What Is an Integration Platform and What Is Its Role in Business?
Aaron Keeports
Previously, integration platforms were one-dimensional—offering very limited capabilities beyond integrating a select few applications. Fast forward a few decades later though, modern integration platforms can now be extremely powerful, offering myriad more features to businesses that deploy them.
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Today, tech-savvy organizations are creating integration strategies to achieve modern, seamless integration within their business ecosystems. According to The State of SaaS Integrations Report, 84% of businesses consider integrations to be either "very important" or a "key requirement" for their customers
Why is this? Because most departments within an organization function using more than one software, system, or application (e.g. ERP, TMS, WMS, financial applications, etc.), which often have limited built-in integration capabilities.
Businesses often find that the more applications you add to operations, the more fragmentation there is within overall workflows and business processes.
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Below, we dive into modern integration platform, discussing:
- What Can You Compare Integration Platforms to?
- What Is a Modern Integration Platform?
- How Does an Integration Platform Work?
- APIs in an Integration Platform
- Webhooks in an Integration Platform
- Orchestrating Workflows with Precision
- Comparing Integration Platform and iPaaS
- Evaluating an Integration Platform for Your Business
- Top Integration Platforms for 2024 to Consider
- Cleo’s Modernized Integration Platform
What Can You Compare Integration Platforms to?
To make understanding the modern integration platform a little easier, we can compare some of its features to other tools in our everyday lives. Some comparisons include:
- Traffic Conductor: An integration platform directs data to the correct applications and systems. It manages the flow of information and directs it to the appropriate destinations.
- Translator: An integration platform can convert data into the required formats, ensuring different applications and systems can communicate effectively and understand each other.
- Adapter: An integration platform acts as an adapter, allowing incompatible systems to connect and work together. It bridges the gap between different technologies and enables them to share information seamlessly.
- Central Hub: An integration platform is a central hub that connects various business applications and data sources. It provides a single point of access for managing and monitoring integrations and data.
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What Is a Modern Integration Platform?
An integration platform is a combination of integration software (or middleware) solutions that allow businesses to design, develop, and maintain integration flows that connect a variety of applications, systems, data repositories, and even trading partners.
In other words, an integration platform enables companies to integrate their various systems, applications, and data throughout their business ecosystem environment.
For example, take IT, Sales, or Customer Service. Each department of an organization depends on one or more applications to build out critical business processes. An integration platform connects those applications, enabling them to seamlessly communicate and share data with each other. This means you can spend less time on technical work and more time organizing and managing the efficiency of critical workflows and business processes.
How Does an Integration Platform Work?
To connect and exchange data between two systems, integration platforms commonly use electronic data interchange (EDI) or APIs. Newer, more innovative integration platforms will offer both EDI and API functionalities, enabling your business to connect with the largest number of applications and trading partners possible.
APIs in an Integration Platform
Alternatively, a newer option to complete data exchanges is using application programming interfaces (APIs). API integration works by linking two different platforms together by following specific protocols. Once integrated, the two platforms can send data back and forth via the APIs to share information in real time.
API Use Cases
- eCommerce: An eCommerce platform can integrate with the warehouse management system APIs of each warehouse. This allows for automatic order fulfillment triggers and shipment notifications to carriers.
- Inventory Management: An inventory management system could integrate with a warehouse management system API. This allows for automatic updates when items are shipped or received, ensuring accurate stock levels and avoiding stockouts.
EDI in an Integration Platform
EDI is a way for businesses to exchange standard electronic documents directly between computer applications, systems, or trading partners. Unlike traditional paper documents or even PDFs though, EDI documents adhere to specific formatting and communication standards to ensure smooth and error-free exchange between different computer systems.
EDI Use Cases
- Procure-to-Pay (and Order-to-Cash): When a retailer wants to place an order, their system electronically transmits a standardized EDI purchase order document directly to the manufacturer's system. The manufacturer can quickly confirm and ship the order, and then invoice the retailer—all using EDI documents and automation. This also applies to the order-to-cash process as well.
- Order Tracking: A manufacturer can connect with the EDI systems of their carriers and distributors, allowing them to receive electronic shipment notifications and track the location of orders that are en route to their destination.
Webhooks in an Integration Platform
Webhooks enable applications to communicate with each other in real time. Webhooks are event-driven, meaning they are triggered by a specific action or event within an application.
Webhooks Use Cases
- Customer Service Automation: When a customer submits a support ticket (event), a webhook can notify your customer service platform (receiving app) with the ticket details (data). This allows for faster issue resolution and an improved customer experience.
- Real-Time Payment Processing: Imagine you run an online store. When a customer places an order (event), a webhook triggers a message to your payment processor (receiving app) with the order details (data). This allows the payment processor to securely handle the transaction immediately.
Comparing EDI, API, and Webhooks
While EDI, API, and webhooks perform similar functions, they each have their differences:
CTO of CTSI-Global
“Cleo Integration Cloud enables us to optimize business transactions through API-based, EDI, and non-EDI integrations, so we can integrate nearly any content provider into our ecosystem—while reducing the level of effort required by our IT staff.”
EDI (Electronic Data Interchange)
- Standardized Format: Uses a pre-defined language for exchanging structured data between businesses (like invoices)
- Batch Processing: Often involves sending large batches of data at scheduled intervals (think sending a stack of invoices)
- Security & Reliability: Designed for secure and reliable data exchange between established trading partners
- Less Flexible: Less adaptable to real-time needs compared to webhooks and APIs
APIs (Application Programming Interfaces)
- Request-Driven: Applications make requests to access data or perform actions (think searching a library for the correct book)
- Two-Way Communication: Allows both applications to request and receive data
- More Versatile: Offers broader functionalities for various needs (searching, updating data, etc.)
- More Complex: Requires development effort for integration
Webhooks
- Event-Driven: Triggered by specific events within an application
- Real-time Notifications: Pushes data (order details) to another application instantly
- Limited Functionality: Primarily one-way communication for specific actions
- Lightweight & Simple: Easy to set up and use for real-time communication
Orchestrating Workflows with Precision
Integration platforms empower organizations to simplify and automate complex workflows. This is achieved via intuitive graphical user interfaces (GUIs) for seamless workflow design and deployment. Easy-to-use, modern designs may utilize drag-and-drop functionality, making the data mapping and integration building much easier for users of all levels. This differs from traditional integration platforms that tend to require intensive custom coding.
To further simplify workflows, innovative integration platforms are looking to incorporate emerging technologies such as artificial intelligence and machine learning. Using these advancements will increase efficiency, agility, and control over a business’s operations and workflows.
Comparing Integration Platform and iPaaS
An integration platform as a service (iPaaS) combines enterprise application integration (EAI) and enterprise service bus (ESB). Essentially, iPaaS is a set of cloud integration solutions specifically crafted to connect applications—whether they are on-premises or cloud-based.
It allows users to develop integration flows and deploy them without the need to install or manage any hardware or middleware. Similar to a conventional integration platform, iPaaS aids organizations in executing and overseeing system integration tasks.
Evaluating an Integration Platform for Your Business
While some integration platforms are more powerful than ever, others are still lacking. When looking for a complete integration platform, be sure to look for the following features:
- Cloud: Having a cloud-based / cloud integration platform offers greater security, accessibility, scalability, and easier maintenance
- Scalability: A platform that can grow alongside your business
- Service Offerings: Does it offer self-service and managed services?
- Visibility: The ability to drill down into any transaction, integration, or error
- Widespread Protocol Support: A wide variety of protocols enables your business to connect with any trading partner
- EDI and Non-EDI Support: Having EDI, API, and MFT capabilities on one platform allows your business to consolidate its number of solutions
- Real-time Data: Can you access data in real time from a centralized dashboard?
- Trading Partner Onboarding: Easy and fast trading partner onboarding lets your business speed time-to-revenue
- Notifications: Customizable notifications for at-risk SLAs ensure your business never misses an SLA again and avoids costly violation fees
- Business Process Automation: End-to-end business process automation minimizes costly and error-prone human interaction, while increasing revenue
Top 5 Integration Platforms for 2024 to Consider
So what are some of the top integration platforms available in 2024? We list five of them below:
1) Cleo Integration Cloud (CIC)
A cloud-based integration platform that offers a wide range of capabilities, including EDI, API, and MFT. Cleo is known for its hybrid integration support with any back-office or SaaS applications. Furthermore, its easy-to-use interface and a wide range of pre-built connectors enable seamless trading partner onboarding.
2) MuleSoft
A platform that concentrates on API management and has a wide range of pre-built connectors for various applications and cloud services.
3) Boomi Integration Cloud
Boomi simplifies data exchange between popular applications. It might not be ideal for complex integration needs or businesses requiring robust security features.
4) TrueCommerce
Truecommerce can create data flows across diverse applications. Its focus is on intricate integrations, which might not be necessary for all businesses.
5) OpenText
OpenText is known for data management and security. Its offerings center around businesses already heavily invested in OpenText solutions.
Cleo’s Modernized Integration Platform
Cleo Integration Cloud (CIC) goes beyond just setting up integrations and basic integration tools. It's a comprehensive platform that unifies all your data exchanges, including APIs, Managed File Transfer (MFT), and EDI, into one solution. This centralized approach offers a multitude of benefits:
- Simplified Management: Manage all your integrations from a single, intuitive interface
- Enhanced Agility: Adapt to your trading partners’ evolving integration requirements with vast protocol and standard support
- Pre-built Connectors: Access a vast library of pre-built connectors for popular applications and trading partners, speeding onboarding and time-to-revenue
- End-to-End Automation: Use end-to-end business process automation for routine tasks associated with data mapping, translation, and routing, across all your integrations
- Improved Visibility and Control: Gain a centralized view of all your data exchanges with customizable dashboards and real-time data
- Flexible Service Offerings: Choose from 100% self-service, managed services from our team of in-house experts, or our unique blended approach
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Cleo Integration Cloud is a strategic investment in the future of your business. By simplifying management, increasing control, and enhancing agility, Cleo empowers you to streamline data exchanges, unlock valuable insights, and achieve operational excellence. And with new features added regularly, your business can remain at the forefront of innovation, operating as efficiently as possible.
Interested in learning more about Cleo Integration Cloud or what was covered in this blog? Contact us at sales@cleo.com, +1.815.282.7695, or by completing our brief form fill. And be sure to explore some of our educational resources through our content hub.
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