Business Integration: What It Is and Why It’s Important

Business integration is a strategy whose goal is to synchronize IT and business cultures and objectives and align technology with business strategy and goals. Business integration is a reflection of how IT is being utilized as a function of business.

Business Integration – vertical, horizontal and conglomerate.

Why is integration important?

Companies frequently implement new systems to exchange crucial information with their external partners as they continuously adapt to an ever-changing digital landscape. These systems frequently don’t function well together, which results in decreased productivity, ineffective departmental communication, and general confusion about a company’s objectives. Business integration tools standardize business communication procedures, enhancing visibility across the entire digital ecosystem. With this solution, supply chain companies can conduct digital transactions more quickly, which has a direct impact on a company’s overall revenue growth.

What is business integration?

The digital standardization of communication between a company and other businesses in the supply chain is referred to as business integration, also known as B2B integration. Business integration solutions offer a streamlined way for businesses to communicate vital information more effectively than relying on a network of various digital systems.

Business integration enables organizations to connect with their external partners’ digital ecosystems in a transparent and more efficient manner. It can increase how quickly a business processes and manages transactions, which will ultimately improve the experience for customers and other businesses in the supply chain.

The benefits of business integration

Businesses and their digital ecosystems can benefit from business integration strategies in a variety of ways, including cost savings, transparency, accessibility, and growth. Here are five key benefits of business integration:

Reduced costs

Simple human error can be costly to businesses. Businesses must repeat the process if an employee enters inaccurate data or formats the information incorrectly, which takes time and costs money. Business integration accelerates previously manual processes and automates them, greatly reducing the possibility of employee error. Because of the significant increase in overall efficiency brought about by those solutions, operating costs are decreased.

Improved communication

Communication between various departments and companies can be streamlined and made easier by integrating businesses into the supply chain. Business integration enables organizations to share crucial information quickly and easily in a way that is tailored to their own system, as opposed to relying on emails or faxes. Without having to ask for it and wait for a response, every company in the supply chain has access to the most recent information.

Stronger security

IT departments may find it more challenging to manage the security and safety of each system separately when businesses use different systems for different functions and applications. Companies can implement increased security protocols and additional layers of protection to safeguard sensitive information, especially that relating to their clients, by integrating multiple systems into one coordinated application. This additional security also lessens worries about cybersecurity attacks, which can harm a company’s reputation in addition to its bottom line.

Streamlined operations

Workflows are automated by business integration solutions, which also offer a central location for all necessary communications. This enables workers to concentrate on other tasks, which increases productivity. Employee freedom to focus on other crucial tasks can significantly affect a company’s growth and how quickly it can achieve its financial and operational targets.

Increased transparency

Employees can access and share information more effectively when businesses keep all pertinent data in a single system. Each user in the digital ecosystem can monitor and control data to guarantee they always have access to the most up-to-date information. This results in quicker response times and increased efficiency between a company’s departments and its outside partners, leading to operations that are more organized and seamless.

How business integration works

To ensure an optimized workflow, the business integration process involves several crucial steps. The integrated solution must first retrieve data from a front-end system and send that data to the following company in the supply chain. However, the system must standardize the data in accordance with an appropriate format before it can transmit the data. Finally, the system will automate the information into that business-integrated platform and deliver it to the business partner. Companies can avoid data silos, or information that is only accessible within a single company or system, by utilizing this centralized system.

Example of business integration

Consider the following example to get a better understanding of how business integration functions. In this case, the business integration solution streamlines communication between the two businesses and also makes the same data available to other companies in the supply chain that might require it:

Lakeside Solutions places an order with Greenpoint Technologies for a product. Greenpoint Technologies’ fulfillment system receives the order automatically from the Greenpoints website in the appropriate format, and it confirms the order.

Lakeside Solutions receives a notification from Greenpoint Technologies when the order is prepared for processing. At this point, Lakeside Solutions integrates the notice into its system update and gets ready for the shipment to arrive.

Once the order is delivered, Greenpoint Technologies sends an invoice to Lakeside Solutions, who then sends the last payment. After that, Greenpoint Technologies completes the deal by sending Lakeside Solutions a receipt.


What are the four types of business integration?

This article also includes advantages and disadvantages of four kinds of business integration.
  • Horizontal Integration.
  • Vertical Integration Backward.
  • Vertical Integration Forward.
  • Conglomerate Integration.

What is business integration process?

Here are five benefits of business integration for your business:
  • Improved Data Accessibility. System integration makes it simpler for people in organizations to access data.
  • Better Communication. …
  • Improved Productivity. …
  • One-Stop Service. …
  • Robust Growth.

What does a business integration team do?

By integrating various systems in real-time, business process integration (BPI) synchronizes a company’s internal operations with those of its other divisions and its business partners.

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