Maximizing ROI: How Much Can Integrating Existing Software Save You?

Maximizing ROI: Save with Integrated Software Solutions
Kuldeep Founder & CEO cisin.com
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Organizations using multiple software subsystems for business operations require an integration tool to synchronize disparate data across systems.

It will allow top managers and business owners to manage data while understanding their entire operation better and effectively.

Your sales team relies heavily on CRM. Furthermore, event management systems and marketing automation software must also be considered when using them properly to maximize efficiency for business use.

Even though each app may be used differently by your team members, proper integration will enable their full potential utilization.

Your applications still lack vital data points that prevent employees from quickly accessing and acting upon relevant information.

Let's examine a wide range of integration types and processes available to connect software; let's first define "integration."


Software Integration: What Is It?

Software Integration: What Is It?

 

Software integration involves joining different subsystems and programs together into a cohesive whole to form a new system, replacing manual processes with automation in one streamlined package.

Integration also typically connects two or more applications through APIs to share information in near real-time while receiving updates quickly when connected.

Software integration involves interconnecting various applications through application programming interfaces (API).

Through application integrations, applications can communicate and exchange real-time information in real-time with one another and exchange data more securely than before.

Cloud-based software has quickly become a crucial asset to companies worldwide, with global Software-as-a-Service (SaaS) revenue projected to surpass $208 billion by 2023.

SaaS may be more cost-effective than on-premise deployments of traditional applications; however, as companies add additional cloud applications into their stack, fragmentation issues arise, making it harder for employees to locate data quickly and accurately.

Employees spend hours each week searching multiple apps for needed data and copying it between applications. Integration software unifies multiple forms of applications to avoid switching back and forth, keeping all vital info consolidated into one location and improving productivity and product quality at the same extensive time as simplifying communication among IT systems, speeding information flow, and decreasing operating business additional costs.


Three Questions About Software Integration

Three Questions About Software Integration

 

Integrating software can be challenging for companies that rely on multiple systems and collect big data independently.

Still, leaders of organizations must answer three questions to ensure seamless unification before synching their data using an integration tool.


What Type Of Software Needs To Be Integrated?

Businesses with large staff often rely on proprietary in-house software solutions developed for them by themselves.

At the same time, many also employ cloud-based apps sold centrally and sold monthly as software-as-a-service (SaaS) applications - one popular form of SaaS used by large enterprises.


What Integration Tool Does The Business Need?

Businesses deploying in-house software will require hiring specialists or engineers to integrate it with the systems.

SaaS services may integrate via Application Programming Interfaces (APIs) and internal tools.

Native integrations can be achieved using APIs to move data to another app system. Cloud-based solutions like Integration Platforms as a Service enable companies to connect software disparately.

Some businesses may need tools that offer one- or two-way integration; one-way integration consists of moving information between applications; two-way synchronization occurs when information from multiple databases converges.


What Type Of Data Requires Integration?

Managers should first identify which data types will be necessary before beginning system integration; this will make selecting which software easier.

One example would be a company wanting to gain more insight into client behavior and preferences by gathering past purchase records, buying patterns, and transaction information. Integrating their CRM system with their point-of-sale (POS) app could also prove fruitful, given both apps contain vital customer details.


Why Is Software Integration Necessary?

Why Is Software Integration Necessary?

 

Organizational size and demands may dictate it is necessary to integrate software. Application Programming Interfaces, commonly called APIs, streamline this integration process by acting as business functions or procedures facilitating interactions among software intermediaries.

Below are a few reasons why integration may be crucial:


Merging Disparate Systems

Companies using multiple systems for managing employees, inventory, and data will require an integration tool. A retail store using a point of sale (POS) system could integrate it with an inventory management program to track stock in real-time while replenishing supplies regularly.


Enhances Security

IT industry companies are concerned with data security. Cloud technology has not received as much scrutiny as other technologies; software integration improves security; this ensures employees use only data stored within an integrated system, and thus data breaches are minimized.


Cost Reduction

Software integration's most tangible advantage lies in its potential cost-reduction benefits. Automating tasks can often reduce expenses relative to manual handling, and accessing information across dispersed locations or unsynchronized databases can be expensive and inaccurate - integrated systems reduce errors, saving costs associated with correcting them later.


Increase Employee Productivity

Employees find it time-consuming and inconvenient to manually move data across applications without using software integration, searching for resources and information needed for their job tasks.

Centralizing data reduces the complexity and time required, thus improving employee productivity.

Employees armed with real-time data within their apps are better positioned to make better decisions, such as quickly reaching out to prospects with engaging messages, adding leads immediately into nurturing campaigns for marketers, or quickly sending invoices out as soon as they become due for accounts receivable specialists.


Better Data Flow

With integrated systems, data does not have to be manually transferred - everything happens automatically and efficiently.

Manual movement takes too much additional time, and inefficiency is reduced significantly when there are no duplicate databases; all updates happen in real-time due to synchronization, which increases data flow efficiency and provides smoother operation overall.


Error Reduction

Data synchronization reduces errors associated with software integration. Without software integration techniques or systems in place, data would need to be manually moved around; without uniformity within data locations, any changes must reflect in all locations where changes to it were made - hence why synchronized databases provide accurate and complete records.

In contrast, integrated systems use automated movements of information that reduce errors significantly.


Faster Business Processes

Software integration can speed up business for corporations. According to studies, customers dislike waiting. Therefore they prefer customer service providers who can respond faster.

Through software integration, all data can be centrally stored so it can be quickly accessible, allowing clients to be served faster while also eliminating manual data entry for accuracy purposes.

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Migration From Legacy Systems And Modern Apps

Legacy systems refer to outdated technology or methodologies used by businesses today. Many are transitioning towards modern software programs to protect data safety, reduce costs and enhance accessibility; as part of this effort, they often utilize integration tools that integrate legacy system data with modern applications.


Increase Functionality

Synchronizing software systems can increase functionality for organizations. Connecting an employee scheduler with human resource software, for example, will automate payroll processing while guaranteeing accuracy - giving businesses more efficiency by eliminating technology silos and increasing functionality.


Enhances Accessibility Of Data

Software or systems are integrated into one comprehensive system, making data easy for employees to access in one central place at any given time without asking for help or being acquainted with all company systems.

Accessibility improves while costs and times decrease significantly.

Employee and customer experiences alike will benefit. Employees save time by not having to enter information multiple times into different applications or switch back and forth while searching for relevant info; that time saved can then be reallocated towards more strategic, thoughtful work that they enjoy doing and which could potentially have more excellent business-impactful effects.

Clients also stand to benefit as employees can now focus more on strategic tasks which bring better returns for them.

According to research, content employees tend to work towards increasing customer satisfaction more readily than unhappy employees do.


Employee Relationships Improve

Integrations that remove data silos mean your employees no longer need to ask colleagues for data they require for fulfilling employee requests, which could otherwise lead to frustrating delays and frustration in fulfilling these requests.

Employees will have easier access to relevant data and collaborate more productively in reaching meaningful business results.

Your application's functionality will increase, giving users access to its full potential in collecting data more powerfully.


Software Integration Types

Software Integration Types

 

Management teams should carefully consider four strategies when integrating software.


Star Integration

Star integration refers to creating connections among all subsystems within the software, taking its name from their appearance when linked together; its appearance being star-like when interlinked systems appear connected resembling stars; in reality, however, links may resemble more spaghetti due to multiple interconnects being developed at once.

This method has also been known by some as the "spaghetti method." As this type of integration allows teams to leverage existing software functionality, businesses that want to integrate new subsystems will save money and time by employing this strategy.


Horizontal Integration

Enterprise Service Bus is an approach for creating communication systems. The key features include message transmission and monitoring as well as data transformations/mapping services.

Horizontal integration reduces subsystem connections while offering greater flexibility; teams can easily add or remove subsystems without disrupting other components.

Software integration can be especially advantageous to companies employing numerous disparate systems that must work together seamlessly since costs associated with horizontal integration will decrease with system expansion.

This approach proves cost-effective over the longer term for any given business.


Vertical Integration

Vertical integration provides a quick and cost-effective alternative to horizontal integration, as this technique involves vertically synchronizing software systems while developing functional entities.

Vertical integration has many advantages over its counterpart: improved business process control and increased competitiveness are just two.

Retailers could experience improved supply chains with enhanced vendor communication and lower operating costs from this approach.

Nonetheless, vertical integration may create non-scalable software silos which keep information at bay within each system, which ultimately keeps information isolated within its respective siloes and therefore disconnected.


Common Data Format Inclusion

Standard data formats provide businesses with a way to integrate software that eliminates the need for adapters when it comes to converting or transporting data without resorting to adapters themselves.

This approach only works if one system can read data formatted differently than another system - thus offering more excellent translation and automation benefits than ever.


Six Steps In The Software Integration Process

Six Steps In The Software Integration Process

 

After selecting an integrated software data platform, managers can apply various best practices to integrate disparate systems.


1. Gather Definitions, Requirements, And Specifications

Teams should first gather and document all requirements and specifications of systems they intend to integrate. Furthermore, it's vital that managers ask pertinent questions about the software they are using so they may gain a fuller understanding of its functions and features.


2. Analyze Information

Once all requirements and definitions have been identified, a team must evaluate whether integrating applications is feasible.

If so, existing processes need to be reviewed to establish what software solutions the business requires before researching how best to upgrade or integrate their system or connect it effectively.


3. Plan Your Architecture And Management Strategies

At this stage, the team creates its blueprint. Within its architecture, this blueprint should provide details regarding tools being employed by executives as well as a chart demonstrating connections between systems and applications - this visualizing plan makes sharing it with stakeholders simpler for executives to do themselves.


4. Software Integration System

Based on its blueprint, a software integration system will finally be constructed.

Business teams should test it regularly to ensure everything runs as anticipated; developers often find this step tedious as they must pay close attention to every detail before progressing with software development work.


5. Start Using Integration System

Once testing proves the system to be flawless and fully operational, an organization may begin using it. Before beginning the integration of all software packages, downloads may need to occur first.


6. Evaluation Of System Performance Periodically

Developers should regularly assess and assess their system after its installation to quickly detect and remedy inefficiencies or discrepancies in its performance.

This allows developers to swiftly address inconsistencies or shortcomings before it affects their operation in any meaningful way.

Read More: Integrating Software With Enterprise Solutions


Software Integration Challenges

Software Integration Challenges

 


Choose The Best Integration Tool

Software integration can be achieved using several different tools; choosing from them may prove challenging. A hybrid integration approach has emerged as a popular solution; hybrids allow an app on local computers to integrate seamlessly with cloud integrations for enhanced security or privacy reasons.

These options may be preferred over moving all apps entirely into the cloud due to this feature's accessibility features.


Integration With Monolithic Systems

Monolithic architectural systems are standard across enterprises. Therefore, eliminating them efficiently is infeasible due to being heavily relied upon by organizations as legacy systems - making replacing and integrating new monolithic systems a problematic endeavor.


Changes To The Environment

Software solutions that have been integrated often look different than they did previously; nothing remains the same.

Although integrated systems were typically created to solve specific issues, components or subsystems that are integrated may not always be prepared adequately for integration and eventually become outdated due to shifting requirements and changes.


Factors Of Success For Software Integration

Factors Of Success For Software Integration

 

Software integration is not easy. The following are the details:


Security

IT security should always take precedence. Incorporation should occur using secure channels like SSL or Secure File Transfer Protocols (SFTP), with audit trails keeping track of what happened during integrations - this provides evidence if something breaches.

Furthermore, you should be prepared in case there's ever been any incident where a security breach has taken place so you can turn off integration immediately if need be.


Make Your System Or Software Simple

Simple systems tend to perform more effectively and reliably than complex ones, using the "KISS principle." Avoid overcomplicated designs like Big Design Up Front (BDUF); instead, break it down so you build only what's necessary when necessary and at your own pace; this approach helps ease system integration challenges more successfully.


Analysis Of Application

Integration requires gathering and evaluating all pertinent data to use during its complex process, including how successful its completion will be and the factors determining this.


Choose More Minor Integrations Over Extensive Integrations

Small integrations are more effective than more extensive solutions and create fewer dependencies than their larger counterparts.


Flexible

Integrating software requires file-based integrations or web services; file-based software integration allows programs to share data, while web services allow companies to automate this task manually.

Here's a breakdown of both methods used:

  1. File Transfer Protocol
  2. Secure File Transfer Protocol

Web services provide the ideal way to integrate software, supporting Simple Object Access Protocol and Representational States Transfer standards while being adaptable enough to handle data flow between platforms as well as integration processes that move seamlessly from file-based integration methods to web service interactions.


What Types Of Systems Integration Are Common?

What Types Of Systems Integration Are Common?

 

Integration methods vary. Common ones include:

  1. Integration of applications: Integration is the practice by which on-premise and cloud applications communicate (typically via APIs) to maintain data synchronization or enable automation.
  2. Data Integration: Data integration refers to gathering and consolidating information from multiple internal and external sources before cleaning and processing it before placing it into a warehouse for analysis by business analysts and managers to spot key trends.
  3. Legacy System Integration: Integrating legacy systems with modern cloud applications using APIs, documents, or database connectors.

What Is The Best Way To Design An Integration Strategy For Software?

What Is The Best Way To Design An Integration Strategy For Software?

 

This process is made up of several steps:

  1. Set goals for your company that range from saving time, reducing errors, cutting costs, or innovation.
  2. Once defined, align these with use cases; there are numerous integration methods; choose one(s) which make sense for your organization.
  3. Prioritize non-functional needs. Your integration's non-functional requirements can be divided into categories like availability, scalability, and governance.
  4. Choose a model of delivery, governance, and skills. Your business goals in step one should determine this decision; for instance, if efficiency and savings are top priority, then IT or an SI may implement and maintain integrations; otherwise, if changing business processes is on your agenda, then all lines of business need to be involved.
  5. Spend your budget wisely on an integration solution that meets all the answers provided in the previous steps. If your software integrations involve innovation and involve lines of business, an integrative solution with no-code or low-code UX will best address that goal.

Be mindful that integration strategies do not remain stagnant over time. Your integration strategy may need to adapt as your goals or the market alters.


How Can Software Integration Benefit You?

How Can Software Integration Benefit You?

 

Why integrating software is a priority.


Eliminates Data Silos

Data silos are formed when disparate systems don't communicate effectively, with data being stored on one system but inaccessible by others.

When departments each use different software for maintaining lists - marketing uses email for maintaining contacts while sales use CRM for keeping tabs - creating data silos that evolve until unified into one centralized list.

Software integrations enable data to be seamlessly transferred between business applications. They eliminate time and errors associated with manually moving it between systems; as shown above, email and CRM integration facilitate seamless transference.

Updates made to an individual dataset automatically sync between marketing automation platforms so sales and marketing staff have access to up-to-date data sets.


Improves Decision Making

To make informed decisions, data must be aggregated at one centralized point. Fragmented views of company data prevent business leaders from having an accurate picture and hinder decision-making processes by increasing transparency and providing business leaders with complete oversight over all data affecting the decision process.

Leaders of businesses cannot accurately anticipate revenue or make budgetary decisions when sales data in a CRM system is out-of-date, for instance.

You can view all the necessary information at once: how many sales you are making, who you're onboarding as customers, accounts that need renewing, etc.


Reducing Context-Switching Fatigue

Workers frequently switch apps to quickly locate what they are seeking, taking, on average, 9-1/2 minutes before returning to a productive workflow.

43% reported spending 36 minutes changing applications each day - something which reportedly affected productivity by 45%, while fatigue caused 43% as well. Implementation of your software helps employees be more productive without disrupting workflow.


Improve Your Business Process

Business processes form the core of any successful organization. Yet, disconnected systems may make critical tasks challenging to accomplish efficiently for employees.

You can streamline these processes by integrating software that will streamline them for employees while cutting down their work hours spent doing menial tasks - software integration improves productivity while streamlining processes.

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Take-Aways

Software integration entails connecting various subsystems of software to collect information. Modern integration tools can streamline this process; business teams should take note before initiating any system integration; before embarking upon this path, they should carefully consider: which systems require integration.

Which tool suits their requirements best, and which data sources could benefit?

Software integration can serve many functions for organizations. Businesses may need to connect disparate systems or upgrade outdated solutions with modern ones; businesses will integrate software solutions for enhanced functionality purposes.