Definition
System integration is the process of connecting separate software systems, applications and data sources so that they work together as one, sharing data and triggering each other's processes automatically.
Overview
Most organizations run dozens or hundreds of applications, from ERP, CRM and HRIS to industry systems and spreadsheets, each built independently. System integration links them so that data entered once flows wherever it is needed and a step completed in one system starts the next step in another. It can be done with direct API connections, middleware, an integration platform (iPaaS), event streaming, or file transfers, and it covers both the technical connection and the mapping of data between the systems' different structures.
Why It Matters
Without integration, people become the link between systems: re-keying data, reconciling mismatches and chasing updates. That swivel-chair work is slow and error-prone, keeps data out of date and inconsistent across the business, and grows with every new system added.
Types of system integration
- Point-to-point: each pair of systems is connected directly. It is simple for a few systems but becomes unmanageable as the number grows.
- Hub-and-spoke: systems connect to a central hub that routes and transforms data between them.
- Enterprise service bus (ESB): a shared messaging backbone that applications publish to and consume from.
- iPaaS and API-led integration: cloud integration platforms with pre-built connectors, often organized around reusable APIs.
- Event-driven integration: systems publish events, such as "order created", that other systems subscribe to and act on in real time.
Common examples
- CRM to ERP: a closed deal creates the customer, order and invoice in the finance system.
- HRIS to identity and payroll: a new hire automatically gets accounts, equipment requests and a payroll record.
- E-commerce to inventory and fulfilment: an online order updates stock and starts shipping.
- Bank feeds to accounting: transactions flow in for reconciliation.
The system integration process
- Map the business process and every system it touches.
- Define the data each system needs, and map fields between them.
- Choose the integration method and pattern.
- Build, test with real data, and handle errors and retries.
- Monitor the integrations in production and maintain them as systems change.
How New Odyssey Helps
New Odyssey connects to 200+ business platforms through unified APIs and adds AI agents on top, so processes that cross systems, such as onboarding, reconciliation and contract intake, run end to end with people handling only the exceptions.
Frequently Asked Questions
- What is the difference between system integration and API integration?
- API integration is one method of system integration: connecting systems through their APIs. System integration is the broader goal of making systems work together, which can also use middleware, file transfers, databases or events.
- What does a system integrator do?
- A system integrator is a company or team that designs and builds the connections between an organization's systems, including the data mapping, testing and ongoing support.
- What are the main challenges of system integration?
- Different data models between systems, poor or missing APIs on older systems, data quality problems, security and access control, and keeping integrations working as each system is upgraded.
Related Terms
API Integration
The process of connecting software applications through their Application Programming Interfaces to enable data exchange and functionality sharing.
Middleware
Middleware is software that sits between applications, databases and services and lets them communicate and exchange data without being built to talk to each other directly.
iPaaS
Integration Platform as a Service - a cloud-based platform for building and deploying integrations between cloud and on-premises applications.
Enterprise Service Bus (ESB)
An integration architecture pattern that enables communication between different applications through a central messaging backbone.
Swivel Chair Work
Swivel chair work (also called swivel-chair integration) is manual work in which a person acts as the link between two or more systems that don't talk to each other, reading data in one application and re-keying it into another.
Data Mapping
Data mapping is the process of matching fields in one data source to the corresponding fields in another, including any transformation needed, so that data can move accurately between systems.
Keep exploring
Related Solutions & Use Cases
- API IntegrationConnect any API with pre-built connectors and custom integration capabilities. Build integrations in hours, not months.
- Workflow OrchestrationOrchestrate complex business processes across systems. Connect people, data, and applications in unified workflows.
- Customer Data SyncKeep customer data consistent across all systems. Eliminate duplicate entries and ensure every team has accurate information.
- Legacy System IntegrationConnect legacy systems to modern applications without risky replacements using intelligent integration patterns.
- Real-Time Data SyncKeep data synchronized across systems in real-time with event-driven integration and conflict resolution.
- API ManagementManage, secure, and scale APIs across the enterprise with comprehensive API management capabilities.
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