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Vertical or Horizontal System Integration: how do you choose?

If your systems are not in sync with each other, information may be lost from one software to the next, as workflows require understanding the output of one system to enter it into the next.

Most companies struggle with data synchronization and can even have security issues because their systems don’t communicate. However, SI investment is gradually increasing, as businesses recognize that having a consolidated system network helps to enhance productivity and is a must-have to automation.

There are a lot of ways systems can communicate. Vertical and horizontal integration are terms used in many business contexts, including acquisitions. When we talk about system integration, these directions dictate how you are going to connect different parts of your company through software.

Vertical system integration

There are two ways of making business software to communicate with others. Vertical system integration understands that management and execution should have access to the same data.

A well-installed CRM is a great example, as people within the sales sector can follow how client communication is going without asking or reporting to their superiors.

Horizontal system integration

Horizontal system integration is put into place when software converges laterally in your company’s organogram. With this interconnection in place, data flows between organizational units and is made available to all of them.

This encompasses manufacturing, marketing, sales, customer service, buying, accounting, human resources, quality control, R&D, and other areas. For instance, if the factory floor has access to sales data from e-commerce, they can know exactly when a delivery will be made and work accordingly.

Horizontal integration also encompasses connecting all parts of your supply chain, including vendors and partners in the process.

Choosing between vertical or horizontal system integration

The reality is that you should be looking to integrate into both directions. But usually, if system integration is used in a company at all, it is probably vertical integration – like automation within the sales sector.

While this is important and can lead to better productivity, there is also the need to connect horizontally so people in different sectors can access the same data.

Are you ready to integrate the software of your business?

Abrisuite can help you find solutions with what you already work, including legacy software. Contact us to learn more.

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