It’s relatively easy to explain the business value of integrated applications to your customers. When information is seamlessly integrated throughout the company, everyone benefits from automated workflows and increased productivity.
However, it’s much harder to get them to see the high costs that arise from reliance on multiple HR applications that are either not integrated at all or that suffer from ineffective integration. It takes a broader perspective to calculate the total cost of ownership of incompatible applications.
It’s up to you to help your customers understand those hidden costs and how your application—backed by a robust data-integration platform—will reduce their total cost of ownership.
The High Cost of Ineffective Integration
Ineffective integration increases the total cost of ownership in three important ways:
- Strategic decision-making is limited when there is no single source for reliable information.
- Troubleshooting integration problems place a drag on operations.
- Tracking down and correcting errors is time-consuming and costly.
The Cost of No Integration
When applications can’t seamlessly exchange HR data throughout an organization, there is no single source of reliable information. No one in the organization can see the whole picture. That means everyone is operating with a different set of assumptions. In an environment like this, strategic decision-making is limited—and that reduces the organization’s competitiveness.
The Cost of Poor Integration
Poorly integrated HR applications are a major source of problems that increase operational costs. When data isn’t flowing smoothly between applications and errors occur, there is a significant time and financial cost associated with troubleshooting the integration problem and fixing it. During the troubleshooting process, workflows are interrupted while the problem is being corrected.
The Cost of Errors
In a multi-application environment, even the smallest error can have a massive ripple effect. It’s both costly and time-consuming to track down the source of the error and unwind the resulting incorrect transactions.
Imagine the wide-ranging problems that can arise from having an incorrect dollar amount flow through a payroll application. By the time the error is discovered, two or more payroll cycles may have passed. Since money has in all probability run through both internal and external accounts, it’s necessary to enter compensating transactions to correct the error.
APIs Are Just the Beginning
Some of your customers may tell you that they chose their current solutions because the salesperson told them that their applications have good APIs. Be sure to explain to them that, when it comes to effective integration, the API is just the beginning.
The point they may not understood is that, while an API is essential to integration, it’s nothing more than a portal through which data can flow into and out of an application. It’s still necessary to have a logic-based platform working in the middle of two separate APIs to handle the many data transformations, synchronizations, and edit checks that allow data to move smoothly between applications.
Full and Accurate Integration Drives Costs Down
By offering full and accurate integration to your customers, you are driving down their total cost of ownership. When data flows seamlessly and accurately throughout the organization, less time needs to be spent on troubleshooting and correcting errors.
Although your application can’t completely eliminate human error, effective integration reduces the impact of errors on business workflows. Also, your customers don’t have to spend time and money monitoring the accuracy of their applications. If an error is discovered, it’s much easier—and less expensive—for them to make a correction.
Help your customers understand the hidden costs of relying on poorly integrated HR systems. It’s worth your time to explain how you can reduce their total cost of ownership with an application that is powered by a robust data integration platform. Once they understand that, the benefits of full integration then become extremely clear.