System Integration
Everything you need to know
What is System Integration?
System integration involves connecting different IT systems and applications so that they can work together. Today, companies use various systems (ERP systems, CRM systems, invoice management systems, etc.) that need to interact efficiently for smooth business operations. By integrating these systems, they can function as a unified whole, saving time and reducing the risk of manual errors.
There is a lot to learn and understand about this topic, so we have gathered the most important information here.
Different ways to build integrations
Standard
A standard integration is a connection between two systems that can be easily initiated without the need for an integration project. These integrations typically connect simpler and more standardized systems, making them a good fit for smaller businesses.Point-to-point
A point-to-point integration is a program that connects two systems. The advantage is that it is a relatively quick and cost-effective way to integrate. The downside is that multiple such solutions over time create what is known as spaghetti integration.Plattform
An integration platform is software that can manage multiple integration flows in a centralized manner. This enables a long-term sustainable solution that also becomes cost-effective over time, as components can be reused.5 benefits of System Integration
- Increased efficiency through automated processes.
- More available time that can be spent on value-adding activities.
- Fewer silos in the organization as information flows between business areas.
- Improved customer experience when information is available at the right place at the right time.
- Reduced risk of errors by eliminating human intervention.
How to succeed with system integration
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Consider the bigger picture
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Evaluate different integration partners
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Involve the right people
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Implement the solution step by step
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Establish active maintenance
A common mistake is addressing integration needs on an ad-hoc basis. Since companies often integrate multiple systems over time, this approach results in an IT environment that becomes difficult to manage, known as spaghetti integration.
To avoid this, it is essential to take a step back and create a plan for how integrations should be implemented—something that can be referred to as an integration strategy.
Many IT companies that deliver systems can also offer some form of system integration solution. However, far from all of them focus on this as a core offering, which can result in a suboptimal delivery and solution.
Before getting started, find an integration partner who understands your business and has relevant experience from previous projects. Also, ensure that the solution’s long-term sustainability and ongoing maintenance are taken into account.
Another common mistake is viewing an integration project solely as a technical challenge that can be entirely handed over to an IT department or an IT provider.
The challenges and value of an integration do not arise from the technology itself but within the business operations. Therefore, it is crucial to involve key individuals who work within the business processes that the integrations will support.
There are always more processes to automate than there is time and budget available. Moreover, the value of an integration is only realized once it is in operation.
For these reasons, it is crucial to actively prioritize integration needs based on the value they create for the business and implement them accordingly. The faster something can be deployed, the sooner the value can be realized.
In many cases, companies also become better at specifying requirements for an integration project after having performed the process manually for some time—although in some cases, this may be entirely unfeasible.
Just like any other digitalization effort, an integration solution should not be seen as a one-time project but rather as an ongoing way to continuously improve efficiency within the business. By establishing a structured approach to managing ongoing enhancements in integrations, significant value can often be created through relatively small, continuous investments.
This process is greatly simplified by centralized integration management through an integration platform.
-
Consider the bigger picture
A common mistake is addressing integration needs on an ad-hoc basis. Since companies often integrate multiple systems over time, this approach results in an IT environment that becomes difficult to manage, known as spaghetti integration.
To avoid this, it is essential to take a step back and create a plan for how integrations should be implemented—something that can be referred to as an integration strategy.
-
Evaluate different integration partners
Many IT companies that deliver systems can also offer some form of system integration solution. However, far from all of them focus on this as a core offering, which can result in a suboptimal delivery and solution.
Before getting started, find an integration partner who understands your business and has relevant experience from previous projects. Also, ensure that the solution’s long-term sustainability and ongoing maintenance are taken into account.
-
Involve the right people
Another common mistake is viewing an integration project solely as a technical challenge that can be entirely handed over to an IT department or an IT provider.
The challenges and value of an integration do not arise from the technology itself but within the business operations. Therefore, it is crucial to involve key individuals who work within the business processes that the integrations will support.
-
Implement the solution step by step
There are always more processes to automate than there is time and budget available. Moreover, the value of an integration is only realized once it is in operation.
For these reasons, it is crucial to actively prioritize integration needs based on the value they create for the business and implement them accordingly. The faster something can be deployed, the sooner the value can be realized.
In many cases, companies also become better at specifying requirements for an integration project after having performed the process manually for some time—although in some cases, this may be entirely unfeasible.
-
Establish active maintenance
Just like any other digitalization effort, an integration solution should not be seen as a one-time project but rather as an ongoing way to continuously improve efficiency within the business. By establishing a structured approach to managing ongoing enhancements in integrations, significant value can often be created through relatively small, continuous investments.
This process is greatly simplified by centralized integration management through an integration platform.