Why we recommend iPaaS for data integration | A thorough explanation of iPaaS

What is iPaaS?

Integration Platform as a Service (iPaaS) is a cloud-based data integration service that helps businesses data integration efficiently. iPaaS provides a set of tools to seamlessly data integration between different systems and applications. They enable automatic and flexible data flow across multiple systems, significantly improving business productivity.

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⇒ iPaaS | Glossary

Four benefits of iPaaS

Below we look at the benefits that iPaaS offers to businesses.

Improved operational efficiency and productivity

This is true not only for iPaaS but for data integration tool in general: data integration can streamline business processes, reduce errors, and improve overall business productivity.
For example, by linking a sales management system with an inventory management system, inventory information can be updated in real time. As a result, the risk of stockouts or excess inventory can be reduced. Furthermore, this type of automation allows staff to focus on other important tasks, leading to increased productivity.
With iPaaS, your entire business can achieve better performance and a stronger competitive edge, regardless of where your data is located or what format it is in.

Cost reduction

By implementing iPaaS, companies can realize cost savings. iPaaS efficiently connects different systems, automating processes that were previously performed manually. As a result, labor and operational costs can be significantly reduced. For example, one company automated manual data entry work by implementing iPaaS, achieving annual cost savings of several million yen. It also reduced errors between systems, leading to improved quality.
By introducing iPaaS, you can automate data conversion between systems and network management, reducing the workload of engineers and allowing them to focus on their core tasks.

Scalability

iPaaS is highly scalable, allowing it to adapt to your business growth. As your business expands, your data integration needs will also increase. iPaaS can scale up quickly and efficiently to accommodate these needs, and it can easily accommodate additional resources as they arise.
For example, in the retail industry, where sales spike seasonally, iPaaS can be used to smoothly handle increased traffic. This prevents system downtime and ensures that sales opportunities are captured. By implementing a scalable iPaaS, you can establish a robust infrastructure that can flexibly respond to business growth and market changes.

Real-time Data Processing

In a rapidly changing business environment, being able to collect real-time data and use it for analysis and decision-making is essential to maintaining a competitive advantage. Furthermore, being able to take quick action based on real-time information leads to improved customer satisfaction.
For example, in retail, real-time updates to inventory management systems can prevent stockouts and ensure products are available to customers immediately, while in the financial industry, analysis of real-time transaction data can help companies respond quickly to market fluctuations.
Real-time data processing enables faster decision-making, improving business efficiency and customer satisfaction.

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Examples of data integration using iPaaS

From here, we will explain how iPaaS can help with data integration through specific industry use cases and corporate success stories.
Here, we'll focus on manufacturing and retail, explaining the specific uses and benefits of iPaaS in each industry, and take a closer look at the results achieved in each case.

Use in manufacturing

In the manufacturing industry, a large amount of data is managed across different systems, such as production management systems, inventory management systems, and ERP (Enterprise Resource Planning). Integrating data between these systems is often complex, and manual data transfer and conversion work is time-consuming, labor-intensive, and prone to errors. Using iPaaS is an extremely effective way to solve this problem.
For example, by using iPaaS to data integration between production management systems and inventory management systems, you can grasp real-time inventory status and optimize production plans, preventing material shortages and overproduction and enabling efficient use of resources.

Retail Applications

In the retail industry, it is important to data integration between multiple systems. Retail businesses need to handle a wide range of information, including inventory management, customer data, and sales data, but if this information is dispersed, efficiency decreases. By utilizing iPaaS, data can be connected between each system in real time, significantly improving business efficiency.
For example, by linking data between different systems such as POS systems, CRM systems, and inventory management systems, you can grasp inventory status in real time and prevent stockouts and excess inventory.You can also analyze customer data and develop more effective marketing strategies.

Related Case:HULFT Square, a data integration and analysis platform that embodies both a proven track record and a bright future, created alongside Nissin Food Products' future

iPaaS vs. other data integration tool

Next, we'll look at some of the tools that are often compared when considering data integration and explain the differences.
Common comparisons to iPaaS include EAI and ETL. These are all technologies related to data integration and linkage, but they have different purposes and mechanisms. Let's compare the roles of each.

1. iPaaS（Integration Platform as a Service）

the purpose:  Linking different cloud services and on-premise applications to integrate and synchronize data in real time.

Features:
- A cloud-based integration platform that primarily uses APIs to seamlessly exchange and synchronize data.
-They often offer low-code or no-code features, making them easy to use even for non-engineers.
- It excels at complex workflows and real-time processing, and can be integrated with a wide range of applications.

Key use cases:  data integration between SaaS services, such as integrating CRM and ERP, and marketing automation tools.

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⇒ iPaaS | Glossary

2. EAI（Enterprise Application Integration）

Objective: To integrate different internal corporate systems (ERP, CRM, SCM, etc.) and streamline data and business processes.

Features:
- Specializes in integrating in-house systems and improves business efficiency by automatically linking data.
-EAI tools exchange data using message brokers and buses (Enterprise Service Bus, ESB), and processing is done in real time or batch.
-Compared to iPaaS, hybrid EAI tools are primarily focused on on-premise integration, but are also on the rise in number as they are compatible with the cloud.

Typical use cases: Integrating ERP systems with manufacturing systems, synchronizing inventory management systems with accounting systems, etc.

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

3. ETL（Extract, Transform, Load）

Objective: To integrate different data sources into a data warehouse by extracting, transforming, and loading the data.

Features:
- ETL is mainly performed using batch processing, and its purpose is to create a foundation for aggregating data into a data warehouse for analysis.
- It has strengths in data preprocessing, conversion, and aggregation, and is suitable for processing large amounts of structured data.
Unlike iPaaS and EAI, it is not good at real-time data integration, but it has strengths in processing large amounts of data.

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

Primary use case: Aggregating customer data from multiple sources and loading it into a data warehouse.

Steps for implementing data integration and iPaaS

Finally, we will provide a detailed explanation of the specific steps to implement iPaaS.
It's important to start by analyzing your current situation and identifying your needs. Then, selecting and implementing the appropriate iPaaS will ensure smooth data integration. Evaluate each company's business processes and data sources and select the optimal iPaaS service.

Current situation analysis and needs identification

Analyzing the current situation and identifying needs is the first step in a data integration project and is a critical phase that determines its success. By accurately understanding the current situation and identifying the specific challenges your company faces, you can find the optimal solution. This will ensure that your data integration project proceeds smoothly and maximizes its expected benefits. For example, if data is exchanged manually between departments, processing delays and errors are likely to occur. Identifying these issues and finding ways to resolve them through automation can help. By accurately understanding your needs, you can select the optimal iPaaS solution and achieve efficient data integration.

Business process evaluation

Evaluating business processes is key to the success of iPaaS implementation. Understanding the overall picture of business processes allows you to clearly understand the need for data integration and its benefits. It also makes it possible to identify bottlenecks and find areas for efficiency improvement. For example, in the manufacturing industry, strengthening data integration between each stage of the production line often improves the timing of material supply and quality control. In this way, business process evaluation can maximize the effectiveness of iPaaS implementation.

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Identifying Data Sources

Identifying data sources is crucial when data integration. This is essential for ensuring data integrity and quality. Selecting the right data improves data quality and ensures smooth business processes across the organization.
For example, consider integrating customer information. Let's say you're retrieving data from a CRM system and accounting software. By clearly identifying the data source, you can easily determine which information is up-to-date and accurate. Managing data from systems across different departments also helps ensure consistency across the entire data set, improving operational efficiency.
Identifying data sources not only enables effective data integration but also contributes to business growth and development.

Compare Service Providers

Comparing iPaaS (Integration Platform as a Service) service providers is an essential step in the successful implementation of iPaaS. Each provider offers different features, support, and pricing, so you need to choose the provider that best suits your business needs. Choosing the right provider will maximize the effectiveness of data integration and improve cost efficiency.

When making your selection, it is important to pay attention to the following specific points:

1. How much technical support do you need?
2. Whether the integration features provided are suitable for your company's systems and workflows
3. Pricing Plans

Choosing the right service provider will make iPaaS implementation easier and significantly improve convenience and efficiency. It will also reduce the burden on engineers and make system operation and maintenance more efficient. By thoroughly understanding each company's strengths and choosing the provider that best suits your business needs, you can increase the success rate of your data integration project.

summary

What did you think?
In this article, we have provided a detailed explanation of the features of iPaaS, specific use cases for data integration, and how to implement it.
iPaaS allows you to flexibly adapt the destination and connection method to suit your business needs, so if you want to data integration with the aim of using it for a variety of business purposes, it may be a good idea to consider iPaaS.
These are the reasons why we recommend iPaaS for data integration. Please take a look.

The person who wrote the article

Affiliation: Marketing Department

Yumi Ogawa

After two years of experience as a copywriter at an advertising agency, she has been working in the IT industry ever since. Her experience at a variety of companies, from B2C to B2B, and from Japanese ventures to major foreign companies, is her strength. She has consistently worked in a variety of marketing-related roles, including public relations, branding, product marketing, and campaign management, and has been in her current position since May 2024. In her private life, she loves interacting with nature, hot springs, and public baths.
(Affiliations are as of the time of publication)

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