What you should know about software integration

Published Mar 6, 2024

Software reigns supreme in business. Every business and team relies on a suite of business application software to get their jobs done. 

From accounting to CRM, each business is kept running with an intricate web of software and applications. Teams rely on this software to perform tasks big and small. However, with cloud-based applications, legacy systems, and attempting to work with new software, these applications can grow disparate. The challenge of integrating these disparate apps results in data silos and fragmentation, negatively affecting decision-making and operational flow. It’s possible to get so much more from software. But, how?

The answer is software integration through an integration platform as a service (iPaaS). Software integration can help your teams break down roadblocks to productivity and ensure you’re getting the best return possible on the software it’s using. 

To understand how this is possible, we’ve put together this quick guide to explain what software integration is, examples and methods of software integration, and finally why software integration is a necessity for any business.

What is software integration?

Software integration is the process of connecting one software application to another. Typically, this is achieved through API integrations.

Through this connection, the two software applications are able to share data and automate processes between them. There are a number of processes that can be integrated between software. Each is made with the intention of making a process easier, boosting productivity, and ultimately increasing ROI.

Types of software integration

Software integration can apply to multiple different situations. However, there are a few common types to discuss. 

  • Application Integration: Among the more common, this type of software integration allows both on-premises and cloud-based applications to integrate. This allows data to flow between them, as well as build automation. 
  • Legacy Applications Integration: Legacy systems are often roadblocks to digital transformations. Integrating them with new cloud-based applications prevents data silos from forming because of applications that could be out of date. 
  • Data Integration: This type of software integration allows data to be extracted and transferred between cloud-based, on-premises, legacy systems, and even with third-party applications when needed. The data can also be placed in a data warehouse. This allows analysts and management to easily analyze the data to find trends. 
  • B2B Integration: This allows two or more organizations to integrate their applications to share data and automate workflows.

    Software integration examples

    With a basic understanding of what software integration is, let’s explore some of its most common uses.

    • Contact sync: With different software applications being used, it’s likely teams have information on contacts stored within them. When working with clients, it’s important to have quick and easy access to all of their information in one place. The disjointed and disconnected nature of some software can make this difficult. However, with software integration, all information on contacts can be synchronized between the applications and teams that need it. This integration also allows each application to be updated automatically with new information.
    • Marketing Automation: Successful marketing campaigns live and die on being timely. It’s important to understand the customer’s needs and what they’re looking for. This often requires marketers to gain access to loads of customer contact information and data to ensure their information is up-to-date and ready for the latest campaign. With software integration, all your marketing applications can be integrated with end-to-end marketing automation. There are several pre-built integrations within the Celigo platform that can streamline processes for your marketing teams. For example, the Celigo platform allows your CRM software with Google Ads for more effective and efficient ad campaigns based on customer data stored in the CRM. This allows the two applications to sync media, profile interactions, and insights from Google Ads into your CRM applications. This creates a complete view of each of your customers. Of course, the integrations don’t end there. There are similar pre-built integrations with the Meta Ads platform as well. When running omnichannel marketing campaigns, it’s important to be able to access all relevant campaign information in one place when you need it. With CRM integrations between different ad platforms, like Google Ads and Meta Ads, allows your teams to run more effective marketing campaigns. 
    • ITSM and HR: Software integrations have more uses than just how an organization interfaces with its customers. It can also be used to help the business streamline its own processes. One of the most common uses of software integrations is to ensure new employees’ data is quickly synced. Onboarding a new hire can be time-consuming, and they often can’t get their work started until they’ve been given access to their relevant applications by IT. To streamline this process, HR information systems can be integrated with IT service tools. This means that when a new hire is added to the HR information systems, they are nearly instantly added to the IT service system, which can create a ticket for IT to provide access to relevant applications and systems. IT no longer needs to track down all the information needed from HR and have it transferred manually. It is done in near real-time through software integration. 
    • Automate manual processes: No one likes doing the same tasks over and over and over and over again. It gets tiring, and honestly, most employees probably have something better they can be doing than updating an Excel spreadsheet. In accounting specifically, The Institute of Management Accountants found that 75% of accountants find their organizations accounting processes are mostly manual, or require considerable manual effort. Organizations rely on manual tasks and spreadsheets to keep track of important data. Relying on manual processes consumes valuable resources, leaving little room for strategic planning. Additionally, manual processes increases the likelihood of mistakes. Software integration allows organizations to break free from their over reliance on manual data entry. This means saving time and reducing the chances for mistakes to occur. This is achieved through centralizing vital data which boosts efficiency by minimizing application-switching and manual data entry.

    Methods of software integration

    While it’s clear that software integration can address many use cases, before you can use it, you need to know your options for getting the job done. So, let’s explore the different methods of software integration to help understand which option may be best for you. 

    • Integration platform as a service (iPaaS): An iPaaS is a cloud-based platform that facilitates software integrations and allows data flows and automations to be implemented. These are among the most versatile solutions, as low-code iPaaS platforms, like Celigo, use pre-built integrations between hundreds of applications to make building software integrations approachable for IT and business users alike. Additionally, while Celigo offers hundreds of pre-built software integrations, there are also universal connectors that allow bespoke integrations to be built quickly by IT as well. This makes it one of the most scalable and usable software integration solutions available. Celigo can easily implement any integration without needing to rebuild infrastructure. Additionally, a low-code iPaaS generally requires fewer resources than other options. Because it is offered by a provider, it doesn’t require IT to take time to build their own connections and then ramp up when they need to build new ones. It’s all handled on the platform by any user.
    • Point-to-point integration: In many ways, point-to-point integration is the exact opposite of iPaaS solutions. This method of software integration occurs when a connection is built directly between two pieces of software. While this seems relatively simple, the opposite is true. For one, this method requires IT to build bespoke integrations every time a new one is needed. This uses more resources and limits scalability. Once the integration is built, it often has a much worse time-to-value compared to an iPaaS, especially if multiple connections are needed. Point-to-point integration requires the most time and resources to get built. Knowledge is a big factor in the overall cost of a point-to-point integration as well. Developer turnover is generally high. As developers cycle through, the knowledge that built the initial integration will begin to fade. If the integration breaks, or needs to general maintenance, the new developers that had no hand in creating the integration will struggle to learn how it was built in the first place without extensive documentation. This also sny maintenance will need to be handled in-house. This is an additional resource drain and requires developers that work almost entirely on these integrations. 
    • Native integrations: Native integrations are likely the next closest thing to an iPaaS, though they are still limited. A native integration is one offered natively by the software applications. It’s built-in. These can be helpful as they will often come at no additional cost, and it is likely the application provider will provide high-quality support. However, this also means you are forced to use the applications they offer  with little room to try other solutions. This severely limits the ability to scale in the future. Large parts of the business process are now intrinsically tied to that application and it’s native application. If a new application is needed, you can only look through applications compatible with the native integration, rather than searching for an application that best fits the needs of your organization. Additionally, the ability to change or upgrade the integration is entirely dependent on the capabilities and timeline of the application provider. Changes may come few and far between, hindering your ability to streamline workflows in a timely fashion. Similarly, if the integration stops working, IT may be able to troubleshoot, but in most instances you are relying on the application provider to quickly identify and fix the issue. All of this while they handle servicing the application generally as well. While native integrations can be a useful option, they often don’t live up to their potential. Software integration is not the main focus of an application provider. They need to make sure the core application is effective, which means integrations and secondary functions can be forgotten. An iPaaS, however, deals entirely in integrations and is focused on making sure any application can work with another. 
    • Enterprise service bus (ESB): The final most common method of software integration is called an ESB. This is a centralized infrastructure application that applications connect to and use to transfer data. The central infrastructure is called a “communication bus” and can be viewed almost as a bus station for application data. An application sends the data to the central ESB, which then “busses” to the appropriate application. ESBs are useful for connecting several applications together and are often used to integrate legacy applications that don’t provide APIs. However, their architecture is often very complicated and hard to maintain. This means that while several applications can be connected, it becomes more difficult to add new ones to the bus over time. Additionally, the ESB can act as a single point of failure. Each application is connected to the same communication bus; if it goes down, each application connected to it is useless until the issue is resolved. 

        Why software integration is a business necessity

        Now that we have a better understanding of software integration, you may be wondering what sort of benefits it offers. Why is it worth your time?  Software integration is a necessity, and we want you to think so too. Let’s explore some of the key benefits of using software integration. 

        Productivity and efficiency

        One of the key benefits of software integration is an increase in productivity and efficiency. In our examples, we discussed several ways software integration is able to automate and streamline business processes. From automating tedious and repetitive tasks to allowing data to transfer between applications in near real-time, every aspect of a business that requires the use of applications working together can be integrated and automated. 

        Get more out of your applications

        Software applications are designed to make business easier; however, the lack of integration makes it difficult to achieve. Software integration helps businesses get the most out of each of their applications, increasing their overall ROI. Additionally, with applications integrated, they have access to data they need almost instantly, which provides more value for employees that use them. This allows for more high-impact use in applications. 

        Breaks down data silos

        Data silos can be a real roadblock to innovation within organizations. Disconnected applications are often one of the greatest perpetrators of this. Each team has its own set of applications, and the only way to create crossover is through manual sharing of data and processes. This is time-consuming and opens the doors for data to be mishandled or misrepresented. This builds a system that propagates poor-quality data rather than building an environment for collaboration. Software integration allows teams to break through these data silos and create cross-team and cross-department automations. 

        Scalability and flexibility

        As businesses grow, new applications will be introduced, and even existing applications will require new processes to be built out. When applications are disconnected, growing business processes become a significant pain point. More data is needed, more people need access, and potentially more teams need to collaborate to be successful. The ability to easily scale integrations is key to long-term success. This is a unique benefit of software integration through iPaaS. Through point-to-point, native, and ESB integration solutions, scalability is either impossible or extremely difficult. iPaaS allows new applications and integrations to be added with pre-built solutions or a universal connector. Scalability is a key benefit of software integration that only an iPaaS can promise. 

        Software integration is a great tool to help a business streamline processes across the organization. While several different methods of software integration are available, iPaaS solutions offer the most benefit. Software integration through an iPaaS allows IT and business users to build integrations as they need them and streamline business processes. As an advanced iPaaS, the Celigo platform allows teams to build these integrations with hundreds of pre-built integrations and universal connectors to integrate nearly any application your business uses. If you’re interested in exploring how software integration with an iPaaS can benefit your business contact us and begin your integration journey today! 

        Let us support you on this journey.

        Where are you in your automation journey? Let’s find out.