System Integration: Types, Approaches,

and Implementation Steps

 11 min read
 Business, Engineering
 21 Jun, 2024
 No comments
Share
Using different IT components for different tasks is a common practice. But as business
functions expand, companies may become overwhelmed by lots of disjointed tools that can’t
share data and work together. That’s when system integration comes to the rescue.

In this article, we'll examine existing methods and technologies to meld separate pieces of
software and hardware into a single ecosystem, touching on key integration steps and the role of
a system integrator.

What is system integration?

System integration (also referred to as IT integration or software integration) is
the process of joining software and hardware modules into one cohesive infrastructure. The goal
is to make these systems work together smoothly so they can share information and processes
more efficiently.

Why do we need system integration?

System integration can help solve several common business problems:
Poor productivity because of complicated access to data and redundant tasks across siloed
infrastructure. Integrated systems allow for easier access to information across the organization,
resulting in faster, more efficient workflows.
Uninformed decision-making and errors that might happen because of
incomplete or inaccurate data (especially in compliance and reporting workflows).
After systems are integrated, it becomes easier to aggregate data from different sources to
perform in-depth analytics. Also, information is more accurate and trustworthy since it’s updated
across all components of the system simultaneously.
High cost of developing or transitioning to a new system. System integration is often cheaper
than replacing all disjointed parts with a new single system, not to mention the tricky process of
implementing new computer infrastructures.
System integration vs data integration
System integration is not to be confused with data integration. The former means
connecting disparate systems to facilitate access to information, while the latter is about
gathering data from different sources into one storage to gain a unified view. Please visit our
separate post about data integration to learn more about it.

System integration challenges

While it’s worth doing because of its many advantages, system integration is still a challenging
technical task. Here are some of the complexities that you’ll probably have to navigate if you
decide to connect your systems.
Compatibility issues. Different systems may use different technology stacks, data
formats, or protocols. Making these systems communicate effectively can require significant
effort in terms of middleware, data transformation, or custom interfaces.
Security and compliance. Integrating multiple systems can introduce vulnerabilities
and create the risk of data breaches and unauthorized access, especially if the systems have
different security protocols. Ensuring data is secure and that the integration complies with all
relevant laws and regulations is a significant challenge.
Resource constraints. Though, as we said, it’s usually cheaper than building a new,
comprehensive platform, system integration can still be resource-intensive, requiring significant
investments of time, expertise, and money. Budget constraints and resource allocation can limit
the scope of integration projects.
Maintenance and upgrades. Integration can create dependencies that make it difficult
to change or update one system without affecting others.
Change management. Integrating systems often requires changes in business processes
and workflows. Managing these changes and ensuring that all stakeholders are on board and
properly trained can be a significant undertaking.

Overall, system integration requires careful planning, robust project management, and the
expertise of specialists to overcome these challenges effectively. In one of the next sections,
we’ll provide you with a detailed, step-by-step guide on the system integration project, but let’s
first discuss its main types and approaches.

System integration types and examples

The most common reason for system integration is business growth, which in turn includes the
need to add new tools or systems while maintaining operational efficiency. Here are the most
typical scenarios that make companies consider connecting their systems.
Legacy system integration
Goal: integration of modern applications into existing, outdated systems
Many organizations use outdated software to perform their core business functions. It cannot be
removed and replaced with more modern technology as it is critical to a company's day-to-day
workflow. Instead, legacy systems can be modernized by establishing a communication channel
with newer information systems and technology solutions.
Example: connecting a legacy CRM system to a data warehouse or a transportation
management system (TMS).

Enterprise application integration (EAI)

Goal: unification of different subsystems inside one business environment
While growing, companies incorporate more and more enterprise applications to streamline their
front- and back-office processes. These applications often share no points of convergence and
accumulate huge volumes of data separately. Enterprise application integration (EAI) brings all
functions into one business chain and automates real-time data exchange between different
applications.
Example: creating one ecosystem for accounting, human resources information, inventory
management, enterprise resource planning (ERP), and CRM systems of a company.

Third-party system integration

Goal: expanding the functionality of the existing system

Integration of third-party tools is a great option when your business needs new functionality but
can’t afford custom software development or just has no time to wait for features to be built from
scratch.
Example: integrating an existing application with online payment systems (PayPal,
WebMoney), social media (Facebook, LinkedIn), online video streaming services (YouTube),
etc.

Business-to-business integration
Goal: connecting systems of two or more organizations

Business-to-business or B2B integration automates transactions and document exchange across

companies. It leads to more efficient cooperation and trade with suppliers, customers, and
partners.
Example: connecting a retailer's purchasing system to a supplier's ERP system.
Whatever the situation, the main objective of system integration is always the same — to put the
fragmented and divided pieces together by means of building a coherent network. Let's look at
existing technologies and architecture models that make the integration magic happen.

Ways to connect systems

There are different ways to achieve connectivity between separate systems. We'll review the
most common “connectors” in a nutshell.

Application programming interfaces (APIs) provide the most common and

straightforward way to connect two systems. Sitting between applications and web services, they
enable the transmission of data and functionality in a standardized format. Most online service
providers — from social media to travel platforms — build external APIs so that clients can
easily link to their product
 System Integration: Types, Approaches,
and Implementation Steps
 11 min read
 Business, Engineering
 21 Jun, 2024
 No comments
Share
Using different IT components for different tasks is a common practice. But as business
functions expand, companies may become overwhelmed by lots of disjointed tools that can’t
share data and work together. That’s when system integration comes to the rescue.

In this article, we'll examine existing methods and technologies to meld separate pieces of
software and hardware into a single ecosystem, touching on key integration steps and the role of
a system integrator.

What is system integration?

System integration (also referred to as IT integration or software integration) is
the process of joining software and hardware modules into one cohesive infrastructure. The goal
is to make these systems work together smoothly so they can share information and processes
more efficiently.

Why do we need system integration?

System integration can help solve several common business problems:
Poor productivity because of complicated access to data and redundant tasks across siloed
infrastructure. Integrated systems allow for easier access to information across the organization,
resulting in faster, more efficient workflows.
Uninformed decision-making and errors that might happen because of
incomplete or inaccurate data (especially in compliance and reporting workflows).
After systems are integrated, it becomes easier to aggregate data from different sources to
perform in-depth analytics. Also, information is more accurate and trustworthy since it’s updated
across all components of the system simultaneously.
High cost of developing or transitioning to a new system. System integration is often cheaper
than replacing all disjointed parts with a new single system, not to mention the tricky process of
implementing new computer infrastructures.
System integration vs data integration
System integration is not to be confused with data integration. The former means
connecting disparate systems to facilitate access to information, while the latter is about
gathering data from different sources into one storage to gain a unified view. Please visit our
separate post about data integration to learn more about it.

System integration challenges

While it’s worth doing because of its many advantages, system integration is still a challenging
technical task. Here are some of the complexities that you’ll probably have to navigate if you
decide to connect your systems.
Compatibility issues. Different systems may use different technology stacks, data
formats, or protocols. Making these systems communicate effectively can require significant
effort in terms of middleware, data transformation, or custom interfaces.
Security and compliance. Integrating multiple systems can introduce vulnerabilities
and create the risk of data breaches and unauthorized access, especially if the systems have
different security protocols. Ensuring data is secure and that the integration complies with all
relevant laws and regulations is a significant challenge.
Resource constraints. Though, as we said, it’s usually cheaper than building a new,
comprehensive platform, system integration can still be resource-intensive, requiring significant
investments of time, expertise, and money. Budget constraints and resource allocation can limit
the scope of integration projects.
Maintenance and upgrades. Integration can create dependencies that make it difficult
to change or update one system without affecting others.
Change management. Integrating systems often requires changes in business processes
and workflows. Managing these changes and ensuring that all stakeholders are on board and
properly trained can be a significant undertaking.

Overall, system integration requires careful planning, robust project management, and the
expertise of specialists to overcome these challenges effectively. In one of the next sections,
we’ll provide you with a detailed, step-by-step guide on the system integration project, but let’s
first discuss its main types and approaches.

System integration types and examples

The most common reason for system integration is business growth, which in turn includes the
need to add new tools or systems while maintaining operational efficiency. Here are the most
typical scenarios that make companies consider connecting their systems.
Legacy system integration
Goal: integration of modern applications into existing, outdated systems
Many organizations use outdated software to perform their core business functions. It cannot be
removed and replaced with more modern technology as it is critical to a company's day-to-day
workflow. Instead, legacy systems can be modernized by establishing a communication channel
with newer information systems and technology solutions.
Example: connecting a legacy CRM system to a data warehouse or a transportation
management system (TMS).

Enterprise application integration (EAI)

Goal: unification of different subsystems inside one business environment
While growing, companies incorporate more and more enterprise applications to streamline their
front- and back-office processes. These applications often share no points of convergence and
accumulate huge volumes of data separately. Enterprise application integration (EAI) brings all
functions into one business chain and automates real-time data exchange between different
applications.
Example: creating one ecosystem for accounting, human resources information, inventory
management, enterprise resource planning (ERP), and CRM systems of a company.

Third-party system integration

Goal: expanding the functionality of the existing system

Integration of third-party tools is a great option when your business needs new functionality but
can’t afford custom software development or just has no time to wait for features to be built from
scratch.
Example: integrating an existing application with online payment systems (PayPal,
WebMoney), social media (Facebook, LinkedIn), online video streaming services (YouTube),
etc.

Business-to-business integration
Goal: connecting systems of two or more organizations

Business-to-business or B2B integration automates transactions and document exchange across

companies. It leads to more efficient cooperation and trade with suppliers, customers, and
partners.
Example: connecting a retailer's purchasing system to a supplier's ERP system.
Whatever the situation, the main objective of system integration is always the same — to put the
fragmented and divided pieces together by means of building a coherent network. Let's look at
existing technologies and architecture models that make the integration magic happen.

Ways to connect systems

There are different ways to achieve connectivity between separate systems. We'll review the
most common “connectors” in a nutshell.

Application programming interfaces (APIs) provide the most common and

straightforward way to connect two systems. Sitting between applications and web services, they
enable the transmission of data and functionality in a standardized format. Most online service
providers — from social media to travel platforms — build external APIs so that clients can
easily link to their products.
 APIs explained
Middleware is the hidden software layer that glues together distributed systems,
applications, services, and devices. It handles different tasks such as data management,
messaging, API management, or authentication. Cloud middleware can be accessed via APIs. In
turn, an API gateway can be considered a type of middleware between a collection of services
and systems using them.

Webhooks, also known as HTTP callbacks are real-time messages, sent by one system to
another when a certain event happens. Say, accounting software may
receive webhook notifications about transactions from payment gateways or online banking
systems.
EDI — the abbreviation for electronic data interchange — is the exchange of business
information in a standard electronic format, that replaces paper documents. EDI generally
happens in two ways: via a value-added network (VAN), in which a third-party network is
in charge of data transmission, or direct connections through the Internet.

All these connectors can be mixed and leveraged when building complex system integrations. If
companies have unique needs and requirements for system integration, it's better to opt for
custom built solutions whether they are APIs, webhooks, or middleware.

How to approach system integration

System integration is multifaceted and can be approached through different architectural models,
depending on the number and nature of components that need to be connected.

Point-to-point (star/spaghetti) model

Point-to-point integration (P2P) is the architectural pattern in which every system is
directly connected to all other systems and apps it needs to work in tandem and share
information with. This model can be realized via APIs, webhooks, or custom code.

With a point-to-point connection, data is extracted from one system, modified or formatted, and
then sent to another system. Each application implements all the logic for data translation,
transformation, and routing, taking into account the protocols and supported data models of other
integrated components.
Pros and cons: Among the main advantages of point-to-point integration is
the ability of an IT team to build a small-scale integrated system quite quickly.
On the flip side, the model is hard to scale and the management of all the
integrations gets very demanding when the number of applications grows.
Say, to interconnect six modules you need to perform 15 integrations. This
results in the so-called star/spaghetti integration.

When to use it: This approach suits companies that don't have complex
business logic and run their operations on just a few software modules. It is
also a perfect option for businesses aiming at connecting to SaaS
applications.

Hub-and-spoke model
The hub-and-spoke model is a more advanced type of integration
architecture that addresses the issues of point-to-point and helps to avoid the
star/spaghetti mess. The connections between all subsystems are handled by
a central hub (message broker), so they don’t communicate with each other
directly.

The hub serves as a message-oriented middleware with a centralized

integration engine to translate operations into a single canonical language and
route messages to the right destinations. The spokes (adapters) connecting
the hub to the subsystems are managed individually.