System integration is the process of uniting various sub-components, sub-systems, etc. into one umbrella system wherein all said sub-systems can function cooperatively. System integration refers creation of one larger system based on individual subsystems within the organization. But what purpose does system integration serve? Well, for starters, it delivers a significant boost to quality, efficiency, and productivity.
And, depending on the organization, items on the system integration checklist might include CRMs (like Salesforce) and ERPs (i.e., SAP or NetSuite), Databases, Warehouse Management and Content Management Systems, and more. Further, integration allows the use of ‘subsystems’ to their full potential while adding value to the business by uncovering possibilities that stem from interoperability between them.
Here are some of its other key benefits listed with some details;
Streamlined processes: Integrated systems offer a whole world of benefits, including the ability to prevent redundancies, compliance with regulations and standards, etc. This ensures total consistency across the board.
Better communication: Having various siloed systems across a company is detrimental to seamless communication and speed. Such systems can also give rise to a whole lot of errors. Integrated systems prevent all that, enabling seamless communications, quicker processes, and so much more.
Centralized system: Yet another critical benefit companies gain from systems integration is the ability to establish a single, unified system for information. Having such a system for information in place means that everyone across the company has access to the same data. This is crucial for driving better productivity and improved decision-making processes.
Time to take a look at the different types of system integration:
Enterprise application integration: EAI is when databases, workflows, etc. linked with business applications are brought together to empower the company to use information with better consistency.
Data integration: Data integration refers to the process of bringing together data gathered from various sources into one unified view.
Electronic document integration: A central business-to-business-based interaction, EDI is best suited for electronic regulations, reports, etc.
Finally, a close look at the different system integration methods:
Point-to-point integration: The name pretty much gives away what this method of integration is all about: it is an integration between two endpoints. Though seemingly simple, the fact remains that the number of systems involved corresponds to the number of connections, making point-to-point systems excessively cumbersome.
Vertical integration: Though vertical integration can quickly prove to be rather inflexible, and consequently counter-intuitive, such integration does manage to be quite simple. This is because vertical integration involves sub-systems being linked to one another based on the extent of similarity of their respective functions.
Star integration: This system integration method is simply a bigger collection of basic connections that collectively constitute a star connection. It must be noted that the number of connected sub-systems in such an integration is proportional to the number of points on the start as well as the lines in between.
Horizontal integration: This method involves systems integration via one specialized sub-system in the organization that serves as a common user interface layer to connect with all the other subsystems.
There you have it folks, a quick yet close look at what system integration is, how it benefits organizations, and how companies can use it to their business’ advantage. Though some may deem it too complex a task to be worth it, the fact remains that system integration can do wonders for any modern organization. So, if you too are looking to achieve consistency in information, a robust management process, and more, you ought to start shortlisting enterprise application integration tools ASAP.