What is System Integration and its Advantages?

With increasing tech tools and the rapid adoption of cloud applications, tech stacks have become increasingly complex. Ensuring everything connects properly and works consistently is essential. So, it’s no surprise that companies spent more than $385 billion globally on system integration in 2023, according to Grand View Research.

What Is System Integration?

System integration combines different systems and applications into a cohesive workflow. Integrating separate components makes data sharing easier — and ensures accuracy across the organization.

Seamless integration produces a centralized environment where information flows smoothly for users regardless of the app or system they are using.

The Benefits of System Integration

Without robust system integration, data can easily get out of sync or be hidden in silos. This can bring accuracy into question and shake confidence in your systems. To work efficiently and make informed decisions, you must be able to trust the data you are using. You simply must have a unified view of data.

Integration solutions provide significant benefits for organizations, including:

Enhanced Efficiency

One of the biggest advantages of system integration is improving operational efficiency. By connecting different systems, organizations can eliminate manual data entry, reduce duplication of efforts, and automate repetitive tasks.

This streamlined workflow saves time and resources. It also minimizes the risk of human error. Here’s an example: the integration between SAP Concur and your enterprise resource planning (ERP) system. By connecting these two systems, employee expense data can flow seamlessly. Automation eliminates the need for manual data entry — reducing duplicate effort and potential mistakes. This streamlines the expense management process while reducing the administrative burden on employees and finance teams.

Improved Decision-Making

Integrated systems can provide real-time access to data from different sources within the organization. A centralized data repository enables decision-makers at all levels to make better decisions based on up-to-date, accurate, and consistent information.

With improved visibility into key performance indicators, trends, and operational data, organizations can respond more effectively to market changes and emerging opportunities.

Cost Savings

System integration can lead to significant cost savings for organizations, including:

• Reducing operating expenses
• Identifying opportunities for optimization
• Eliminating redundant systems
• Streamlining processes and improving resource allocation

Integrating your travel and expense activities into one platform eliminates employees having to navigate between multiple systems. This allows them to book travel and submit expenses in a more streamlined way. When data flows seamlessly into ERP systems and other platforms, travel and expense management is simpler as data is available in real-time.

Integrating SAP Concur solutions helps improve business value to reduce costs. For example, integrated travel and expense management using Concur Travel and Expense spend management solutions can deliver a three-year ROI of 628%. Integrated systems can also reduce potential fraud. When data is centralized and connected, business leaders have better visibility.

You can read more about priorities and strategies for IT leaders here. 

Compliance and Risk Management

Integrated systems also play an important role in regulatory compliance and risk mitigation. A centralized platform for monitoring and controlling data flows enables organizations to maintain accurate records and ensure data integrity. This makes complying with regulatory requirements easier. Audit trails across platforms can help in case compliance is questioned.

You also get improved data security by applying system-wide data security including access controls, data encryption, and auditing. This helps centralize risk management to protect sensitive data and mitigate threats. With an integrated T&E solution, you can improve compliance with policies as well. Employees can see policies within the software to make sure choices align with your requirements. When employees submit expense reports, the software can automatically validate expenses and flag anything that is out of compliance.

Scalability and Adaptability

As your organization grows and evolves, you need an easy way to adapt. Integrated solutions are designed to be scalable and flexible, providing you with the agility you need to adapt to change without worrying about significant hardware costs.

Different Ways to Connect Systems

There are several ways to integrate systems. The most common solution is using an Application Programming Interface (API). APIs are a standardized way to facilitate communication and the exchange of data between different applications, providing automated data flows.

APIs act as rule books for how different software can interact with each other. API connectors execute these interactions according to the rules.

SAP Concur solutions offer four primary options for integration:

1. On-demand integrations, which allow users to access company data directly through the SAP Concur platform. This option is best for smaller companies that make minimal changes to their systems.
    
2. Secure File Transfer Protocol (sFTP) to facilitate the secure transfer of flat files, so you can schedule the import/export of data on a daily/weekly basis. This may require some work to map data to ensure proper formats.
    
3. Web services, such as RESTful APIs that push and pull data into our solutions.
    
4. Pre-built connectors to connect you with a wide variety of top travel, enterprise, and other app providers.

5 reasons IT teams Choose SAP Concur

When you are working with finance, procurement, or travel teams to vet new systems, their business requirements become your priority. The solution you pick, however, needs to go beyond those requirements to meet your company’s continuously evolving standards.  

That’s where SAP Concur solutions for travel, expense, and AP come in and stand out. Our solutions are built on a platform that is ready for today’s challenges and tomorrow’s changing requirements. Here are the top 5 reasons that your industry peers choose SAP Concur

Find out more

SAP Concur Integrations

System integration is essential to facilitate a consistent and accurate view of all of your data across your organization. Integrations enhance efficiency, reduce costs, ensure compliance, and improve decision-making.

Fully digitizing and integrating spend management helps you streamline your workflow and provides:

• Near real-time control over cash flow
• Accelerated expense and invoice processes
• Automation of employee policy compliance and fraud detection
• Increased employee productivity and engagement

Learn more about SAP Concur integrations.