Your ERP system needs to talk to other apps or programs your company uses. That’s where integration comes in and we studied API integration and Pre-built Integration types for you in this article.
When discussing ERP (Enterprise Resource Planning) integration, you'll often encounter the terms "API integration" and "pre-built, direct integration" (sometimes referred to as native integration or simply pre-built integration). Let's clarify the distinction:
API (Custom) Integration
- How it works: This method uses APIs (Application Programming Interfaces) as the primary way to connect different software applications, including your ERP system. APIs act as messengers, allowing different systems to communicate and exchange data in real-time or as needed.
- Key characteristic: API integrations can be custom-built for specific use cases and are flexible enough to integrate both legacy systems and modern cloud-based applications.
- Flexibility & Control: You have more granular control over the integration process and can tailor it to your specific business logic and unique requirements.
Pre-Built (Direct) Integration
- How it works: These integrations are built directly into the ERP software itself, providing seamless data integration without the need for third-party APIs or custom coding.
- Key characteristic: They are typically designed for common industry-specific process integration challenges and offer standardized features.
- Limitations: They are limited to the pre-built capabilities of the software and may not cover every edge case or unique requirement of your business.
| Feature | API Integration | Pre-Built, Direct Integration |
| Flexibility & Customization | High - can be tailored to unique workflows | Limited - standardized features may require process adaptation if pre-built integration was not designed for the particular industry challenges |
| Deployment Time | Can be longer, especially for custom solutions | Typically, faster to deploy |
| Cost | Can have a higher initial investment for custom solutions | Generally lower upfront costs |
| Control | Offers more fine-tuned control over the integration process | Provides a more standardized approach, limiting customization |
| Maintenance | May require more maintenance and updates as systems change | Vendor-provided support and automatic updates are common |
- API integration offers more flexibility and control, allowing you to build integrations that precisely meet your unique business needs. However, it can require more time, technical expertise, and cost.
- Pre-built integration provides faster deployment and lower upfront costs, making it a good choice for standard, industry-specific integration scenarios. However, it might not offer the same level of customization and flexibility as API integrations.
In essence:
The choice between the two, or the combination of both, depends on your specific business requirements, complexity of the integration, time-to-market constraints, and available resources.
