Database Development
In today’s hyper-connective business environment, companies rely on multiple software applications, hardware systems, and digital tools to conduct day-to-day operations. However, having various systems does not equate to them seamlessly working together – which is where system or software integration comes in.
Essentially, system integration is the practice of linking different IT systems, applications, and software to get them to work together as a coordinated whole. It closes a gap between separate tools and processes, allowing a business to automate efforts, share accurate information across departments, and enhance efficiency.
In most cases, whether it is a small company trying to connect CRM software with their accounting software or a large company trying to connect supply chain management, ERP, and HR platforms, system integration will help you maximize the value of tools you are already using.
The Importance of System Integration
Many businesses implement new software or hardware as they work to solve unique business problems. While these various software tools may work in isolation and perform well on their own, businesses can very quickly end up with disconnected systems that create silos of information. These silos often result in unnecessary duplication, manual work, mistakes, and time waste.
For example, consider an e-commerce business that uses systems for its website, inventory, shipping, and customer service. Without integration, staff are forced to manually move order information through the various systems, which will slow fulfillment rate, increase opportunity for errors, and frustrate customers.
With good system integration, the various systems share information automatically. When an order is placed, inventory is updated immediately, shipping labels are created automatically, and if the customer service team is contacted by a buyer with a question, the team has accurate order information available.
In short, system integration connects people, processes, and technology — turning individual or disconnected systems into a seamless, systemic solution.
System Integration Types
There are different types of system integration based on the types and complexity of your organization and your objectives. Here are some examples:
1. Horizontal Integration
Horizontal integration is when different systems are connected through a common interface or platform. In other words, it’s building a common “layer” of communication so that multiple independent systems can be integrated. This type of integration is very cost-effective, flexible, and will often use middleware to allow systems to “communicate” together and exchange data.
2. Vertical Integration
Vertical integration will connect subsystems based on their function in a hierarchy. For example, a manufacturer may connect shop floor sensors directly to production control systems and finally to Enterprise Resource Planning (ERP) software. This is a structured “tower” of interconnected systems that communicates down and up the communication stack.
3. Star Integration
Also known as point-to-point integration, star integration interfaces each system and connects it to every other system that it needs to communicate with. This integration is straightforward with only a few systems, but as the number of connections grow, it may get very complicated and expensive.
4. Common Data Format Integration
In this type of integration, you have different systems that share information with one another using a common data format. In other words, one of the advantages is that you wouldn’t have to have custom code by each developer if one of them needed to add a new system. APIs (Application Programming Interfaces) are commonplace in this integration style.
How Does System Integration Occur?
Generally, system integration includes these key steps:
- Requirements Analysis: Determine which systems need to connect, what data will flow between systems, and the business objectives the integration will achieve.
- System Design: Develop an architecture plan or schematic that identifies how the systems will communicate with each other, what technologies (or middleware) will allow those systems to integrate, and how to address security and compliance requirements.
- Implementation: Build the integration — this might be writing new code, configuring to an API, or deploying integration platforms.
- Testing: Validate that the systems communicate and exchange data in accordance with the requirements, that performance is as expected, and that security is functioning appropriately.
- Deployment and Maintenance: Deploy the solution, monitor it, and address changes as systems or business needs change.
Advantages of System Integration
Implementation of system integration has many benefits for businesses of any size:
- Increased efficiencies: Integrated systems, when done effectively, can automate manual processes such as data entry and transferring files, allowing the team to spend time on higher value activities.
- Better data accuracy: With one single source of truth, data is consistent, real-time and ensures team members are using the same information, lessening errors and duplicate records.
- Improved collaboration: Departments can easily share information which can lead to better communication and faster decision making.
- Improved customer experience: When systems integrate tightly across the business, such as sales, support and logistics working together, the customer benefits from quicker service, more accurate data, and an overall seamless experience.
- Scalability: Adding new tools to existing systems or expanding into new markets and know that you aren’t having to develop processes all over again.
Disadvantages of System Integration
While the former outlines the clear benefits of system integration, there are also challenges to be aware of:
- Complexity: Integrating outdated legacy systems, or working to build integration with tools that simply don’t have compatible technologies can be a pain.
- Cost: Cost to invest upfront in integration tools, middleware or custom development can be substantial. Upfront costs increase significantly for larger integration projects.
- Security: More systems or tools tied together, means more connection points of potential vulnerabilities. Implementing security protocols is essential.
- Change Management: Employees are likely to require training to adjust to a new way of completing work within an integrated workflow.
Future Trends in Systems Integration
As organizations pursue their digital transformation journeys, system integration continues to reinvent itself. Cloud computing, big data, and the increased use of IoT devices make system integration even more essential — and complex.
Emerging technologies such as Artificial Intelligence (AI) and Robotic Process Automation (RPA) also come into play by automating integration tasks. These technologies increase how systems can “communicate” with one another while minimizing human effort needed in the integration process.
Low-code and no-code integration platforms are emerging as well, enabling organizations to connect applications quickly without extensive custom code.
Conclusion
In our digital world, disconnected systems can hinder your organization. System integration is more than an IT initiative; it is a strategic investment in efficiencies, insights, and scalability. With connected people, processes, and technologies, you can eliminate silos, deliver better customer experiences, and build your company for the future.
