As businesses undergo digital transformation, they are moving away from using legacy systems to manage their data, and replacing them with cloud solutions to perform different tasks. In doing so, they are taking a “best of breed” approach to choosing the software and applications that meet their unique business requirements, from payroll and talent management to benefits administration and learning.
To succeed, companies need access to relevant and meaningful data across the organization, but it’s a challenge for separate systems to connect and work together seamlessly. This results in disconnected data, which affects organizations at all levels – from employee engagement to innovation to achieving business objectives.
One way to integrate disparate systems efficiently is via APIs.
What’s an API and why does it matter?
Application Program Interfaces (APIs) are tools that make it possible for software or applications to talk to each other. Open (or public) APIs give external developers programming access to a software or service in order to integrate their applications with that software. For example, Facebook provides access to its APIs, allowing for integration of Facebook (and its data) in a slew of third party apps and software.
Working with an integration partner that offers open APIs removes limitations to integration. With open APIs, developers can access all the data required to support integration between software or applications, and enhance how they work together.
An HCM suite with open APIs would allow developers to create specific integrations connecting, for example, learning tools, or financial ops records, with the HCM system. Integration via open APIs can boost end-user engagement and product functionality, and save time and money during the integration process. In short, access to APIs helps to facilitate connections between systems.
Why a single source of data is crucial to success
The reason it’s so important for disparate systems to be connected is data. Data silos can hold companies back. One system of record allows organizations to unleash the full power of data, which can be leveraged across multiple HCM systems to better understand the business and gain insights into key employee metrics. Datasynchronization can improve productivity, save time, and streamline communications.
Why a partner ecosystem is important
There is no one-size-fits-all solution to integration. In the HCM space, some organizations have a partner ecosystem, which is made up of specially selected partners whose services fulfill end-to-end HCM requirements. For example, a payroll solution may partner with a learning tool, and provide the necessary tools for integration between the two services. The benefit of a partner ecosystem is that the applications or software are already able to share data because integration builds are already in place.
Dayforce has recently launched its own Software Partner Program. Read about it here.