System Integration: Why It's Important for Business

The process of System Integration is essential for the functioning and internal cooperation of a company as well as for communication in B2B. Let's see what integrated systems are, the most commonly used methodologies, and the role of a system integrator in corporate innovation.

What is System Integration?

To simplify, we can define the system integration process as the connection between different components, even quite heterogeneous ones, to create a single large system. In the world of software development, it is defined as the linkage between various IT systems, services, and software that allows them to work together functionally and cohesively. The primary reason for integrating the activity of a system integrator into your processes is the need to improve productivity, speed, and quality of operations carried out in the company. Ensuring proper communication between various IT systems accelerates information flows and reduces the allocated costs for the organization.

System Integration Methodologies

Different types of System Integration can be divided into the following categories:

Point to Point Integration

One might say this type is not a real system integration since only two interlocutors are involved. However, although it lacks complexity, it still connects two different systems to work together and communicate effectively. Usually, this type manages only one function and does not imply any intricate logic. Many cloud applications offer these types of point-to-point integrations as "out-of-the-box" integration modules for the most common IT systems.

Vertical Integration

In this methodology, system components are integrated by creating functional silos, starting, for example, from the base purpose of the subsystem itself or the belonging Business Unit. It is relatively simple in its implementation, involving only a limited number of actors (but still more than two). The downside of this method is its rigidity and long-term management difficulty, as any new functionality requires a dedicated silo. However, it remains an excellent alternative for projects that need to perform a single function.

Star Integration

A variant of vertical integration is Star Integration. In this type, each subsystem is connected to others using point-to-point connections, forming a star-like scheme. The advantage of this approach is manifested through its extreme flexibility and the possibility of reusing functionalities. These benefits diminish as the number of nodes increases, leading to a significant increase in integrations to implement and maintain. Interestingly, this methodology is also called Spaghetti Integration, analogous to the Spaghetti Code.

Horizontal Integration

In this case, a separate subsystem is used as a common interface layer among all subsystems, known as the Enterprise Service Bus (ESB). It allows each subsystem to have a single interface for communication with all other connected subsystems (i.e., with ten systems, there are only ten connections and one interface). The advantage of this method is that each subsystem can be modified or even replaced without having to redo the interfaces of other systems. This type is particularly suitable for large companies composed of many systems, where integration, although initially costly, will be very advantageous in the long term.

Common Data Format Integration

Integrating diverse IT systems usually requires converting output data from one system into a different data format, used by the receiving system. As with Star Integration, if each transformation has to be done system by system, the number of data transformations increases significantly and becomes a maintenance-intensive activity. To address this issue, the common data format approach allows each system to perform only one data conversion from the native format to the common format (and vice versa). In this way, the number of required data transformations equals the number of subsystems.

The Role of the System Integrator in Business Innovation

In general, the role of the system integrator, as we have seen, is to enable data interactions among the various existing systems of the end client defined within the scope of the project. This can mean anything from simple internal point-to-point connections to very complex integrations both internally and with third parties. Their role in this equation, therefore, is to design, implement, and test integration solutions, but may also include the ongoing management of solutions and contact with external interlocutors to enable connections with them.

In the IT sector, a System Integrator (SI) is a company specialized in implementing, planning, coordinating, programming, testing, improving, and sometimes maintaining IT systems.

They can (and must) know how to interface with all existing realities within and outside the company, establishing a fruitful relationship with suppliers and partner companies. Their added value consists in the improvement and enhancement they can bring at the corporate level. Unfortunately, often the limit of companies to technological innovation and digital transformation comes from within, from the need for competent figures capable of managing and making IT systems function and communicate with each other.

It becomes evident, therefore, the need to rely on a system integrator to remain competitive in the market, essential during the transition phases from old to new and capable of giving the right value to the company's activities.

The Right Partner

Astrorei is the right partner to create a system capable of facing the challenges companies encounter in the process of business innovation. Our tailor-made solutions accompany companies through the technological transformation process, implementing customized strategies for system integration, making the workflow and communication both internally and with third parties agile and functional. Contact us and find out how to make your company an integrated system.