What is a system integrator (SI)? Most people have an overall understanding about their role providing solutions by bringing components together into a working system. While there are system integrators in many fields, this article restricts the term SIs to those working in industrial automation.
The CSIA (Control System Integrators Association) provides the following definition: “System integrators design and implement sophisticated control systems for manufacturing, process and other industrial facilities. Using their knowledge of engineering, information technology and business, system integrators integrate plant equipment to automate manufacturing and processes from the plant floor to the enterprise level. Automation helps manufacturers and processors reduce cost, increase production, use less energy and lower environmental impact.”
SIs represent a diverse community providing a broad spectrum of solutions over many industries. Some suggest that there isn’t a “typical SI.” To better understand these solution providers, it is necessary to dive into further detail.
SIs specialize along the following categories:
- industry verticals/applications
- technology
- scope of supply (types of services provided)
- geographical presence
- company setup.
Industry verticals
When asked to select their top-served end markets, up to three, SIs selected food and beverage (50%), water and wastewater (29%) and OEM/industrial equipment (23%) (Figure 1). The first two markets are widely distributed geographically providing many SIs with the opportunity to participate. There are other industries that tend to be more geographically concentrated, like automotive and oil and gas, thus limiting their appeal.
Delivering solutions requires a solid understanding of the needs of the clients. It starts with the selection of the industry vertical and includes the industry drivers, regulations, applications and processes. In addition, most manufacturing and process companies have their own standards and preferences that SIs must follow.
- Those serving oil and gas, chemicals and petrochemicals understand that they work in explosive and poisonous environments where their processes are to operate continuously for long periods of time, ideally until the next scheduled shutdown. This has big implications for the selection, installation and operation of equipment.
- Those serving the life-science industries understand that their clients deliver products that are consumed—ingested or injected—by individuals. Food and Drug Administration (FDA) regulations play a key role in ensuring product safety. Their requirements around validation are of paramount importance for this industry. SIs serving this industry need to master FDA validation standards.
Another way SIs may specialize is through their targeted applications. This approach is not completely divorced from the industry verticals. The SIs that specialize in the automation of machines understand they tend to go into certain industries.
Technology
The selection of the industries and/or applications to serve has implications for the automation technology to deploy. From the perspective of the control system, industries can be grouped into process, discrete and batch. Over time the border lines between these categories have blurred as the systems have become more flexible (Table 1).
SIs servicing brownfield installations need to master the existing control system, no matter how old they are. While the approach to SI project management may be replicable, there is a learning curve when it comes to the specifics of the various control system platforms. SIs need to invest in the technical competence of their staff through continuous education. Practically, this means that SIs select a finite number of platforms and vendors that they focus on.
Technology goes beyond the control system, and it includes systems like supervisory control and data acquisition (SCADA) systems, manufacturing execution systems (MES), emergency shutdown (ESD) systems and alarm monitoring systems. Underneath the control system are the field devices—actuators like valves and motors—and instrumentation. Depending on the industry and application, other technologies such as robotics can come into play. The palette is very broad.
Services provided by system integrators
Many SIs engage with clients after the project has been specified. The services on a typical project include the configuration of the control system to perform the desired tasks, the integration to other systems or applications, procurement of the automation equipment, construction of the control panel, installation, commissioning and startup.
There are many other services provided:
- operator (client) training
- solution design, functional specification
- electrical design and construction
- mechanical design and construction
- functional safety design
- cost estimation
- risk assessment
- engineering staffing services
- remote monitoring of critical assets / processes
- data management services.
Some SIs engage early with their clients, allowing them to design the solution. At this stage, the client may only have a vague idea of what is needed. Other SIs provide services that keep them engaged after project delivery. This may include the upkeep of a virtual twin of the plant or machine or operator training to help them leverage procured process or machine data.
Geographical presence
Historically, end users favored SIs that were geographically close to their sites. There was little expectation that the selected SI would be able to cover multiple plants spread over a wide territory. While this may still represent the prevalent mode, some industries, such as automotive and life sciences, have pushed SIs to develop regional and, in some cases, global presences to support their plants.
Certain geographies favor certain industries—Houston for oil and gas, refining, chemical and petrochemical. This will be reflected in the local SIs. On the other hand, other industries like food and beverage and water and wastewater geographically are widely spread, partially explaining the larger participation in these segments by SIs.
Company setup
The SI company may take different forms. If the focus is on the way industrial system integration is delivered, then the following options, which are neither exhaustive nor mutually exclusive, emerge:
- independent system integrator
- machine builder
- IT SI/consulting
- engineering, procurement and construction (EPC)
- automation equipment vendor
- end user (Figure 2).
Independent system integrator: It is estimated that there are around 3,000 SIs in North America. This number includes many independent contractors that operate by themselves or with a small support staff. On the other extreme are SI companies that started as independent contractors and have grown to be large, multimillion-dollar companies, some of them with an international presence.
According to the Spring 2023 CSIA-JP Morgan survey, 52% of the represented SI companies had annual revenues below $10 million and 19% had annual revenues under $2 million. There are a few large independent system integration companies that have grown successfully past the $200 million mark. For these companies, system integration represents a key part of their deliverables; some offer additional services, often electrical construction.
Machine builder: In this category, the deliverable includes the mechanical design and construction. The machines in this category tend to be highly tailored and sometimes unique—production of one. Frequently there is a group or division in charge of the deployment of the automation. In certain parts of the world with long machine-building traditions, such as Germany, Italy and Austria, the automation and the mechanical parts are viewed as integral. Some machine builders opt to work with an external SI company for the automation portion.
IT SI/consulting: The trend toward digital transformation/smart manufacturing/Industry 4.0—pick your term—has driven the need for solutions that reach from the corporate level down to the factory floor. IT SIs are companies that often provide solutions around consulting and deployment of enterprise resource planning (ERP) software. For the newer solutions, these IT SIs have either acquired industrial automation Sis, in this context sometimes referred to as operational technology (OT) SIs, or partnered with independent ones.
Engineering, procurement and construction (EPC): These are large service providers that often deliver civil, mechanical and electrical design and construction of large industrial plants or installations. Some of these companies have a division that handles the automation required in the larger projects of the EPC and/or procures external projects. Some EPCs don’t have an internal SI division, and they work with third-party SIs.
Automation equipment vendor: The trend toward solutions forced many automation equipment vendors to adapt their strategies and deliver the full solution. To gain the expertise to augment their existing internal capabilities, some automation equipment vendors chose to acquire SIs. This direct approach is reserved for large, strategic accounts. The rest the automation equipment vendors tend to work together with their network of SI partners.
End user: It used to be common for larger manufacturing and process end users to have their own internal system integration groups within their engineering departments. As competition forced these companies to focus on their core capabilities, many chose to eliminate their SI groups. In some cases, the employees of the SI groups saw the opportunity to set up their own SIs companies. While some end users still retain their SI capabilities, the trend over the past decades continues to be to outsource the work.
The role of CSIA
The Control System Integrators Association was established in 1994 with the mission to help system integrators build successful businesses and advance the impact system integrators have in industry. Through Best Practices and Benchmarking manual and its optional certification program, it provides an objective framework to help SIs set up and improve their companies. Since its founding CSIA has witnessed significant changes in the SI landscape. Through its annual conference, webinars, podcasts and community of peers it helps SIs stay engaged and up to date.
Summary
The term SI is frequently used but often in need of additional explanation. SIs represent a key entity for the delivery of industrial automation solutions. They are key for their manufacturing and process clients; they are also key for their automation equipment providing partners. CSIA helps SIs build better companies for the benefit of their clients and partners.
