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Technology

What is Integration?

Last updated: January 15, 2025

On this page

TL;DRExampleExplanationWhy It MattersRelated Terms

TL;DR

An integration connects two or more software applications so they can share data and work together automatically.

Example

Common integrations:

  • Your webshop connects to your accounting software, so orders automatically become invoices
  • Your CRM connects to your email tool, so new contacts get welcome emails
  • Your calendar connects to your video tool, so meetings auto-generate Zoom links

Integration example flow:

  1. Customer places order on Shopify
  2. Integration sends order data to Visma
  3. Visma creates invoice automatically
  4. Integration updates Shopify with invoice number
  5. No manual data entry needed

Popular integration methods:

MethodDescription
Native integrationBuilt into the software
API integrationCustom code connecting systems
iPaaS (Zapier, Make)No-code integration platforms
Webhook-basedReal-time event triggers

Explanation

Types of Integrations

Point-to-point: Direct connection between two apps Simple but can get messy with many connections.

Hub-and-spoke: Central platform connects everything Easier to manage, tools like Zapier use this model.

API-based: Using documented interfaces Most flexible, requires technical knowledge.

Integration Challenges

  1. Data mapping: Fields don't always match between systems
  2. Error handling: What happens when one system is down?
  3. Sync frequency: Real-time vs. batch processing
  4. Authentication: Keeping connections secure
  5. Versioning: APIs change over time

Build vs. Buy

Build custom: More control, higher upfront cost Use iPaaS: Faster setup, ongoing subscription cost Native integrations: Easiest, limited to what vendor offers

Why It Matters

For Business Owners

Integrations eliminate manual work. Every time someone copies data from one system to another, that's wasted time and a chance for errors.

Integrations enable real-time visibility. When systems talk to each other, you always have current data. No waiting for reports or manual updates.

Integrations scale with you. Processing 10 orders manually is fine. Processing 1,000 requires automation through integrations.

The right integrations matter when choosing software. Before buying any tool, check: Does it integrate with what I already use?

ROI of Integrations

Calculate the hours spent on manual data entry and multiply by hourly cost. Even expensive integrations often pay for themselves quickly.

Related Terms

SaaS

SaaS (Software as a Service) is software you access through the internet and pay for monthly, instead of installing it on your computer.

API

An API (Application Programming Interface) is a way for different software programs to talk to each other and share data.

Webhook

A webhook is an automatic notification sent from one app to another when something happens, like getting a text message when you receive an email.

Automation

Automation means using technology to perform tasks that would otherwise require manual human effort, saving time and reducing errors.

CRM

A CRM (Customer Relationship Management) is software that helps you track and manage all your interactions with customers and potential customers.

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