The importance of customized software solutions
Customized software solutions have become increasingly popular in recent years, as businesses seek to take advantage of technology to improve their operations and stay competitive. Integrating these solutions with an Enterprise Resource Planning system (ERP) can provide even greater benefits but also present challenges. This is where REST APIs come in, as they offer a flexible and scalable approach to integration that can make it easier for businesses to connect their custom software with their ERP system, regardless of which ERP system they are using.
According to recent estimates, the global market for integrated customized software solutions with an ERP system is projected to reach $20.6 billion by 2023. This represents an increase of more than 60% from 2019. Furthermore, the compound annual growth rate for this market is expected to be 8.2% between 2020 and 2023. This growth is driven by the increasing need for organizations to have access to more advanced software solutions and powerful data analytics capabilities. In addition, the integration of customized software solutions with an ERP system can help reduce operational costs and improve customer service.
Overview of ERP systems and REST API interfaces
ERP systems are used to manage a wide range of business operations, including accounting, inventory management, customer relationship management, and human resources. By combining customized software solutions with an ERP system, organizations can gain increased visibility into their business operations and gain access to more accurate data and analytics. This can lead to improved customer service, as well as the ability to make better-informed decisions.
Rest APIs, or Representational State Transfer Application Programming Interfaces, are what enable the integration of customized software solutions with an ERP system. In essence, a Rest API is a set of protocols and standards that are used to provide a secure connection between different applications and services. This connection enables the transfer of data between the two systems, allowing for seamless integration.
According to a report by Markets and Markets, the global ERP market size was valued at $47.41 billion in 2020 and is expected to grow to $67.48 billion by 2025, at a compound annual growth rate (CAGR) of 7.2%.
ERP systems are widely used across a range of industries, including manufacturing, retail, healthcare, and government. According to a report by Statista, the manufacturing industry was the largest adopter of ERP systems, accounting for over 30% of the market in 2020.
ERP systems are not just for large enterprises, as many small and medium-sized enterprises (SMEs) are also adopting these systems. According to a report by Technavio, the SME segment is expected to see significant growth in the adoption of ERP systems, with a CAGR of over 9% from 2021 to 2025.
Advantages of Customized Software Solutions
Customized software solutions are tailored to the specific needs of a business, and can help organizations achieve improved productivity, efficiency, and ROI. Unlike off-the-shelf software, these solutions are designed to meet the unique requirements of the organization, which can result in greater user adoption and satisfaction.
Integrability with ERP System
Integrating customized software with an ERP system can provide even greater benefits. An ERP system provides a centralized repository of information, which can be used to support decision making and provide greater visibility into operations. Integrating custom software with an ERP system can enable organizations to better manage their operations, automate routine tasks, and provide real-time data and insights.
The trend towards cloud computing has also impacted the ERP market, with many organizations opting for cloud-based ERP systems. According to a report by Technavio, the cloud-based ERP segment is expected to grow at a faster rate than the on-premises segment, with a CAGR of over 11% from 2021 to 2025.
REST API interfaces
REST APIs provide a solution to these challenges, as they offer a standardized way to exchange data between systems. REST APIs use HTTP and other web protocols, and rely on a stateless, client-server architecture, which makes them easy to integrate with other systems. REST APIs can be used to create a secure, reliable, and scalable connection between custom software and an ERP system, and can be used to exchange data in real-time, or on a scheduled basis.
For example, a manufacturing company that uses a custom software solution to manage its production operations, and an ERP system to manage its financial and supply chain operations, could use REST APIs to integrate the two systems. The REST APIs could be used to exchange data between the systems in real-time, enabling the company to have a complete and up-to-date view of its operations. This could result in improved decision making, increased efficiency, and reduced costs.
How can we help you on this journey?
We can help you decide which one is the best solution for your business by analyzing where you are in your digital transformation process and developing each of our solutions to be the best in your segment, and together to form an ecosystem designed to give you the right tools you need to take your business to the next level.
