Integration Platform as a Service (iPaaS) takes process automation and data integration to the next level with a revolutionary approach. 

Many companies are seeking to become data-driven organizations these days, but the best path toward achieving that goal may not be evident to them. Marshaling data to guide enterprise decision-making requires the integration of processes from multiple applications and from internal and external data sources. That sounds like a cumbersome and expensive proposition that would require a great deal of in-house IT expertise. But, is that really the case? 

The ongoing development of cloud computing solutions points toward a potential direction for aspiring data-driven enterprises. 

The “As a Service” Ecosystem

Software as a Service (SaaS) is a subscription model in which a cloud provider develops and maintains applications and provides updates. SaaS customers often find that having a cloud provider manage hardware, software, and security allows them to streamline operations and scale and upgrade their business solutions faster than maintaining systems and software on their own.  

Platform as a Service (PaaS) comprises a suite of cloud services designed for application development and data management. Those capabilities empower developers to efficiently construct mobile and web applications and to incorporate cutting-edge technologies such as artificial intelligence (AI), chatbots, blockchains, and the Internet of Things (IoT).  

Infrastructure as a Service (IaaS) hosts computing resources in a cloud environment, allowing companies to shift their data infrastructures to the cloud. IaaS users rent computing power and storage resources, accessing them on demand and paying for the resources they actively use.  

Integration Platform as a Service, or iPaaS, takes cloud offerings to the next level by emphasizing integration across enterprises and supply chains. iPaaS replaces the linear connections of older integration approaches with an any-to-any integration model.  

“The biggest difference between iPaaS and more traditional approaches is that it connects all of the systems and applications that an enterprise is running,” says Joanna Dobrzyńska, a business solutions manager at Comarch, a global software and IT infrastructure provider. “It also is a kind of middleware in the sense that it connects different applications and services in order to streamline data flows within an organization and with its partners and suppliers.”

The Four Benefits of iPaaS

1.Integration

Where SaaS grants access to software applications via the cloud, iPaaS focuses on integrating and orchestrating data flows across various software systems, encompassing services offered by SaaS, such as ERP, CRM, WMS, billing, and sales applications within a single platform. It’s also worth noting that iPaaS isn’t confined to cloud-based solutions; it also extends integration to on-premises systems.  

PaaS and iPaaS both offer service-provisioning platforms, but, while PaaS focuses on the development and deployment of applications, iPaaS emphasizes integrating software solutions and data. IaaS and PaaS often result in point-to-point integrations which don’t result in a unified enterprise structure, and IaaS, like PaaS, does not address systems integration. iPaaS, by contrast, provides infrastructure while also facilitating integration and the creation of reusable services. 

2.Usability 

From the user’s perspective, iPaaS is easy to implement and the processes that it facilitates are covered by the iPaaS provider. “It expedites the creation of these essential integration pathways without requiring extensive IT resources or dedicated development teams. What is very special about this type of solution is that it opens the IT world to non-IT people,” says Kenneth Taylor, business development manager at Comarch. Business users access iPaaS through a centralized web interface, which provides centralized management and monitoring of applications, processes and data flows.  

Dobrzyńska adds, “Companies reduce the costs of their IT departments, liberating them from the obligation of implementing, updating and maintaining complex in-house applications, as it’s being outsourced to the iPaaS provider.”    

3.Scalability 

iPaaS is also a scalable solution, which means that it is not necessary to set up all the applications and systems that a user would like to connect from the very beginning. “But when an organization’s business grows,” says Dobrzyńska, “they can scale the solution to add applications as required.”  

Scalability is especially important for companies expanding their market reach. A centralized hub implemented across divisions worldwide improves efficiency and oversight as an enterprise adds partners and suppliers and allows companies to add applications and functionality that ensure their compliance with laws and regulations in diverse markets. Providers offering iPaaS typically present a global infrastructure, simplifying scalability and global deployment.  

4.Flexibility

iPaaS also represents a flexible solution in the sense that it can deploy different types of integration methodologies, such as application programming interfaces (API) as well as real-time and batch integrations. The platform can also be built within a multi-tenant architecture so that the cloud service provider can serve multiple customers simultaneously.

 “Taken together, all of this makes iPaaS more of a revolutionary than an evolutionary change in how systems and data are integrated and managed,” says Dobrzyńska. 

iPaaS vs. EDI  

iPaaS may be thought of as a contemporary evolution of electronic data interchange (EDI), with a focus on advanced integration and data transmission within today’s dynamic technological environment. EDI, when it was first introduced, transformed how structured data was exchanged between companies. iPaaS similarly facilitates standardized data exchanges, streamlines workflows, automates processes, and ensures real-time data connectivity — but in a way that is enhanced and extended for the digital era.  

“These characteristics enable more efficient data exchanges and optimized collaboration with customers, partners and stakeholders, harnessing the advantages of modern integration techniques and cloud computing,” says Taylor.  

These modern integration techniques include multiple standard communication protocols such as SFTP, AS2, API, web services, and common data formats such as JSON and XML — all of which are supported by iPaaS. In that way, iPaaS users enjoy multiple options when it comes to enabling business-to-business integration with external partners, customers and suppliers.  

All of that “makes iPaaS very helpful in terms of faster partner connectivity and onboarding,” says Dobrzyńska, “and in promoting interoperability and a seamless flow of data. 

“And we have to bear in mind,” she adds, “that very often we are talking about thousands of connections between different companies.” 

iPaaS also provides centralized visibility into EDI data, allowing an organization to better monitor and control processes and take EDI integration to the next level. The value of data interchange, notes Dobrzyńska, “is not only about exchanging the data with your business partners but also about what you can take from the data.”  

By using tracking tools, for example, an organization can monitor how fast customers are paying and how quickly they are realizing revenue. “By managing multiple applications and data flows in one place, users can check transactions and analyze data to generate reports on key performance indicators,” says Dobrzyńska.

 iPaaS and E-Invoicing Mandates: A Future-Forward Approach  

Besides enabling business-to-business integration, iPaaS also facilitates the exchange of documents with governmental organizations, which is becoming increasingly important in jurisdictions where the real-time reporting of financial documents, such as invoices, is being mandated.  

These requirements were introduced to prevent tax evasion and promote transparency but can also help organizations reduce errors and gain insights from digitized data. A growing number of countries, particularly in Europe and Asia, are requiring that businesses generate, transmit and receive invoices in electronic format instead of traditional paper-based invoices and PDFs.  

“Non-compliance,” notes Taylor, “can disrupt an organization’s cash flow and expose it to financial penalties.” 

The challenge when it comes to integrating data flows with governmental agencies is that there are different platforms and formats that are being used in different geographies, and there are diverse regulatory requirements for documents to be compliant with local rules.  

“iPaaS platforms offer a wide range of digital platforms connections,” says Dobrzyńska, “so it's easier to integrate with the many applications and systems that are in the market, including those mandated by governmental e-invoice regulations.” 

What’s Next for iPaaS? Automation  

Dobrzyńska notes the chief benefit that supply chains can expect to derive from using iPaaS is the seamless integration of applications and systems. Many supply chains handle huge volumes of data, especially in industries such as general consumer goods, where there are numerous and varied products that are being sold, inventoried, and shipped, as well as sectors that place a great deal of reliance on outside suppliers and providers, such as in the pharmaceuticals and automotive industries. 

“With iPaaS, industries that rely on many external providers increase visibility with real-time data, which allows for better tracking of inventory, orders and shipments,” says Dobrzyńska. “That also helps forecasting and reducing stock outs and can also enhance customer satisfaction.” 

According to Taylor, organizations can also expect to see labor cost savings as a result of the automated and simplified integration process. “They’ll have less need for IT employees and be able to maximize operational efficiencies,” he adds. 

As iPaaS develops, artificial intelligence and machine learning will continue to play a major role in data integration and analysis. “In the future, AI-powered integration platforms will become more popular to increase data transformation and validation,” says Dobrzyńska, and iPaaS will facilitate one big application and data ecosystem that will automate much of the application development and maintenance and the data analysis activities currently performed by human workers.  

In that future state, she says, “people will be able to focus more on strategic enterprise activities and less on playing with data.” 

Resource Link: www.comarch.com