If your business has been growing, you are probably trying to make do with several applications that cannot communicate and cannot be used across all departments in your business. Data needed by one department may exist in a silo owned by another. Reports may need to be compiled manually from a variety of sources or spreadsheets. Every employee may be “doing his own thing” and creating work-arounds just to complete tasks. There is a better way, however, and it is called systems integration.
Systems integration links your software applications and computer systems to give your employees shared access across all departments.
There are four basic categories of systems integration, which we will discuss below.
Star Integration
This method allows every single subsystem to be connected to multiple subsystems. It gets its name from the shape formed when these connections are depicted visually as the image created resembles a star.
Vertical Integration
With this method, subsystems are integrated based on their functionality. Higher-functioning programs move upward from a base consisting of data silos possessing basic functions.
Horizontal Integration
Typically the most flexible method, horizontal integration dedicates a single subsystem to interface with all other subsystems. The dedicated subsystem is capable of providing a translation from the interface into a different interface. With this method, it is possible to replace the single subsystem with another whenever necessary while leaving the associated subsystems untouched.
Common Data Format
This integration method involves creating a common format, eliminating the necessity of having an adapter convert between different formats for different applications.
Risks of Non-Integrated Systems
Decreased Productivity
The chances are excellent that your employees are spending hours re-keying data from one system into a spreadsheet or another system just to prepare the reports they need. In fact, they are probably spending more time on data entry than on data analysis and improving the efficiency of your operations.
Lack of Real-Time Information
When your systems are not integrated, it can require a good deal of effort to extract information for a proper analysis. These efforts require time, meaning that you will either have to postpone decisions — some of which may be critical — or make decisions quickly based on instinct rather than solid evidence.
Cost
It can be costly and time-consuming to use and maintain a number of different applications. Upgrading to newer versions can sometimes increase the maintenance costs even more.
Benefits of an Integrated System
Better Results, Less Time Required
When your employees are freed from time-consuming, unproductive tasks such as re-keying data, they can spend more time on meaningful tasks, such as nurturing customer relationships, enhancing customer service or engaging in team-building activities. The quality of their work can be improved as they will have more time to ensure accuracy or conduct in-depth analyses.
Enhanced Sales
The easier it is for customers to purchase your products, the greater the likelihood that you can convert a shopper to a buyer. Integrated systems can make their purchase journey less complex.
Better Financial Data
Your financial picture is made up of bits and pieces from all departments. When data must be manually entered, the risk of inaccuracies increases. With an integrated system, everyone is sourcing the same data, improving the accuracy of your financial reports.
More Efficient Operations
An integrated system improves the efficiency of every department. When you operate more efficiently, you can improve your bottom line.
As you can see, you have much to gain from systems integration. If you would like more information, contact PhaseAlpha by emailing your questions to info@phasealpha.com or calling 913.648.9200.