11 July 2023
Understanding the Role of System Integrators in Technical Product Distribution
System Integration: building a complete system from sub-system components
System Integrator is a term that defines specialists who assemble existing component sub-systems (or "black boxes") into a main system that performs a useful function. The term is most typically applied in the IT industry, but also automation engineering (e.g. factory automation), in defence, and building management systems (HVAC controls, access control, etc.). Implicit in the definition is that the sub-systems are complete products (for example a network switch in an IT system) that are "off-the-shelf".
Manufacturers or import distributors of these component sub-systems rely on system integrators to understand and specify their products to achieve sales. Mostly these technical products perform no useful function as stand alone items.
In technical product distribution, system integrators bridge the gap between manufacturers and end-users.
By leveraging their expertise in integrating various technologies and components, system integrators provide comprehensive solutions that cater to specific customer requirements.
In many solution sales, the end-user is not overly concerned with the components comprising the system (or, at least, accepts the System Integrator's recommendation) and so, the sales focus for the component manufacturer is the integrator. This is known as specification selling.
Defining a System Integrator:
A system integrator is a professional or a company that specializes in combining and harmonizing diverse components, software, hardware, and technologies to create a cohesive system. They possess extensive knowledge of multiple products and have the expertise to integrate them seamlessly. System integrators ensure that different subsystems work together effectively, meeting the client's unique requirements and providing a holistic solution.
In Information Technology, system integrators would be employed by organizations to design and install the infrastructure to provide servers and computer networking. The integrator would assess the customer's requirements and select server hardware, switches and routers, server racks, cabling, wall sockets, wireless access points and other fittings to make-up the complete system. Each of these components and software would be manufactured by various vendors.
You can see that most organizations would rely on the integrator to select each of these individual components and therefore equipment vendors direct their marketing to the systems integrator more so than the end-user.
Such Integrators may standardize their choice of equipment vendor to cut down the workload of familiarizing themselves with different equipment choices and reducing installation and configuration time, and improving their ability to install robust and reliable solutions cost effectively.
The Role of System Integrators in Technical Product Distribution:
System integrators are instrumental in technical product distribution strategies due to their ability to provide end-to-end solutions. Their role can be summarized as follows:
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Consultation and Assessment: System integrators work closely with clients to understand their specific needs, objectives, and challenges. They assess existing systems, identify gaps, and propose tailored solutions that address these requirements effectively.
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Design and Integration: Leveraging their in-depth technical knowledge, system integrators design and integrate various components, subsystems, and technologies into a unified system. They ensure compatibility, interoperability, and functionality across the entire solution.
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Implementation and Deployment: System integrators manage the deployment process, including installation, configuration, and testing of the integrated system. They ensure smooth implementation and minimal disruption to existing operations.
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Customization and Optimization: System integrators tailor the solution to suit the unique requirements of the client. They optimize system performance, enhance efficiency, and streamline workflows, leading to increased productivity and cost savings.
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Support and Maintenance: System integrators provide ongoing support, including troubleshooting, system upgrades, and maintenance. They offer technical expertise and ensure the solution remains up-to-date, reliable, and secure.
Alternative Distribution Methods for Technical Product Distribution:
Apart from system integrators, other distribution methods in technical product distribution include:
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Direct Sales: Manufacturers sell their products directly to end-users or through their own sales teams. This method offers greater control over branding, pricing, and customer relationships. However, it requires substantial investment in sales infrastructure and may limit market reach.
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Value-Added Resellers (VARs): VARs purchase products from manufacturers and add value through services like customization, installation, and support. They cater to specific market segments and provide localized expertise. VARs often focus on specific product lines and offer more personalized customer experiences.
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Technical Product Distributors: Distributors act as intermediaries between manufacturers and resellers. They purchase products in bulk from manufacturers and sell them to resellers or end-users. Distributors offer logistical support, wider market reach, and economies of scale. They are particularly beneficial for manufacturers targeting large geographic areas or diverse markets.
Difference between a System Integrator, Value Added Reseller, and Technical Product Distributor
The main differences between all three are the degree to which the distributor stocks the product, the level of technical design and installation provided, and the legal agreement between the distributor and the manufacturer.
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System Integrator: Provide a high level of design (system architecture), installation, training, and on-going technical support. The system integrator generally works with a wide variety of manufacturers to bring together technical products and integrates them into a bespoke system to achieve the customer's (end-user) requirements. For example a supplier of closed circuit television systems would choose video cameras (of several varieties and from several sources), lenses, mountings, recording systems, cabling, camera power supplies, network switches, DVR's and television monitors to develop a CCTV system to suit the customers specific needs. Each of these components could be supplied by a diverse range of manufacturers. Further, the CCTV system may be integrated with alarm systems that signal events detected by cameras, or tampering of components in the system. The system integrator would generally purchase the components on as needed basis rather than stocking them. There isn't a legal agreement between the system integrator and the suppliers of the components. Thus the System Integrator is a "customer" of the component suppliers.
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Value Added Reseller (VAR): The Value Added Reseller performs a similar role to the System Integrator but generally works exclusively with a manufacturer (or multiple manufactures) always specifying their equipment when designing and installing a system. For example, the CCTV installer may exclusively use one manufacturers cameras, lenses, and DVRs. For this devotion, the VAR may have exclusive rights to sell the manufacturers products in a defined territory, receive factory training, and be provided preferential pricing. A legal agreement will exist between the manufacturer and the VAR. VAR's may or may not hold product stock.
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Technical Product Distributor: The technical product distributor will generally not provide design (but some do) or installation of systems but holds stock of individual technical products and components. Technical product distributors, however typically provide technical product advice to aid selection and advice on how to apply the products. Typically, System Integrators may purchase their products from technical product distributors.
Supporting System Integrators for Optimal Value:
To obtain the best value from system integrators, product manufacturers should consider the following:
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Collaboration and Communication: Establishing open lines of communication and fostering a collaborative relationship with system integrators is essential. Manufacturers should provide comprehensive product information, technical specifications, and updates to facilitate smooth integration and solution development.
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Training and Certification: Manufacturers can conduct training programs and provide certification courses to system integrators to ensure they have the necessary expertise to work with their products. This investment enhances the integrators' skills, leading to improved solution quality and customer satisfaction.
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Technical Support: Timely and effective technical support is crucial for system integrators. Manufacturers should offer readily accessible support channels, documentation, and troubleshooting resources to address any product-related issues promptly. This support aids integrators in delivering efficient solutions and mitigating downtime.
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Product Customization and Flexibility: Manufacturers should offer customizable products or configurations to meet the specific needs of system integrators and their clients. This flexibility enables integrators to create tailored solutions and enhances the overall value proposition.
Conclusion:
System integrators are key players in technical product distribution, enabling manufacturers to provide comprehensive solutions tailored to specific customer requirements. Their role spans consultation, design, integration, implementation, and ongoing support. While alternative distribution methods exist, system integrators offer a unique blend of expertise and customization. By providing the necessary support and collaboration, manufacturers can leverage the full potential of system integrators and enhance the value derived from their partnership.