Why System Integration Is Important for Businesses
Technology always has and is continuing to transform the business landscape. One way how technology is changing business operations is system integration. System integration is becoming increasingly important as it facilitates the usage of automation technology. Not only does system integration promote further technological innovation within organizations, but it improves operations across the board. Streamlining production, reducing costs and facilitating improved strategic decision making are just a few examples of the benefits that system integration can bring to businesses. This guide is here to help you learn more about what system integration is and the benefits it can bring to your business.
What is System Integration?
System integration is a process in which multiple individual subsystems or sub-components are combined. They then produce one larger system that enables subsects to function together.
Why is System Integration so Important for Businesses?
System integration benefits everything from productivity to operational costs. The list below outlines some of how system integration benefits business to illustrate just how vital the practice is.
The most common reason that businesses adopt systems integration is to improve efficiency, productivity and the quality of their operations. One way to achieve this goal is by reducing employee workloads. System integration means less time is spent on manually finding and sharing information across departments. To understand just how useful this can be, it is helpful to put this idea into context. An advanced payroll software will automatically sync with other human resources systems, connecting payroll, time and scheduling, and benefits to cut costs by 60%.
Improved Decision Making
Information is essential for strategic decision making. Information reduces uncertainty and facilitates rationality and growth focus choices. When a broad range of information is easily accessible from one location, it promotes information-based decision making. The effects of rational decision making can impact every aspect of an organization when they are used by business owners and a range of different departments.
Reduced Operational Costs
By storing all of a companies’ data in one single location, it reduces the need and cost of installing and maintaining multiple systems. Therefore you will spend less on IT troubleshooting and upkeep. You are also likely to pay less for installation and software subscriptions. Integrated systems are also likely to reduce your need for physical computer storage space.
When information is stored in a range of different systems, it needs to be downloaded and analyzed separately, requiring more time and leaving analysis more prone to human errors. Integrated systems provide faster access to up to date data and figures, which means that the analysis process is much easier to manage. Additionally you reduce the need for external tools to analyze data. Unlike separate systems, integrated systems promote holistic analysis. Therefore making it easier to identify patterns that would be difficult to spot when displaced on multiple datasets.
Accelerated Growth Potential and Response Times
Integrated software means that it is easier than ever to expand to different locations, induct remote workers and add additional sales and marketing channels. The ability to access information from any location at any time allows a business to expand its operations without the traditional teething time required to exchange information from one location or device to another manually. Not only does this mean that you can scale-up your business more quickly but leaves you in the best position to respond to changes. Integrated systems facilitate organizational change-readiness. Hereby allowing your business to respond quickly and appropriately to market changes, supply chain change or staffing changes.