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A look at Digibee’s enterprise iPaaS demonstrating how we help organizations solve complex integration challenges across critical systems in a rapid, cost-effective way.

How IT Teams are Dealing with Enterprise Integration

Today’s enterprise development professionals face new and greater challenges than their predecessors. Demand for digital transformation projects is spiking as organizations strive to maintain a competitive edge in a global, digital-first market. At the same time, budgets are tightening, and skilled developers and system architects are in short supply.

Enterprise integration architecture is being pushed down the ever-growing queue of technology projects IT teams face. Development teams are feeling the pressure as they balance regular systems maintenance with new tasks and innovation, often with only a skeleton crew. And no matter how hard they work, they’re often viewed by other departments as a roadblock to progress rather than business enablers.

But this is why integration is important. Legacy strategies and solutions simply cannot address the enterprise issues of today. So how are developers and system architects dealing with these challenges? What role do they play in enterprise integration strategy, and what will it mean for their departments?

>> Book a personalized demo with our team of experts and see how Digibee’s iPaaS will bring efficiency to your business. 

Is IT Responsible for Integration?

Enterprise integration can be a game-changer for companies – but it’s no small task. Where does the responsibility of handling the challenges of integration land?

Interestingly, 50% of enterprises expect to rely on internal development teams to implement their integration strategy, but there is some disconnect about who the key player will be. In general, most enterprise IT professionals are relatively evenly split on whether the ultimate responsibility lies with the development team or the C-suite. But when we dig a little deeper, we find disparities between responses from those two groups:

  • 65% of CIOs feel the C-suite is the main stakeholder in integration
  • 72% of developers/architects think IT is the main stakeholder

Determining integration best practices and addressing implementation challenges might not be easy if internal stakeholders can’t agree on who plays the key role.

Implementation of Integration is Lagging

Successful implementation of enterprise integration architecture still eludes the majority of large organizations. Most enterprise development teams are still working without the benefits integration can offer – a problem that will only worsen as staff shortages climb and the urgency to execute digital transformation strategy climbs.

71%

actively planning to adopt new integration technology in 2023

79%

report that system downtime was significant,
impactful, and more than expected

75%

rely on integration to resolve IT backlog projects

59%

reported spending up to one quarter
of their IT budget on integration

*Data in this table, originally published in October 2022, was updated to reflect data from the 2023 State of Enterprise Integration Report published in April, 2023.

More concerning still, in 2022, the majority of enterprises who have yet to implement an integration solution (94%) aren’t even considering a specific enterprise integration solution.

Why is Integration Important?

Despite low execution numbers, 57% of organizations say integration is critical to their business strategy, and 93% acknowledge their organization would benefit from it. But why?

Piecemeal Approaches are Failing

Without an integration strategy in place, many IT teams have been forced to resort to short-term fixes for immediate problems at the expense of long-term development solutions. This tactic has only increased the amount of time developers spend on maintenance and crisis response rather than building for the future. 98% of organizations have had to rebuild business-critical integrations in the last year.

Number of key applications running

35%: 1-3
49%: 4-6
10%: 7-9

Number of integrations rebuilt in the last 12 months

50%: 1-5
48%: 6-10
1%: More than 10

Lack of Integration has Negative Effects

Many aspects of business operations and growth can suffer when enterprise integration is absent or poorly implemented. A lack of integration can 

  • Hamper efforts to innovate (48%)
  • Decrease efficiency (48%)
  • Slow response time to market changes (40%)
  • Waste organizational resources (37%)

The first and last issues on this list – hampering innovation and wasting resources – can trap enterprise developers and system architects in a continuous loop. The inability to adopt new technology solutions leaves them stuck maintaining and troubleshooting legacy systems. At a time when skilled developers are in short supply, this waste of resources limits the company’s ability to adopt new tech to support innovation.

Overcome the Challenges of Integration with Digibee

Developers and systems architects want to be the operational heroes that help their organization meet and exceed business goals, not an under-appreciated team other departments only think of when something goes wrong. Enterprise integration architecture can help IT departments eliminate data silos, remove innovation roadblocks, and demonstrate their value to the business.

But alignment from all stakeholders and a clear understanding of best practices, what works, and what won’t are key to leveraging the benefits and overcoming the challenges of integration.

The second annual 2023 State of Enterprise Integration Report from Digibee can help. We talked to over 1,000 CIOs, web developers, and system architects from enterprises across the US to gain a deep understanding of the challenges they face and the tactics they’re using. The report gives you a comprehensive, data-based look into current and future trends, as well as guidance on integration best practices.

Download your free copy today

Digibee Employee Highlight Series: Thais Tinelo Bergamo Suzuki, HRBP Customer Success, Brazil

I pegged Thais as a people person immediately after we began our conversation, so it was no surprise to learn she found her calling working in human resources. I could have chatted with her for the rest of the day about her role and the meaningful impact it has on Digibee’s culture, but we are both busy (Digi)bees and had exciting work to get back to.

Thais-Suzuki-Digibee-HR-Customer-Success

Migrate to SAP S/4HANA and Eliminate Your Technical Debt

The SAP S/4HANA migration train is still at the station, and — thanks to industry feedback — it’s there to stay. At least until 2027 when support for SAP ECC ends. However, this welcome respite is just a pause in what for many enterprises will be their most significant infrastructure upgrade in decades.

For some organizations, SAP S/4HANA may be their first serious foray to the cloud and an important step in their ongoing digital evolution. With the agility of the cloud and truly digitized processes to power them, these companies are now able to support new and innovative ways to do business. 

While it’s a given that the shift from SAP ECC vs SAP S/4HANA will require significant investments in time and resources, one of the biggest impacts on enterprises is the technical debt accrued over the years (and even decades) that SAP ECC architecture has been in use. 

1992The first SAP ERP was built based on the SAP R/3 software with various applications on top of SAP Basis (a set of middleware programs and tools). All applications were built on top of the SAP Web Application Server, with extension sets used to deliver new features and stabilize the core.
2004A complete architecture change occurred with the introduction of mySAP ERP with ERP Central Component (SAP ECC) replacing R/3 Enterprise.
2006The latest version (SAP ERP 6.0) was released, with subsequent updates using SAP enhancement packs. The most recent was SAP enhancement package 8 for SAP ERP 6.0 (released in 2016).
2015SAP S/4HANA launched.
2027Support for SAP ECC will end.

Based on the SAP ERP timeline, it is likely there are SAP customers out there who have been using the software for almost 20 years. During this time, an untold amount of customized coding has occurred to better align out-of-the-box SAP capabilities with the specific requirements of the business. Unfortunately, customized coding comes at a cost.

>> Book a personalized demo with our team of experts and see how Digibee’s iPaaS will bring efficiency to your business. 

SAP Customizations: The Price We Pay

The need for customized coding is attributed to the rigid model imposed by SAP tools requiring additional development work (and subsequent maintenance) to adapt the technology to the processes of the business.

Custom code is the biggest barrier in migrating or upgrading to a new SAP environment.” 

80% of organizations surveyed
Pillir ASUG Report, 2021

This is borne out in the numbers: 91% of SAP users rely on custom code with 90% of the code that’s in use considered to be “important” to “extremely critical”. In fact, 80% of organizations consider SAP custom code to be their biggest barrier in migrating or upgrading to a new SAP environment.

These customizations are woven throughout the business, facilitating important functions including CRM, ordering systems, inventory management, invoicing, accounting, and many other business-critical processes. In addition, almost half of the applications in question were developed more than six years ago, which means these systems and associated business logic are no longer contemporary.

Then there are the resources needed to maintain this model. In particular, the reliance on the same experts who built the customizations to manage any transitions every time a new or different platform is enabled within the existing environment. This siloing of expertise complicates efforts to innovate, especially when these experts leave the company. 

The numbers
$800K annual spend (average) on the most important (2-3) custom applications
– 1000+ custom applications for a typical customer
20-30 SAP instances running at any one time for some Fortune 500 companies

Such heavy technical debt must be reconciled. Not only does it offset profit margins, it also delays the implementation of modern technologies, which are critical to the company’s ability to compete and succeed in the market.

Eliminating SAP Custom Code with iPaaS

Custom code is most typically used to tie two systems together (also referred to as custom coded point-to-point integration). But what begins as a fairly straightforward “connect point A to point B” exercise quickly devolves into a confusing mess with overlapping connections that are difficult to maintain and impossible to scale.  

The SAP S/4HANA migration is a perfect starting point for enterprises bogged down by the spaghetti-like architecture resulting from SAP custom code. Instead, organizations can leverage enterprise integration platform as a service technology. This model uses API integrations that seamlessly connect current systems and the new SAP S/4HANA platform.  

Bauducco migrated from its legacy ERP system to SAP S/4HANA, integrating 14 systems with the new platform and precluding the need for costly customization work. Learn more →

Although data migration is a critical step in the shift from SAP ECC to S4/HANA, by leveraging iPaaS technology, there is no need for SAP customers to accommodate the customized coding that’s been created over the years, essentially eliminating their technical debt while fast-tracking their SAP cloud migration strategy.

Digibee helps enterprises evolve from customized to simplified integrations. Our iPaaS technology bridges the gap between current systems and new technologies, connecting data and platforms that have never been connected before, regardless of underlying silos or legacy infrastructure.

Accelerate Your SAP S/4HANA Migration

Instead of viewing the extension of SAP ECC end of life to 2027 as a reprieve, Digibee customers are accelerating their migration timelines to more quickly eliminate the ongoing accrual of technical debt. With spending on customized coding reaching (and often exceeding) $1M annually, the faster their migration to S4/HANA, the sooner they can reconcile the technical debt they’ve incurred (and which continues to grow). 

With Digibee’s low code integration model, our customers implement integrations 40% faster, decreasing operating costs with fewer incidents, faster recovery times, and zero downtime. These efficiencies help free up resources to focus on the higher priority S/4HANA migration work. 

Book a demo with us to learn more.

Digibee Integration Platform and Its Market Context White Paper

The Digibee methodology enables integrations between systems by focusing on the data itself rather than on the components and connections.

About this white paper

Systems integration and the exposure of APIs are complex processes that rely on technical teams and IT tools to connect on-premises and/or cloud systems, requiring knowledge, skills, and a high level of security.

Digibee drastically reduces the complexity, enabling integrations between systems by focusing on the data itself rather than on the components and connections. The methodology Digibee has crafted ensures companies have knowledge and control over their data in an agile, simple, and efficient way, while maintaining a focus on future-proof architecture.

Key highlights

Understand the digital transformation challenges organizations are facing and the role of integration:

  • Learn how the right integration solutions enable innovation instead of slowing it down
  • Get an overview of Digibee’s integration platform offerings including intuitive UI, components, cloud-native architecture, automation features, API management, event-driven architecture, support and delivery model, and more
  • Understand the features and capabilities of the integration lifecycle and how they apply to your organization

The benefits of Digibee’s iPaaS

Digibee allows you to reduce the complexity of integrations, so you can focus on your core business
values and strategies while leveraging benefits such as:

  • Robust integration architecture — based on a SaaS Platform
  • Time to Market — impacting the success or failure of organizations and/or strategies
  • Cost reduction — reallocate your development investment to another business priority
  • Operation automation — ensuring accurate data with resilience, scalability, persistence, security and robustness
  • Reduce the impact of integrations on your team – any developer can use the platform, no need for months of training and certification to competently manage an integration platform

Download Digibee Integration Platform and its market context and learn more about how our innovative model and approach to integrations focuses on data flows rather than components and connections, leveraging your organization’s power for more effective data management.