SYSTEM

INTEGRATION:
DEFINITION, USAGE, METHODS, IMPORTANCE
WHAT IS SYSTEM INTEGRATION?

• System integration connects various software applications, hardware systems,

and technologies within a business. These processes can enable seamless
data flow and communication between different teams by forming a cohesive
unit
WHAT IS SYSTEM INTEGRATION?

• Businesses use many software applications and audio-visual systems to manage

their operations, such as customer relationship management (CRM)and
enterprise resource planning (ERP). Without proper integration, these systems
will function as separations, which are divisions that operate independently and
increase the risk of data duplication
WHAT IS THE PURPOSE OF SYSTEM
INTEGRATION?
• System integration aims to synchronize important data, streamline
processes, and enhance efficiency in your business.
• Creating a cohesive technological infrastructure empowers
businesses to automate tasks and eliminate the need for manual data
transfers.
• It provides a unified view of data, encouraging companies to make
better decisions regarding the customer experience
WHAT IS THE PURPOSE OF SYSTEM
INTEGRATION?

• System integration also provides scalable and cost-

effective solutions.
• Whether you’re looking to modernize legacy systems or
gain a competitive advantage through market analysis,
integrating software programs and tools can optimize your
operations in the long term
WHERE DO WE USE SYSTEM INTEGRATION?

• System integration is used in various industries where multiple

software applications or hardware systems must work
together.
• This process aims to unify systems, automate processes, and
enhance overall efficiency in the business.
• Organizations leverage integration to optimize their operations
in a competitive market
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Enterprise application integration (EAI)

Enterprise application integration connects software applications and systems to enable data
flow and real-time communication. The aim is to create a unified and cohesive infrastructure that allows
different applications to sync as if they were a single, integrated system. You can use this type in large
enterprises, financial companies, hybrid classrooms, and supply chain management to eliminate manual
tasks and scale up technical resources.

• Legacy system integration

Legacy system integration is the process of integrating older software applications with newer
technologies to ensure compatibility, data flow, and easy communication. Many legacy systems are
outdated but still in use because they hold historical significance, maintaining their relevance.
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Business-to-business integration
Business-to-business (B2B) integration coordinates business processes and
systems between two or more organizations. It enhances collaboration and
communication to ensure business partners can exchange information and conduct
transactions effectively.
B2B integration is crucial in supply chain management and modern business
ecosystems, as these companies rely on each other for the procurement of
goods and data sharing. This integration can occur between organizations of
different sizes, geographical locations, and
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• API-based integration
Application programming interface-based integration involves using APIs to connect
different software applications, services, and systems. An API act as an interface
that allows applications to communicate and share data in a controlled manner. This
integration fosters data exchange and functionality between diverse technologies.

You can use API-based integration in mobile app development, social media
platforms for payment gateways, and email marketing services that offer
analytics tools and customer support
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Different system integration methods

System integrations vary depending on your approach and the technology used to
connect systems and applications. Organizations may use a combination of
integrations to meet specific project requirements, update existing IT infrastructure,
and reduce complexities in their overall operations.
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Different system integration methods

1. Point-to-point integration
In point-to-point integration, applications are connected directly using
custom code. Each integration is created and maintained separately for
every pair of applications that require communication.
This integration becomes complex and challenging to manage
as system connections increase
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Different system integration methods

2. Horizontal integration
This integration is a company's business strategy to expand its operations by
merging with other companies in the same industry. Horizontal integration
strengthens a business’ position within the industry and increases market
share by bringing together similar firms under a single umbrella.
Some benefits of this integration include reduced competition, market
expansion to reach new customers, and cross-selling opportunities for
combined development efforts.
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

• Different system integration methods

3. Vertical integration
Vertical integration is the opposite of the horizontal method as it focuses on
companies that merge with other businesses at different stages of the supply
chain. The company seeks to control multiple stages of production,
distribution, and retailing processes when building better relationships with
suppliers or customers.
The key features of vertical integration include cost control, quality assurance,
and improved market power, all of which contribute to a competitive advantage
BELOW ARE SOME EXAMPLES OF WHERE WE
USE SYSTEM INTEGRATION

Different system integration methods

4. Common data format integration
Common data format integration uses a standardized approach to integrate
different software and applications. Data is mapped and transformed into a
predefined format, a functional component that allows data exchange and
communication between disparate systems. In turn, systems meant to
operate independently can now function as a cohesive unit.
You can implement integration using standard data forms like XML
(eXtensible Markup Language) or JSON (JavaScript Object Notation). The
choice depends on industry standards, data complexity, and application
requirements
WHAT ARE THE STEPS OF SYSTEM INTEGRATION?

1. Determine requirements
Define integration requirements, scope, and objectives to ensure you choose
the correct method for your business. It’s also important to identify redundant
systems and applications that need to be integrated and require data
exchange, shared functionalities, and efficient communication for smooth data
flow
2. Analyze feasibility
You must analyze the feasibility of system integration to ensure the applications,
systems, or technologies are practical and viable. An integration project's financial,
operational, and strategic aspects determine whether seamless switching will work. To
do this, assess the technical compatibility in data formats, communication protocols,
and security requirements
WHAT ARE THE STEPS OF SYSTEM INTEGRATION?

3. Develop integration strategy

Create a comprehensive integration strategy that aligns with
your company’s mission. Consider what method works best, whether point-to-
point, middleware-based, or a combination of methods.

4. Create data mapping and transformation rules

Data mapping and digital transformation are essential for ensuring data
compatibility and consistency between different systems. Match fields from
one database to another and note any important business insights that could
guide your integration.
WHAT ARE THE STEPS OF SYSTEM INTEGRATION?

5. Design integration architecture

Plan the overall architecture of the system integration, including the
Integration patterns, security measures, communication protocols, and data
flows. You want a comprehensive plan that shows you the potential risks and
benefits of combining several applications and software programs.

6. Develop the integration solution

Develop the integration solution based on your chosen approach, a common
data format, or a point-to-point method. You must also implement the
necessary connectors, APIs, data transformation techniques, and other
integration components that make this transition smoother.
WHAT ARE THE STEPS OF SYSTEM INTEGRATION?

7. Test your method for performance optimization

Testing and validation can ensure the data is exchanged accurately and that
the applications are communicating without problems. Validating all
integration scenarios can prevent these systems from failing in the future,
leading to challenges that interfere with the customer experience.

8. Deploy and monitor

Deploy your integration solution into the production environment, ensuring
minimal disruption to current systems and processes. Use monitoring tools
such as Datadog and Sematext to track the performance of integrated
systems and create updated solutions according to operational success.
WHAT ARE THE STEPS OF SYSTEM INTEGRATION?

9. Evaluate the success of the integration

To better understand your system integration, evaluate predefined metrics
and objectives once the integration is complete. You can identify areas of
improvement and room for potential expansion to meet future demands.
WHY IS SYSTEM INTEGRATION IMPORTANT?
WHAT ARE ITS BENEFITS?

System integration is essential in the modern business landscape due to the

need for smooth data flow and communication between different applications.
Integrating these diverse systems offers numerous benefits that contribute to
improved efficiency, enhanced decision-making, and an increased competitive
advantage
WHY IS SYSTEM INTEGRATION IMPORTANT?
WHAT ARE ITS BENEFITS?

Other benefits of system integration include:

• Stronger data security and compliance
• Collaboration among different teams and departments
• Agile responses to market changes
• Effective supply chain management
• Improved accuracy and data quality
• Reduced operational expenses
• Streamlined business processes
• Enhanced customer experience
WHAT ARE THE CHALLENGES OF SYSTEM
INTEGRATION?
1. Complexity of connecting diverse systems, which may cause disruptions to existing
workflows
2. Complex programming languages that could make system integration more time-
consuming
3. Security concerns and data inconsistency. Integrating systems exposes potential security
vulnerabilities, which increases the risk of unauthorized access during data exchange
4. Discrepancies and errors are common in systems that don’t have a robust security system
before integration.

To overcome these challenges, you need planning, clear communication with stakeholders,
strong project management, and a focus on data security. Collaborating with integration
experts could help you streamline processes and mitigate potential roadblocks during digital
transformation