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Posted: 02/24/2023 - by Dean Reid

Discover 7 Key Reasons Why Companies do not Integrate Their Systems

It is difficult to quantify the cost for companies that do not integrate their systems as it varies greatly based on factors such as the size and complexity of the organization, the number of systems involved, and the type of industry. However, the cost is generally high.

Did you know - a recent study found that 85% of supply chain companies believe they're losing a lot of money because of poor system integrations - in fact - 24% of the surveyed companies say they lose over $500K per year. 

If you have disparate data formats, or the data is hard to get at, or it is of low quality, or its outdated, or there is too much data - then perhaps your systems are not integrated properly.

Discover 7 key reasons why companies do not integrate their systems:

  1. Lack of understanding of the benefits - companies may not understand the benefits of system integration, such as improved data accuracy, increased efficiency, and better collaboration between teams
  2. Resistance to change - companies may be resistant to change and may see system integration as a complex and time-consuming process
  3. Complexity - companies may have complex systems that are difficult to integrate, or may have a large number of disparate systems that are difficult to align
  4. Cost - companies may see system integration as a costly process and may be hesitant to invest in new technologies and infrastructure
  5. Technical skills shortage - companies may have a shortage of technical skills, such as developers and IT experts, and may not have the resources necessary to implement a successful integration
  6. Data privacy & security concerns - companies may be concerned about data privacy and security when integrating systems, and may worry that sensitive information will be compromised during the integration process
  7. Customization - companies may have customized systems that are difficult to integrate with other systems, or may not be able to integrate with other systems because of differences in data structures or protocols

Not all system integration projects go well. Data integration projects can face failure because of unclear project requirements, scope creep, frequent technology changes, employee resistance, or an inability to handle big data in real-time.

9 reasons that system integrations can fall short:

  1. The system integration project did not involve all users
  2. The team proceeded with unclean data
  3. There was a failure to understand and document all of the project's requirements
  4. There were too many changes that are rolled out too soon
  5. The team oversimplified the project
  6. There was a lack of cross platform expertise
  7. The group lacked a proper error-handling framework
  8. The team tasked IT with everything
  9. The project team failed to test properly

4 key benefits of system integration and automation with accompanying statistics 

Integration and automation can provide numerous benefits to businesses and organizations, including increased efficiency, cost savings, improved accuracy, and reduced errors.

Here are some statistics and examples to illustrate these benefits:

  1. Increased Efficiency:
  • Integrating different systems and applications can save time and reduce the need for manual data entry. According to a study by Accenture, companies that invest in integration can reduce processing time by up to 80%
  • Automation can also increase efficiency. For example, a survey by McKinsey found that automation can reduce time spent on repetitive tasks by up to 50%
  1. Cost Savings:
  • Integration can reduce the need for manual processes and data entry, which can save businesses time and money. According to a study by Forrester, businesses that invest in integration can see a 307% ROI over three years
  • Automation can also lead to cost savings. A study by Deloitte found that automation can reduce the cost of processing an invoice by up to 80%
  1. Improved Accuracy:
  • Integrating different systems can reduce the risk of errors that can occur during manual data entry. According to a study by Aberdeen Group, companies that invest in integration can see a 10% improvement in data accuracy
  • Automation can also improve accuracy by reducing the risk of human error. For example, a study by PwC found that robotic process automation (RPA) can reduce errors in financial reporting by up to 97%
  1. Reduced Errors:
  • Integration can reduce the risk of errors that can occur during manual data entry. According to a study by Aberdeen Group, companies that invest in integration can see a 10% improvement in data accuracy
  • Automation can also reduce errors. For example, a study by PwC found that RPA can reduce errors in financial reporting by up to 97%

By investing in integration and automation, businesses can improve their operations and stay competitive in a rapidly changing business landscape.

Not sure where to start - no problem we have done this many times before for very satisfied clients. Give us a shout at Poeta Digital - it will be the best thing you have done today.