Let’s start with a solid base of what is data integration: Data integration connects disparate applications together, allowing for consistent automated movement and delivery of data to create business processes across a wide range of applications.
Data integration plays an important role in the world of ecommerce because it provides users with real-time outlook of business performance and transforms data into valuable, usable information by combining it from different sources.
Overall, data integration benefits your business, but it isn’t the only ingredient for success. It’s also important to adopt a strategy and approach. Before I explain why, let’s discuss the 5 approaches of data integration, as well as the ins and outs of each approach.
Common Approaches to Data Integration
Contrary to my initial beliefs, there’s not just one approach to data integration (or automated movement of data between applications). In fact, there are several approaches to data integration. Each one is unique and meets different businesses’ needs. In this blog, we will take a look at 5 common data integration approaches: manual data entry, plug-and-play, do-it-yourself (DIY), manual file download and upload, and data integration as a service (iPaaS). We compare each integration method by including pros and cons for each to understand how each approach is useful in its own way.
Plain and simple. The manual data entry approach involves a person sitting at a keyboard and manually transcribing information from a form or document.
|Provides a strong focus on your business’ core competencies.
|Manual data entry has a higher margin of human error. For example, typos like misspelled names, wrong order information, etc. are common.
|Depending on the service, it can decrease expenditures.
|Manual integration is slow, inefficient, and expensive both in people power and chargebacks for data errors.
Plug and play integration is like an app. Either a stand-alone download that you can manually configure or an extension of an application you already use into other common applications. You cannot change parameters or mold it to fit your exact needs, it is not flexible. In general, these solutions are one-size-fits-all and are low end in their functionality.
|It is the best-tailored solution if you have a small to medium size business that has few complexities in their sales and/or supply chain and low sales volume in general.
|Plug-and-play integrations are like being stuck in a small box because their functionality is limited and can be a constraint on your business’ growth.
|The use of the plug-and-play approach may be free or cheap.
|These integrations typically only manage common workflows at a very basic level; businesses may find that they require more than what’s available.
|It doesn’t have long term effectiveness because it doesn’t facilitate scalability or agility for your business.
The Do It Yourself solution involves hardcoded integrations. Every change or new integration would have to be manually hardcoded for each project every time. Making this solution structurally rigid.
|It can decrease expenditures, as it might be cheaper to seek and hire a developer.
|This approach is not always effective because the information is being built in a static point of time and in a programming language that cannot evolve with the market without manual intervention.
|This solution is ideal for larger enterprise-level businesses that can hire and maintain a multi-person IT team, as hardcoded integrations require maintenance and extensive documentation.
|The code is not always documented. If the integrations are being managed by a single person, these integrations may fail should that person leave.
Similar to the idea of Dropbox, this is almost like a digital version of manual data entry. An individual is responsible for the manual downloading and uploading of files between applications to feign an automatic transfer of data.
|This approach can be cost effective, but in the long haul it can be slow, costly, and constraining.
|Not suitable for those businesses whose goal is to scale while staying agile to the market as it changes. Once you reach a growth point in your business, you will need to upgrade to an agile and scalable iPaaS integration platform like VL OMNI.
|It is effective for small businesses with low sales and transaction volumes.
|Manual file downloads and uploads limit businesses from scaling effectively as business rules cannot be applied directly to the data as it moves. For instance, there is a need for manual tasks like field matching or data clean-up post-upload to happen.
Like VL OMNI’s integration platform, iPaaS solutions have the unique ability to modify and clone real-time integrations as your business evolves without having to hit ‘pause’ on normal operations. If a new channel, trading partner, or application is added to the integration system, these integrations can also be duplicated from existing workflows, meaning less time and money to get new connections up and running.
iPaaS solutions like VL OMNI tend to serve businesses with complexity and a growing number of transactions and/or sales volumes. iPaaS solutions are how the biggest names in eCommerce are able to keep up with their own growth while meeting complex objectives like creating a great customer experience from start to finish.
The iPaaS approach:
In contrast to the DIY approach, iPaaS integration promotes agility, flexibility, and efficiency. Plus, the iPaaS integration approach is well-suited for businesses that are growing but do not have their own internal IT team to maintain hardcoded integrations. This solution is the cream of the crop for growing SMB to enterprise-level businesses with some complexity in their channel mix, applications, trading partners, and/or sales/transaction volumes.
|iPaaS provides businesses with connected networks, supporting processes and a cloud-based system which protects against the loss of valuable data.
|Since iPaaS is hosted in the cloud, you need an internet connection for this approach. Although that might seem like a shortcoming, cloud computing does eliminate dependence on a hard drive and locally-stored data.
|It promotes efficiency as well as prevents delays in work. It promotes accessibility since businesses can check on their operations from anywhere around the globe with VL OMNI and some other iPaaS providers.
|Not all iPaaS solutions are secure. Check for EU-GDPR compliance (this goes for any of your technology partners). VL OMNI is been fully EU-GDPR compliant to further ensure your critical data is air-tight and protected.
|With iPaaS, speed is never a problem. All of your integrations between your applications can be 100% in real-time (application-dependant).
Just like everything else in the modern world of commerce, integration strategies are changing tremendously! Traditionally, integration strategies have been a technical function from point A to point B, sort of like an extension cord. Now, people are starting to see the value of the use of data holistically within their organization. Data integration has become more strategic as more companies are moving data through a variety of applications and putting it to various targeted uses to achieve goals. A strategy and the right integration approach go hand in hand when considering the right data integration approach for your business. Just like before you start your car, you need to know your route and your ultimate destination.
What are the challenges with data integration?
Data integration is complex and technical. No matter your expertise level, there are common challenges involved in a strategic data integration strategy. Even when companies know that data integration is the missing puzzle piece of their business, they can often be hindered by several challenges:
Not knowing where to start in terms of what data can be automated. This is why it is essential to keep strategy top of mind. At VL OMNI, we understand how confusing data integration at the iPaaS level can be. This is why we work with you to optimize your strategies and workflows. Global multi channel brands have trusted our 25+ years of data movement expertise.
New business demands:
Depending on the approach you select, it can be difficult to sustain your current data integration method when there are changes and pivots on business demands. VL OMNI knows this all too well, but our platform is capable of moving data seamlessly through its infrastructure no matter the volume or velocity of data transactions. The velocity and intersection between data generation and data movement are where our strategic planning and consultative element shine.
Integration is done, but the race is not over:
Once the integration is implemented, don’t get too comfortable —the race is not over yet! With VL OMNI, our team stays on top of managing your Integration Connectors. In the long run, having iPaaS integration benefits your business as you will never fall behind industry standards. We take our own advice and stay on the cutting edge of all things commerce to predict what our customers will need next.
What Are The Advantages of Using Data Integration?
Although strategic data integration can be a complex and overwhelming project, the benefits still outweigh the few bumps in the road. These pain points can be managed with a bit of foresight.
Enter VL OMNI: Agile and Scalable Cloud Data Integration
With the help of VL OMNI, we can make it simple to manage multiple trading partners, marketplaces, and applications without either your team or ours breaking a sweat. Most importantly, you can grow your business without worrying about accessibility or loss of critical information. Additionally, robust data integration helps streamline your operations, including:
- Improved business performance by eliminating the need for manual data entry. Plus, making sure data is where it needs to be with speed and agility.
- Reduces data errors and limit the potential of duplicating information.
- Increasing the value of data as the information is not easily accesible but also understood more coherently.
After much research, I have learned that data integration connects different applications together into a unified view. Your approach to automating your data movement is a strategic initiative that can either foster growth or constrain your business over time. The advantages of using data integration are endless along with the right strategic approach.
This blog discussed the five approaches and each of their most distinctive features. Overall, an iPaaS approach like VL OMNI is the best solution for growing businesses looking for flexibility, agility, scalability, and profit growth. The key ingredient of data integration is having a clear strategy in place matched to the right approach for your goals prior to implementing any data integration solution. Feel free to save this blog for quick access to compare each data integration approach!