DATA INTEGRATION

Data integration is the process of combining data from different sources into a single, unified view.
Integration begins with the ingestion process, and includes steps such as cleansing, ETL mapping, and
transformation. Data integration ultimately enables analytics tools to produce effective,
actionable business intelligence.
There is no universal approach to data integration. However, data integration solutions typically involve
a few common elements, including a network of data sources, a master server, and clients accessing
data from the master server.
In a typical data integration process, the client sends a request to the master server for data. The master
server then intakes the needed data from internal and external sources. The data is extracted from the
sources, then consolidated into a single, cohesive data set. This is served back to the client for use.

Data integration in the purest sense is about carefully and methodically blending data from different
sources, making it more useful and valuable than it was before. IBM provides a strong definition, stating
“Data integration is the combination of technical and business processes used to combine data from
disparate sources into meaningful and valuable information.”
The key terms here are “combining data… into meaningful and valuable information.” That’s not just
about moving data from one place to another or pouring several spouts of data into a single repository.
It’s about making the data comprehensive and more usable.

View or Version
As for the “technical and business processes” mentioned in the definition, there is a wealth of
information out there about them. There are methods of bringing data together into an integrated view
and there are techniques for bringing data together physically, for an integration version. You can argue
that both are a type of data integration, the difference being whether the data was physically moved
and/or manipulated. Below are a few common data integration approaches.
#1 Data Consolidation
Data consolidation physically brings data together from several separate systems, creating a version of
the consolidated data in one data store. Often the goal of data consolidation is to reduce the number of
data storage locations. Extract, transform, and load (ETL) technology supports data consolidation.

ETL pulls data from sources, transforms it into an understandable format, and then transfers it to
another database or data warehouse. The ETL process cleans, filters, and transforms data, and then
applies business rules before data populates the new source.

#2 Data Propagation
Data propagation is the use of applications to copy data from one location to another. It is event-driven
and can be done synchronously or asynchronously. Most synchronous data propagation supports a two-
way data exchange between the source and the target. Enterprise application integration (EAI) and
enterprise data replication (EDR) technologies support data propagation.
EAI integrates application systems for the exchange of messages and transactions. It is often used for
real-time business transaction processing. Integration platform as a service (iPaaS) is a modern approach
to EAI integration.

EDR typically transfers large amounts of data between databases, instead of applications. base triggers
and logs are used to capture and disseminate data changes between the source and remote databases.

#3 Data Virtualization
Virtualization uses an interface to provide a near real-time, unified view of data from disparate sources
with different data models. Data can be viewed in one location, but is not stored in that single location.
Data virtualization retrieves and interprets data, but does not require uniform formatting or a single
point of access.

#4 Data Federation
Federation is technically a form of data virtualization. It uses a virtual database and creates a common
data model for heterogeneous data from different systems. Data is brought together and viewable from
a single point of access. Enterprise information integration (EII) is a technology that supports data
federation. It uses data abstraction to provide a unified view of data from different sources. That data
can then be presented or analyzed in new ways through applications.
virtualization and federation are good workarounds for situations where data consolidation is cost
prohibitive or would cause too many security and compliance issues.

#5 Data Warehousing
Warehousing is included in this list because it is a commonly used term. However, its meaning is more
generic than the other methods previously mentioned. Data warehouses are storage repositories for
data. However, when the term “data warehousing,” is used, it implies the cleansing, reformatting, and
storage of data, which is basically data integration.

The Upsides
There are four arguments in favour of tighter systems integration:
Boosting Productivity – dealing with several standalone systems can be time consuming, with
employees manually inputting data into separate programs, which can cause problems if any of that
data is entered incorrectly.
Better Management Information – it can be nigh on impossible to get a 360° view of how the business
is performing when you run several different systems and there can be a time lag for managers knowing
what’s actually going on until information is manually inputted.
Cost – the cost and time involved in maintaining and updating several systems can be big.
Greater Customer Satisfaction – having multiple systems mean it can take extra time to fulfill clients’
orders or respond to their enquiries and complaints.

The Downside
Then, there are large security considerations. Today, if your systems are fully integrated and any one of
them is hacked into, then the attacker can probably have almost unimpeded access to all of your
company data. Moreover, integrating them can actually create brand new vulnerabilities, because the
gateways through which data flows from one system into another are the natural weak points that could
be exploited by external hackers or disgruntled employees.
E-commerce is one of the current driving factors of system integration. Customers who are doing
business with you over the internet want to see their account details, check the availability of a product
and when it can be delivered before buying it online. But that means they need access to your customer
relationship management, stock, sales and accounting systems online, thereby opening doors into your
company databases. You need to be sure those doors have very secure locks on them.
All too often, companies think they need to bring their customer database virtually up to the front door
of web access, to make it easier to do business online. But that creates a major vulnerability to hackers. I
think we all need to understand – customers and businesses alike – that we take risks in doing business
over the internet. There’s a balance to be achieved – do we want e-commerce to be as easy as we’d all
wish, or as secure as possible?

So what’s the answer?

Well, systems integration has huge upsides. Saving costs, bringing greater flexibility to the business, and
providing better information to people throughout the company should, if they’re done right, improve
customer service and, therefore, loyalty.
But systems integration also has some major potential downsides, concerning the accuracy and security
of the data that flows between your systems. For me, there are three key questions to ask before
integrating any more of your company systems:
Is it really necessary?
Does it bring clear benefits?
How big are the accompanying risks?
There’s still a place for having systems that aren’t integrated, even within small businesses, or for having
ultra-secure systems in place for your most sensitive data. It wasn’t so long ago, for instance, that we
wouldn’t have dreamed of integrating the payroll system. That was always seen as best handled by a
specialist computer bureau, providing a good and confidential service, with no undue risk.
We need to become much cleverer in the modern online world. Just because we need a client’s
purchases to be posted to his account in “real-time”, does that have to mean that all the sales data need
to be open to any intruder who barges in? Where are the “integration breaks” that would prevent all the
client account records being stolen if a company was hacked?
It’s important for every business to remember that data is both your biggest asset and your biggest
responsibility. So, to successfully integrate your business systems you need to make the most of the
potential upsides, while doing your best to protect against the downsides. Integration is good, but not at
any cost!

Relation to Accounting
Working in an accounting field will expose you to a large number of data and of course, from different
sources and different timelines or periods. So having data integration would really help accountants in
doing their work efficiently and effectively.
These data are obtain from emails, different kind of software and hard copies and for them to utilize and
translate it for entity’s decision making, it needs to be analyzed collectively. So if we have data
integration, like master server where we obtain needed files and report we don’t need to log in to
multiple accounts, retyping and reformatting before analysis could happen.
Having data integration is also useful unification systems especially in factories. Example are different
departments in a factory which needs data allocation like supplies or inventories. And by data
integration every department can easily access data and financial information. So having data
integration can help from purchasing department, to accounting department to receiving department in
their daily operations. Another scenario may be using of different software and application for specific
field like accounting, sales and inventory and to get that productivity, better management where
manual input is not a problem anymore. Data from different areas can have a summarize report with
the help of data integration.
So overall, data integration can help in building a centralized system that enhances data collection and
storage, which is relatively cost and time efficient.
REFERENCES
2019. What is Data Integration? Retrieved from https://www.talend.com/resources/what-is-data-
integration/
2017, December 6. 5 Types of Data Integration You Need to Know. Retrieved from
https://www.globalscape.com/blog/5-types-data-integration
Briercliffe, M. 2016 June 24. The pros and cons of systems integration for small businesses. Retrieved
from https://www.hiscox.co.uk/business-blog/pros-cons-systems-integration-small-businesses/

Submitted by:
Dela Rama, Roevin
Eusebio, Sarah Patricia
Mojica, Merwhin
Sevilla, Angelito

BSA 2-11