What is System Integration? What are the Benefits?

Of all the benefits that technology can provide, optimization is certainly one of the most valuable. For this and several other reasons, system integration is now an increasingly common practice in companies in various segments, which seek to improve processes, increase productivity and, in addition, reduce their costs.

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And this isn't just any technology with a fixed time to run out. According to Grand View Research, the global system integration market was valued at US$ 353.92 billion in 2022 and is forecast to expand at a compound annual growth rate (CAGR) of 13.8% by 2030.

Through system integration, it is possible to connect different business tools, such as CRM, ERP, e-commerce, and others, to work together, sharing information and eliminating the need for manual and repetitive tasks. But after all:

What is system integration?

System integration is a concept that emerged along with the increase in information systems and the complexity of use. With the advancement of technology, companies began to use more and more systems to manage aspects of a business, such as sales, inventory, finance, human resources, and others.

However, these systems often did not communicate with each other, making it difficult to integrate and share important information, making it impossible to have a more complete and updated view of the business.

Thus, system integration emerged as a solution to connect and enable different tools to work together, sharing information and processes. This connection is made using APIs (Application Programming Interfaces) or other technologies that allow communication between systems.

Another positive aspect of system integration is that it can be done in a variety of ways, from simple integrations between two systems to more complex integrations involving multiple business tools. The possibilities are practically endless and depend on the specific needs of each company.

What is the importance of system integration?

System integration has the power to improve a company's routine in all its processes. This is because it can be applied in various sectors, integrating different systems used, sharing data between each of them and generating more connection. In a nutshell, this technology can help with:

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• Operational efficiency: by reducing the need for manual data entry, reducing the likelihood of errors and improving overall process efficiency.
  
  
• Improved communication: by facilitating the exchange of information between different departments and systems, promoting better communication and collaboration.
  
  
• Informed decision-making: by providing access to real-time data and a unified view of operations, helping with strategic decision-making.
  
  
• Scalability: allowing companies to grow and adapt quickly, integrating new systems and technologies as needed.
  
  
• Cost reduction: by automating processes and improving efficiency, significantly reducing operating costs.

What are the types of system integration?

There are different types of system integration, each with its specific characteristics and purposes. In this article, we're going to talk about the most common types of system integration:

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• Integration through files: this is a type of integration in which systems exchange information through files, such as XML, CSV, TXT, and others.
  
  
• Integration via database: in this integration the systems share information through a common database that can be accessed by both systems.
  
  
• Integration through web services: a form of integration that allows different systems to communicate over the internet, using standard protocols, such as HTTP and SOAP.
  
  
• Integration via API: a set of routines, protocols, and tools for building software and integrating systems. API integration allows different systems to communicate through a standardized interface, which defines how information will be exchanged and what operations can be performed.

Step by step to integrate systems in your company

If you are looking to implement integration in your business, know that there are some ways that can help you. The first of these is to carry out the implementation yourself, but to do so, it is necessary to define the objectives of this action, such as the choice of the appropriate tools for your needs, the development of necessary connectors and APIs that adapt to existing systems, the implementation of tests with continuous monitoring, among other steps.

Another easier way is to find companies that work with system integration in some way. Generally, these companies offer all the necessary support so that you can integrate your system with theirs for a certain purpose.

Key benefits of putting system integration into practice

With the constant evolution of technological resources, it is essential that companies use technology resources to remain competitive in the current market. For this reason, system integration is such a valuable technology today.

This is because, without proper integration, a company's systems can work in isolation, generating rework, waste of time and information, and increasing the risk of errors and inconsistencies in the data. On the other hand, by integrating its systems, the company is able to have a more complete and updated view of the business, make more informed decisions, and act faster and more precisely.

The main benefits of this technology are the optimization of processes and cost reduction, eliminating the need for rework and reducing human errors; the improvement in decision-making, having a complete and integrated view of all relevant information for the business; the increase in efficiency and customer satisfaction, offering a smoother and more consistent shopping experience for the customer regardless of the sales channel used; among others.

What are the challenges of system integration?

Although system integration is an important step for companies that want to improve their processes, there are some challenges that must be taken into account when applying this technology. Compatibility between systems, for example, is a fundamental point and must be on the task checklist. This is because these different systems may use different technologies, data formats, and communication protocols, making it difficult to communicate and operate efficiently.

Conclusion

Of course, there are other challenges in system integration, and that their consequences extend much more, but it is important that you are aware of this valuable resource and know the possibilities that technology can bring to your business. Take the opportunity to learn about Clicksign's integration solutions. Click here to check it out.