For back-end engineers and operations managers alike, disconnected applications create an expensive version of the children’s game “Telephone.” Each system holds critical business data, but passing it along from one system or department to another without having to manually export the information or write ad hoc scripts risks delays, errors, and miscommunication. API integrations bridge the gaps so data flows instantly—for example, from an ERP system to payroll or inventory software. This allows teams to work with the same accurate information so workflows advance automatically, increasing efficiency and reducing costs.
What Is an API Integration?
An API integration links two or more software applications—both cloud and on-premises—so they can automatically share information and function as one system. The connection is made possible by APIs, which define the rules for how programs exchange data and trigger actions, making it faster and easier for software developers (and sometimes line-of-business teams) to connect and automate tools.
For example, an ecommerce site might use an API integration to connect directly with its warehouse or fulfillment system. Instead of someone re-entering orders by hand, the integration routes new purchases automatically to the warehouse for packing and shipment.
Key Takeaways
- API integrations allow secure, real-time data exchanges among business systems, such as ERP, CRM, ecommerce, and marketing automation platforms.
- Use of APIs means less manual coding needed for data transfer, plus faster integration of new services.
- By keeping records consistent across systems, API integrations improve data accuracy and simplify regulatory compliance.
- They also provide business value through cost savings and stronger customer experiences.
API Integrations Explained
Before APIs became the primary method for integrating software, software developers had to write custom code to get applications to work together. But even a simple task, such as updating customer data in a CRM, an ERP, and a customer support platform, could take hours—assuming nothing broke down along the way. Even completing a simple task meant having to patch fragile scripts together—and manually shuttle CSV files between systems when one piece inevitably failed.
The rise of cloud computing and software-as-a-service applications accelerated the shift to APIs, since most modern cloud tools are built with integration in mind. These days, 74% of development teams are following an “API first” approach, according to Postman’s “2024 State of the API” report. Little wonder: API integrations have automated cumbersome data-entry methods and other inefficient time-consuming processes, helping organizations operate more efficiently, minimize costly errors, respond quickly to customer needs, and scale processes without adding head count. For example, instead of exporting a spreadsheet from the CRM and uploading it into the ERP, integration allows the CRM’s API to forward the data directly to the ERP’s API.
From a technical standpoint, API integrations work by having one system send a structured request to another system’s API, which then responds with the requested data or action. Most integrations now use lightweight web APIs, such as RESTful APIs that exchange data in JSON format, to exchange data quickly and efficiently between applications. Transfers are protected by authentication, encryption, access controls, and other security measures that safeguard sensitive information. In addition, some integration platforms make it possible for non-IT professionals to achieve interoperability through simple, no-code tools.
12 API Integrations to Strengthen Business Operations
Organizations manage approximately 93 apps, on average, to run their businesses, according to a 2024 Okta report. The following 12 examples show how API integrations connect them and simplify operations pertaining to finance, operations, sales, marketing, security, and beyond.
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ERP Integration
The global market for ERP software is growing rapidly, as businesses realize the benefits of managing their increasingly complex operations with one system. Indeed, the market is projected to increase in value from $55.38 billion in 2024 to $100.15 billion by 2034, according to Precedence Research.
Extending the reach of an ERP platform through integration with other business software helps departments operate together more efficiently, in part because they’re using the same real-time data, leading to smoother workflows, better decision-making, and more bang for their ROI buck. For example, by integrating an ERP system with a payroll platform, employee hours, benefits, and deductions feed automatically into the ERP’s financial module. This integration cuts down on manual payroll work, supports tax compliance, and gives leaders real-time visibility into one of their largest operating expenses—labor costs.
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CRM Integration
CRM software consolidates data about customer interactions drawn from sales, marketing, customer service, and support into a single system. This helps teams manage client relationships more effectively, identify new opportunities, and personalize communications. When the CRM is integrated with other business applications, companies acquire a more complete picture of the customer journey. For instance, connecting the CRM to an ecommerce platform allows customer profiles to update automatically with each purchase. Sales can see what products the customer bought previously, marketing can send tailored emails recommending related products, and service reps have full context if a support issue arises—all contributing to a more positive customer experience.
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Marketing Automation Integration
Marketing automation integration connects marketing platforms to data from CRM, websites, and analytics tools, which is useful for lead scoring and nurturing, campaign execution, and personalized outreach. For example, if a prospect signs up for a newsletter on a website, the marketing automation system will capture the information and instantly add the contact to the CRM, with a tag indicating their level of interest. This action, in turn, can trigger an automated email welcome sequence for lead nurturing. Without this integration, marketing teams might miss out on high-potential leads—and the associated revenue. Another example of effective integration: If a customer abandons a shopping cart, the ecommerce platform can alert the marketing automation system, which then sends the person an email reminder that they left something behind.
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Analytics and Business Intelligence (BI) Integration
Analytics and BI integration allows companies to synthesize real-time data from multiple platforms—for example, inventory, order management, procurement, and supply chain systems—to support detailed analysis and reporting and inform decision-making. For instance, integrating procurement spend data with order volumes and inventory turnover can reveal times when rising supplier prices or excess purchasing might be driving up procurement and inventory costs, prompting more strategic sourcing and cost-effective purchasing decisions. Similarly, analyzing order volumes, inventory levels, and supplier lead times can flag the potential for stockouts, giving procurement teams time to adjust purchase orders to meet customer demand. Organizations can also use the combined data for predictive modeling and to track related KPIs, such as order cycle time and amount of working capital tied up in inventory.
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Payment Gateway Integration
Payment gateway integration connects an ecommerce solution with a payment processing service to complete online transactions. For example, when a customer purchases from an online seller, using a credit card, digital wallet, or mobile app, the payment gateway securely transmits the payment details from the point of sale to the processing service for authorization, then communicates the approval status back to the store. If the transaction is accepted, the ecommerce platform then generates an order number and emails a receipt to the customer. It may also call on other API integrations to initiate shipping and update invoice records. Performed in compliance with myriad payment regulations, this seamless checkout process contributes to a successful customer experience.
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Ecommerce Integration
Standalone ecommerce platforms manage the basics, such as product listings, shopping carts, and payment processing—but they often stop short of handling the workflows that need to kick in once a customer places an order. This is where ecommerce integrations help, automating behind-the-scenes tasks by connecting storefronts with inventory, warehouse, ERP, and CRM systems, among others.
Here’s one scenario of how it works. When a customer places an order, stock levels are instantly updated and the fulfillment team is notified to get the shipment ready. Product availability is also updated on other sales channels; if stock falls below a designated threshold, the ERP or supply chain system is alerted to reorder more. Once the package ships, a tracking number provided by the carrier is emailed to the customer. Simultaneously, the customer’s profile in the CRM gets updated, triggering a thank-you note, while the accounting system records the sale.
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Fulfillment Integration
Research consistently shows that positive post-purchase experiences drive repeat business and higher customer spending. Shipping—just one step along the fulfillment process—accounts for at least half of the overall customer experience, according to 90% of online shoppers surveyed for the “SMB Shipping Pulse Check.” Fulfillment integration connects ecommerce platforms with order management, warehouse, logistics, and carrier systems to keep these processes in sync. In practice, after a customer hits the “buy” button, details flow automatically through the fulfillment chain: Stock levels update, the warehouse team is notified to pick and pack, carriers receive shipping requests, and customers get real-time tracking updates. The result? Smoother operations and a more satisfying customer experience.
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Email Marketing Integration
Email continues to drive more purchases, on average, than any other marketing channel, including social media, according to Marigold’s “2025 Consumer Trends Index.” So it’s important for marketers to get it right. Alone, an email marketing platform can execute campaigns, tailor content, and simplify communication. But when integrated with broader CRM software (if not already built-in), customer data platforms, and analytics tools, it can orchestrate dynamic cross-channel experiences based on real-time insights into customer behaviors, engagement patterns, purchase triggers, and other preferences. As a result, marketers can adapt their messaging, timing of emails, and offers to maximize conversion rates.
For example, when a customer signs up for a newsletter, their information can be automatically added via integration between the email marketing platform, the ecommerce platform, and the CRM system. This keeps email lists current and segmented according to customer behavior and preferences. Integration with analytics tools also lets marketers track engagement and campaign effectiveness, as well as refine future messaging.
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Document Integration
Consider a project team hard at work on a client proposal. The sales manager emails a draft from the CRM, the finance team downloads it to add pricing details from the ERP, the legal department reviews a separate copy in the document management system—and then the project manager is left figuring out which version to attach to the project plan. But when these systems are integrated, all parties can view and work from the same file in real time, combatting version-control issues, errors, miscommunication, and project delays. Indeed, connecting document systems with core business applications improves workflow efficiency by reducing the time spent searching for files and creating a single source of the most up-to-date information. It also supports better collaboration and increased productivity.
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Security Integration
Security integration applies identity and access management, access control, multistep authentication, and other protections to every business system that handles sensitive data—essentially, all of them. This helps shield them against internal and external threats and speeds incident response. By enforcing consistent policies, audit trails, and encryption, businesses can also better comply with many types of regulatory and industry requirements.
Let’s say HR onboards a new employee. The record flows into the company’s central identity system, which automatically creates a user account, applies role-based permissions, and logs every login attempt for auditing. Should that account attempt to download a large number of files outside of business hours, the activity can trigger an alert to the security team or request additional verification before granting access. The same integration also governs payroll and financial systems, where only employees with the right credentials can access private salary data or financial records.
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Collaboration Integration
When teams can chat, videoconference, share files and calendars, and schedule meetings in one central environment—via Slack, Teams, or another platform—workflows become smoother, faster, and more transparent. Real-time updates and notifications keep teams instantly informed of critical events without their having to check multiple tools. For instance, if a manufacturer’s customer service system logs a ticket from a high-value client about an equipment malfunction, the system can automatically post an alert in the relevant chat channel. It then identifies the most qualified technician for the job, checks that person’s calendar to schedule a repair visit, and shares the necessary technical documents via the collaboration platform. Fellow technicians can also share troubleshooting files and tips to help resolve the issue quickly.
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Internet of Things (IoT) Integration
IoT devices, such as RFID tags and readers, GPS trackers, smart meters, and patient-monitoring devices, collect a wealth of real-time critical data. But they must be integrated with core applications to create business value, such as by updating records, triggering alerts, and informing decision-making. When inventory moves through the supply chain, for example, IoT data about its location—such as goods arriving from a supplier into a warehouse or being confirmed as shipped to a customer—feeds into the inventory management system. This action automatically updates stock levels, refreshes product availability on ecommerce platforms, and alerts supply chain managers when replenishment is needed. The same data also supports predictive modeling to forecast demand and track such KPIs as inventory turnover and order accuracy.
The Benefits of API Integration
The market for API integration platforms is on track to more than double from $5.36 billion in 2024 to $12.9 billion by 2032, an average annual rate of about 11.6%. This steady growth helps emphasize organizations’ desire to move beyond disconnected workflows and toward the wide-ranging benefits integrations can provide:
- Cost savings: API integration lowers business costs by reducing manual workloads and reliance on custom-coded connectors. Instead, data moves automatically among systems. For example, the number of hours an employee works goes directly from the HR system into the payroll platform, cutting administrative costs related to rekeying data. IT also spends less time developing and maintaining one-off integrations, freeing resources for more strategic work.
- Fewer manual errors: By synchronizing data across connected systems, API integration maintains consistent and current records and decreases the need to track down discrepancies across platforms. For example, when a customer’s address is updated in the CRM system, it’s automatically updated in the shipping and billing systems, too. This uniformity and automation bolsters operational efficiency, reporting accuracy, and regulatory compliance.
- Advanced insights and decision-making: Armed with a single, real-time view of the organization, decision-makers enjoy a more complete picture of performance. This improves collaborative strategic decision-making, especially when situations change. For example, when procurement spend, inventory levels, and order volumes flow into one analytics platform, companies can spot sudden product demand or rising supplier costs early and quickly adjust their purchasing and pricing plans.
- Improved customer experience: By keeping customer, order, and product data consistent across all systems, API integration supports faster and more reliable service that strengthens the customer experience and loyalty. For example, when inventory leaves the warehouse, the warehouse system updates immediately. That change then flows to the ecommerce system, which triggers a shipping update to the customer.
Reliable, Secure API Integration With NetSuite
When data is siloed within different applications, organizations often face slow processes, inconsistent reporting, and missed opportunities for automation. NetSuite SuiteCloud Platform Integration provides a flexible customization and integration framework that spans modern APIs, legacy web services, bulk data imports, and high-volume pipelines. These integration capabilities enable secure, real-time data flows across systems, while built-in authentication options—such as token-based access and OAuth 2.0—help support compliance and safeguard sensitive information. Developer tools, like the REST API Browser, OpenAPI metadata, and SuiteQL, further simplify the work of building and maintaining custom integrations, giving IT teams the flexibility necessary to connect new applications as business needs evolve.
As businesses rely on an increasingly large number of applications, so has the need for them to interoperate. API integrations tie together disconnected platforms—such as ERP, ecommerce, and supply chain management systems—to exchange data directly, securely, and in real time. By alleviating manual effort, improving consistency, and providing clearer visibility into operational processes, companies can save money while making better-informed decisions.
API Integrations FAQs
How does API integration work?
API integrations allow separate applications to work together automatically. They require three components: an API that defines the rules for interaction, a request sent from one system, and a response returned from another. In practice, this means one application sends a structured request (often over the web), the receiving API processes it, and then it fulfills the request—without any human intervention.
What is an example of API integration?
Let’s consider an ecommerce integration example. When a customer places an online order, the ecommerce system passes the information to the inventory management system, which instantly updates stock levels. That update then generates a pick/pack list for the warehouse and triggers fulfillment workflows, linking three systems into one process.
What are the benefits of API integrations over traditional integrations?
Traditional integrations typically rely on batch uploads or point-to-point custom code, which move data at set intervals and often require heavy maintenance. API integrations, on the other hand, are scalable and flexible, enabling real-time data exchange. They reduce time-consuming manual work, thereby lowering the risk of errors and enhancing productivity. API integrations are also more secure, provide better data visibility for insights and reporting, and lower long-term costs through automation and reduced maintenance.
