Contact us anytime to know more - Abhishek P., Founder & CFO CISIN
CIS is a market research and consultancy firm with offices in California. It has been revealed that the global system integration market (SI) is likely to reach nearly $530 billion in 2025.
This is a significant number considering that the market for IT system integration consulting was valued at $234 million in 2015. This is a sign of a boom, with the market expected to double in just ten years.
This projection is not all that surprising. This is not surprising, considering that IT infrastructures in almost every sector have developed into a fragmented ecosystem with different formats, protocols, legacy infrastructure, modern technologies (cloud and on-premise, SaaS and mobile apps and services), and data usage patterns, including banking and financial institutions, logistics and the military, telecommunications, and healthcare, as well as energy and retail.
Software and simple solution architecture for system custom integration are designed to solve every IT problem by providing customized and seamless connections between modern environments and legacy infrastructure.
With the increase as a result of the use of automation technologies, system integration is more critical. This means that it is essential to streamline processes to ensure successful management. To simplify workflows and increase efficiency, business models need to be able to integrate technology between various systems.
Integrated systems not only improve efficiency but also reduce costs and deliver a higher return on investment, regardless of sector or size.What is system integration? And how can you add it to your managed service business?
What's System Integration?
System integration can be defined as the operation of connecting different computer systems or software programs into one more extensive procedure. This allows each solution to function together.
This system integration diagram demonstrates how eCommerce information from Walmart and Target is linked to Acumatica and external trading partners. Acumatica is a back-end ERP solution that uses an integration platform.
This system integration flow diagram demonstrates the left-to-right movement of external (front-end) data, transformed and then integrated into the internal system (back-end).
System integration is the process of combining many different systems and workflows into one system that works better. System integration can include software, workflows, and networks. This is done to increase efficiency and effectiveness within an organization.
System integration can be done by bringing together subsystems in a positive way. It can involve one team or a large business.
What System Integration Work?
Integration is the process of putting together a puzzle. The information subsystems of an organization are scattered and need to be merged into a cohesive, coherent architecture or integrated application mesh. This complex building process links functions of different systems to streamline disparate systems.
An integrated system can improve the organization's relationships with customers and partners and increase workflow efficiency. It also lowers operational costs. This can be done Through business process management and computer networking, and one becomes a system integrator.
Modernizing a B2B platform infrastructure for integration offers multiple benefits that will help businesses move into the future. It is crucial to fully understand the various types of integration before you decide on an integration platform.
What is The Role Of The System Integrator?
A Systems Integrator (or "SI") is an IT company skilled in planning, organizing, scheduling, testing, and improving IT systems. Deloitte, IBM & CIS are good examples of SIs. Accenture, TCS, and Deloitte are all examples. They manage large IT projects, such as ERP projects. The role of the system integrator in terms of system Integration is to enable data integrations between different systems of the customer. This is defined in the project scope. This could be anything from simple internal connections between two points to many integrations with third parties.
While the prominent role of systems integrators is to plan, implement, and test the integration solution for the customer base, the integrator can also manage the continuous management of the keys and contact third parties to facilitate connections. The systems integrator provides the customer with the integration expertise they lack internally or have a shortage.
Why is B2B Integration so Important
The integration of business-to-business is a concept that has been introduced previously. B2B Integration is a familiar concept. IT-driven companies began implementing B2B Integration tools projects nearly 50 years ago. B2B Integration is the automation, integration, and optimization of business processes outside the company's firewall. Although these processes can differ significantly between them, one thing they have in common is that the integration and optimization of external business processes provide a sustainable competitive advantage for the company. These advantages could include a wide range of improved visibility, automation, inventory optimization, and customer satisfaction.
More than software solutions are needed for companies. Even though they may have the best software solutions within their sales team firewalls (or the cloud), with the proper B2B connectivity and associated capabilities, they can effectively manage cloud environments and platform their supply chain processes, such as their end-to-end supply chain.
B2B Integration began as a way to receive business intelligence information from large companies. It quickly evolved into electronic data interchange (EDI) standards and then other technologies like XML, JSON, and so on. Every application now has an API that allows expensive shutdowns any point exchange integration with other applications. This leaves the difficult task of actually integrating these APIs with other systems. Most companies need to learn how to do this.
System Integration Points
Although system integration is not complex, many issues can make it challenging for organizations. Some studies show that up to 70% fail to integrate projects. Complex projects are more likely to fail, while simple systems integration projects can also be affected. Most failures are caused by answers to day something other than the chosen technology or technical problems with the systems within the scope. They are due to poor project management and change management.
System integration project failures can be caused by many factors, including:
Constant Changes in the Integration Space
The more time it takes to complete a project, the more serious this problem becomes. This is why managing risk by keeping integration projects short is essential. It increases the project's success rate. A flexible working approach that is flexible enough to adapt to changing requirements throughout the process and after the project is complete is crucial for successful cloud platform systems integration.
Lack of Skilled Resources
Expertise in system integration is hard to find. It is no good if the expertise required to integrate technology is lacking. Many companies need help finding and keeping employees with the necessary skills to cloud migration incorporate system systems. This problem can be solved by using an external third-party provider who can provide the required integration and technology expertise.
Failure to Account
Integration of many subsystems can lead to blurred accountability. Multiple stakeholders may exist (e.g., vendors, system owners, etc.). Each stakeholder is not responsible for the complete system integration. They will only take care of their part of managed integration services and not look beyond their borders. Integration is always about more than one party. When something goes wrong, it is easy to point fingers and blame others rather than pointing the finger at the person "owning" the process. A system integration project is often managed by one party. This means that the other party is contractually responsible for its success.
Integration of Legacy Systems
Many companies in business for decades still have legacy IT systems running on their on-premise servers. These systems are often essential to the core business and cannot easily be replaced with a newer IT system. Integrating legacy systems can be difficult as they may need dedicated team interfacing capabilities. Although most procedures can read or write to a file folder, not all plans have the ability to do so. However, sometimes it is necessary to access technical experts in the database to allow for integration with such subsystems.
Modern integration solutions must be capable of handling these types of integrations. These integrations are typically done using cloud-based iPaaS services that use local adapters on-premise. These adapters are an active "interface" between the cloud-based iPaaS and the passive legacy system or its database. The PaaS service can handle additional business rules or functionality related to legacy system integration. This makes it easy and centrally managed. Customer service relationship management doesn't have to make costly changes to its legacy IT systems. However, the system integrator can provide dedicated server integration logic that is not restricted by the company firewall.
Five System Integration Benefits
Every business is, at its core, a collection or process. The company moves forward with the help of data from customers and the marketplace and, hopefully, in the direction of growth and prosperity. Imagine a business in which these processes and procedures don't work together. Imagine a company where customer information or data is not accessible to those who require it. System integration ensures that the business processes, procedures, and data are integrated.
Here are some organizational benefits of system integration
- Improved Security : Integrated Systems helps IT managers and business leaders monitor what data is being viewed by which people or groups. A poorly integrated application can lead to data theft or breach if not managed and maintained correctly.
- Storage and Cost Savings : Integrated Systems eliminate redundancy in data and applications. For instance, an integrated environment allows you to access one example of the same data from different applications instead of having the same business data spread across several locations and platforms.
- Real-Time Information : Data updates are possible with interconnected systems. Immediately instead of waiting for someone to upload or update it manually. Information can be continuously ingested by a database connected to all applications.
- Better Analysis : Integrated systems solve the age-old problem that one side needs to learn from the other. Integrity allows data and insights to be shared across departments, applications, and teams.
- Accelerated Growth & Innovation : Increased efficiency and effectiveness lead to increased growth and innovation. The business will benefit from fewer technical and process roadblocks.
Integrations of Systems for Your MSP Clients
Your business applications will experience greater efficiency when it has well-integrated systems. Alignment between data, outmoded processes, workflows, and other systems reduces stress and headaches for all involved.
Your role as a managed services provider is critical in helping clients to integrate systems. You can unlock many opportunities for your business by having a technical understanding of how the integration works.
Horizontal and vertical scaling can also open up new opportunities. To understand your client's needs and goals and the available resources, you need to know what types of integrations they are looking for.
Cyber Infrastructure Inc's team has worked with managed service providers for over 20 years to give clients robust system integrations. Let's discuss how your managed service company could benefit from a partner to deliver the best possible integrations for their clients. Cyber Infrastructure Inc is a partner that can help you make system integrations a more significant part of your business.
4 Systems Integration Methods
Finding the right integrated solutions takes work. It is challenging to choose the right parts and where to place them. This depends on how well the company and its vendors understand the business goals, security requirements, resources, and processes. Integrating scattered applications, software, and services will bring you more value if your business aligns with it.
Solutions go beyond vertical and horizontal integration. These are just four examples of system integration:
1. Vertical Integration
Vertical integration: What is it? The process of linking disparate systems into a single functional unit is known as vertical integration, according to the definition of "system integration." Each subsystem benefits from the other. Vertical integration is known as "silos," where each layer or element works upward. This is the simplest and fastest way to go. It only requires a little reputational damage to vendors, developers, and partners. However, as the process evolves, it expands to include more functions to satisfy business needs.
Let's look at a vertical integration example for radiology. A radiology Information System (RIS) tracks orders and results. A Picture Archive and Communication System are responsible for preserving the image. The term "silo" is used here because the system is tightly integrated and serves a narrowly defined radiology business function. It holds the data in one location without coordination with other siloes.
Vertically integrated technology solutions offer several advantages:
- Coordination of supply chains efficiently
- More efficient vendor communication
- Enhanced competitiveness
- Processes can be managed more effectively
- Reduced operational expenses
2. Horizontal Integration
What is enterprise service bus (ESB), another name for horizontal integration? Horizontal integration, defined under the system integration construct, is more than a single-off event. One subsystem is designated to communicate with the other subsystems. The integrated strategy also entails the development of an application layer that permits programmatic connections to the ESB and between different applications. After that, systemic integration results.
Horizontal integration is a common practice in the healthcare sector. This makes integrated medical systems simpler. ESB integration interfaces can operate with customer experience systems that produce or need deep expertise data to be moved and integrated efficiently. Through tailored development, this is possible. Communicating seamlessly with business rules and policies to comply with HIPAA standards is possible. You can extend ERP functions integrated through managed files transfer (MFT), EDI software, and application connections. That allows data to be transferred, transformed, and integrated from multiple systems.
There are some advantages to horizontally integrated solutions:
- Operational efficiency is higher
- For dynamic workloads, scalability
- A gradual or incremental approach to SI
- High availability for ongoing business
- Expand to add more technology
- flexible communication skills
3. Integration From Point to Point (Star Integration)
What is point-to-point integration (or star integration)? The name is the definition. Star integration is based on the point-to-point method for integrating system components. The system integration method connects all the systems, creating a star-shaped polyhedron. The diagram can appear messy and interwoven, even though it is presented as a whole. The company that approaches SI via point-to-point integration will quickly find its IT infrastructure disorganized.
A company could segment its processes to demonstrate star integration. An accounting system could track finances, while a web analytics system would manage website traffic. A customer relationship resource management (CRM) system would integrate Salesforce. Each system's data could be pulled from the other and combined as necessary.
Therefore, Star integration is the most simple and complex form of SI. Star integration is used outside of a comprehensive IT strategy. For example, point-to-point integration can be used to meet the data analytics requirements of a particular business unit in marketing or sales. It is not involved.
Although the cost of an integrated star system is not predictable, integration fees and deployment times can soar when subsystems export proprietary or heterogeneous interfaces. However, there are limited benefits to this integration method.
- The quick application feature implementation
- Flexibility in deployment
- Simplicity (although there's not much IT scale)
4. Standard Data Format
What is a typical data format? Most apps for financial, accounting, customer management, and storage of unique data formats ensure accurate and reliable integration.
High-performance integration solutions establish a standard format, eliminating the need for adapters to convert between different application formats. An enterprise application integration (EAI) system that offers a data format and data transformation service that is independent of the application, assisting in the conversion between a standard format and an application-specific format
One example of a standard format is the conversion of zip codes to city names by merging or dividing objects in one app or another.
Standard data format integration has some advantages:
- Transparent data translation
- Automation
Key Points to Overcome Software Integration Problems
It is crucial to ask the right questions before you create an IT system integration strategy or lay out the steps for a non-sap system integration project. This will ensure that you have a smooth path to success. These are some questions to remember:
1. What is a Company's Ideal Integration Plan
- Try to avoid fitting a square peg into a round hole. To benefit from vital B2B technology, an IT department must justify an implementation recommendation. Do not force functionality or capabilities from another department. You should ensure that your IT infrastructure is modernized and ready to support a system integration process that includes data, legacy infrastructure, business-to-business (B2B), and application. There are many benefits to planning with the right vendor.
2. What are The Available Integration Interface Options
- There are many connector options (B2B/EDI/RESTful, SOAP Web Services, customer expectations programming, SOAP Web Services, SOAP Web Services, SOAP Web Services, etc. These options impact infrastructure, design, implementation, and design. Consider private cloud the pros and cons of vertical integration vs. Horizontal integration. It is essential that the vendor clearly explains whether the interface solution will require complex or straightforward implementations.
3. What Will the Integration Process do to the Current Systems
- Integration vendors should have access to real-time information about an IT infrastructure right from the beginning before any project even begins. A disjointed ecosystem constantly changing in formats, technologies, protocols, and data usage patterns can lead to a domino effect.
4. What Will the Future look like After this Integration Project
- Likely, implementing a new project will be a collaborative venture. Consider the viability of your business and IT ecosystems and which system integration provides google cloud the most flexibility, versatility, and upgrade options.
Many moving parts are involved in centralizing an organization's digital and physical IT infrastructure. It can be overwhelming to think about tackling a project that will address integration and data movement issues.
The fact is that with digital transformation's current direction, aligning and modernizing API, cloud, and B2B technologies will make things more challenging. It is possible to simplify system integration by using the right strategy.
How to Solve the Issues & Complexity of System Integration
As they embark on a digital strategy, IT departments and development teams are likely to deal with various new and existing non-sap applications. However, a single integration platform can connect and centralize all the best-of-breed applications and systems that support business processes and solve software integration problems.
Consolidate Different Applications
Modernizing your IT environment will improve communication and control while allowing for greater visibility, automation, management, and visibility. This will help strengthen partner relationships.
Connectors to the Most Common Applications
The centralized platform is preloaded with SaaS and EDI connectors that can power your enterprise, whether in the cloud or on-premise. You can customize and integrate apps to meet your business requirements without writing scripts.
Automate Routine Business Operations
Automating automates time and money and improves efficiency by replacing manual processes with software.
Reducing Dependency on Customized Solutions
Remaining dependent upon customized creative solutions can also mean you spend more upfront on your tools and creates a need for developer sources with inherent risks. It also requires developers to communicate throughout the software-development cycle.
Save Valuable Resources for Other Projects.
Automating most of your business processes allows you to save valuable IT resources. It will enable you to focus your time on core tasks. Digital transformation strategies make time-consuming tasks less of a burden on employees and bandwidth.
Want More Information About Our Services? Talk to Our Consultants!
Conclusion
Modernizing IT systems is essential for companies to improve their business agility. Digital transformation requires that companies have greater flexibility in their front-end applications to say "yes" and communicate with their customers. However, connecting and organizing data requires more agility at the back end.
SAP Integration is essential for data flow. You will require a scalable infrastructure that enables any-to-any hybrid integration, data transformation, and quick, secure file transfer regardless of the business you run. Additionally, it would be best to have visibility into all data circulating in your dynamic environment.
