How enterprise application integration software helps improve business efficiency
Businesses often manage a wide range of applications, from Customer Relationship Management (CRM) to Enterprise Resource Planning (ERP), which can lead to inefficiencies and data mismatches due to their isolated nature. Enterprise Application Integration (EAI) connects these systems into a network, eliminating data silos and automating processes.
Even though there are multiple integration platforms offering ready-made solutions, in this article, we'll concentrate on the specifics of building custom enterprise software for those who seek flexible and scalable solutions for their businesses.
What is enterprise application integration software?
Enterprise Application Integration (EAI) software is a tool that helps different software used by a company to work together seamlessly, including applications, databases, and services. A company might have several different software systems: one for handling customer orders, another for managing inventory, and a third for processing employee payroll. These systems often need to share data with one another to function effectively.
EAI software acts like a bridge or translator between these different systems, allowing them to communicate and exchange information seamlessly. This integration ensures that when something happens in one system, such as a new order being placed, the relevant data can automatically update in the other systems, like adjusting the inventory accordingly. This process makes the company more efficient, reduces errors, and aids in making better business decisions.
Enterprise application integration software is usually needed under two circumstances. The first is when two systems are developed separately by different vendors, and middleware is required to connect them. The second is when there are so many apps or services that pairing them directly with one another becomes impossible, making a central hub to connect them all essential.
As we discussed, integration is a process of connecting separate parts within an enterprise, be it apps or other isolated systems. Let's explore some types of applications an enterprise might need to connect:
Accounting systems. Integrating multiple accounting systems within an organization can automate data entry and financial reporting, reduce errors, and keep financial data in sync across departments, providing accurate budget tracking and planning.
Automated billing systems. Connecting billing systems with platforms like CRM and payment processing provides timely and accurate invoicing, improves cash flow management, and provides consistent customer service.
Business continuity planning. Integration helps critical functions resume quickly after disruptions by automating backup processes and keeping data consistent between live and backup environments.
Content management system. By integrating CMS with other applications like CRM and marketing automation, enterprises can personalize content delivery, speed up content updates, and improve collaboration across different teams.
Customer relationship management solutions. Connecting CRM with other enterprise systems keeps customer data updated, enabling personalized marketing, better sales strategies, and excellent customer support.
Data analytics and intelligence tools. Connecting these platforms with various data sources across the enterprise allows businesses to analyze data in detail, get real-time insights, and make decisions based on unified and consistent data sets.
Enterprise resource planning. ERP integration is important for business process management in areas like finance, HR, and supply chain, providing a single source of truth for operational data across the organization.
Enterprise messaging systems. Integration supports smooth communication between different departments, facilitates collaboration tools, and ensures messages and notifications are correctly routed and archived.
Marketing campaigns platform. Connecting marketing platforms with CRM and analytics tools helps in crafting targeted campaigns based on customer data and behavior, measuring engagement, and optimizing marketing efforts.
Payment processing. Integrating payment systems with CRM, ERP, and billing systems provides secure and efficient transaction processing and financial reporting, which is convenient for customers and effective for business operations.
Support desk application. Integration with other systems provides detailed service records and customer histories, allowing workers to resolve issues quickly.
AI tool Integration. Incorporating AI into enterprise systems allows businesses to automate more processes using predictive analytics, natural language processing, and machine learning capabilities.
While we have outlined the main directions in enterprise integration needs, your company might have non-standard requirements. These can be effectively addressed by custom software development solutions tailored for enterprises. However, before discussing the benefits of these services, let's explore the different methods that can be used for enterprise application integration.
What benefits does integration of enterprise applications bring?
Different departments or parts of the enterprise often need to synchronize their operations. By implementing an integration platform, companies can connect separate databases containing important information about salaries, enterprise resources planning, customer relations, and more. An enterprise who's integrated the apps gain the following advantages over its competitors who don't:
Unified data vision
By integrating the separate data within enterprise apps will help create a unified vision of the company's operations and provide departments with a single and unified source of truthful information. In this case, EAI makes it possible to get insightful analytics to improve enterprise operations further.
Process improvement
For example, a logistics company may use one system to manage inventory and another for order processing. Inventory management tracks stock levels in warehouses, while the order processing system handles incoming orders from customers. Without integration, employees must manually check inventory availability and update order statuses in both systems. With integration, the system can automatically check inventory levels and start the ordering process.
Reduced costs
Maintaining separate apps and paying for individual subscriptions and licenses can be more expensive than connecting them through EAI. Slower response times due to the lack of automation negatively impact both company development and customer satisfaction, leading to reduced income. Although integrated applications often require upfront investment for system integration and possibly higher initial implementation fees, the long-term savings and increased efficiency can outweigh these initial expenses.
Customer service improvement
By integrating customer contact points with customer data, enterprises can improve customer relations across all channels. AI can further speed up response times and enhance service by using a knowledge base to offer personalized experiences to customers.
Enhanced collaboration
Integration helps workers from different departments collaborate better by allowing easy access to shared data and resources. Employees can work together more effectively, solve problems better and bring innovation. This strengthens productivity and helps employees make decisions faster within the organization.
How is enterprise application integration done?
There are many methods to link enterprise applications or services together to make them communicate efficiently. Here are the main methods:
Middleware
Middleware is software that sits between applications or services, enabling them to communicate and manage tasks like authentication, messaging, and data conversion.
API Integration
APIs allow for platform-independent integrations and expand the functionalities of enterprise applications. With API integration, applications communicate over the web.
Microservices
Microservices architecture splits applications into smaller, independent components that are deployed and managed individually.
Point-to-point integration
This method connects each application directly to every other app that needs to share data, without middleware. It's simpler to set up, but as more applications are added, it can become complex and hard to manage.
Hub-and-spoke
The hub-and-spoke network topology is enterprise application integration software where apps (spokes) connect and communicate only through a central hub. This approach simplifies network management and enhances security since all communication goes through the central hub.
Bus architecture
Compared to the hub-and-spoke architecture, bus architecture is more decentralized and flexible. This method uses a central messaging bus that all applications connect to. There's no central manager like in the hub-and-spoke architecture but it allows for better scalability as apps connect directly to the bus.
Message broker
A message broker is an architectural component that functions as middleware, based on predefined routing patterns and rules. It manages data exchange between software components or heterogeneous systems and acts as an intermediary for asynchronous notifications. It also supports point-to-point patterns.
Service-oriented architecture
It's an architectural style where apps are composed of services that communicate over a network. Each service has a clearly defined role and set of instructions (an interface), so other services know exactly how to interact with it.
File transfer
File transfer protocols are used for batch processing when large volumes of data need to be collected and processed at once. Applications integrate through these protocols to exchange files in standardized formats.
Data integration
When applications need to integrate at the data level by sharing a common database, data integration is required using replication or synchronization methods. Thus, all applications have access to consistent and up-to-date information, providing seamless communication and efficient data management across systems.
Each of these methods has its own advantages and challenges, and the choice of method often depends on factors such as the existing IT infrastructure, scalability requirements, and the organization's specific use case.
Custom software development: A tailored approach
While enterprise application integration software offers significant advantages by connecting various applications, off-the-shelf integration platforms like Zapier, Make, or Trai.ai might not fully address every business's unique needs. Custom software development vendors create integration solutions specifically designed to align with a business's processes and goals. This approach brings several benefits:
Fits specific needs
Custom development of EAI software addresses industry-specific needs. For example, a logistics company might need a specific feature for real-time tracking shipping containers. Custom app development can help integrate IoT devices into their existing system to provide precise location updates, something standard software might not offer. An example of such app integration in logistics is the ShipMe parcel bid and delivery service, which connected multiple apps and roles.
Offers flexibility
Business requirements change over time, as do the needs for EAI to manage these processes. Constant development and growth are essential for enterprise-sized companies. For instance, the Ronas IT team worked on a large marketplace application for selling pets and integrated an AI assistant for users with subscriptions. This data integration extended functionality by providing owners with pet care recommendations and creating monetization opportunities. Therefore, when new technologies requiring integrations, such as generative AI, emerge, companies must stay ahead in their adoption to remain competitive in front of the innovative startups.
Supports growth
The scalability of enterprise applications in terms of users, data, and functionality requires scalable custom integrations. For example, an online educational platform might initially offer a few courses but plan for significant expansion. Custom integration can handle more content, users, and interactive features, scaling up as the platform grows. Cloud integration technology can simplify scalability, allowing an enterprise app to allocate resources efficiently when scaling up.
Creates competitive edge
Implementing custom solutions into the enterprise system can set a business apart from competitors, improving its market position. For instance, a Ronas IT client, a decentralized Uber-like mobile application operating in Arabic countries, uses blockchain technology for non-fiat payments and user anonymity, distinguishing itself from traditional ride-sharing apps. As it evolves into a Super App with added functionalities like hotel bookings and food delivery, custom EAI development is crucial in integrating advanced blockchain features and diverse services into a unified platform. EAI's business process management helps the company secure a competitive edge by pioneering niche markets that prioritize privacy and alternative financial systems.
Enhances security
Custom software development allows companies to implement specific security measures tailored to their unique requirements. Enterprise application integration enhances security through centralized data exchanges, consistent security protocols, and robust access controls and encryption, which protect sensitive information across applications.
Example of implementing microservice architecture in Ronas IT experience
To illustrate integrating services and apps, we present a case of engineering a neobanking app for US customers by the Ronas IT team. How does microservice architecture function in this context, and how was it implemented?
Firstly, the app's backend functions as middleware between banking-as-a-service software and the customer interface. To ensure security and data privacy, the app was designed with isolated processes: the support service remains unaware of user finances, transaction services access only transaction data without user details, and the cashback service operates separately, among others. To achieve this independence, Ronas IT adopted a microservice architecture approach. This setup is both flexible and stable; if one service fails, others continue functioning, ensuring the application remains operational.
In developing the neobanking app, the Ronas IT team built a microservice architecture from scratch, focusing on effective communication and enterprise application integration through several key techniques:
Auth0 as the authentication gateway
Developers chose Auth0 to manage authentication for each microservice. This decision moved authentication responsibility to a separate service, simplifying and securing authentication management across the application.
Google Pub/Sub for inter-service communication
To enable data exchange between microservices, Ronas IT used Google Pub/Sub. This approach reduced interaction time by allowing microservices to initiate and respond to events as necessary.
Laravel telescope for real-time monitoring
Since we built our backend using the Laravel framework, the Laravel Telescope tool was crucial for providing insights into each microservice's operations. It allowed Ronas IT to log activities in the development environment, making it easy to catch minor errors during client-server interactions. The logging continues to help optimize the application in the staging environment, demonstrating its value for large projects.
Integration with third-party services
API integration included well-known services such as Google Place API for location-based features, Mailchimp for email management, Twilio for communication capabilities, and Stripe for payment processing. These integrations added various functionalities to different microservices within the application.
Using industry-specific services
Services like Bond, Kard, Braze, Bud, Mixpanel, Pinwheel, and Checkout were integrated to handle specific tasks within the Neobanking app. Bond and Kard helped with card issuance and management, Braze was used for customer engagement and messaging, Bud facilitated open banking connections, Mixpanel provided analytics for user behavior, Pinwheel managed payroll and direct deposit switching, and Checkout enabled payment processing. These integrations met specific functional requirements and deepened our understanding of applications in the financial sector.
Throughout the project, Ronas IT developed seven microservices and created eight SDK packages for third-party services. The team also developed a package of helpers to avoid code duplication between microservices. By adopting a new architectural approach, developers adhered more closely to the “single responsibility” principle of SOLID, where each team member could concentrate on a single task. This approach made the system easier to manage, understand, and update, improving overall efficiency and reliability. Additionally, testing of asynchronous processes was improved by dividing tests into synchronous and asynchronous parts, reducing their number and making them easier for developers to understand.
Microservice architecture serves as an excellent approach for enterprise app integration due to its flexibility, scalability, and resilience. By breaking down complex applications into smaller, independent services, enterprises can develop, deploy, and scale components individually without affecting other parts of the system. This modular approach enhances the ability to integrate with diverse applications and services, such as third-party APIs and specialized service providers, accommodating the evolving needs of a business.
Current trends and the future of enterprise application integration solutions
There are several trends in EAI implementation that might become necessities for optimizing business operations further on.
AI integration
AI changes and will continue to change various business operations performance. As an integration solution, it can collect data from the ERP systems for better analytics and to forecast sales and demand. Across enterprise workflows as a whole, artificial intelligence might detect bottlenecks and suggest improvements. Additionally, its unlimited potential for improving customer relationship management should not be overlooked.
Cloud integration
Cloud-based solutions, briefly mentioned in the benefits of custom development, are another EAI trend that improves and will continue to improve the connectivity of enterprise apps. This involves connecting various cloud-based and on-premises systems to enable seamless data exchange. This process typically uses APIs, middleware, or integration platforms as a service for data movement and transformation between systems, ensuring data compatibility. As mentioned, cloud integration solutions are designed for business scalability as they support increased data volumes and additional apps.
Hybrid solution
Another enterprise application integration solution that will remain relevant and require custom development is hybrid integration. This combines on-premises systems with cloud-based applications, offering businesses the flexibility to leverage the benefits of both environments. This EAI implementation allows for seamless data exchange and integration across systems. Hybrid solutions ensure that businesses can maintain existing infrastructure investments while scaling and innovating efficiently.
Security enhancements
Every part of a digital product faces emerging security challenges, and an integrated software application is no exception. In EAI, the most vulnerable part of the data flow occurs between systems. Concerns include data leakage, API vulnerabilities, outdated software insecurity, malicious injections, and more, all of which evolve with technological advancements. To prevent them, enterprise application integration solutions must adopt the most efficient security measures, such as authentication mechanisms and microservice architecture, as thoroughly described in the Ronas IT case study.
API-first development
API-first development helps businesses seamlessly integrate new and existing applications, encouraging faster deployment and innovation. This approach involves building an API even before developing the application itself, treating the API as a necessary building block that can be reused in the future. By connecting services through APIs, integrations are deployed more quickly, providing faster market reach.
These are the current trends that have already captured our attention and will definitely stay with us for a long time. As for what the future holds, we'll have to wait and see!
Conclusion
Enterprise application integration is a critical component of modern business, driving efficiencies and reducing errors. EAI approach not only improves collaboration and speeds up processes but also ensures scalability and future-proofing as the business grows and evolves. By incorporating custom software development, businesses can craft a tailored integration strategy that improves their operational capabilities, leading to optimized performance and enhanced security. Contact us to discover how our custom development services can help your business achieve seamless integration and operational success.