What is system integration and how does it work?
Enterprise system integration is the process of putting two or more distinct software systems together. It might take many forms, depending on the systems being combined, and the integration technique employed.
Different organizations have varying goals for system integration, but the principle objective is usually to reduce labor time and costs, increase productivity, simplify data transfer across departments, and process raw data.
The system integrator is the individual or firm that manages the integration process. They build the integration framework, define the translation approach between the systems, and maintain connectivity.
Integration of systems and examples is possible in a wide range of ways.
Many firms utilize more than one kind of program, and combining them in different ways depending on their demands is beneficial. There are several distinct methods for integrating systems that can benefit your company. Here are a handful of examples of well-known system integration techniques.
- Customer relationship management (CRM) — Customer records and information, as well as sales data, may be integrated together.
- The supply chain management system – All of your vendors, deliveries, and payment account information may be linked. Businesses that can’t integrate their supply chains into one, as well as businesses seeking to acquire a competitive edge by improving their efficiency and reducing costs, should read on.
- Internal and external communications marketing – Marketing, sales, and direct marketing technologies may all be linked to a database.
- HR data – To make interdepartmental requests easier, you can link all of your personnel files, payroll, and other HR resources.
- ERP (enterprise resource planning) – Every aspect of your core business activities may be accessed with a simple application.
System integration has several advantages.
- Improved efficiency – Sales and marketing automation saves time by eliminating the need for personnel to perform repetitive or uninteresting data transfer. Instead of having your sales staff contact accounting every day to find out about customer payments, an integrated system will handle it automatically.
- Decreased human error – Computers don’t get sick or distracted. The likelihood of errors is reduced by an integrated system.
- Costs savings – Time is money. Your staff may perform the most essential chores because you’re delegating the little stuff to an automated system.
Drawbacks and challenges associated with the use of this technology
- Security risks – The more information you input into a system, the more vulnerable it is to leaks or intrusions.
- Large upfront expense – While it’s true that integrating systems may be expensive, the costs will be offset by their future savings.
- It’s difficult to find common ground – It’s difficult to reach a consensus about third-party integrations because it can be tough to find common ground. This might lead to extended durations and other difficulties.
4 Different Approaches for System Integration
Vertical
The vertical approach is simple to start but difficult to keep up with as the firm expands. In vertically integrated systems, sub-systems are joined into “information silos” based on their responsibilities. The sub-systems in these silos operate independently from one another, with no communication among them.
Pros
- Simple – This is a wonderful approach for businesses with limited IT staff since it doesn’t require much coding knowledge.
- Easy to establish – To bring this integration to life, no super-genius coding skills are required.
- Isolated subsystems – Rather of being connected, each subsystem sends separate requests to other subsystems.
Cons
The below are the pros and drawbacks of vertical integration. Vertical integration is a powerful marketing weapon in your arsenal, but it’s important to weigh both the advantages and disadvantages before using it. It isn’t necessary for you to be rigid when applying this concept — flexibility and change are two benefits that come with small-scale production.
- Rigidness – Because vertical integration locks you into a single supplier, it eliminates any possibilities for adjustments.
- Redundancies – A new silo must be established for each new subsystem.
- Difficult to manage – When there are too many information silos in the system, it becomes congested and sluggish.
Horizontal
In contrast to vertical integration, the horizontal approach’s goal is to enable communication between subsystems. This is accomplished with the creation of an Enterprise Service Bus (ESB). The ESB serves as a translator and connector between the subsystems. To interact with the ESB, each subsystem requires only one interface. This approach has the advantage of allowing you to make adjustments to other subsystems without having to modify the entire system. However, because the ESB is at the center of operations, any issues with subsystems or the ESB itself may cause the entire operation to come apart.
Pros
- More flexible – ESB components are built on top of a network, and the management and control systems run inside the data center. Subsystems can communicate with ease via the ESB.
- Fewer changes – If a subsystem changes, only the ESB needs to be updated.
- Subsystem communication – Subsystems can interact with each other just as easily as they can connect to other subsystems.
Cons
- High risk of system error – If one aspect of the system fails, it might cause problems with other components.
- Lower communication speed – Because of all the data it must handle, the ESB may be sluggish.
- Needs a specialized system – You’ll need to have the ESB specially created for your system.
Star/Spaghetti
The star, spaghetti, or point-to-point approach entails connecting each subsystem separately to all of the other subsystems. This allows for more communication without the need for an ESB. However, if one element needs to be modified, so do the others. When there aren’t many systems in a network, the star approach is viable. But as more subsystems are added, the system degrades into a spaghetti configuration, which can be very difficult to manage.
Pros
- Autonomous – Communication takes place without your intervention.
- All subsystems are connected – Every subsystem is linked to every other.
- Faster communication – Without the ESB, data travels throughout the system at a greater rate.
Cons
- All subsystems must change when one does – If they don’t learn to speak each other’s language, they won’t be able to communicate.
- Very complex – A lot of planning is required to ensure that each subsystem can communicate freely with the others.
- High risk of problems when there are too many connections – The more subsystems there are, the greater the chance of difficulties.
Common data format
The new data language is formed when using this form of integration approach. It’s a unifying format that all subunits use to transmit and process data with one another, like as Esperanto is the language of Esperanto. This technique is used to minimize the number of adaptors required for each subsystem within a system.
Pros
- Excellent translation – All subsystems are “fluent” and can communicate without interruption.
- Automated – There’s no need to issue individual requests.
- Systems do not need to work together – The different components of the system operate on their own.
Cons
- High coding skill needed – It’s a difficult method that requires significant coding expertise.
- Risk of initial problems – When you’re first setting up a home data storage system, a lot of problems with the data format tend to surface.
System Integration Engineers use all four of the above mentioned system integration methods in order to create a well-functioning system. Depending on the needs of the system, an Engineer will choose one or more of these approaches in order to allow different subsystems to communicate with ease. While each method has its own set of pros and cons, all are necessary for a complete and effective system.
