Selecting Systems 7: The Need for Integration
The seventh part in our series of Selecting Finance Systems for growing organisations. An introduction to the series can be found via this link: https://www.dhirubhai.net/pulse/selecting-finance-systems-support-your-companys-growth-john-fuggles-0x5oe/
Note: Before reading this section, we recommend you read the section on platform or point solutions.
Platforms, by their very nature, provide a suite of already integrated solutions so the overall need for integrations is less. Not just because there is no need to integrate between the various elements on the platform but also because integrations now need to integrate only with the platform as one, not a series of individual point solutions.
Another consideration to be made is the different types of integration - whether there are built in integrations such as Application Programming Interfaces (APIs) and whether you want hub-spoke, vertical, star, or other integration models. The options around this and what would deliver the greatest benefit, or the lowest cost, are sufficiently complex and to some extent limited by the systems that the customer has chosen. The information around this choice could form a whole guide of its own, so if you want to know more about APIs and integrations, VantagePoint has considerable experience in this and we’re happy to discuss requirements if needed.
Benefits of systems integration
Rather than having different databases or systems that are not kept in sync, integration allows for a ‘single source of the truth’ (even if there is more than one single source, as with a point solution). By having systems fully integrated, it ensures there is consistency and accuracy in the data.
Removing redundancy provides lower data storage costs and the need for less independent back-ups, the latter impacting the data as well as the processing time and effort to take back-ups.
Data can be shared instantly and consistently across multiple solutions rather than relying on ad-hoc data exchanges.
Manual errors can occur on data entry, but also where old data is overwritten across newer data or where an update should have happened but did not and users are working from old data without realising.
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Integration allows more data to be shared with users that may be beyond their core system. For example, sharing HR data to the finance function, or perhaps supply chain forecasting to the budgeting and planning function. The outcome of this is better insight, greater analysis, more informed decision-making and facilitation of cross-departmental working.
Providing richer data from multiple sources on time and accurately allows quicker decisions backed with a degree of greater confidence in the choices and selections made.
What to consider when integrating systems
As with any project, you must clearly define the objectives, understand the requirements, know the limitations, set a budget and establish a timeline.
When considering systems integration, the types of integration required, the order in which to do them, whether to integrate all systems and to what degree, all need to be considered. Where there is duplicity in the data, a decision also needs to be made as to which data set should be kept and used.
It is also worth remembering that there may be a need to manage and monitor the performance of the integrations, make changes and, on some occasions, decouple an integration either to allow work to take place or as part of a new process. Extra technology may also be required to facilitate the integration.
A detailed map of the integrations and the order in which to deploy and run the integrations will also be needed. Often there may be competing demands with different stakeholder groups in terms of data ownership, and so this should be mapped in advance to prevent conflict
Conclusion
When selecting any finance system, systems integration should be a key part of the decision-making/evaluation. It should be factored into the overall project timeline and as part of cost considerations. It is also important to understand which other departments may need to be involved in the process of designing an integrated solution.
Working with a partner that has experience in delivering complex integrations and finding a solution that has a robust integration capability can deliver huge benefits and success to any finance transformation. VantagePoint recognises this and works with customers from the outset to identify the needs and which gains can be made through this kind of efficiency
Selecting Systems for Growth 7/14
Finance and Transformation Director | PE-Backed Professional & Business Services
1 个月A bit of a no brainer - if you can't integrate the data, there is very little point in implementing the system in the first place. We've always known that data integration (including sourcing and cleaning) can take anything up to 70% of the implementation effort. However, as more companies move off legacy on-prem platforms, it is becoming easier. There are also a few low code integration platforms now on the market, this makes it much quicker than having to write SSIS scripts