System Integration – the foundation for sustainable digitalization

Digitization has long been a priority, but true digital transformation requires more than just implementing new systems. Today’s organizations use an increasing number of specialized platforms for finance, customer relations, production, HR, analytics, and reporting. It’s a natural step toward greater functionality—but it also creates new challenges. The systems often work well individually, but poorly together. Information becomes fragmented. Processes stall. Manual handling, Excel workarounds, and lack of visibility become the norm. And perhaps most critically: decisions made at both the executive and operational level are often based on incomplete or outdated data.

This is where system integration makes a difference—not as a technical fix, but as a strategic enabler.
The ability to connect IT systems is now essential for:

• Creating unified workflows
• Ensuring data quality and accurate reporting
• Automating processes
• Scaling the business efficiently

At the same time, the landscape has changed. From point-to-point connections and locally installed solutions to cloud-based platforms where data moves in real time, is automatically monitored, and managed according to regulatory requirements. This brings entirely new demands—but also new opportunities.

In this article, we will cover:

• What system integration actually means in practice
• Why it has become business-critical for both CFOs and CTOs
• The common pitfalls that slow down progress
• How to build a sustainable, flexible integration strategy

We also show how Lundatech Business Cloud can serve as the hub of your digital infrastructure – a platform that enables the shift from fragmented IT to a cohesive, data-driven organization ready to make decisions based on reality, not gut feeling.

What is system integration?

System integration is about connecting different IT systems, applications, and databases so they can communicate with each other – automatically, securely, and in the right format. The goal is to create a cohesive and accessible flow of information throughout the organization – where data moves freely between functions, platforms, and processes.

In practice, this means that:

• Reduce duplication of work and manual data handling
• Gain access to consistent, accurate, and up-to-date information
• Create the foundation for automation, analytics, and data-driven decision-making
  

Types of System Integration
Det finns flera sätt att integrera system, beroende på organisationens behov och teknikstack:

    1.    Point-to-point integration
Each system connects directly to another via a specific integration. Simple at first, but quickly becomes unsustainable in larger environments.

    2.    Middleware / ESB (Enterprise Service Bus)
An intermediary software that manages communication between systems. Common in larger organizations, but can be heavy to maintain and develop.

    3.    iPaaS (Integration Platform as a Service)
A cloud-based integration platform that enables centralized management of all integrations. Scalable, quick to set up, and often comes with built-in support for security, monitoring, and data modeling.

Lundatech Business Cloud is an example of an iPaaS solution designed for both cloud services and on-premise system environments.

What can be integrated?
System integration isn’t just about technical platforms – it includes all business-critical data sources:

• ERP systems: Finance, inventory, procurement
  
• CRM: Customer service systems, email tools, web forms
• HR systems: Payroll, intranet, skills databases
• Production/Operations: IoT platforms, M2M solutions
• BI tools: Data warehouses, dashboards, reporting engines
  

When these systems are connected, a comprehensive view emerges – enabling decisions to be made on the right foundation, at the right time.

What’s What? – When the Terms Get Confused
The term system integration is often mixed up with related technologies and concepts:

• API (Application Programming Interface): A technical interface that enables communication between systems – but says nothing about structure, security, or flow.
• ETL (Extract, Transform, Load): A process for moving data between systems, often in batches. Commonly used for reporting, not real-time integration.
• Data platform: A centralized environment for consolidating and analyzing data – but the data still needs to be integrated first to get there.

System integration isn’t just about data moving – it’s about how, why, between which systems, and under what business rules.

Why does this matter?
A clear understanding of what system integration is (and isn’t) is essential for building the right structure. It determines:

• Which technology you choose
  
• Which problems you solve
• And how quickly and securely you can grow your business

Source:
¹ IBM Knowledge Center, “System Integration”

Why is system integration so business-critical today?

The ability for IT systems to communicate has long been a technical goal. But as organizations have become more digital, specialized, and distributed, system integration has evolved from a technical nice-to-have into a foundational business necessity.

According to Forrester, companies use an average of over 900 cloud applications, but fewer than 30% of them are integrated.¹

At the same time, pressure is increasing to make real-time decisions, automate more workflows, and meet new regulatory demands. Simply put, continuing to work in isolated systems is no longer sustainable.

Fragmentation Is the new normal
A typical mid-sized organization today has:

• An ERP system for finance, procurement, and inventory

• A CRM for customer interactions and sales

• An HR system for employee data and payroll

• One or more BI tools for analytics and reporting

• And Excel as a manual bridge between them

When these systems aren’t integrated, it quickly leads to:

• Manual data transfers → increased risk of errors and time loss
• Inconsistent figures → low trust in reports
• Fragmented customer experiences → reduced loyalty
• More custom solutions → growing IT complexity

And perhaps most importantly: the organization loses its ability to act in real time.

What it means for different roles

From a CFO Perspective:
System integration affects everything from cost control to regulatory compliance.

• Increased manual handling → higher personnel costs
• Delayed month-end closings → weaker decision support
• Data errors → risks in reporting and compliance
• Isolated KPIs → reduced business insight

Lundatech’s experience: A well-integrated environment frees up resources—from administration to analysis.

From a CTO Perspective:
CTOs see integration gaps as technical debt and barriers to innovation.

• Every new system requires a custom solution

• Maintenance and troubleshooting consume the development budget
  

• Poor data structure → limits automation and AI
  

• Unreliable data connections → increased regulatory risk
  

When integrations are missing, every change becomes expensive, slow, and high-risk.

Business value by the numbers

• Companies with well-integrated systems reduce support costs by 30–40%

• They cut the time to produce reliable decision-making data in half

• 98% of IT leaders believe integration is critical to achieving their business goals²

These numbers don’t come from lofty visions – they reflect real impact in companies that have taken a structured approach to system integration.

Sources:
¹ Forrester: “State of Modern Enterprise IT 2023”
² MuleSoft Connectivity Benchmark Report 2023

Common challenges in system integration

System integration is often highlighted as a gateway to digitalization – but in practice, it’s one of the biggest obstacles to growth, automation, and insight. Over time, many organizations have built a system landscape that has become increasingly complex, inconsistent, and difficult to manage. Instead of building for the future, they’re often forced to “put out fires” in day-to-day operations.

Here are five common – and often costly – challenges we see:

Silo mentality and lack of visibility

When each system is implemented in isolation, without a shared structure, silos emerge.
This leads to:

• Fragmented data and duplicate entries

• Poor collaboration between departments

• Limited understanding of how systems impact each other

• Missed opportunities for automation and efficiency

The result? Decisions are made without a complete picture – and often based on the wrong assumptions.

Custom-built integrations and technical debt

Many organizations build integrations reactively as quick fixes for urgent needs. Over time, these become:

• Difficult to oversee

• Dependent on individual employees

• Expensive to maintain and update

According to Deloitte, 70% of IT leaders report that legacy integrations directly hinder innovation.¹
The result? The organization becomes trapped by its own infrastructure.

Incorrect or delayed data

When integrations fail, they trigger chain reactions:

• Data becomes outdated before it reaches decision-makers

• Manual handling increases the risk of errors

• Invisible data issues may underpin strategic decisions

The result? Trust in the data is lost – and with it, the willingness to work data-driven.

Lack of traceability and security

New regulations like GDPR and NIS2 impose strict requirements on data protection and transparency. Without a clear integration structure, it becomes difficult to:

• Know where data is stored and how it flows

• Distinguish ownership, changes, and permissions

• Protect against vulnerable integration points

The result? Increased compliance risks and larger attack surfaces.

Limited ability to adapt

When integrations are built only to reflect the current state, they quickly become a barrier. Every new system requires:

• A new custom solution

• Risky rebuilds

• Time-consuming testing and double maintenance

The result? Innovation is stifled already in the planning phase, because the infrastructure can’t keep up.

Why this doesn’t solve itself

All of these challenges share a common issue: the problem isn’t the technology itself, but the structure and governance of the integrations. Want to see how Lundatech Business Cloud addresses these challenges in a structured, scalable, and future-proof way? Read more about how we build integration environments that last – even as your business evolves.

Source:

¹ Deloitte Insights: “Legacy Systems and Technical Debt” (2022)

Key Components of a modern integration strategy

Connecting two systems is rarely difficult. The real test comes over time – when new systems need to be introduced, old ones replaced, and the business evolves. That’s when it becomes clear whether the integration was built for long-term sustainability or just “made to work for now.” A modern integration strategy requires more than technology – it requires structure. Here are five components we consistently see in successful organizations:

1. Centralized Integration Platform

Many organizations manage integrations as isolated initiatives. This quickly leads to technical debt and poor visibility. By centralizing integration management, you can:

• Build, schedule, and monitor all flows from one place
• Troubleshoot faster
• Clearly see what’s working – and what’s not

Integration Platform as a Service (iPaaS) is now the most established way to achieve this.
Lundatech Business Cloud is an iPaaS solution that supports both cloud-based and on-premise system environments. 

2. Standardized data model
Systems speak different languages. Some call it “customer,” others “client.” Some use dots in dates, others slashes. A standardized data model:

• Ensures data can be compared and analyzed
• Eliminates ambiguities in reports
• Lays the foundation for BI, AI, and automation

The data model becomes the organization’s “shared vocabulary.” Without it, you risk misinterpretation at every step.

3. Built-in data quality and validation
No integration is better than the data it carries. If incorrect information silently flows through the system chain, it can create major consequences without being noticed. That’s why you need:

• Automated validation rules
• Alerts for anomalies
• Logging for traceability and continuous improvement

According to Gartner, poor data quality can account for up to 12% of lost revenue annually in large organizations.¹

4. Compliance within integrations
Data protection is no longer just an IT issue – it’s a leadership concern. When integrations happen without oversight, the risks increase for:

• Unintended data sharing
  
• Unclear data ownership
  
• Difficulty meeting requirements from GDPR, NIS2, and industry-specific regulations
  

A modern integration platform must have compliance built in – not added as an afterthought.

5. Scalability and resilience to change
The system environment isn’t static. New tools, acquisitions, expansion – all require an infrastructure that can adapt without having to rebuild the entire ecosystem. A sustainable strategy means:

• New systems can be connected without breaking existing flows
  
• Integrations aren’t disrupted by internal changes
• The platform grows with the business – not against it
  

That’s why, for example, Lundatech Business Cloud is designed to be platform-independent and future-proof.

Summary:
A modern integration strategy isn’t an IT roadmap. It’s a business-critical foundation to:

• Reduce costs
  
• Improve the quality of decision-making data
  
• Minimize risk
  
• – And most importantly: enable growth

Source:
¹ Gartner: “The Cost of Poor Data Quality” (2021)

Integration in practice – two perspectives: CFO & CTO

System integration isn’t just a technical project – it’s a way to create control, efficiency, and growth in an increasingly complex environment. But what’s most important to address can vary depending on the perspective.

Here are two common scenarios:

For the CFO: Decision support you can trust

The challenge:
The finance department often deals with data from ERP, CRM, sales, and logistics – but in different formats, with varying update frequencies, and no shared structure.

The result is patchwork reporting:

• Month-end closings are delayed

• Excel becomes the primary tool

• KPIs are hard to defend in meetings

System integration makes it possible to:

• Automatically gather data into BI and reporting tools
• Create a unified data model that minimizes errors
  
• Get real-time numbers without double-checking
  
• Phase out reliance on manual handoffs
  

The impact:
From "firefighting" to proactive financial management. Reporting becomes faster, more reliable – and time can be spent on analysis, not data patchwork.

CFOs use Lundatech Business Cloud to bring together data from ERP, CRM, and reporting platforms into one version of the truth.

For the CTO: Stability, scalability, and technical control

The challenge:
For technology leaders, the issue is often a system landscape that has grown organically – with custom-built integrations, poor documentation, and dependencies that make every change risky.

• An upgrade in one system can break others

• Support tickets spike with each new integration

• Innovation is slowed down by technical debt

System integration enables:

• A central integration platform with monitoring and governance
• Standardized connections with full traceability
  
• Lower maintenance through reusable modules
  
• The ability to replace components without rebuilding the entire system
  

Impact:
The IT organization gains control over its architecture – and can focus on improvement rather than "fighting daily fires". Less dependence on individuals, more robustness in the structure.

CTOs use Lundatech Business Cloud as the hub of a future-proof and well-governed integration environment.

A shared goal – but different paths to get there

Whether you’re in finance or IT leadership, the need is the same: a structured, secure, and scalable integration strategy that frees up time, reduces errors, and strengthens the business.

Next step – take control of your system flows

Getting started with structured system integration doesn’t have to mean a massive overhaul. What matters most is starting with the right foundation:

• A map of your systems
• An understanding of your most critical data sources
• And a platform that can grow with you

At Lundatech, we help you from initial mapping to fully operational flows – and ensure you gain both control and visibility along the way.

Book a meeting with Lundatech today!