Data Integration
Data integration is simply the process of creating some form of link
between two or more systems (a map) for the purpose
of exchanging data between those systems. Data integration is
not a new concept but it's a technique that has been gaining in use
among smaller organizations due to the high degree of benefits that
it can provide. While
there are a number of business justifications for
Data Integration, in this article we will explore four primary drivers
for data integration: the exchange of data between two disparate systems;
the unification of data into a single, unified view, the migration
of data from a legacy system to a new one and finally the combination
of data between separate systems after an acquisition or merger.
Exchanging Data between Systems
One of the most frequent uses for Data Integration is the exchange
of data between desperate systems. This is the case when integrating
EDI data into a company's ERP or accounting system. Because
ERP systems tend to have no EDI, or at best very poor EDI modules,
the need to use a third party data integration solution to tie the
two systems together is very high. Using data integration in
this fashion takes inbound EDI transactions (like purchase orders)
and maps the data from the EDI system to the ERP system. The
reverse is also done by mapping outbound transactions (like invoices)
to outbound EDI transactions of the equivalent type. This form
of data integration is very popular because it can save a great deal
of time and money in reduced data entry along with a significant increase
in throughput and a significantly lower error rate.
Unified View of Data through Data Integration
This form of data integration is very popular in larger organizations
where multiple separate systems might contain 'snippets' of data. One
classic example is data integration to create a single view of customers. In
this example some customer data might reside in the company's ERP system
while additional customer data is housed in the CRM system. In
this simple example a unified customer view could be created through
a data integration process that mapped CRM data to the ERP system and
ERP data to the CRM system - creating a unified view of all customer
data in both systems ensuring the organization has all the data relevant
to each customer when making decisions.
Data Integration of Legacy Systems
This type of data integration is not done as frequently as the others,
but is also very useful. In this example when a company purchases
a new ERP system (for instance) the data integration process would
be created to take data from the old (legacy) system to the new one. By
using data integration to migrate the data from the old system accuracy
of data entry is ensured and speed is maximized saving the company
money and providing a very rapid return on investment.
Data Integration During a Merger
Data integration due to a merger or acquisition is also a type of
data integration that, although not very frequent, can provide a significant
return on investment. When two companies combine, or when one
organization purchases another, data that lives in the many systems
each organization has used over the years can create a logistical nightmare. Through
data integration the two companies ERP systems, CRM systems and other
in-house back-end systems can be consolidated and de-duplicated, ensuring
that the resulting output provides a single, consolidated and consistent
view of all available records |
