The IT industry is constantly evolving. This has been a challenge for many organizations as they try to keep up with the digital transformation to improve their management.
As businesses continue to expand, IT executives make an effort to utilize multiple software solutions to streamline their operations.
Organizations can be overwhelmed by optimizing multiple software tools or disparate systems. In such cases, software integration comes into the picture.
Software integration allows businesses to connect, collaborate, and have seamless communication efficiently and effectively.
This article will explore software integration, its four methods, essential benefits, and why it is necessary for your business.
What is software integration?
Software integration refers to the practice of unifying and connecting various types of software sub-systems into one system.
The integration of multiple software programs is shared in one database. In a nutshell, this process enables core business processes to work as a whole.
With the variety of tools and systems available, many companies integrate data from disparate systems to get accurate information and make it useful for decision-making.
The integration of software has become imperative. In fact, Research and Markets forecasted that the global system (software) integration system market is projected to reach $708 billion by 2026.
Large enterprises often use in-house software, and some businesses opt to use software-as-a-service (SaaS) solutions.
Cloud-based SaaS solutions have become in demand, especially for small enterprises, because users can access them without a hassle using a reliable internet connection.
Four methods of software integration
There are four methods businesses can use for software integrations.
Star integration
Star integration is the process of interconnecting one sub-system with the rest of all subsystems.
The system diagram would look like a star or a plate of spaghetti, which is sometimes referred to as the spaghetti method.
This type of integration is considered efficient because it allows for greater functionality. However, adding new subsystems might require significant time and money.
Vertical integration
Vertical integration is a relatively easy and ideal choice for businesses to create simple integrations with only a single function.
This integration process creates functional entities for subsystems and vertically syncs them. However, it will create a “silo” to scale the software, which means it will be difficult to manage in the long run.
Horizontal integration
Also known as Enterprise Services Bus (ESB), horizontal integration is the process of creating custom-made subsystems for facilitating communication.
ESB is a single specialized subsystem that acts as a common user interface layer that connects to all other subsystems. It is a cost-efficient method in the long run and a more flexible integration than vertical integration.
Common data format integration
Another method of software integration is the common data format integration. This method is independent of the application data format, and it allows enterprises to avoid using an adapter when converting and transforming data.
Common data format integration is where all subsystems seamlessly communicate and operate independently.
Some advantages of this integration include seamless data translation and automation. However, its downside is that it is complex and will need comprehensive coding skills.
Essential benefits of software integration
Once software integration is implemented right, businesses will benefit from it. Here are some of the essential advantages of software integration.
Improved data accuracy
Software integration promotes a unified system application. Data from one location is updated simultaneously, keeping all the system components on the same page.
Thus, it will be easy to manage the security of data and its accuracy. This allows businesses to focus on accurate data to use in decision-making.
Increased productivity
When companies have integrated systems, it ensures the same data sources. Therefore, IT teams will have unified control over the processes, adding to the workflow’s efficiency.
Software integrations make it possible for employees to use all the applications and data from one entry point without a hassle.
Better customer service
Software integration is bound to improve customer service. Having instant access to accurate data due to an integrated system ensures a smooth, easy, and faster service.
Moreover, integrated Computer Telephony Integration (CTI) and Customer Relations Management (CRM) software enable organizations to provide customer service more efficiently and effectively.
Simplified decision making
Companies invest in software integration to simplify decision-making and maintain their competitive advantage.
Since information is not scattered and is found in single data sources, businesses can have a holistic view of data to gain insights to make good business decisions.
Why is software integration necessary for your business?
Businesses of all sizes need to integrate their software system depending on their demand. However, some companies have second thoughts about moving forward with the latest technology.
Here are a few reasons why your business should consider software integration.
Merging different system
Software integration combines various disparate system functionalities to create an all-in-one solution, a custom-tailored approach to streamline business processes.
For instance, integrating inventory management systems that aimed to solve specific business needs as well meet the ROI goals.
Modernizing the legacy system with new-age applications
Most businesses look for software solutions that modernize their legacy systems that help integrate data and migrate it to modern applications.
Thus, leveraging software integration solutions ensures an accurate, secure, and seamless data migration process in modernizing legacy systems effectively.
Increasing multi-functionality
Syncing software systems altogether ensures increased business process functionalities. Integrations allow enterprises to boost multi-functionality within an existing product.
Ultimately, businesses can benefit from software integration in many ways. As this ensures efficiency in processes, productivity among employees, and an opportunity to scale up the business.
As the global market continuously changes, you can alter your business processes to keep up with the latest trends. Software integration allows you to make these changes that will help your overall business success.
