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System Integration

System Integration

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    Importance of System Integration in Businesses

    In this age, when companies want to stay ahead of the game, they undoubtedly need their systems to work synchronously. Organizations that don’t have system integration in the first place, they see significant increases in cost and resource consumption.

    What is System Integration?

    It's the method of connecting different sub-systems into one larger system that can function as a single source. In regard to software solutions, System Integration is commonly defined as the process of associating various IT systems, services and software for enabling them to function seamlessly together. We can usually see four ways of System Integration: Horizontal Integration, Vertical Integration, Star Integration, and Common Data Integration.

    Businesses use System Integration for the growing need of improving productivity and the quality of day-to-day operations. The goal is to get organization and business IT systems to communicate with each other through integration. This can accelerate information outflow and reduces operational costs. System integration is not only used to connect an organization’s internal systems but to also integrate third parties that organizations operate with.

    The Importance of System Integration in Businesses

    System Integration Methods

    Horizontal Integration
    In Horizontal Integration, a separate sub-system is used as an interface layer between other sub-systems. This layer is often referred to as an Enterprise Service Bus. This technique allows each sub-system to have a single interface to communicate with. One benefit of using Horizontal Integration is each sub-system can be changed or replaced without having to revise other systems.

    Vertical Integration
    Let us consider for example that the Point-Of-Sale (POS) system tracks orders and records sales transactions while another software generates the invoices. This is where the term “silo” comes into play since the system is tightly integrated to serve a specific and narrowly defined business function, holding the data in one place without coordinating with other silos.

    Star Integration
    Star Integration is when a system's sub-systems are connected with other sub-systems using point-to-point connections. Above all, this allows for better functionality. A major drawback of this integration is as systems increase, the number of integrations increases as well. This leads to difficulty managing the integrations.

    Common Data Integration
    Common Data Integration helps systems avoid having the adapter convert to and from each application format. Systems using this technique set a common or application-independent format, or they provide a service that does the transformation to or from one application into a common application.

    Why is it important?

    A system integrator is an independent entity that uses technical and project management activities to integrate commercially available software. Using a variety of programs that do not integrate with each other can make it impossible for employees/admins to work effectively or for the organization to achieve its goals. Having your data in one central location will also reduce costs and storage compared to having multiple systems simultaneously. Businesses often struggle when the task of managing their data is not aligned. If your systems and processes are not working together, it can be very tedious and time-consuming to manage everything individually. Most importantly, by integrating, you reap the benefits of efficiency and effectiveness, whilst reducing the disruption caused by having data from multiple sources. This naturally leads to better analysis of data.

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