3 Nis 2023
3 dk okuma süresi
Organizations utilize a myriad of applications to manage their business operations, and at the heart of several specific solutions lies the enterprise resource planning (ERP) system. In an optimal state, information from various solutions, such as the e-commerce system, customer relationship management (CRM) instance, collaboration tools, analytics solutions, payroll systems, and others, would seamlessly flow across the technology stack, with the ERP occupying the central position.
Thanks to the consolidation of business systems, most customers now utilize a standardized set of systems. As a result, organizations can use a uniform set of integrations to facilitate data transfer between their enterprise systems and other internal applications. However, the traditional approach to integration solutions involved creating bespoke integration points between applications, typically executed by vendors or consultants.
The issue with this method arises when customers need to modify their system, such as by adding attributes or building out different configurations. In such cases, they will require the assistance of a consultant or vendor to make the changes, ensuring that any alterations do not disrupt existing dataflows. This process can be expensive and time-consuming, so businesses can consider adopting an integration-as-a-service approach instead.
Connecting data
The primary objective of using an ERP system as a data hub is to streamline operations, minimize costs, and ensure that data is accessible to individuals who can leverage it to generate value. While data integration is the first step in this process, mapping data by comprehending the model, attributes, semantics, and other content types is crucial to create value.
An integration-as-a-service model addresses the fundamental data connectivity issue by connecting System A with Systems B, C, D, etc. However, this is only the beginning of the process. In addition to data integration, the integration-as-a-service provider maps data between systems. For example, data for a customer in a CRM instance is correlated with data for an order on an e-commerce platform and data from an invoice on an accounts payable solution. This mapping process is where the true value lies.
Data connections are imperative, but they don't provide a distinctive selling proposition or competitive edge for the business. To illustrate, consider the connections required to deliver water to plants in a garden. Connecting the hose to the faucet is critical, but that's simply the underlying mechanics. The real purpose is to deliver water to the plants, where value is created.
Stable data flows
Just like plants need a reliable water source, converting data into value requires a stable, sustainable, and secure data flow across different systems. However, using disparate applications can lead to changes in the data. For instance, if a CRM or e-commerce platform vendor makes a change, the organization using those tools will need to adjust quickly and ensure that its data continues to flow.
Currently, business users create manual workarounds to manage these changes. For example, suppose a user updates a customer's address in the CRM system, and the new address doesn't automatically flow to the ERP system. In that case, the user may copy and paste the new address information into the ERP. This process requires the employee's valuable time and creates an opportunity for errors, resulting in inaccurate data.
In this scenario, even if the pasted data accurately reflects the new address, there's a possibility that the data may not flow automatically to other systems, such as a fulfillment center system or billing software, where it can be used to create value. This can lead to misdirected orders or invoices, causing downstream customer satisfaction and cash flow issues.
Integration-as-a-Service
The scenario mentioned above is common in organizations of all sizes, and a simple integration solution won't solve the underlying problem in the long run. Mapping data across various systems is crucial to propagate changes throughout the ecosystem. An integration-as-a-service strategy provides stability by enabling updates to propagate to multiple systems and applications.
An integration-as-a-service approach also addresses security and privacy concerns by delegating them to the provider. Integration-as-a-service vendors typically operate in a secure environment hosted or run by a hyperscale system with industry-standard security measures, such as Microsoft or Amazon. However, companies considering an integration-as-a-service model should also ask about tenant leakage protection in a multitenant environment as part of their due diligence.
Companies should also inquire about the vendor's privacy policies to ensure compliance with regulations such as the General Data Protection Regulation (GDPR). Typically, privacy issues are a greater concern on the application side, and the integration-as-a-service vendor is responsible for ensuring compliance. The customer can concentrate on their core competencies by taking on this responsibility.
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