Atlassian estimated, teams spend over 25% of their workweek just searching for information.
Think about that.
For a 100-person enterprise, that's 25 full-time employees doing nothing but searching for answers that should be at their fingertips.
The root cause? Disconnected systems that can't communicate. Connecting disparate systems and software applications within an ecosystem is technically complex. But if your tools can’t work together, you're going to waste time and money searching for data that should've been at your fingertips.
At Modeso, we see this pattern constantly with Swiss and German enterprises. Companies approach us with requests to integrate generative AI, build real-time dashboards, or mobile-first customer experiences. But they're held back by legacy systems that were never designed to be able to communicate with other systems.
That’s where system integration comes into play, allowing you to link multiple apps connecting disparate systems and software applications to create a unified platform.
We've helped companies like Albin Kistler, TWINT, and Dental Axess turn disconnected systems into unified platforms that provide business value. In this guide, we'll walk you through everything you need to know about system integration: what it is, the different types and approaches, and most importantly, how to think about it as part of your broader software strategy rather than a standalone project.
But first, let's align on what system integration actually means.
System Integration (SI) is the process of connecting different software or applications, making them work together as a unified whole.
Instead of building every capability from scratch, businesses strategically connect specialized tools: CRM systems talk to marketing automation platforms, ERP software syncs with financial applications, inventory management integrates with e-commerce platforms. System integration is essential for business to business (B2B) operations, as it streamlines transactions, document exchange, and cooperation between companies such as suppliers, retailers, and partners.
If done right, integration creates an infrastructure where information moves automatically between systems, and employees spend their time on high-value work instead of searching for data or manually transferring information between applications.
As your business grows, so does your technology stack. You start with a handful of core systems, then add new tools to meet evolving needs: a new analytics platform here, a compliance tool there, perhaps an AI-powered customer service solution. Each addition makes sense in isolation, but without proper integration, you're creating the exact problem that costs Fortune 500 companies billions in lost productivity.
Because every disconnected system multiplies your operational complexity. When your sales team closes a deal in the CRM, does that information automatically flow to finance, operations, and customer success? Or does someone need to manually update multiple systems, send notification emails, and hope nothing falls through the cracks?
For companies in regulated industries like finance and healthcare (where Modeso specializes) the stakes are even higher. Poor integration creates compliance risks, data quality issues, and audit nightmares.
System integration can lead to significant cost savings by streamlining processes, reducing the need for multiple systems, and improving overall business efficiency.
One of the key benefits is the creation of efficient workflows, which streamline access to data, reduce redundancy, and enhance decision-making accuracy.
Here are three biggest advantages of integrating systems, based on the examples of our recent projects.
Instead of competing head-on with Apple Pay and Google Pay by building costly new features, TWINT found a smarter way to expand its ecosystem.
By implementing an integration layer that provided a standardized interface for merchants, TWINT made it effortless for users to buy digital vouchers and access exclusive deals across diverse categories, from tech gadgets to lifestyle essentials.
These integrations unlocked new functionalities, amplified transaction volume, and strengthened TWINT’s position as a payment platform with a feature-rich ecosystem tailored to the everyday life of Swiss consumers.
Manufacturing companies were spending time on a process that should take minutes: quality control checks.
The pre-integration workflow looked like this: Someone orders raw materials in SAP → Someone else manually creates a quality check in the lab system → Another person tracks the results in a spreadsheet. → If the material fails inspection, someone has to update SAP, notify procurement, and document everything for compliance audits.
One simple transaction required four people, three systems, and roughly 45 minutes of coordination. Multiply that across hundreds of daily transactions, and you're looking at 800+ hours of wasted effort monthly.
We built 1LIMS to integrate directly with ERP systems like SAP and laboratory devices, creating automated workflows that eliminated human handoffs.
The new workflow: Raw material ordered in SAP → Quality check automatically generated in 1LIMS → Lab devices send results directly to the system → SAP updates automatically → Compliance documentation created without human input.
Same transaction. Five minutes instead of 45. Zero human coordination required.
For manufacturing companies, this means faster production cycles, fewer compliance gaps, and lab teams focused on actual analysis instead of data entry.
Clear aligner manufacturing should be straightforward: dentist scans patient → designer creates aligners → manufacturer produces them → patient receives treatment.
But in practice, none of those parties used the same systems.
Patient scans lived in Dropbox. Design files traveled via email. Production orders moved through Google Drive. Every handoff was a potential failure point. As a result, patients complained about delays which spoiled the reputation of dental practices.
Dental Axess built Xflow, a cloud-based platform that brought every stakeholder into one system. Patient information, 3D scans, design iterations, production status – all accessible in real-time to everyone who needed it.
With this new system, data loss became history and clear aligner delivery timelines improved greatly
These are just a few of the benefits system integration can bring. But they're only realized when integration is planned as part of a cohesive software development strategy, not added on as an afterthought. Companies that treat integration as a separate project often end up with technical debt. We'll return to this later.
Now let’s see what types of system integrations exist.
System integration can be adopted in several ways based on the goals you want to achieve. Here’s an overview of different types and cases where integrations can provide tangible business benefits.
Before you can automate workflows or connect applications, you need to solve a more fundamental problem: getting your data to speak the same language.
Every company accumulates data across dozens of systems: customer records in CRM, financial transactions in ERP, operational metrics in analytics platforms, documents in cloud storage. Each system stores information differently, uses different field names, and applies different validation rules. When you try to connect these systems, the data rarely matches up cleanly.
Data integration solves this mismatch.
It's the process of extracting information from various sources, transforming it into a consistent format, and making it accessible across your organization.
Extract, Transform, Load (ETL): The traditional approach. Data is extracted from source systems, transformed to match your target format (cleaning errors, standardizing fields, applying business rules), then loaded into a destination system or data warehouse. Best for batch processing and historical analysis where real-time updates aren't critical.
Application Programming Interfaces (APIs): Modern systems expose APIs that allow direct, real-time data exchange. When a sales rep updates a customer record in your CRM, API integration immediately syncs that change to your marketing automation platform, support system, and billing software. Best for operational workflows that require current information.
Data virtualization: Creates a unified view of data without physically moving it. The integration layer queries multiple source systems in real-time and presents the results as if they came from one database. Best when you need integrated reporting but can't or shouldn't consolidate data into a single system (common in regulated industries with data residency requirements).
For data movement between platforms, pre-built integration tools can accelerate implementation:
These tools work well when your integration needs are simple: syncing data between two popular platforms or creating basic reports.
They fall short when:
For enterprises in finance, healthcare, and manufacturing where data accuracy is crucial and systems are complex, data integration typically requires custom development that accounts for your specific business logic, regulatory requirements, and quality standards.
Most enterprise system integration projects share a common trigger: a legacy system that's become a liability, but you can't afford to lose the proprietary logic and data it contains.
Your outdated system holds years of accumulated business intelligence, custom workflows, and critical data. Simply replacing it means rebuilding everything from scratch. This is a risk most enterprises can't accept. Integrating it with modern tools preserves what works while unlocking new capabilities.
Albin Kistler, one of Switzerland's leading asset managers with over CHF 6 billion under management, faced this exact dilemma. Their proprietary investment analysis algorithm (refined over 15 years) was their competitive advantage. But the legacy research database supporting it had become a bottleneck.
The system was slow, difficult to maintain, and couldn't accommodate the real-time data feeds their analysts needed. Yet the algorithm itself was irreplaceable. Building a new one from scratch would take years and risk losing the nuanced logic that made their investment strategy successful.
We rebuilt the application as a modern web platform, but the real challenge was integration: connecting the new system to multiple external data sources and internal tools without compromising performance or data accuracy.
Three critical integrations that made modernization possible:
The outcome: Albin Kistler's analysts now work with a modern interface backed by their battle-tested algorithm. The platform processes data faster, accommodates new data sources easily, and reduces IT maintenance overhead by 65%. Most importantly, they achieved this transformation without the risk of rebuilding their core investment logic from scratch.
A decade ago, software companies faced a binary choice: build every feature yourself or accept limited functionality. Today, that calculation has changed.
The most successful software platforms don't try to do everything. They do a few things exceptionally well and integrate with specialized tools for everything else. Slack doesn't try to replace Google Drive or Zoom. Instead, it integrates with them, becoming the central hub where work happens without forcing users to abandon tools they already rely on.
When we work with SaaS companies and enterprise software providers, integration strategy directly impacts three business metrics:
Customer acquisition: Buyers maintain extensive shortlists of "must-have" integrations. An email marketing platform that doesn't sync with Salesforce loses deals before the demo. A project management tool without Slack integration doesn't make the shortlist. Each missing integration eliminates a segment of your addressable market.
User adoption: Even after purchase, integration determines whether users actually adopt your product. If your platform forces them to manually copy data between systems or abandon familiar workflows, they'll stop using your product. Seamless integration removes friction that kills adoption.
Customer retention: As companies grow, their tech stack expands. The moment your platform can't integrate with their new analytics tool or e-commerce platform, you become a candidate for replacement. Integration flexibility extends customer lifetime value.
The specific integrations your users expect depend on your category, but patterns are consistent:
Users want your product to fit their workflow, so don't force them to adapt to yours.
Many software companies treat third-party integration as a phase-two priority. Launch the core product first, add integrations later based on customer requests.
This approach has a hidden cost: every month without key integrations means lost deals and slower user adoption.
Our recommendation for SaaS and enterprise software companies: Identify the 3-5 integrations that define your category, and build them before launch. Then expand based on actual customer data.
The most valuable software platforms are ecosystems. When you enable partners to build on top of your platform, you multiply your product's capabilities, reach, and market value without proportionally increasing development costs.
Partner integration transforms your software from a tool into an ecosystem. Instead of serving only end users, you empower other businesses to integrate your capabilities into their products and workflows. This creates network effects: each new partner integration makes your platform more valuable to everyone else in the ecosystem.
Inbound partner integration: External partners connect to your platform to access your data or features. You provide APIs that let suppliers, vendors, or complementary service providers integrate with your system.
Example: 1LIMS, our laboratory information management solution, offers APIs that let manufacturing clients integrate their ERP systems directly with lab workflows. When a production order is created in SAP, it automatically triggers quality control checks in 1LIMS, eliminating manual coordination between systems and departments.
This approach works when your platform generates data or provides functionality that partners need to deliver their own services.
Outbound partner integration: Your platform connects to external partners to expand your own capabilities. You integrate with specialized service providers to offer features you don't build yourself.
Example: E-commerce platforms integrate with shipping providers (UPS, FedEx, DHL) to offer real-time shipping rates and tracking. This approach works when partners provide specialized services that would be costly or impractical for you to build and maintain yourself.
As Switzerland's leading mobile payment provider, TWINT could have remained a simple payment processor. Instead, they built a platform that enables merchants and service providers to create entirely new business models using TWINT's payment infrastructure.
We've developed four partner-enabled products on TWINT's platform:
Each integration creates value for three parties: TWINT gains transaction volume and user engagement, partners gain access to 5+ million Swiss users, and customers get more reasons to use TWINT daily.
The most expensive integration problems happen when companies build before they plan. A platform designed only for simple third-party connections can’t easily evolve into a complex partner ecosystem. And a system built without APIs becomes prohibitively expensive to extend later.
At Modeso, we approach integrations differently. During the alignment phase (before a single line of code is written) we assess which integration types your business will need now and in the future.
This early planning prevents costly rework and ensures your architecture can scale as your business grows.
Here is how to approach your integration projects.
Achieving connectivity between separate systems can be accomplished through the following approaches:
How it works: APIs expose specific functions and data from one system that other systems can call directly. When a sales rep updates a customer record in your CRM, an API call immediately syncs that change to your marketing platform, support system, and billing software.
Also check out: What Is an API? From Basics to Use Cases and Types
Best for:
When APIs work well:
When to consider alternatives:
Real-world example: In our TWINT Digital Voucher project, we used APIs to connect TWINT's payment system with dozens of merchant platforms. When a user purchases a voucher, the API call happens in real-time, processing payment, generating the voucher, and updating inventory in under two seconds.
How it works: Middleware sits between systems as an intermediary that handles communication, data transformation, and routing. Instead of System A talking directly to System B, both talk to the middleware layer, which translates formats, applies business rules, and manages the flow of information.
Best for:
When middleware makes sense:
When to avoid middleware:
Real-world example: For Albin Kistler's investment platform, we used middleware-style patterns to integrate their modern web application with multiple financial data providers, a legacy portfolio management system, and Active Directory. The middleware layer handled data validation, ensuring data quality remained high.
How it works: Webhooks are "reverse APIs" where one system notifies another when specific events occur. Instead of constantly checking for updates, the source system pushes notifications to a specified URL when something important happens, such as a new order, a payment received, a document uploaded.
Best for:
When webhooks work well:
When to use alternatives:
Real-world example: In e-commerce integrations, webhooks notify fulfillment systems the moment a customer places an order. The shop doesn't need to check every 30 seconds whether new orders exist. It gets notified instantly, triggering the warehouse to begin packing while the customer is still on the thank-you page.
How it works: EDI uses standardized document formats to exchange business transactions between organizations. These can be purchase orders, invoices, shipping notices, payment confirmations. Data follows strict format specifications (like EDIFACT or ANSI X12) that both parties agree to support.
Best for:
When EDI is required:
When EDI is overkill:
Real-world example: Large retailers like Walmart or Carrefour require suppliers to submit orders, invoices, and shipping notices via EDI. If you want to sell to these retailers, EDI integration is a prerequisite for doing business. The standardized formats ensure both parties interpret transaction data identically.
APIs for real-time interactions with modern systems.
Middleware to connect legacy applications.
Webhooks for event-driven workflows.
EDI where business partners require it.
The key is choosing the right method for each integration based on technical requirements, business constraints, and long-term maintainability.
In our full-cycle projects, we assess these trade-offs during the architecture phase, designing integration strategies that work today and in the future.
To establish efficient system integration, several common pitfalls must be avoided:
Many companies grapple with large, outdated systems that are intricately interconnected, making the integration process extremely complex. This lack of modularity and separation makes it difficult to isolate specific functions for integration with external applications.
To avoid this challenge and successfully connect a monolithic system with external apps, businesses can transition to microservices, implement APIs, or embrace incremental modernization.
Integration efforts should not merely address current needs but also anticipate future demands in terms of performance, maintenance, reusability, and growth. Businesses should assess current and anticipated requirements, ensuring flexible and future-proof integrated systems.
Different systems often employ varying data formats, complicating the information transfer between them. Standardizing data formats is crucial for seamless integration to prevent data-related bottlenecks.
Difficulties in accessing and using API documentation can slow down the integration process, making it prone to errors. API documentation should be easy for developers to understand, helping them integrate systems smoothly and work together effectively.
Neglecting robust security measures during integration can lead to data breaches, unauthorized access, and compromised system integrity. Establishing stringent security protocols, including encryption and access controls, is vital to safeguard sensitive information and maintain the integrity of integrated systems.
Achieving effective system integration is challenging, and in some cases, integration-related mistakes can lead to substantial business problems.
For example, Target’s failed expansion into Canada was partly attributed to problems with its supply chain management system. Inadequate integration with suppliers and logistics partners resulted in inventory management problems, including empty shelves and overstock of irrelevant products, ultimately contributing to the company’s withdrawal from the Canadian market. Up to that point, the company had incurred approximately $7 billion in losses on the venture.
To not become a victim of such instances, ensure an efficient system integration strategy that eliminates errors and allows your business to evolve.
Here's a pattern we see repeatedly with new clients: A company built their core application two years ago. It worked well. Then they needed to connect it to their CRM. They hired an integration specialist. Six months later, they needed to sync with their ERP. Different vendor. Another six months pass, and they want to add a payment provider. Yet another specialist.
Now they have three integrations built by three different teams, using three different approaches, with three separate sets of documentation. When something breaks, no one knows who's responsible. When they want to add a new feature that touches multiple systems, coordinating across vendors takes weeks.
The root cause of this problem is treating integration as a standalone task instead of a core part of your software architecture.
At Modeso, we approach integration as an integral part of full-cycle software development. What does that mean in practice?
During our alignment workshops, we discuss your current system and future needs.
When we rebuilt Albin Kistler's investment analysis platform, we knew from day one they'd need to integrate with financial data providers (SIX apiD), portfolio management systems (Expersoft PM1), and authentication systems (Active Directory). Rather than building these integrations separately, we designed an integration architecture that could accommodate all three. Plus future data sources they'd inevitably need as their investment strategy evolved.
The architecture we built can add new financial data providers without touching the core application.
Business requirements always change. New vendors enter your stack. Acquisitions bring new systems. Regulations require new data flows. Market opportunities demand new capabilities.
The question is whether your integration architecture can adapt without expensive rewrites.
We build integration layers using three principles:
Standardized interfaces:
When your application talks to external systems through an integration layer, adding new systems means extending the layer, not modifying your core application. For example, for TWINT, we built a standardized interface that merchants integrate with, regardless of their underlying e-commerce platform. This design decision means TWINT can onboard new merchants quickly without custom development for each platform
Proper abstraction: Your core application shouldn't care whether customer data comes from Salesforce, HubSpot, or a custom CRM. The integration layer handles those specifics, presenting data in a format your application expects. When you switch CRMs, you update the integration layer, not your entire application.
Documentation: We document not just what integrations do, but why they're designed that way. Which business rules are embedded in the integration logic? What assumptions were made about data quality? What error scenarios need special handling? This documentation ensures future developers can maintain and extend integrations without reverse-engineering decisions.
When your core application and integrations are built by different vendors, the accountability for potential problems gets murky. For example:
We've seen enterprises spend weeks just determining which vendor should investigate an issue, while the problem persists.
With full-cycle development, there's one team that owns both your application and its integrations. We're accountable for the whole system, not just pieces of it. If you need to add a new feature that requires integrating with an external API, we design the feature and build the integration as one coordinated effort.
The alternative (hiring specialists for each integration need as they arise) becomes expensive over time:
After working on integration projects for companies like TWINT, Albin Kistler, and Dental Axess, we've seen two distinct approaches:
Hire specialists for each integration need. This can work for simple, one-off connections. But it creates technical debt over time and makes it harder to maintain a coherent system architecture.
Plan integrations as part of your broader software development strategy. Build them with future needs in mind. Maintain ownership of the entire system.
For enterprise companies in finance, healthcare, and manufacturing, where systems are complex, regulations are strict, and technical debt is expensive, the second approach is almost always the better choice.
At Modeso, we take full ownership of both your core application and its integrations. Our product owners in Zurich work with you to understand not just what needs to connect today, but where your business is heading. Then we build integration architecture that can evolve with you.
If you're dealing with integration challenges as part of a larger modernization or software development project, let's talk. We'll start with a free alignment workshop to understand your system landscape and help you determine the right integration approach.
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