The operational stack of a modern enterprise is fragmented, a situation that has persisted for over a third of a century. As we use more technology, the need for all that tech to talk to each other becomes ever more apparent.
Getting these things to talk is hard enough in itself, but the situation is exacerbated further by macro-trends:
1. Unbundling of Enterprise Products:
For example, if SAP was performing a specific function among a hundred others, and a more effective solution emerges for that one function, enterprises will likely adopt it. This trend has been accelerating across ERP, WMS, MES, CMMS/EAM, and TMS categories.
2. Acceleration of Technology Cycles:
Besides coming up with better ways of doing things conventional products have already been doing, new technologies also introduce new capabilities that were not possible before. Organizations are quick to adopt these innovations as well.
Given these dynamics, integrating something with an enterprise product can be confusing. On one hand, you want to connect A to B (and, maybe, C). On the other hand, you don’t want to ignore trends and end up in a situation where, by the time you finish one integration, you need another, creating a never-ending cycle.
How should you do it in 2024? Well, it depends. There are multiple approaches to integration. Traditionally, you would connect A to B directly yourself or hire someone to do it. Also, an entire industry has emerged to address this issue, with several generations of Integration Platform as a Service (iPaaS solutions) products and system integrators.
In this article, we aim to unpack the various methods of integrating for enterprises looking to connect third-party products to their software systems. We will highlight the pros and cons of each approach while considering current trends. This is based on our experience of building hundreds of adapters across ERP, EAM/CMMS, and WMS into our Unified API at Makini, but most of the points should be applicable outside of these software categories as well. Whether you are considering a Microsoft iPaaS solution, an IBM iPaaS solution, or exploring the best iPaaS solutions for your needs, understanding the landscape of enterprise iPaaS solutions is crucial.
The Conventional Way
Traditionally, you would go ahead and build the integration in-house or hire someone to do it. Having built hundreds, we know that integrating with a broad enterprise product like an ERP, EAM/CMMS, or a WMS is challenging. On average, it takes companies anywhere from 2 to 18 months to build and can cost from $20k-$25k for something relatively simple and upwards of six figures (hi there, SAP users!).
These cost and time requirements stem from engineering teams having the burden of researching extensive documentation (if available), learning various HTTP methods, managing custom objects and fields, etc. It can take weeks to just understand an API’s intricacies and ensure it meets all security and functional requirements.
Once built, the integration is not simply sitting on a shelf, you have to maintain it. APIs update, API tokens expire, and data quality issues arise, ultimately breaking things. In our experience, maintaining four integrations already requires a dedicated engineering resource. Maintenance is often labor-intensive and prone to errors, exacerbated by outdated documentation and a lack of SDKs in the preferred programming languages, so the capability to effectively manage the resource handling the integration is important as well.
Another layer of complexity arises when multiple systems from different providers need to be integrated. Each API might use different styles (REST, RPC, SOAP, GraphQL) and data formats (JSON, XML), making it challenging to ensure smooth interoperability and regulatory compliance.
We are not saying to never integrate on your own, though. Sometimes, there is simply no other way. The defense and public sectors often need that level of control. Another case is if you have a homegrown bespoke ERP or CMMS that iPaaS players wouldn’t support.
iPaaS Solutions for ERP
Various solutions exist to address these integration challenges, each with its own strengths and limitations:
Traditional iPaaS
These platforms enable the development, execution, and governance of integration flows. They typically come with API management solutions, allowing you to design, deploy, manage, and monitor APIs.
These are the most mature iPaaS products, providing a myriad of tools that can make almost any of your enterprise software integration dreams come true.
However, this comes with a steep learning curve and requires significant expertise to set up, configure, and maintain. They are also typically higher-cost, including licensing fees, infrastructure costs, and potential expenses for hiring or training specialized personnel. Integration projects can also be time-consuming due to the need for detailed configuration and customization.
Traditional iPaaS solutions can help you build better integrations, but the cost and time improvement is often marginal at best. These products also will not equip you well to respond to the macro trends, as each future integration is still bespoke and requires significant resources to build and maintain.
Workflow Automation Tools with Built-in Connectors
These tools primarily focus on workflow automation but often come with pre-built connectors with popular enterprise products.
The learning curve is typically less steep compared to a traditional iPaaS solution, though it can still be significant. These products primarily focused on workflow automation, but also would provide capabilities for API management, allowing businesses to create, manage, and monitor APIs.
The main downside though is that each integration is still custom-built and still requires a deeper knowledge of the enterprise product and its data structure. These are also not particularly low-cost products, as they often gate premium features and higher usage for pricier tiers.
These products come with many connectors, but they don’t have every single one. If you ever need a connector the product doesn’t support, getting it can be very expensive as it is reserved for customers of the highest tiers.
Another thing to watch out for with workflow automation tools is performance overhead due to the additional layers of processing. Some users found it result in higher latency and slower performance for real-time applications.
Unified APIs
Unified APIs are arguably the most modern way of building integrations nowadays. They aggregate many products in the same software category into one normalized API. For example, integrating a Unified API for EAM will give you integrations with eMaint, IBM Maximo, MaintainX, SAP PM and others all at once. And the way you authenticate and interact with data in either is always the same.
This approach simplifies the integration process by standardizing resources and data models across specific software categories. Unified APIs also enhance security and compliance features, making it easier to meet regulations such as GDPR, HIPAA, and PSD2.
Another interesting thing about Unified APIs is that they constantly partner with new enterprise systems and software companies, building an ecosystem of products integrated natively. As these companies specialize in integrations, adding new platforms usually doesn’t require as much heavy lifting. For us at Makini, for example, it usually takes from 1 day to 2 weeks compared to an industry average of 2-18 months.
While Unified APIs have already solved the problem of integrations in numerous industries like open banking and payment processing, they are not present in every single software category yet.
Also aiming to standardize the integrations, Unified APIs can leave blind spots for edge cases. This is especially important for enterprise software systems that are notorious for heavy customizations. However, most Unified APIs in enterprise software categories do provide tools to customize mappings in their adapters or to make direct API calls in system-specific formats as solution.
Compared to workflow automation tools with built-in connectors, most Unified APIs also leave workflow automation outside of their scope.
Conclusion
In the ever-evolving landscape of enterprise technology, the need for effective integration solutions is more critical than ever and will become ever more critical. The fragmentation of operational stacks, driven by the unbundling of enterprise products and the acceleration of technology cycles, presents significant challenges. While traditional methods of direct integration and hiring experts can be effective, they often come with high costs, long implementation times, and complex maintenance requirements.
iPaaS solutions provide a mature and robust option for managing integrations, offering a wide range of tools and capabilities. However, they can also be complex, expensive, and time-consuming to implement and maintain. For example, workflow automation tools with built-in connectors offer a more user-friendly approach but may still require significant customization and can suffer from performance overhead.
Unified APIs present a modern and effective solution, simplifying the integration process by standardizing data models and authentication methods across multiple systems. They offer cost efficiency, reduced implementation time, and ease of maintenance, making them an attractive option for many enterprises. However, they may not cover all software categories, leaving gaps for highly customized enterprise systems.
Ultimately, the best integration approach depends on the specific needs and context of the organization. A balanced consideration of the pros and cons of each method is essential to making an informed decision. As the integration landscape continues to evolve, staying informed about the latest trends and technologies will be crucial for enterprises seeking to optimize their operational stacks and maintain a competitive edge.
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