Large enterprises use an average of 664 apps. Market research firm IDC found that companies lose 20 to 30 percent of their revenue due to inefficient processes across applications.
The lack of integration amongst hundreds of applications leads to:
- Data silos that drive up costs
- Duplicate efforts
- Productivity bottlenecks, and
- Disconnected experiences
So what is the best way to connect all of these disparate systems? Connecting them one by one is a point-to-point integration. The other options is a hub-and-spoke integration.
Point-to-Point vs Hub-and-Spoke
Point-to-Point Integration
Point-to-point integration (P2P) is a method of connecting software applications or systems directly to facilitate data exchange and communication without using intermediaries. It’s also known as peer-to-peer integration.
Companies that use connect different systems with the point-to-point method end up with a spaghetti integration. While this system may allow quick deployment, it is hard to manage and troubleshoot and lacks control, governance, and clarity.
5 Reasons Why Point-to-Point Integration Falls Short of Your Business Needs
As businesses expand their technology ecosystems, integrating various applications becomes essential to avoid silos and inefficiencies. However, relying on point-to-point (P2P) integration—connecting apps using custom code—can lead to significant drawbacks:
- Time-Consuming: Developing each P2P integration can be lengthy, delaying stakeholder needs.
- Lack of Scalability: Managing numerous integrations is impractical as businesses grow.
- Non-Future-Proof: As business needs evolve, P2P integrations often require constant updates.
- Dependency on Specific Employees: Knowledge of custom code is limited to a few team members.
- Tracking Challenges: Without centralized tracking, managing and troubleshooting integrations is complex.
Hub-and-Spoke Integration
Utilizing a centralized hub, this model simplifies integration, providing better management, scalability, and additional capabilities like data mapping and transformation. It ensures a more controlled data flow and reduces manual workload.
If automation is a goal, using an iPaas Platform is the best option to streamline the integration process and enhance efficiency.
5 Reasons Why iPaas Platforms are the Best Choice for Automation:
- Pre-Built Connectors: Time to value is decreased with connectors that open apps (doors) to pass data, using their unique manners.
- Low-Code/No-Code Interface: Employees across lines of business can use it to build integrations without writing code.
- Comprehensive Dashboards: Allows anyone in the organization to view activities performed in the platform
- Enhance Scalability: When a change is made, you can make the update in one place instead of manually changing in multiple systems.
- Simplify Management: End to end workflows typically change for an ENTIRE business process, not just between 2 apps. Manage these processes in one place.
