What is system integration? How to choose the best integration method for your company

What is system integration?

System integration refers to a mechanism for smoothly sharing and using data between multiple different systems. When each system operates independently, duplicate data entry and errors occur frequently, which can increase time and costs. System integration makes it possible to automate many tasks that were previously done manually. As a result, the accuracy and speed of operations improve, leading to stronger corporate competitiveness.

System integration examples

As a specific example, when a customer relationship management (CRM) system is linked to an accounting system, it becomes possible to automatically issue invoices based on customer transaction data. By implementing this system, data entry work that was previously done manually can be reduced, preventing human error and improving data accuracy. It also speeds up the entire business process, contributing to smoother business operations and cost reduction.

System integration is also an extremely important approach from the perspective of maximizing data utilization. For example, sales and inventory data can be updated in real time in response to fluctuations in market demand, allowing for appropriate inventory replenishment and marketing measures to be implemented promptly. Furthermore, the use of generative AI and machine learning is expected to further enhance data utilization.

How to link systems

There are several methods for system integration. Understanding these methods will enable you to build an efficient system.

This section explains the main types of system integration. Please use this information to understand the characteristics of each and to help you select the integration method that is best suited to your company.

API Integration

An API (Application Programming Interface) is a technology that enables real-time data exchange by utilizing interfaces that connect software, programs, and web services. It is particularly effective when connecting with cloud services and mobile applications.

▼I want to know more about the API
⇒ API｜Glossary

File Linkage

File integration is a simple and versatile data integration method that is widely used. It is commonly used to transfer data by batch processing at specified times. Because it separates business processing from integration processing, it is effective when integrating mission-critical system, core system with peripheral systems where internal changes should be kept to a minimum.

▼I want to know more about file sharing
⇒ File Linkage | Glossary

Service bus method

A service bus is a central messaging system that manages the transmission of messages between different systems. It is suitable for large-scale enterprise environments that require real-time data exchange, or for simplifying communication between systems.

Message Linkage

Message linking is a method of exchanging information between systems using messages. By using message linking, systems do not need to be directly connected to each other, reducing the dependency between systems and improving maintainability.

Database linkage

Database integration is a method of linking multiple systems by sharing the same database. Because updated information is reflected immediately in both systems, it is primarily used in business processes that require transaction management.

Storage Integration

Storage integration is an important method for efficiently storing and sharing large amounts of data. By utilizing cloud technology and appropriate data management tools, seamless integration between internal and external systems can be achieved.

How to choose the best system integration method for your company

When choosing the system integration method that is best for your company, it is essential to first clarify your business processes and objectives. Also, by specifically understanding the system integration methods and features, it will be easier to choose the appropriate integration method.

Collaboration frequency

When considering how to integrate systems, the frequency of integration is an important consideration. It is important to consider business processes and operational costs when making your selection.

If you need to constantly update data between systems in real time, the "real-time integration" model, which prioritizes response time, is appropriate. High-frequency data integration increases the load on the system and tends to be costly.

▶ Real-time integration type: API integration, database integration
On the other hand, if you need to update data at specific intervals, such as daily or weekly, such as attendance data or sales data, the "background integration" type is more suitable. This reduces the load on the system and can reduce resource costs.

▶ Background integration type: file integration, service bus method, message integration, storage integration

System Density

​Loose coupling and tight coupling in system integration have different characteristics depending on the degree of closeness, and each has its own advantages and disadvantages.

Loose coupling is a style in which each system remains relatively independent and interacts with each other, and has the advantage of being highly flexible and easy to change and expand. By choosing loose coupling, you can minimize the impact on other parts of the system when one part is changed.

In contrast, tight coupling means that systems are closely linked and have a higher degree of interdependence. As a result, tight coupling offers significant performance benefits and is suitable for situations where real-time performance or high-speed data synchronization is required. However, tight coupling makes it difficult to change the system and tends to increase maintenance costs.

API and database integration is highly real-time and therefore tightly coupled, whereas file and storage integration is relatively loosely coupled and is characterized by maintaining system independence.

We recommend using tools to integrate systems

Manually integrating systems or developing them individually from scratch is prone to errors and mistakes. Furthermore, the more systems you integrate, the more time and cost you incur, making it impossible to keep up with the speed of business. From the perspective of efficiency and reliability, we recommend utilizing data integration tool. There are several types of data integration tool, and we will explain each one below.

ETL（Extract/Transform/Load）

ETL (Extract/Transform/Load) is a data integration process that involves extracting data from different systems, transforming it as needed, and then loading it into the destination system or database. The data used between systems often has different formats and structures. ETL plays an important role in absorbing these differences and arranging it into a unified format.

▼I want to know more about ETL
⇒ ETL｜Glossary

EAI（Enterprise Application Integration）

EAI (Enterprise Application Integration) is a technology that aims to seamlessly integrate the many different applications that exist within a company and facilitate data integration. Many modern companies have implemented a variety of applications to streamline operations such as sales, inventory management, accounting, and customer management. EAI provides a wide range of pre-set connectors and an intuitive interface for linking these applications, making it easy to set up even without technical expertise.

▼I want to know more about EAI
⇒ EAI｜Glossary

iPaaS（Integration Platform as a Service）

iPaaS (Integration Platform as a Service) is a cloud-based platform for efficiently integrating different applications and systems. Like EAI, it has a wide range of pre-set connectors and an intuitive interface to connect multiple business systems, various applications, and cloud services.

iPaaS also offers the flexibility and scalability to optimize a company's system environment. Its advanced data integration capabilities make it easy to integrate with existing on-premise systems and cloud-based services. Using this platform as data integration platform not only makes it easier to manage the entire business process, but also helps reduce operational costs and improve productivity across the organization.

▼I want to know more about iPaaS
⇒ iPaaS | Glossary

summary

Smooth system integration plays a vital role in improving a company's data management and business efficiency. When selecting an integration method, it is important to first clarify the business process and objectives, and then specifically understand the system integration method and features. Utilizing data integration tool such as EAI and iPaaS can significantly reduce the effort and risk associated with manual integration and individual development, optimizing overall business performance.

Furthermore, in today's rapidly changing business environment, accurate data analysis and rapid decision-making are key to strengthening a company's competitiveness, and system integration is a crucial approach from the perspective of maximizing a company's data utilization.

We hope that you will use the information we have introduced here to consider the best system integration method for your company.

The person who wrote the article

M.Takahashi

Affiliation: Marketing Department
After joining Saison Technology, he worked on data integration products including HULFT.
After working in partner sales and customer support, he is currently in charge of marketing.
We provide information on the importance of data integration and the latest information.
(Affiliations are as of the time of publication)

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