Why Is System Integration Important and What Are Its Different Purposes?

A system integration connects all the enterprise applications to provide a path for the customer data to flow. It is required for both B2B communications as well as internal cooperation in an enterprise. 

A growing company or an enterprise has different sub-systems across each and different departments. Only once the various systems connect the insights and can be extracted. The objective is to create a single system capable of performing all the actions within an organization. 

The roadblock in most digital transformation projects is that most companies have a legacy system. Such systems run on their on-premise servers. They are extremely critical to the functioning of the organization and cannot be simply replaced with modern IT solutions. That’s where system integration comes in as a solution. But, integrating legacy systems is a little tricky as they lack the capacity for ready-made interfacing. 

 

Who Are System Integrators?

According to a study, up to 70% of integration projects fail. But the interesting thing is that majority of problems arise not because of interfacing capabilities or technology but due to project and change management issues. 

This is where a System Integrator comes in. An SI is a company that specializes in implementing, planning, coordinating, deploying, testing, iterating, and maintaining IT system integration. 

Depending on the complexity of your workflow and data flow structure there can be many system integrations possible between a simple point-to-point connection to complex many-to-many connections both internally and with third parties. 

 

System Integration For Different Purposes

 

Legacy System Integration

GOAL

Integrating Modern Apps Into Outdated Systems

One of the most difficult system integrations involves a legacy system that is generally outdated but handles most of the critical functions of the organization. Since it is critical to the daily functioning of the company it cannot be changed or replaced with any other technology. So, such systems are generally integrated by establishing communication channels with new-age info systems and innovative technological solutions. 

EXAMPLE

Connecting A Data Warehouse To A Legacy CRM System To Perform Analytics.

 

Enterprise Application Integration 

GOAL

Unifying All Business Applications Inside One Enterprise System

The problem with enterprise systems is the segmentation of front, mid and back offices. These are separate systems with multiple applications that share no points of convergence. Huge volumes of data are accumulated separately in these offices. The solution is to enable the flow of data and documents across these offices using one single ecosystem. The end goal is one automated business chain with real-time data exchange between applications.

EXAMPLE

Integrating ERP and CRM systems of a company.

 

Third-party system integration

GOAL

Expanding Functionality Of An Existing System

This is the most popular form of integration since all the B2B Software As A Service companies use this method to integrate their products with the client systems. Using APIs, it becomes easy to add new functionality without disrupting anything of the active system. It is also better to use API-based software subscriptions that are more affordable.

EXAMPLE

Integrating payment systems with existing applications

 

Business-to-business integration

GOAL

Efficient Collaboration Between Companies

There are times when two businesses with different systems need to connect to enable the flow of information. Here, the objective is to create a more efficient process for cooperation with suppliers, customers, and partners. It allows for joining fragmented pieces together and building a network of business systems.

EXAMPLE

Connecting a supplier’s ERP system to a retailer’s purchasing system.

Digital Transformation System Integration

Animesh is a technical writer at Nablasol and loves to see businesses and agencies take charge of their social footprint and put a human touch behind the brand. He loves to trek and will never say no to ice cream. Follow him on Twitter @Neonsaber7

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