Digital transformation remains a hot topic: the process has only accelerated thanks to the impact of COVID on the way in which organisations operate, and it's one which shows no signs of abating any time soon. In 2022, the global digital transformation market size was valued at USD 752.17 billion and is expected to reach over USD 7,033.01 billion by 2032, growing at a CAGR of 25.1% from 2023 to 2032.

And digital technology is key in helping organisations to adjust as they align their IT and business strategies in order to deliver common goals: improving efficiency, innovation and value. In doing so, digital transformation fundamentally changes how a business operates, its business model, and how value is delivered to its customers.

It can also require a shift in organisational culture, necessitating businesses to question established norms, explore available alternatives, and embrace the possibility of failure. Ultimately, digital transformation drives change in an organisation's strategy, customer experience, and business processes and models.

Why integration matters

Integration is an integral part of digital transformation strategies because it provides the connectivity and access which optimise business processes and data sharing across an enterprise. Integration Platform as a Service (iPaaS) cloud services enable the development, execution and governance of integration flows connecting any combination of on-premise and cloud-based processes, services, applications and data.

Digital transformation strategies tend to come in a number of different forms:

• Process transformation - involves changing internal processes and making them much more efficient. Has a direct impact on employees, vendors and customers.
• Business model transformation - more drastic, this involves an organisational revamp, such as digitalising a product or service that has previously been delivered via other methods.
• Domain transformation - for organisations wishing to enter a new market and diversify as a result of competitors and new disruptive technologies, opening up other opportunities and revenue streams.
• Cultural transformation - affects an entire organisation and can result in a major change for employees, often as a result of acquisition or a change of leadership.
• Data Centralization - bringing together disparate data, from across systems across an organisation, to perform deeper analysis.
  

Whatever type of digital transformation strategy an organisation pursues, iPaaS is a key facilitator in this process. But determining which type of iPaaS to utilise depends very much on the organisation's needs and use cases. There are two main types of iPaaS: traditional and embedded.

Traditional iPaaS provides organisations a mechanism to manage their data and sources, creating automations to create efficiencies across the business.  Traditional iPaaS tends to focus more on internal integrations rather than expanding a SaaS product, making it more suitable for internal process automation and cultural transformation.

Embedded iPaaS, on the other hand, enables organisations to create integrations and automations that can be offered out to users outside of their business; helping add efficiencies to their customers as well as to their own needs. An embedded solution is therefore an enhancement to the organisation's offering, expanding its native integration library which also allows for simple and quick deployment in-app. It is therefore much more suitable for business model and domain transformation.

How iPaaS helps with digital transformation

iPaaS enables digital transformation because it has the ability to modernise legacy systems, enhance product features, automate processes and help change business culture. For instance, it can provide a business with the ability to complete tasks more quickly and run processes through integration and automation. iPaaS is especially useful for large enterprise organisations with disparate tech stacks across departments, as well as those who want to enhance their IT service management.

The purpose of digital transformation is to create better experiences for customers, users and employees by improving processes and boosting productivity. iPaaS solutions are built and designed to help users save time with integration tools and automated processes, eliminating the need for multiple different systems. Together, they are the ideal solution for organisations wherever they are on their digital transformation journey.

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ABOUT THE AUTHOR

Daniel Twigg is Marketing Manager at Cyclr, an innovative embedded Integration Platform as a Service (embedded iPaaS) for SaaS applications.