in the same business process, multistep
process integration seems to be the best approach.

3. Plug-and-Play Component Integration

It is also referred as component integration. It is software that can be created as a component
with easy-to-understand interfaces that can be easily connected to form a new application. The
concept of tinker toys is often associated with this concept as a way to visualize component
integration (Ruh 2000). It is the most complicated type but has the greatest value since it has the
ability to pull out or replace component with other which good for maintenance.

20
 Table 2.2 below compares all approaches or functional integration:

Table 2:2 Functional Integration Approaches

Data Consistency Multistep Process Plug-and-Play

Loosely coupled integration Tightly coupled integration Tightly coupled integration
Asynchronous and Synchronous
Asynchronous dominates based Synchronous dominates
One Way One-way and request/reply Request/reply
Complex abstraction of business Complex abstraction of business
Simple abstraction of business rules rules rules
Source: Ruh, William A. EAI. Wiley, 2000.

2.2.12. Benefits of EAI

Most of literatures the researcher found are focusing on the EAI from technical point of view.
Few of them have mentioned those benefits from business point of view and specially benefits
on business process. Below is a list from a white paper from the Information Management Group
(IMG 2006) which primarily focused on telecommunication environment:

• EAI is the basis for real-time enterprises: process data streamline is synchronous among
information systems; therefore, no delay and process lead time will be shortened.
• EAI enables B2B integration: some process like Supply chain which requires linkage to
external vendors or suppliers will be more efficient when systems are integrated.
• EAI enable employees to get rid of multiple interfaces of information system: some EAI
implementations provide centralized access point to all applications.
• Since EAI provide one single middleware, cost of maintenance is reduced: traditional
connections between systems will be replaced to be one middleware, thus, all cost related
to hardware and software maintenance of those points of connection will be reduced.

Figure 2.6 shows a typical environment for a telecom company.

21
Figure 2.6 EAI Provides one single layer in telecommunication environment

Source: EAI Potential Benefit or Waste of Money, Information Management Group, 2006.

2.3. Service Quality in Telecom Industry

Service Quality has been a difficult-to-define concept that has aroused considerable interest
and debate in the research literature. This is because the meaning of quality can be referred to in
many attributes such as the experience of the service encounter, or moment of truth of the
evidence of service, image, price and so on. These form the customer’s overall perceptions of
quality, satisfaction and value (Zeithaml and Bitner 2002). Quality of service means a lot to the
customer. In a telecom industry, a customer pursues reliable services, fast response, quality of
voice, speed of data and good prices. Quality of service is being measured from the customer
perspectives, thus, it is usually referred as customer perceived quality. One definition that is
commonly used to define the service quality says: it is the extent to which a service meets
customers’ needs or expectations (Asubonteng, McCleary and Swan 1996).

Parasuraman, Zeithaml and Berry formulated a service-quality model (GAP Model) that
highlights the main requirements for delivering high service quality. The model shown in figure
2.7 identifies five gaps that cause unsuccessful delivery (Kotler and Keller 2006):

22
 1. Gap between customer expectation and management perception.
2. Gap between management perception and service-quality specification.
3. Gap between service-quality specifications and service delivery.
4. Gap between service delivery and external communications.
5. Gap between perceived service and expected service.

Based on this service-quality model, these researchers identified the following five
determinants of service quality for GAP 5, in order of importance:

1. Reliability: the ability to perform the promised service dependably and

accurately.
2. Responsiveness: the willingness to help customers and to provide prompt
services.
3. Assurance: the knowledge and courtesy of employees and their ability to
convey trust and confidence.
4. Empathy: the provision of caring, individualized attention to customers.
5. Tangibles: the appearance of the physical facilities, equipment, personnel and
communication materials.

This model will be used to measure the service quality from the customer perspectives. GAP
5 determinants are mostly related to our research. We will try to link EAI affects on efficiency
variables mentioned and to what extent those impacts influence the service quality determinants.
The researcher has consolidated the GAP model and the extended GAP model (Only part of
GAP 5) in one figure.

23
Figure 2.7 Consolidated Service Quality Model

Source: Kotler, Philip, and Kevin Lane Keller. Marketing Management. New Jersey: Prentice Hall, 2006 and the
researcher.

2.4. Scratch Cards

According to documentations of the prepaid lines system and based on the researcher back
grounds, the details in this section were collected.

All GSM (and non GSM) operators have two types of subscribers: postpaid and prepaid.
Postpaid subscriber can use any service on credit and at the end of each month; he/she should
settle an outstanding amount (bill or invoice) to avoid line suspension. Whereas prepaid
subscriber should have an existing balance to use any service. Balance will be deducted
immediately according to the service used. To fill this balance, a subscriber should recharge his

24
account using vouchers. Vouchers are designed to have a serial number that is hidden and
should be scratched to be read and entered to the subscriber mobile phone. Selling of these
scratch cards is considered as one of the most important processes in any GSM company because
around 75% of the revenue is based on those cards.

Like most of the products, scratch cards are being outsourced to specialized vendors;
therefore, the supply chain process is part of the selling process. Unlike many products, scratch
cards are being processed even after sales since they need to be activated once customer filled
the serial successfully. We will have a deeper look for the selling model next chapter.

2.5. Similar Studies

Although it is new technology; EAI has been a topic of a lot of researches and papers.
However, few of them have concentrate of the business impacts. We have chosen two studies
that are similar to this research. The first had studied how to improve business by integrating the
procurement process. The second has focused on the effects of system integration on processes
and people.

2.5.1. Improving Business by Integrating the Procurement Process

It is a master thesis for two students (Henrik Hagelberg and Henrik Johansson) from LULEÀ
University of Technology, department of Business Administration. As it is clear from the title,
the researchers tried in their research to emphasize that efficiency improvement is one of the
most important drivers to implementing EAI. This is the point that our research has in common
with this research. The purpose of their research is to study the effect of the integration on the
procurement process and to describe the drives and inhibitors for integrating this process with
suppliers. They divided the drivers of integration to operational, strategic and external forces.
Inhibitors were divided into technical issues, legal issues, cultural issues, Human resource issues
and business relation issues. The researchers have selected few companies and conducted some
data collection to come up with those drivers and inhibitors. Data collections were based on
interviews. The interviews were structured to collect data about the drivers and inhibitors. Data
were then analyzed and represented in tables in which each item in either drivers or inhibitors
was given a rate for each company separately. Rates are either Low, medium, high or nothing at
all.

25
 Our assessment to this research can be summarized as the following: The researchers have
not presented enough knowledge to the reader regarding the topic of the research. There should
be some extra knowledge explaining the integration and applications used. Further, conclusions
were mainly based on the researcher point of view. There were no models to assist. They relied
on data in the interviews and directly made their own conclusion and opinions. The reader will
find it not convincing if he/she is not familiar with the procurement process or the application
integration.

2.5.2. Effects of System Integration in an Organization

A case study carried out in the photo and home electronic branch. This thesis was written by
Ramanika Abeysekera in Linköpings University, Department of Computer Science in 2005. The
main purpose of the research is to “identify the effects on an organization’s functioning from
their existing system integration solution/solutions” . The researcher tried to prove the affect of
system integration on process and people. Like the previous one, data collection was based on
interview and documents. Unlike the previous study, this research went through details of EAI
and its technologies. But the research has adopted the same way in concluding and answering the
research question in which he used his results of the interviews and analyzed them using his own
perception and came up with the conclusion. The researcher didn’t use any model to assess his
analysis and conclusion.

2.6. Summary
Achieving business process efficiency is one of the main enablers to competitive advantage.
EAI help an organization to achieve business process excellence. Business process efficiency is
hard to be measured. Tenner and Detoro has come up with three efficiency measures: Cost,
variation and cycle time. EAI has more than one model. It can be on interface level, functional
level or database level. A middleware is the layer that EAI made to connect all applications
together. Service quality model indicates determinants that determine the service quality in the
customer perspectives like: reliability, responsiveness, assurance, empathy and tangibles. Scratch
cards are those vouchers which are being used by subscribers to recharge their accounts. There
are some previous researches in the same topic. The two that were reviewed lack an assessment
model in which the researchers should employ in their findings.

26
 3. CHAPTER THREE METHODOLOGY
3.1. Introduction
This chapter will present the research and its topic and all research questions. It will also
explain the research model and how it was built. It will go through research methodology and all
data collection tools. Finally, it will describe how data will be analyzed and compiled. For
simplicity, we will refer to the scratch cards selling process with the abbreviation SCSP.

3.2. Purpose of the research

As mentioned in chapter 1; this is a qualitative research since it tries to describe and analyze
a situation in particular area. Descriptive researches are based on some previous understanding of
the nature of the research problem. In this research, the research will describe and explain the
EAI and its impacts in the business process efficiency. By focusing on an important business
process like the Selling Scratch Cards process in SabaFon, the researcher will try to determine
the indicators that will be effected by implementing (or absence) of the EAI on this process. It is
a case study research and data collection tools will be interviews, documentations and direct
observation.

3.3. Research Problem

EAI has proven outstanding benefits to lots of companies. But still, decision makers need to
have strong drivers to implement EAI because of its cost. Drivers to implement EAI should
translate the impact of the EAI to visible enhanced and efficient business processes. Scratch Card
selling process is one of the most important business processes in SabaFon. It goes through
multiple information systems which are loosely integrated with each other. SabaFon
management are willing to invest in a project that will increase the efficiency of such a process
but they needs clear conclusion and recommendation that will justify implementing an EAI.
They need to know to what extent this integration will affect the efficiency of the selling card
process. Further, if there is an impact, management wants to have the best positive impact on this
process using the right integration. The desired level efficiency here should be viable and
doable. Also, since it is an investment, its benefit should exceed its cost.

27
 3.4. Research Question
To achieve the objectives of this research, a major question should be answered. The main
question of this study will be: What will be the effects of Integration in the enterprise
applications to SCSP efficiency in SabaFon? From this question, the below minor questions need
to be answered by this study:

1. What is the current scratch card selling process is like to be?

2. What are the systems involved in this process?
3. What are the main measurements to be used to describe the efficiency of this process?
4. What are the effects to the business process efficiency in the absence of the EAI?
5. What recommendations or best practices to offer to SabaFon management?

3.5. Theoretical Framework of the Research

In this section, we will formulate a model of the research that presents the indicators
affecting the SCSP or any business process. The model is primarily a set of variables which were
selected by the researcher based on; first, his experience on this field and, second, documents and
books in the EAI field. Each variable of those five variables is connected to one or more
efficiency measures of Tenner and Detoro model. A brief description of each variable and how it
is related to EAI and Tenner & Detoro model is below:

3.5.1. Synchronous (Real-time)

Dictionary definition of synchronous is: at the same time. When a single business process is
being run on more than one application, synchronous communication between applications is
when messaging among applications needs request and response at a short period of time (real-
time). Asynchronous is when messaging ends once a request is sent. This variable is tightly
related to time, when messaging is synchronous the time needed to finish a workflow in the
business process via application is decreased. When EAI does not exist, all communication is, by
nature, asynchronous. The researcher selected this variable because real-time is one of the main
drivers to implement EAI since it helps shrinking the request/response time among application
which lead to fast response. The researcher has broken down this variable to four dimensions.
Below description of these dimensions:

28
 1. Real-time: some people call it “live” connection. It describes the situation of
the connection among application in timely based manner. Live connection
occurred when there is an immediate response for each request. Delay is very
small and can be ignored.
2. Cycle Time: It is the time consumed from the starting point of a process or a
sub process till the end of this process.
3. Response: connection among applications can be divided into two types
according to the response type. First type is when an application sends a
request to the other and waits for a response. The connection in this case is bi-
directional. Other type is when an application doesn’t require a response when
sending a request (one way ticket).

3.5.2. Control
Communication among applications should be controlled. Information flow should have a
predefined workflow. Data transformation should be authorized by certain rules so that security
is not breached. Communication also should have the ability to work under uncertainty (like
when some of the applications went down) this variable is related to variation measures. It is also
one of the drivers to EAI since it presents a centralized point whereby applications can be
controlled. This control will certainly lead to process control as well. The researcher has broken
this variable to three dimensions. Below description of these dimensions:

1. Dataflow: describes the mechanism of flow of data among applications. The

way how data should passed, suspended, resumed.
2. Supervision: describes all aspects of monitoring and reporting status of current
sub processes.
3. Maintenance: describes the periodically check of the current processes.
4. Centralization: presents the concept of a single point which run, control and
access all systems running the business process.

3.5.3. Data Quality

The purpose of using data quality rules is to identify data errors. This leads to an obvious
question: “What constitutes a data error?” The fact is, there is no absolute in data quality, and it
is impossible to define data accuracy in vacuum. Data quality is measured by its fitness to the

29
purpose of use (Maydanchik 2007). Data Quality refers to the degree of excellence exhibited by
the data. In a business process, data is being transferred from one application to another. Data is
then being processed, stored and generated again to next application to complete the business
process dataflow. All those processing in different application will result either redundant data or
similar data with different representation. EAI increase the data quality by defragmenting data in
way that eliminate the redundancy and produce standard representation of data. This variable is
highly tight to cost measures. The researcher has broken this variable to three dimensions. Below
description of these dimensions:

1. Fitness of Use: it is the extent to what data meet business needs. It is an

important aspect of data quality. Reports or data that do not fit business need
assumed to be low quality.
2. Standardization: information stored should be categorized according to
standards that are designed to business requirements. When reports generated
are not categorized to meet that standards, further work is done to those reports
and therefore, data quality is missing.
3. Redundancy: sometimes it is called data duplications. It is a situation where
similar data exist in multiple systems. When business required some joint
reports from multiple systems, redundancy makes conflicts in reports
generated.
4. Design: it reflects the layout and description of information in the data. Design
should meet the business requirements.

3.5.4. Transformation Error

This is different from the Data Quality point in which it deals with the movement of data
among system not the output of the data. A particular business process has to flow information
via different information system. Information transformed from application to another are
subjected to be stuck in a point or another. Any pending data transformation in one point will
stop the overall process. This is highly related to cost of quality measures. EAI controls the
transformation so that it can be redone when a problem occurs unlike situation with manual
integration and that is why this variable was selected. The researcher has broken this variable to
three dimensions. Below description of these dimensions:

30
 1. Consequences: describes all incidents that might happen when an error occurs
and stops the data transformation.
2. Backup Plan: describes an emergency plan (plan B) to be run when an error
occurs so that process will not stop.
3. Alarming: describes a system that auto-alert operators when an error occurred
and transformation stopped.

3.5.5. Process Cost

Labor needed to make the manual integration and messaging between systems is an
important cost. Especially when they have to work overtime. Further, time differs between
manual and auto integration. EAI eliminates all of these cost in which mediators among
applications are being replaced by a middleware. The variable was selected since a high process
cost is an important driver to EAI. The researcher has broken this variable to three dimensions.
Below description of these dimensions:

1. Labor: describes human capital dedicated for the process.

2. Hardware: describes hardware equipment dedicated for the process.
3. Software: describes software developments and licenses dedicated for the
process.

Note that the researcher in the next chapter will use both terms: variables and factors to describe
the above variables.

3.5.6. Efficiency Measures Matrix

We have mapped each indicator to Tenner and Detoro efficiency measures as below
(Tenner and Detoro 2000). Table 3.1 illustrates a matrix that shows this mapping.

Table 3:1 Matrix to Link Researcher Variables with Efficiency Measures

Efficiency Data Transformation Process

Measures Synchronous Control Quality Error Cost
Cost Measures * * *

Variation Measures * *
Cycle Time * * *

31
 Measures
Source: The Researcher

The data collection tools will then be used to determine the existence of each variable and
to what extent it has an effect to the process. Each of those variables was broken down to one or
more dimensions. Those dimensions are to be measured by the data collection tools. Those tools
will be described later in this chapter. Dimensions are listed in table 3.2.

Table 3:2 Research Model's Variables with Their Dimensions

Variable Dimension
Data Quality Fitness of Use
Standardization
Redundancy
Design

Process Cost Labor

Hardware
Software

Transformation
Error Consequences
Backup Plan
Alarming

Control Dataflow
Supervision
Maintenance
Centralization

Synchronous Real-time
Cycle Time
Response
Source: The Researcher

32
 The below figure illustrates the research model.

Figure 3.1 Research Model

33
 Source: The researcher

3.5.7. Service Quality Determinants

Desired efficient business process should have outcomes that achieve enterprise objectives.
Quality of service is one important objective of any enterprise especially for service providers. In
order to make sure that our model is heading in the right way; efficiency measures should be
linked to some determinants of service quality. For this purpose, the research has adopted
Service Quality Model of Parasuraman, Zeithaml and Berry (SERVQUAL) and used some of its
determinants after minor changes to adopt with research topic. The five variables above are then
linked to those determinants. Below determinants used by the researcher (Kotler and Keller
2006):

1. Reliable Service: the ability to perform the promised service dependably and
accurately. With Data Quality and less of Transformation Errors, service
becomes more reliable.
2. Fast Response: the willingness to help customers and to provide prompt
services. Real-time integration makes the process faster and, hence, the
response is faster. Further, controlled process lessens the chances of failure that
can delay response.
3. Variety: Reflects the ability of the process to adopt with changes in the market
and come up with newer options to the subscribers. Quality of data and a good
control help achieving variety.
4. Competitive Prices: reflects the price of the service. When the process cost
itself is reduced, product or service cost can be reduced and -accordingly- the
service price.

Table 3.3 shows how each of the five variables connected to the service quality determinants.

Table 3:3 Mapping Between Research Variables and SERVQUAL Determinants

Model Variable Customer Perspective of Quality

Data Quality, Transformation Error Reliable Service
Synchronous, Controllable Fast Response
Data Quality, Controllable Variety

34
 Process Cost Competitive Prices
Source: The Researcher

3.6. Data Collection Instruments

The data that are going to be collected are definitely those data which will help the researcher
to achieve the research objectives. As this is a qualitative research, interviews will be the primary
source of data in this study. The research used some documentation and highlighted points with
direct observation. This section will explain the sources of data and the tools which will collect
those data. The primary sources were interviews and the secondary were applications
documentation and the research direct observation. Interviewees were those who are directly
interacting with scratch cards selling process. The interviews questions reflected dimensions of
the variables mentioned in the previous chapter. The data then have been complied and analyzed
and represented in tables and charts.

3.6.1. Primary Data Source

Source of primary data will be interviews. Interviewees are chosen from a list of all the
participants who are affecting or affected by the business process. List of interviewees is in
appendix I.

Interview questions were two parts. First part was unstructured interviews with open-
ended questions. Answers of these open-ended questions should give answers of the existing
process and integration. Second part will be questions that help the research mark a checklist.
This checklist contains all indicators that indicate efficiency measures as mentioned earlier.
Dimensions mentioned in the previous section are the content of the checklist. Some of the
questions were not applicable of all interviewees because his/her work nature in the process. In
this case, the research leaves blanks on corresponding scales. Interview questions are listed in
Appendix II.

All questions in the checklist were reviewed from both academic and business
perspectives (with deep thanks). Reviewers were Dr. Abdulkarim Al-Sayagy and Dr. Ahmed Al-
Durafi from Sanaa University, Center of Business Administration. Dr. Adnan Al-Mutawakel
from Community Colleague, Information Systems section. And Eng. Fahed Alariqi the IT

35
Director in SabaFon. All comments were gathered and reviewed again with the research
supervisor.

The researcher designed a reference scale table to show on what basis scales are to be
given to each question. The dimension used in each question as an indicator. The questions were
designed to have answers leads to absence or the presence of this indicator. Scale 1 was given
when the interviewee didn’t mention that indicator at all. Scale 2 was given when the indicator
was mentioned but even not directly or the interviewee did not stress on that indicator, 3 was
given when the indicator was clearly and directly mentioned. Scale 4 was given when there is a
strong stress and emphasizes on the indicator itself. Table 3.4 summarizes scale reference.

Table 3:4 Checklist Scale Reference Table

Description of Scale Value

Not mentioned at all 1
Small existence 2
Directly Exists 3
Strongly Stressed 4
Source: The Researcher

3.6.2. Secondary Data source

Using more than one data collection tool enriches the study. The utilization of multiple
resources gives the study more reliability (Yin 2003). The Documentations of existing
applications along with some documented blueprints, if exists, of the business process will be a
secondary course of data. The researcher direct observation is another source. Below is a list of
documentation and reports researcher used:

1. Intelligent Network (IN) and Voucher Management System (VOMS) Integration.

2. ERP Supply Chain system (Purchasing and Inventory).
3. Financial Reports.
4. Scratch Card Selling Reports.
5. Purchasing Reports (Scratch Card Purchasing).
6. Customer Loyalty and Retention Report.

36
 3.7. Data analysis and presentation methods
Data collected from unstructured interviews will be converted to a blue print of the Selling
Scratch card process. The researcher will use diagram to illustrate the process. The diagram
should focus on the information systems used and how integration is taking place. Regarding the
checklist, each dimension will have the average of all questions weight. Same for the variable;
each variable then will have the average of all dimensions related to it. At the end, each variable
will have one of the four scales. Having measured each variable and using the matrix that links
them to efficiency measures, we can then answer the research question and come up with
conclusions on the effects of EAI to business process efficiency. The researcher used Pie and
Line charts where convenient.

3.8. Research Questions’ Answers.

The questions of the research were answered implicitly within the description and finding of
data in next chapter. Table shows each question’s number and the section where it has been
answered.

Table 3:5 Research Questions Answers

Question Number Section

1 4.2.1
2 4.2.1
3 3.5
4 5.2.5
5 5.3
Source: The researcher

3.9. Summary
The methodology used in this research was designed to cope with the nature of this research.
As a case study research, methodology was to get a better understanding of a situation. The
model has focused on five variables: Data Quality, Control, Process Cost, Transformation Error
and Synchronous. Variables were chosen to represent one or more efficiency measures of Tenner
and Detoro. Data are to be collected using interviewees and the researcher used a checklist as a
primary tool. Secondary tools are documentations, reports and direct observation. Scales were
given to checklist items from 1 to 4.

37
 4. CHAPTER FOUR DATA ANALYSIS AND DISCUSSION
4.1. Introduction
In this chapter, all data collected from primary and secondary sources will be analyzed.
Although it is a qualitative research, we will use some quantitative figures to describe the case.
Data were collected from interviews as well as checklists. The researcher used direct interviews
with 7 employees in SabaFon out of 12. Therefore around 60 of the nominated interviewees were
responded. The researcher couldn’t conduct interviewees with the other 40% due to
unavailability of the nominees during data collection. Interviewees were employees, supervisors
and managers who are participating a common business process which is the Selling Scratch
Card process. First section of this chapter will go in details with analysis of data collected from
both primary and secondary resources. Next section will go through finding and will try to
answer all research questions.

4.2. Data Analysis

There were open interviews to describe the Scratch Card Selling process. Interviewees were
aimed to help the research to complete the checklist that will be used in the second type of
interviews. Those other interviews were held to help the researcher complete the predefined
checklist. Also, secondary resources helped the researcher understand figures and results more
effectively. Below we will first describe the current selling of Scratch Cards process along with
all information systems used. Then we will go in details with all the five variables of the research
model. The analysis below is a result of data collected from all mentioned tools plus the direction
observation of the researcher:

4.2.1. Scratch Cards Selling Process

Based on the open interviews with Sales and IT personnel, and based on some systems
documentation, below are all applications participating in the Selling scratch process. Later, all
steps can briefly describe the Selling Scratch Card process. Figure 4.1 illustrates the process in a
workflow chart:

38
 1. Intelligent Network (IN) and Voucher Management System (VOMS)
Integration
It is the system in charge of organizing and controlling all transactions of prepaid
subscribers. It registers information such as: status, balance and the activity-end period. When a
prepaid subscriber calls, the call is first directed to IN to check whether a balance is enough to
make a call (or any other service like short message). If ok, then IN passes the call to the
centralized switch to deal with the call. Then IN charges the subscriber according to the call or
service. This system is one of the most important assets of SabaFon since it is responsible of
around 75% of the company revenue (based on last annual revenue report)

2. Voucher Management System (VOMS)

It is a small –important though- application which is responsible of generating serials of the
scratch cards and also confirming to IN with the amount of any scratch card recharged. It is the
interface between the subscriber and the IN system when recharging units using scratch cards.

3. ERP Supply Chain system (Purchasing and Inventory)

ERP system deals with the internal process of the company from supply chain to financial
and human capital processes. It has more than one module and all of them are fully integrated
together. Supply chain module is the most important module in this research since scratch cards
are bought and stocked using transactions made by the system.

4. Business Intelligence System

It is a collection or reports. Those reports were built on predefined indicators and
requirements needed by all departments in the company. BI uses data mining to gather its
database.

5. Customer Relation Management (CRM)

There are two parts of any CRM: operational and analytical (Laudon and Laudon 2007).
An operational part is used to track customer complaints and it is already implemented in the
Billing system (details of Billing system are next). Analytical part performs analysis of data
generated from the operational part that are important for service fulfillment and customer
loyalty and retention. This second part is not implemented yet in SabaFon and Sales guys are
working on separate files to achieve CRM functionalities.

39
 6. Billing System
Billing system is in charge of generating bills for all postpaid subscribers. It is also the
reference of all subscribers where it stores all there information. It acts also as an interface
between the subscriber and the switching center. Customer care use the billing system to track
subscribers information, complains and history.

7. Scratcher System
It is an in-house developed system. Engineers who developed it call it that name to give a
clear indication that it is used mainly for organizing selling of scratch cards. It was designed to
organize the distribution of scratch cards to SabaFon service centers and distributors. It imports
all scratch cards data from IN system. It also generates a delivery reports for scratch cards.

Now, we will go through the Selling Scratch card process in details. Below are all steps:

1. Sales estimates the target to be sold periodically using reports from the BI
(Business Intelligence) in IT department. The step occurred quarterly or
seasonally when SabaFon needs to offer promotions. The request is sent via
mail to the BI unit. BI personnel run their queries and send back the results to
Sales. Integration is done via e-mail only.
2. Sales generate a Sale Order in the CRM system. Till now there is no
application for CRM. However, people in Sales are using some in-housed
developed small applications (in MS Excel and Ms Access format) to generate
a Sales order. Sales order is sent also via e-mail to Purchasing department.
Integration is also done via e-mail only.
3. Purchasing checks inventory for the current stock. If this stock doesn’t cover
planned sales, they order a purchase request using the ERP system. As
inventory and purchasing processes already implemented in the ERP system,
they are fully integrated with each other.
4. A Purchase order is then sent to the agreed supplier. After the agreed period of
time (based in contract), cards are received by SabaFon inventory. Purchase
order is sent via fax or e-mail. There is no integration with outside suppliers.

40
5. Amount to be paid to the supplier is registered in Payables system in the ERP
till SabaFon pay them. Similar to the inventory and purchasing, Payables are
also integrated within the ERP system.
6. When payment occurred, amount is updated in Payables system.
7. Scratch cards are then arranged in batches based on the type of cards and
distributor using an internal developed system called: Scratcher. Once scratch
cards are received, Sales personnel are notified via e-mail.
8. Each batch is then activated in IT before sending the physical goods to
distributors. Batches are sent via FTP (File Transfer Protocol) to IT. When
Scratch cards are activated, IN system generate other files which is read again
by scratcher to distinguish between activated and non-activated cards.
Integration here is offline file based.
9. Sales department distributes the quantity to be sold among SabaFon authorized
distributors. Amount is registered in Receivables system in the ERP till
distributors pay SabaFon.
10. When distributors sell a card, the subscriber scratches it by dialing a predefined
number, the card is recharged in his/her account using the Voucher
Management System (VOMS).
11. VOMS then updates the IN system by the action and update the subscriber
balance. Integration here is live between VOMS and IN system
12. Action is then registered in the Billing system as a service. Billing is getting
actions through flat fines that are being generated by IN system. Integration
here is offline file based.

41
Figure 4.1 Scratch Card Selling Process

Source: The researcher

42
 4.2.2. Checklist Dimensions
Here in this section, we will analyze all data from the interviewees and the checklist.

1. Data Quality
It describes the fitness of use of the reports or data of systems. Table 4.1 below contains data
collected on this factor:

Table 4:1 Data Quality Variable Data

1.1 Fitness of use Weight

1. Are decision being taken based on system reports or they need
further analysis? 2.5
2. Do reports fit their needs? 2.2
3. Do they have to do extra operations to extract reports before using
them? 2.5
Average 2.4
1.2 Standardization Weight
1. Do they have to re-categories reports retrieved from two or more
systems? 1.6
2. To what extent you think data are categorized? 2.5
3. Are data retrieved meet department standardization? 1.33333
Average 1.81111
1.3 Redundancy/ Duplication Weight
1. Are there similar data on different applications? 2.33333
2. To what extent data should be centralized? 3.33333
3. Do reports generated contain duplicate data? 2.66667
Average 2.77778
1.4 Design Weight
1. Where reports designed to fully achieve the required output? 2.33333
2. Are they comfortable with reports design? 3.33333
Average 2.83333
Factor Average 2.45556
Source: The researcher

43
 Upon results of all interviews, researcher found that most of department rework on the
reports generated by systems for further analysis. Some of them claimed that there were only
20% of end users who need further analysis. Others said that it was a must to do further analysis
since reports were rigid. “We have to consolidate reports since we extract them from more than
one source” said the Sales Logistics Senior Agent. The majority of them agreed on the point that
no good fitness of use in reports generated by systems because reports were collected from
several sources. This dimension got an average of 2.4 which means that there was an effect on
the process efficiency. This average was expected since it was clear that end users faced
difficulties in getting desired reports. However, it was not that extreme effect. In the
Standardization, technical people (IT personnel) said that 30% of data were categorized
according to different levels and different purposes. End users agreed on that but still they didn’t
find clear standard categorization in all databases. This dimension got an average of 1.8 which
could be rounded to 2. With the absence of real EAI, data categorization would never be
completed. Responses on the third dimension Redundancy assessed the fact that there was
duplication in data. However, technical personnel claimed that some redundancy was a must and
could not be overcome. According to documentation of the IN system and Billing system, it was
clear that both systems kept similar data; especially those data related to customer behavior and
calls history. Majority of respondents agreed on the need of centralized database where
redundancy could be eliminated. Redundancy dimension got an average 2.77 which was the
highest in this factor. This average was almost 3 which could be described to a clear effect on
process efficiency. The last dimension of the Data Quality, which was the Design, was not an
interest of most of interviews. As long as end users were doing further analysis to reports, from
the first dimension, they accepted current reports. However, they claim that they were
comfortable with the design. Average of this dimension got 2.45. It is important to mention here
that the Fitness of use dimension is correlated to this dimension. That is why they both got
similar weights. The overall of the Data Quality factor got 2.45. This indicated that there was an
effect. That figure met the researcher expectation since Data Quality is a crucial to most telecom
operators. Therefore, Data Quality affects business process efficiency. Referring to the matrix
(Table 3.1) cost and variation measures are affected by this variable as Data Quality is part of
them. Figure 4.2 shows each dimension and it is contribution to the Data Quality factor.

44
Figure 4.2 Data Quality Dimensions

Data Quality Dimensions

29% 24%
Fitness of Use
Standardization
18%
Redundancy
28%
Design

Source: The researcher

2. Process Cost
The second variable of the research model. It describes the cost associated with the
process. Table 4.2 below summarizes the data collected for this variable.

Table 4:2 Process Cost Variable Data

2.1 Labor Weight

1. How many personnel are working on this process? 1.4
2. Are they doing manual work to integrate systems? 1.66667
3. Are they fully qualified? 1.5
4. Is overtime required to do the job? 1.33333
Average 1.475
2.2 Hardware Weight
1. How many hardware dedicated for this process? 1.8
2. What is needed to maintain such hardware? 1.75
3. What is the life time of this hardware? 1.75
Average 1.76667
2.3 Software Weight
1. How many software developments to connect current applications? 2.2
2. Are there special resources to develop these connectors? 1.75

45
 3. Can they be reused to connect new applications? 1.5
4. Are there any licenses required? 2.5
Average 1.9875
Factor Average 1.74306
Source: The researcher

Almost all respondents said that there are not dedicated personnel to work on the current
integration. Accordingly, there was no cost related to salaries or overtime. “If I would go for EAI
implementation, I don’t think that I will have to downsize Billing unit personnel” said the Billing
manager. Further, most of the existing integration was based on automatic tools that did not
require operators to hand over the task. Average of this factor was 1.48. This was small enough
and reasonable as well. Since the number of employees would not be affected if SabaFon will get
for EAI, then this dimension had very small effect. For hardware dimension, technical people
claimed that only a small part of hardware was used in the current integration. Further, most of
the hardware used in this process didn’t require that much of maintenance. The same
maintenance plan goes for all hardware either those in the integration process or others. Average
of this dimension got 1.77. This was also small, reasonable and met the researcher expectation.
Similarly, software developments existed but in a small extent and all of those software
connectors could be reused in other parts. Licenses were the only cost that could be eliminated
with a proper integration because current software used to connect application required many
licenses. “Integration will shrink cost by replacing all current software connectors’ licenses with
one license” Said the IN and VAS Manager. Average of this dimension got 1.99. It was higher
than the two above because of the license cost as we mentioned. The overall average of the
Process Cost variable got 1.74 which was between No effect and a small effect. Referring to the
matrix (Table 3.1) cost and cycle measures are silently affected by this variable since Process
cost is part of them. Figure 4.3 shows each dimension and its contribution to the process cost
factor.

46
Figure 4.3 Process Cost Dimensions

Process Cost Dimension

28%
38%

Labor
Hardware
Software
34%

Source: The researcher

3. Transformation Error
The third variable of the research model. It describes status of the dataflow through
connectors among application. Because of technical nature of this factor, only few respondents
are applicable and they are all IT personnel. Table 4.3 summarizes data collected for this
variable.

Table 4:3 Transformation Error Variable Data

3.1 Consequences Weight

1. Are there any transformation errors? How often? 2.75
2. To what extent a transformation error will affect the process flow
in a bad manner? 2.66667
3. Is there a process delay when error happens? 2
Average 2.47222
3.2 Backup Plan Weight
1. Is there a backup plan when data flow fails between two
applications? 3
2. Do they check backup plan periodically? 3
3. If no backup, to what extent the process will be affected if dataflow
fails? 2

47
 Average 2.66667
3.3 Alarming Weight
1. If a problem occurs and data flow stops, are there any alerts? 1
2. Do they check the reliability of those alarms periodically? 2.25
3. If no alarms, what is available for alerting? 2
Average 1.75
Factor Average 2.2963
Source: The researcher

Regarding the consequences, most of interviewees agreed that there were chances to have
an error while transforming data from application to another. And they agreed also that it
affected the dataflow and the process in general in a bad manner. However, not all data flows
were subjected to fail. Some connections do fail rarely and the percentage was very small and
could be ignored. The overall average of the dimension was 2.47. Figure was relatively high
comparing to other dimensions in other factors. Unfortunately, most of the dataflow procedures
had no backup plan; however, they do have alarming tools. “When error happened, we get an
alarm and then we suspend the process and work on it until we solve it” said the IN Supervisor.
“Such errors cause delay in activating cards. Around 20% of subscribers who call contact center
showing frustration. We don’t know how frustrated those who do not call are” said Sales
Logistics manager. IT personnel said that they did not check the reliability of the alarming
system though. “The delay that might happen in this case has small affect in the process” Said
the IN and VAS manager. The average of the Backup plan dimension got 2.67 which was the
highest in this factor. It makes sense that having no backup plan has a clear effect on the process
thus, the figure was reasonable. Alarming dimension got 1.75. This has also met the researcher
assumption to some extent. The overall average of this factor got 2.3 which indicate an affect.
Referring to the matrix (Table 3.1) Cost and Cycle time measures are affected by this variable as
it is part of them. Below figure 4.4 shows each dimension and its contribution to the
Transformation Error factor.

48
Figure 4.4 Transformation Error Dimensions

Transformation Error Dimensions

25%
36%

Consequences
Backup Plan
Alarming
39%

Source: The researcher

4. Control
The forth variable. It describes the ability of controlling the process. It is an important
factor since most of EAI projects focus on the controlling and supervision aspects. Table 4.4
summarizes data collected.

Table 4:4 Control Variable Data

4.1 Dataflow Weight

1. Is there any type of control to flow of information? Can they

suspend it and resume it when necessary? 1.4
2. Do they control dataflow change easily? 2.25
3. To what extent the flow of data is controlled? 1.5
Average 1.71667
4.2 Supervision Weight
1. Do they need to monitor each application? 1.75
2. Is there a center point of supervision? 2.33333

3. When there is a new user, do they have to create it on each system? 3

4. Is audit trail activated? 1.66667
Average 2.1875

49
 4.3 Maintenance Weight
1. Do you have maintenance for the current integration? 2.25
2. If yes, on what timely basis? 2.25
3. Is that an easy task? 1
Average 1.83333
4.4 Centralization Weight
1. Is there a single sign-on for all applications? 3.66667
2. Is there a portal in your intranet? 4
3. Is there a unified interface for applications? 4
Average 3.88889
Factor Average 2.4066
Source: The researcher

Almost all respondent found that the process was controlled and they could suspend and
resume the dataflow. However, it was not an easy task as they described it. This dimension got
1.71. The figure was below expectation since dataflow is an important dimension and it affects
the process control. However, respondent may underestimated it because they could afford
current control. In the next dimension, there were emphasizes on the point that there must be a
single point to supervise applications since it was not efficient to monitor each system. On the
other hand, security was a tedious work when creating or deleting users among system; let alone
organizing the right permissions and responsibilities. “We have to exert more effort in security
issues. Each time a new user is added, we have to assign him/her in all applications. Each
application has different rules than the others. The same for a leaving user” said the Billing
manager. The average of this dimension got 2.19. Figure showed a pretty good effect, however,
researcher expected more. For the maintenance, some of interviewees claimed that there were
some sorts of maintenance periodically while others claimed that there were no maintenance and
their action was reactive not preventive. This dimension got 1.83. It was small since
maintenance, as mentioned in the Process Cost variable, is done to all hardware including
integration hardware. The last dimension for this factor was the Centralization which was the
most important one. Results show that there was no aspect of centralization at all. No shared
interfaces, no portal and single sign-on (single point to login to all applications). This dimension
got 3.89 which was the highest one among all dimensions in all factors. It made sense that

50
Centralization got that weight since it is the core concept of EAI project. They are called
Middlewares as discussed in Chapter 2. The overall average of the Control factor was 2.41. This
indicated that there was an effect. Referring to the matrix (Table 3.1), variation measure was
affected by this variable since it was part of it. Figure 4.5 shows each dimension and its
contribution to the factor.

Figure 4.5 Control Dimensions

Control Dimensions

18%
40%
Dataflow
23% Supervision
Maintenance
19% Centralization

Source: The researcher

5. Synchronous
The fifth and last variable. It describes the time between request and reply among sub
processes in the current integration. This is also an important factor in EAI since it leads to a live
communication among systems. It is important to mention here that sometimes that nature of
some applications prohibits a real-time connect. “Connection from IN system to Billing system
cannot be live because of security issues and contract agreement with the application vendor”
said the IN and VAS manager. Thus, even the best EAI implementation will not make the
connection live. Table 4.5 summarizes all data collected:

Table 4:5 Synchronous Variable Data

5.1 Real-time Weight

1. Is it real time connection between systems? 1.83333

51
 2. Is existing integration considered as offline or online? 2
Average 1.91666
5.2 Cycle Time Weight
1. What is the overall cycle time of the process? 1.5
2. Does communication among systems take longer than expected? 1.66667
3. Is there a part of the process that takes more than others because of
a bad integration? 1.33333
4. What is the time needed for information to flow from system to
another? 1

Average 1.375
5.3 Response Weight
1. Do applications communicate in request/reply approach? 2
2. How much time is needed for an application to be updated by
another one? 2.66667
3. If a change on data happens, does the change appear in all
applications immediately? 2.5

Average 2.38889

Factor Average 1.875

Source: The researcher

As mentioned above; some applications were connected in offline mode because of the
nature of the applications. Others were not connected in real-time because of the weak
integration. This dimension got an average of 1.92. Figure was somehow reasonable since there
were lots of connectors that could be online. The cycle time of the overall process took around
16.3 days from activating the voucher till the subscriber got line recharged (based on last quarter
report 2009 issue from Scratcher application). Purchasing reports showed that it took from 20 to
30 days from ordering the cards till they reached SabaFon inventory. There were sub processes
that can be shorten like the purchasing and the distributing, while other processes like activating
cards in system were fixed and could not be shortened. This dimension got an average of 1.38.
Which was close to researcher expectation since cycle time in most of process could not be
shortened; therefore, affect was not that serious. Not all messaging among application in

52
request/reply more. This was either because of the process nature or the weak integration. Time
spent among application to respond varied and could be shortened with good integration. This
dimension got 2.39. This indicates a clear effect because EAI enhances the mechanism of
request/reply. The overall average of the Synchronous factor got 1.88. So there was an effect on
the process efficiency from this factor. Referring to matrix (table 3.1), cycle time measure was
slightly affected by this variable since it was part of it. Figure 4.6 below shows all dimensions of
this variable.

Figure 4.6 Synchronous Dimensions

Synchronous Dimensions

34%
42%
Real-time
Cycle Time
Response
24%

Source: The researcher

The table below summarizes all data gathered for all factors and their dimensions:

Table 4:6 All Dimensions Weights

Percentage per
Dimension Average Factor
Fitness of Use 2.4 24%
Standardization 1.811111 18%
Redundancy 2.777778 28%
Design 2.833333 29%
Data Quality 2.455556 100%
Labor 1.475 28%

53
 Hardware 1.766667 34%
Software 1.9875 38%
Process Cost 1.743056 100%
Consequences 2.472222 36%
Backup Plan 2.666667 39%
Alarming 1.75 25%
Transformation
Error 2.296296 100%
Dataflow 1.716667 18%
Supervision 2.1875 23%
Maintenance 1.833333 19%
Centralization 3.888889 40%
Control 2.406597 100%
Real-time 1.916667 34%
Cycle Time 1.375 24%
Response 2.388889 42%
Synchronous 1.893519 100%
Source: The Researcher

From the above data, it is clear that Centralization gets the highest weight of 3.89 and
Cycle time gets the lowest weight of 1.38. Figure 4.7 shows results on dimension level:

Figure 4.7 All Dimensions Weights

Dimensions Weight
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0 Average
Redundancy

Maintenance
Consequences
Labor

Software

Response
Standardization

Hardware
Design

Dataflow

Centralization
Supervision
Fitness of Use

Real-time
Alarming

Cycle Time
Backup Plan

Source: The researcher

54
 In the previous section we have mentioned all variables and what weights were given to
them. According to variables percentages, Data Quality variable got the highest percentage of
23%, the last variable was Process Cost which got only 16%. Table 4.7and figure 4.8 illustrated
the results on variable level in order of percentage from highest to lowest.

Table 4:7 Variables Weights and Percentages

Average
Variables Weight Percentage
Data Quality 2.455555556 23%
Control 2.406597222 22%
Transformation Error 2.296296296 21%
Synchronous 1.893518519 18%
Process Cost 1.743055556 16%
Source: The researcher

Figure 4.8 Variables Percentage

Variables Percentage
16%
23% Data Quality
18% Control
22%
Transformation Error
Synchronous
21%

Source: The researcher

If we refer to the efficiency model of Tenner and Detoro along with the matrix designed
by the researcher, and according to the matrix designed by the researcher below, we can find that
efficiency measures are affected and all of them got almost rate 2. See table 4.8

Table 4:8 Mapping between efficiency meansures and research variables

Data Transformation Process

Efficiency Measures Synchronous Control Quality Error Cost Average
Cost Measures 2.46 2.30 1.74 2.16
Variation Measures 2.41 2.46 2.43

55
 Cycle Time
Measures 1.89 2.30 1.74 1.98
Source: The researcher.

Figure 4.9 shows a chart on how each of these measures affected using the five variables.

Figure 4.9 Efficiency Measures Percentage

Efficiency Measures

30% 33%
Cost Measures
Variation Measures

37% Cycle Time Measures

Source: The researcher

It is clear that each part of the efficiency measures had a approximately an equal part. This
confirms the point that the five factors of the research model have reflected a good measure of
efficiency.

4.3. Summary
In this chapter, we have illustrated all data collected from the several sources we had. All
those data were complied and analyzed. Some of research questions declared in chapter 3 were
answered in details. Other research questions will be answered in chapter 5. It was clear the
variables gave indication on the existence of effects to the business process efficiency. Data
Quality variables got the highest effect while process cost got the lowest.

56
 5. CHAPTER FIVE CONCLUSIONS AND RECOMMENDATION

5.1. Introduction
In this chapter, we have compiled all analysis gathered from previous chapter and come up
with a set of conclusions of the situation in SabaFon. Those conclusions were followed with
recommendations for the company and then for the future studies in similar field.

5.2. Conclusion
Before we start, it is important to mention that the researcher depended on all data collection
tools to come up with below conclusions along with his experience and direct observation.

1. SabaFon is achieving a remarkable growth in the telecom industry in Yemen. Growth is

measured by number of subscribers. It achieved so far 2.7 million subscribers. Almost 75%
of the subscribers are prepaid subscribers and the rest 25% are postpaid subscribers. It is
essential for prepaid subscribers to recharge their accounts in order to make calls and not to
have their lines suspended. So scratch cards recharge is an important and crucial process. For
postpaid subscribers, scratch cards are useful since they can settle their bills by transferring
credits to their bill accounts. To achieve service quality to all the 2.7 million subscribers; it is
worth it to focus on a process like the SCSP and make it more efficient.
2. Apparently, this big part of revenue that comes only from SCSP gives this process an
importance to SabaFon management. This importance along with that rate of churn in
SabaFon subscribers always keep management focusing on how to present the best quality in
this process and other processes. So it is clear now that there are some motives and intentions
to increase SCSP efficiency.
3. Based on Sales and purchasing reports, it has been noticed that there are some delays in
either getting scratch cards to SabaFon inventory or in delivering those cards to end users.
Delay can be always shortened if efficiency is to be increased.
4. According to factors percentages results, Data Quality factor gets the highest effect. The
existing process lacks a good reporting system. Control factor comes next which indicates
that the process needs to have more control over all sub processes. Transformation error
issues play an important role in affecting the process efficiency but not to high extent.
Further, the absence of EAI makes most of the real-time connections offline. However, this is

57
 not as important as the other factors since, as mentioned, not all connectors among
applications can be live. Finally, process cost gets the lowest percentage. This is totally
against the researcher expectation and the literature about EAI. However, this result is
accepted as long as it is not below scale 1.5.
5. All measures of efficiency, according to the research model, are measured using the five
factors of the model. Referring to table 4.8 and figure 4.9, we can conclude that
approximately each measure gets a third and all of them are equally measured. This confirms
that the five factors have successfully measured the efficiency of the business process and the
business process is affected in the absence of EAI to a moderate extent. Furthermore, the
implementation of an EAI will increase the efficiency of the business process of the SCSP.
This is the answer of research question number three.
6. The IT information systems architecture is not process oriented but rather solution based.
Each packaged application is acquired and implemented for a certain purpose. There is no
integration strategy from the beginning.

5.3. Recommendation
According to the conclusion, it is clear that a decision to go for the EAI project is not highly
recommended for the time being. Below are the researcher recommendations for SabaFon:

1. SabaFon should study the process itself if it needs more improvement and redesign before
deciding to go for EAI.
2. EAI should be process-oriented. It is better to exert some effort in IT system infrastructure to
be more service oriented (SOA) before implementing the EAI.
3. The EAI project should be aligned with the IT strategy and the firm strategy. So it needs to
have a broad vision and implementers must think for the long-term benefits.
4. EAI costs are high relative to other IT project. So decision makers should be careful in
making the cost-benefit analysis. EAI can be also made in-house. This will have a low cost in
implementation.
5. According to Gartner almost 75% of IT projects fail. However, failure is not because the
goals are not achieved but rather because that the project doesn’t meet cost, time and quality
that are set earlier. Therefore, IT managers should set clear cost, time and quality indicators
to measure success (Gartner n.d.).

58
6. As Data quality gets the highest impact, SabaFon should not start the EAI until a centralized
data warehousing is implemented.
7. Enterprise Applications Integration, Business Process Management, Total Quality
Management and all those 3-letter solutions are useless if there is no clear strategy and a right
definition of the problem. So IT managers should start thinking in a solution before making
sure about the problem.

All above suggestions are the answer of the last research question.

5.4. Suggestion for future research

For those who will choose a similar topic or a topic that match some of the major key words
in this research. We recommend the following:

1. EAI is a new and dynamic topic. There are so limited researches that share the same topic of
this research. So we suggest that a big effort to be exerted to in literature review.
2. The researcher made the research models based on the literature read and the experience in
this field. Therefore, the model is not optimal and can be enhanced and improved.
3. The researcher used only one model to measure process efficiency. Future researchers can
have more than one model for the same purpose and consolidate them in a single model.
4. Since EAI is broad topic, it is better to focus on parts of the EAI like the Service Oriented
Architecture (SOA) and the Enterprise Service Bus (EBS). These are known much than the
EAI in today’s business.
5. EAI is a solution to many purposes. So it is better to define the problem that you want to
solve by EAI solution clearly.
6. As EAI is an IT topic and this is an MBA research, we have to find a business perspective to
deal with EAI topic. Business process efficiency is one perspective. There are so many others
that can be good topics like: Business Process Management, Business Process Improvement
and Change Management.

5.5. Summary
Findings and conclusion show that there are effects to the business process efficiency with
the absence of EAI in SabaFon. As these effects are not crucial therefore, SabaFon should be
careful when deciding to implement an EAI. The cost of such a project is high and, according to

59
the findings, cost impact to the process efficiency is not that serious. It is recommended to do it
locally to achieve some cost reduction. Further, SabaFon management should think seriously
about a centralized data warehousing and this action should be in advance to the EAI
implementation. Furthermore, the implementation of EAI should be process based not
architecture based and it should be aligned with the IT strategy. Future researches should exert
more effort in literature review as the topic is pretty new. The research model was based on the
experience of the researcher in the applications and the EAI field; therefore, it was subjected to
be enhanced and reviewed. The Business process efficiency is one aspect of benefits of EAI.
There are other business perspectives that a future researcher may chose for the research topic.

60
References
Asubonteng, Patrick, Karl J. McCleary, and John E. Swan. "SERVQUAL revisited: a critical review of
service quality." Journal of Services Marketing, 1996: 62-81.

"Basics of Enterprise Application Integration for Dummies." Scribd. 3 26, 2009.

http://www.scribd.com/doc/13676900/Basics-of-Enterprise-Application-Integration-for-Dummies
(accessed 3 26, 2009).

Dutta, Soumitra, and Jean-Francois Manzoni. Process Re-engineering, Organizational Change and
Performance Improvment. Berkshire: McGraw-Hill, 1999.

Fenner, James. "Enterprise Application Integration Techniques."

Fließ, S., and M. Kleinaltenkamp. "Blueprinting the service company: managing service processes
efficiently." Journal of Business Research, 2004: 392-404.

Gartner. www.gartner.com (accessed 2009).

Grover, Varun, and William J. Kettinger. Business Process Change. London: Idea Group Publishing,
1995.

Hammer, Michael. "Reengineering Work Don't Automate, Obliterate." Harvard Business Review, 1990:
105-110.

Hammer, Michael, and James. Champy. Reengineering the Corporation. Harper Collins, 2004.

IMG. "EAI Potential Benifit or Waste of Money." Information Management Group, 2006.

Jacobs, F Robert, Rishard B Chase, and Nicholas J Aquilano. Operations and Supply Management.
McGraw-Hill, 2009.

Kotler, Philip, and Kevin Lane Keller. Marketing Management. New Jersey: Prentice Hall, 2006.

Laroia, Ankur. "EAI Facts and Fictions." EAI Journal, 2002: 8.

Laudon, Kenneth C., and Jane P. Laudon. Management Information Systems. New Jersey: Prentice Hall,
2007.

Lin, Florence. "Enterprise Application Integration (EAI) Techniques." 2005.

Lublinsky, Boris, and Michael Farrell. "Top 10 Reasons Why EAI Fails." EAI, 2002: 41.

Maydanchik, Arkady. Data Quality Assesment. New Jersey: Technics Publications, 2007.

Roch, Eric. "Application Integration Business and Technology Trends." eAI Journal, 2002: 34-39.

Ruh, William A. EAI. Wiley, 2000.

SabaFon. www.sabafon.com. 2009. www.sabafon.com (accessed 2009).

61
Sethi, V, and W R King. Organizational Transformation through Business Process Reengineering.
Singapore: Pearson Education, 2003.

Tenner, Arther R., and Irving J. Detoro. Process Redesign. New Jersey: Prentice Hall, 2000.

Thompson, Jess. "Best Practices Are Key to Successful Application Integration ." 2002.

Yin, Robert Ke. Case Study Research Design and Methodology. Sage Publication, 2003.

Zaheer, Arshad, Kashif Rehman, and Iqbal Saif. "Development and Testing of a Business Process
Efficiency Scale." European Journal of Social Sciences, 2008: 179-188.

Zeithaml, Valarie A., and Mary Jo Bitner. Services Marketing: Integrating Customer Focus Across the
Firm. McGraw-Hill, 2002.

62
Appendices

63
Appendix I
List of All Interviewees
Serial Name
1 Shuhdi Azzani
2 Abdulaziz Alasbahi
3 Iskander Saeed
4 Sameer Awlaki
6 Mohammed Saadi
7 Fuad Saleem
8 Habib Makalih
9 Faris Refaee
10 Wael Tarmoom
11 Mohammed Almoayed
12 Ahmed Bawazeer
64
Title
Sales Logistics Manager
Sales Logistics Senior Agent
IN & VAS Manager
IN Supervisor
Purchasing Agent
Inventory Manager
Inventory Senior Agent
Billing Manager
ERP Supervisor
Business Intelligence Manager
Sales Support Manager
Appendix II
A. Unstructured Interview
Q1. Describe in details the current Scratch Cards selling process mentioning all information
systems participating in this process.

65
B. EAI Factors Checklist
Weight Value
Employee Name: Not mentioned 1
Position: Small existence 2
Date: Directly Exists 3
Strongly
Stressed 4

1.Data Quality
1.1 Fitness of use Weight Comment

1. Are decision being taken based on system reports or they need

further analysis?
2. Do reports fit their needs?
3. Do they have to do extra operations to extract reports before using
them?
Average

1.2 Standardization Weight Comment

1. Do they have to re-categories reports retrieved from two or more
systems?
2. To what extent you think data are categorized?
3. Are data retrieved meet department standardization?
Average

1.3 Redundancy/ Duplication Weight Comment

1. Are there similar data on different applications?
2. To what extent data should be centralized?
3. Do reports generated contains duplicate data?
Average

1.4 Design Weight Comment

1. Where reports designed to fully achieve the required output?
2. Are they comfortable with reports design?
Average

66
2. Process Cost
2.1 Labor Weight Comment
1. How many personnel are working on this process?
2. Are they doing manual work to integrate systems?
3. Are they fully qualified?
4. Is overtime required to do the job?
Average

2.2 Hardware Weight Comment

1. How many hardware dedicated for this process?
2. What is needed to maintain such hardware?
3. What is the life time of this hardware?
Average

2.3 Software Weight Comment

1. How many software developments to connect current applications?

2. Are there special resources to develop these connectors?
3. Can they be reused to connect new applications?
4. Are there any licenses required?
Average

67
3 Transformation Error
3.1 Consequences Weight Comment
1. Are there any transformation errors? How often?
2. To what extent a transformation error will affect the process flow
in a bad manner?
3. Is there a process delay when error happens?
Average

3.2 Backup Plan Weight Comment

1. Is there a backup plan when data flow fails between two

applications?
2. Do they check backup plan periodically?
3. If no backup, to what extent the process will be affected if dataflow
fails?
Average

3.3 Alarming Weight Comment

1. If a problem occurs and data flow stops, are there any alert?
2. Do they check the reliability of those alarms periodically?
3. If no alarms, what is available for alerting?
Average

68
4 Control
4.1 Dataflow Weight Comment

1. Is there any type of control to flow of information? Can they

suspend it and resume it when necessary?
2. Do they control dataflow change easily?
3. To what extent the flow of data is controlled?
Average

4.2 Supervision Weight Comment

1. Do they need to monitor each application?
2. Is there a center point of supervision?

3. When there is a new user, do they have to create it on each system?

4. Is audit trail activated?
Average

4.3 Maintenance Weight Comment

1. Do you have maintenance for the current integration?
2. If yes, on what timely basis?
3. Is that an easy task?
Average

4.4 Centralization Weight Comment

1. Is there a single sign-on for all applications?
2. Is there a portal in your intranet?
3. Is there a unified interface for applications?
Average

69
5. Synchronous
5.1 Real-time Weight Comment
1. Is it real time connection between systems?
2. Is existing integration considered as offline or online?
Average

5.2 Cycle Time Weight Comment

1. What is the overall cycle time of the process?
2. Does communication among systems take longer than expected?

3. Is there a part of the process that takes more than others because of
a bad integration?

4. What is the time needed for information to flow from system to

another?
Average

5.3 Response Weight Comment

1. Do applications communicate in request/reply approach?
2. How much time is needed for an application to be updated by
another one?
3. If a change on data happens, does the change appear in all
applications immediately?
Average

70
Printing Errors

There were an unintentional errors that occurred because the printing. All figures and tables captions
number turns to 0 instead of the chapter number. For example, figure 4.3 was printed as figure 0.3.

71