2. Third party integration

Two systems that rely on some common data but are provided by different companies may be able to talk to each other via a third-party integration. This is where one company publishes an API (Application Programming Interface) or SDK (Software Development Kit) which enables other systems to communicate with it.

Examples of third-party integrations are:

• An EPOS system that sends sales, purchases and payments to an accounting system
• A delivery service that sends orders to an EPOS
• A booking system that sends deposit information to an EPOS
• An EPOS that sends card payment amounts to a connected card machine

Pros:

• Ongoing manual effort is reduced or removed
• Elimination of manual keying errors, or deliberate fraud
• Wide choice of multiple different third-party systems for each function

Cons:

• Potential up front cost to implement for custom integrations (though not if the systems already have an integration available)
• Data available to systems is limited to exactly what is shared, which can limit what you can do with the integration
• Issues require two companies’ resources to resolve, making them difficult to troubleshoot & fix
• Feature requests or improvements will involve buy in from two companies 

3. Integrated by design

A system that is built to include multiple functions, that would usually require separate systems, is integrated by design. There is no need for a third-party integration as the functions are part of one system so already have access to the same data.

Examples of integration by design are:

• An EPOS system that incorporates a mobile ordering system so orders feed straight into the EPOS
• An EPOS system that incorporates a booking system, so bookings can be accessed on the EPOS and deposits easily accounted for
• An EPOS that incorporates a staff scheduling system, so sales information is readily available for forecasting & wage percentage calculations

Pros:

• Ongoing manual effort is reduced or completely removed
• Removal of manual keying errors
• One system to log in to
• One system for staff to learn
• One point of contact for any questions or issues
• Each function has access to all the data of all the incorporated functions leading to functionality that may not be possible with third party integrations
• Improvements and feature requests only involve one company's buy in

Cons:

• Limited choice of genuine Integrated by design systems
• May involve some compromise on features vs multiple third-party systems

Conclusion

There is likely a place in most businesses for each type of integration. Where data transfer between systems is simple and infrequent, some manual effort to pass data from one system to another may be preferable to a complex and costly integration.

Third party integrations are a great option where two very different and complex systems need to share or pass data from one to another, and the ongoing effort of manual integration would prove very costly over time, such as an EPOS passing data to an accounting package.

Integrated by design is the optimal level of integration if you find can the key tools you need in one system, but may still need to be supplemented by manual or third-party integrations in areas where you have particularly complex or niche requirements.