A System Integrator takes products (almost always built by 3rd parties) and integrates them into a system for use. This ETO can sometimes look like a distribution company who sells the 3rd party products (eg: A company reselling video image recognition technology, X-Ray units, control systems, Odor suppression systems etc…).
This type of ETO has highly skilled engineers who integrate the system they sell, sometimes along with other products or proprietary technology into solutions for their customers. Furthermore, they rarely if ever manufacture any parts themselves. Instead, they purchase all virtual systems parts from a 3rd party. They often have exclusive rights to some technology they incorporate into the systems, and are considered experts in that area. Their bills of material tend to be quite small, with many large dollar items.