System Integration – Types, Approaches And Implementation Steps

The bigger your organization gets, the more tools and software enter the play! It is a common practice in many businesses to use several IT components to optimize their operations and streamline the workflow. To get the most out of all these tools, system integration is essential. When your software and tools are connected, they can share data more quickly and work together more effectively. This integration not only streamlines your processes but also boosts efficiency across your organization.

In this blog, we’ll dive into the different types of system integration and provide real-world examples to illustrate how it works. We’ll also explore various ways to connect your systems, guide you through the integration process, and discuss deployment options. Plus, we’ll outline the key steps you need to take to ensure a smooth integration.

Whether you’re looking to improve your current setup or start fresh, this guide will give you a complete overview of system integration and its benefits. Read on to learn more about how integrating your systems can transform your business operations. Let us first understand system integration.

What Is System Integration?

System integration is all about connecting an organization’s technology—both physical and virtual, so they work together smoothly. For some businesses, this process is straightforward; for others, it can be quite complex. How complicated the integration is depends on what the organization needs and what it wants to achieve.

Take a small company with 30 to 40 people that uses only Microsoft Office 365. Since everything from desktops to phones is linked through Office 365, their systems are already seamlessly integrated. They have a simple, all-in-one tech setup.

Now, imagine a larger company with 1,000 employees using Office 365 along with Slack, Jira, Salesforce, and Justworks. How does this company ensure that documents from Office 365 sync with Salesforce? Or that Jira tasks are properly updated in Slack? This is where integration gets tricky.

Over the years, system integration has evolved. While it used to be all about connecting on-premise servers, today’s integration often happens in the cloud. Whether through APIs or enterprise service buses, modern integration helps different systems and tools work together efficiently in a cloud-based environment.

Having understood about system integration, next in order is understanding why your business needs to integrate your systems.

Why Do We Need System Integration?

 

This practice of connecting all the systems and tools in your organization is crucial for maintaining the flow of your work.Other than this several benefits of the system integration are listed below:

Streamlined Data Sharing

System integration connects various systems across your business, allowing for automatic data sharing between different platforms and applications. This means information flows seamlessly between systems, eliminating the need for manual data entry and reducing the risk of errors. It streamlines processes, saves time, and ensures that everyone in your organization has access to up-to-date information.

Unifying Data Sources

Your organization needs system integration to unify data from multiple sources into a single, cohesive view. This integration simplifies data management and ensures consistency across different applications. Whether you’re combining data from sales, finance, or customer service, having a unified view helps in making informed decisions and generating accurate reports.

Handling Legacy Systems

Integrating older legacy systems with modern technology is essential for businesses that rely on outdated software. System integration allows you to bridge the gap between old and new systems, ensuring that legacy applications can still function effectively alongside modern tools. This integration is crucial for maintaining operational continuity while upgrading technology.

Improving Collaboration

Your business needs system integration to improve collaboration among different departments and teams within your organization. Data and insights flow easily between departments, promoting better communication and coordination. This integration supports a more unified approach to achieving business goals and responding to challenges.

System Integration is a complex process if not done correctly. Let us explore some major challenges you might face.

What Are The Challenges Faced During System Integration?

Even simple system integrations can run into problems. Usually, the biggest issues come from how the project is planned or executed, not from the technology itself. Below are some issues related to planning and execution:

Dealing with Legacy Systems

Legacy systems often play a key role in many businesses, but integrating them can be tricky. One common challenge faced during system integration is finding a data structure that works with the older formats. Transferring data can be challenging, especially if your legacy systems lack modern technology like wireless connectivity. This can make it tough to link them up with newer networks.

Adapting to Changes in the Integration Environment

As time goes on, your integration environment is likely to change. This is a challenge your organization is likely to face while integrating your system. The longer an integration project takes, the more likely it is that new developments or changes will disrupt your progress. To avoid this, it’s best to keep integration projects short and sweet to minimize the risk of interruptions.

Finding Skilled Resources

Even with top-notch integration technology, finding people who know how to use it can be a challenge. Many companies struggle to find and keep employees with the right skills for system integration. Hiring a third party with the necessary expertise can be a smart move. They can design and implement your integration effectively and suggest the best technology for your needs.

Managing Accountability

This is a common challenge faced during system integration or similar large-scale projects. Integrating various subsystems often involves multiple stakeholders, which can make it hard to pinpoint who’s responsible for what. People might focus only on the parts of the integration that affect their own work and may be reluctant to take responsibility for issues involving others. Setting up clear shared accountability from the start can help prevent delays and conflicts.

Choosing the Right System Integration Tool

With so many integration tools available, picking the right one can be overwhelming. Each tool has its pros and cons, so finding the best fit for your needs is a challenge. Sometimes, creating a custom solution that meets your specific goals is the way to go. You can use tools to simplify this process by helping with data exchanges between different systems and formats, making integration smoother and faster.

The process of integrating your software can be made fairly simple by planning and choosing a method of system integration that suits your business the most. Let us discuss the options available for you.

System Integration Types And Examples

The main reason companies look into system integration is because they’re growing. businesses expand, they often need. Here are some types you can choose from:

1. Data Integration

Data integration is a type of system integration that is all about pulling together information from various sources like platforms, services, and databases. Imagine your business uses different tools for different tasks—one for managing sales, another for tracking inventory, and another for customer service. Each tool has valuable data, but it can be hard to see the full picture when the data is scattered. Data integration brings all this information into one place

Example: Starbucks uses data integration to combine information from its mobile app, point-of-sale systems, and customer feedback. By integrating this data, Starbucks can offer personalized promotions, track inventory in real-time, and improve customer experience based on thorough insights.

2. Legacy System Integration

This type of system integration links old systems with new technology, so you can keep using your existing data alongside modern tools. For instance, a hospital might connect an old patient management system with a new EHR system. This setup lets doctors access all patient information from both systems without changing their routine.

Example: A hospital using an old patient management system might integrate it with a new electronic health records (EHR) system. This integration allows healthcare professionals to access patient data from the legacy system without disrupting their current workflows.

3. Enterprise Application Integration (EAI)

As companies grow, they start using various enterprise applications to handle different tasks, from managing customer relationships to tracking inventory. These applications often don’t connect with each other and store data separately.

Enterprise Application Integration (EAI) solves this problem by bringing all these different functions into a single, cohesive system. It connects your various applications so they can share and exchange data in real-time

Example: Ford Motor Company uses EAI to connect its supply chain management system with its production planning software. This integration ensures that inventory data and production schedules are synchronized, improving the efficiency of manufacturing operations and reducing delays.

4. Business-to-Business Integration

Business-to-business (B2B) integration is all about connecting the systems of different companies to streamline how they work together. This type of system integration helps to automate the exchange of transactions and documents, like orders and invoices, between businesses.

This smooth flow of information leads to more efficient cooperation, faster transactions, and fewer errors. It makes working with suppliers, customers, and partners a lot easier and more reliable.

Example: Walmart’s use of B2B integration with its suppliers. Walmart connects its inventory management systems directly with suppliers’ systems, allowing for real-time updates on stock levels and automatic reordering.

5. Electronic Data Interchange (EDI) Exchange

Enterprise Application Integration (EAI) is a type of system integration that unifies different software applications within a business so they work together seamlessly. Picture your company using separate systems for sales, customer service, and inventory. Each system has its own data and processes, which can make it tough to get a complete view of what’s happening across the business.

EAI ties these systems together, allowing them to share information and communicate in real-time. This integration makes your operations smoother and more efficient because you don’t have to manually transfer data between systems.

Example: Amazon uses EDI to manage its supply chain efficiently. EDI allows Amazon to automate the exchange of purchase orders, shipping notices, and invoices with its suppliers. This streamlined process reduces manual errors, speeds up transactions, and improves overall efficiency in Amazon’s vast supply chain network.

Once you choose which system integration to choose from, you need to select a way or mixture of ways to connect the system.

What Are The Ways To Connect Systems?

There are different ways to connect separate systems, and each method has its own strengths. Let’s take a quick look at some of the most common “connectors” used in system integration.

APIs (Application Programming Interfaces)

This is the most straightforward way to connect two systems. They act as a bridge between applications, allowing them to share data and functionality in a standardized way. For example, when you book a flight online, an API might connect the airline’s booking system with a travel platform, making the process smooth and seamless.

Middleware

This way of connecting is the behind-the-scenes software that connects different systems, applications, and devices. It handles tasks like data management, messaging, and authentication, making sure everything runs smoothly. Think of middleware as the glue that holds everything together, often accessed through APIs.

Webhooks

Another favored way to connect your systems is using Webhooks. These are real-time messages sent from one system to another when a specific event occurs. For instance, when you make a transaction, your accounting software might get an instant update through a webhook from your payment gateway, keeping everything in sync.

EDI (Electronic Data Interchange)

This way of connecting systems includes exchanging business information electronically, replacing traditional paper documents. This exchange can happen through a third-party network or direct connections over the Internet, making business processes faster and more efficient.

These connectors can be combined to create complex system integrations. If your company has unique needs, you might consider custom-built solutions using a mix of APIs, webhooks, or middleware to meet your specific requirements.

How to Approach System Integration?

System integration can be done in different ways, depending on how many systems you need to connect and what those systems do. Each approach offers its own benefits and disadvantages when it comes to system integration. Explore some famously adopted approaches:

Vertical Integration Model

Vertical integration is like building a stack of related systems, where the most basic functions sit at the bottom and more complex functions are added on top. This approach creates silos, with each stack supporting a specific function.

Pros:

• This model has a simple and straightforward setup.
• It works well for specific, isolated functions.
• Vertical integration is easier to manage and troubleshoot within the silo.

Cons:

• This approach is hard to scale due to its rigid structure.
• Each new function requires its own silo, leading to potential inefficiency.
• It has limited flexibility for cross-functional data sharing.

Horizontal Integration Model

In this type of system integration, a separate layer is created, often called an Enterprise Service Bus (ESB), that sits between all your systems. This layer acts as a universal connector, linking all subsystems together.

Pros:

• Highly flexible, allowing easy replacement or upgrades of individual systems.
• Centralized management, reducing the complexity of inter-system communication.
• Supports a wide range of functions and applications.

Cons:

• More complex setup and maintenance.
• It can be costly due to the need for an additional integration layer.
• Potential for a single point of failure if the central layer encounters issues.

Point-to-Point Integration Model

This approach of system integration is the simplest form of connectivity, where you directly link two systems to each other. This type of integration usually handles just one specific function.

Pros:

• This approach follows a simple and quick implementation.
• It allows direct communication between systems with minimal overhead.
• The point-to-point model has low initial cost and effort.

Cons:

• It has limited scalability, as each new connection adds complexity.
• This model becomes difficult to manage as the number of connections grows.
• This approach is not suitable for large-scale integrations with many systems.

Common Data Format Model

In this approach, each system converts its data into a common format when sharing information with others. This standardizes data exchanges, making the common data format model more efficient.

Pros:

• This model reduces the number of data transformations needed.
• It simplifies communication between your systems.
• This approach minimizes the risk of data errors during transfers.

Cons:

• You need to agree on a common data format across all systems.
• Initial setup for this model can be time-consuming.
• This approach might still require custom solutions for legacy systems.

Star Integration Model

Star integration connects every system to every other system directly, creating a web of point-to-point connections.

Pros:

• This model offers maximum flexibility for data sharing between systems.
• It allows you to customize connections tailored to specific needs.
• Star integration model improves the functionality by allowing multiple pathways for data flow.

Cons:

• It can however become increasingly complex as more systems are added.
• This system integration approach requires high maintenance effort to manage all connections.
• It is difficult to scale, as each new system exponentially increases the number of connections needed.

Integrating your systems is in itself a complex process, you need not add any more complexity by choosing the wrong platform to deploy your system. We have made a clear roadmap for the options at your disposal.

Which Deployment Options Do You Have For Integrating Your Systems?

System integration can get pretty complex, especially for companies that use a wide range of technologies. Often, a single integration approach isn’t enough, and businesses need to mix different methods to get all their systems working together smoothly. Luckily, cloud platforms offer services that make it easier to handle these complicated integrations. Let’s look at two popular options for doing this:

Integration Platform as a Service (iPaaS)

iPaaS is a cloud-based service that helps connect different systems, processes, and data. It acts as a one-stop solution, allowing various applications to communicate with each other, no matter where they’re hosted. iPaaS is an easier deployment option as it comes with pre-built connectors. It easily links disjointed applications and handles data flow between them.

When to Use It: iPaaS is perfect for real-time applications and supports various integration scenarios like enterprise application integration (EAI), data integration, cloud integration, B2B integration, API management, and even IoT integration.

Top iPaaS Providers: Some of the top-rated iPaaS vendors include Workato, Boomi, Celigo, and Martini.

Hybrid Integration Platform (HIP)

HIP is a more thorough version of iPaaS, offering a set of tools to connect both on-premises and cloud-based solutions. It acts as the middleware, linking legacy systems, private cloud applications, and public cloud systems, making them work as one.

When to Use It: HIPs are ideal for organizations that need to connect older, on-premise systems with newer cloud solutions, making them a great choice for digital transformation projects.
Top HIP Providers: Leading HIP vendors include Axway, Cleo, Software AG, and MuleSoft (owned by Salesforce).

A final tip from us would be the important steps you need to follow to successfully integrate your system.

Key Steps Of System Integration

Automating and gaining full transparency in your business operations can be achieved by effectively integrating your data and systems. Here are some crucial steps to ensure a smooth and successful integration:

Step 1: Planning and Feasibility Analysis

Start by assessing the systems you need to integrate and develop a clear strategy. Take stock of your current software, and its tech specifications to define your integration needs. Outline the scope, schedule, and budget for the project. It’s also wise to identify potential risks and plan how you’ll address them.

Step 2: Architecture Modeling

The next step for system integration would be choosing a suitable integration model from the common ones or design a custom solution that fits your needs. Create a detailed blueprint of how your systems will interact. This phase is crucial as it sets the foundation for the integration process, detailing how everything will work together.

Step 3: Implementation

Test the new integrated system thoroughly to ensure all modules interact smoothly and no data is lost during transmission. Once testing is complete, implement the integrated system and make it available to users. You should keep the implementation phase brief to minimize issues related to changes. Consider using agile project management to adapt to any evolving needs.

Step 4: Maintenance

Once your system is integrated, conduct regular maintenance to keep your integration running smoothly. Schedule performance checks to ensure all components function correctly and address any issues promptly. This will help maintain system efficiency and prevent disruptions in your operations.

By following these steps, you can effectively integrate your systems, ensuring a seamless and productive workflow.

Conclusion

Choosing the right approach and tools for integration can make a big difference in how well your systems work together. Whether you’re considering different integration types or exploring deployment options, remember that effective integration helps your business operate more smoothly and stay competitive.

If you’re ready to take your system integration to the next level, Zealous System is here to help. With 12+ years of proven expertise in integration services, our expert team can guide you through the process and provide tailored solutions to meet your unique needs. Reach out to us today and discover how we can make integration a breeze for you!