What started as a set of tools to help e-commerce companies link order and fulfilment systems together is now being adopted by companies across the board and has become a key enabler for digital transformation efforts. That’s right, I’m talking ‘iPaaS’ or Integration Platform as a Service (if you prefer long-hand).
Not to be confused with ‘PaaS’ (Platform as a Service), iPaaS tools allow us the capability to quickly and easily connect distinct systems together, often without writing any code. When I previously wrote about low-code systems, I referred to them as ‘glue tools’ and they were still in their relative infancy. Fast-forward a few years and they are the cornerstone of nearly every transformation effort I’m witnessing or involved in.
What makes these platforms so valuable to digital transformation efforts?
What ‘is’ digital transformation?
Before I answer the key question, it’s worth defining what we mean by digital transformation. Whilst different people define it in different ways, if you zoom out, we are nearly always trying to do three key things: consolidate, integrate and automate and underpinning all of these is the requirement for good data.
How does iPaaS help?
A solid data foundation
For digital transformation to be successful, the right people need access to the right data at the right time. We need to capture data from different places, easily format it into well-defined structures, and feed it into a centralised location (removing any data silos). An iPaaS tool allows us to do just this without having to amend any systems and (probably) without writing any code.
By supporting consolidation efforts
Ok, so this isn’t the strongest point in this article, but it’s worth mentioning non-the-less. I’ve worked with clients who have dozens (yes dozens) of additional micro systems that are there to simply move data around or perform minute tasks. These cost money to build and time (and more money) to manage. Such functionality can be consolidated into a single iPaaS tool.
By integrating systems
The clue’s in the name (!), but the number of possibilities is almost limitless. Modern iPaaS tools now support a multitude of integration methods, meaning that the vast majority of systems (even some of the really old ones) can be integrated to pass data with minimal effort.
By facilitating automation
The dream for most of us is integrated and automated systems which allow our teams to focus on real value-add activities. Modern iPaaS tools provide a means to get there by allowing us to define workflows, process and transform our data, incorporate business logic and report on outcomes. AI is also becoming more prominent within these tools, and you can also integrate with external AI tools if you need something a bit more niche or powerful.
In summary
I can only see iPaaS tools becoming more prominent over the coming years. The opportunities they offer us, and the potential return on investment cannot be ignored. The doubters will point to key dependency and single point of failure arguments, and they are right to do so. But there are risks in every piece of technology we implement, or someone else in the supply chain implements (I’m writing this just after the CrowdStrike outage). Implemented as part of a well-thought-out digital strategy, and they will be a real game changer for many.
