Five Critical Questions To Inform an IPaaS Selection for SMBs

For a long time, only large, well-funded businesses made data analytics the centerpiece of their operations. That's because standing up an analytics department was costly, and positive results were far from guaranteed. In fact, some estimates indicate that only a paltry 20% of analytics-driven insights yielded meaningful business outcomes as of 2022. At scale, though, that's not a major problem. After all, a single well-placed insight within that 20% could mean that a big analytics program had paid for itself.

However, for a small business, those odds don't always justify spending scarce resources on an analytics program. That was, of course, until a panoply of plug-and-play SaaS analytics solutions appeared that took much of the heavy lifting out of mining business data for insights. As a result, some 67% of small businesses now spend at least $10,000 per year on analytics operations.

There's still a disconnect, however, in how large organizations exploit their data versus smaller ones. And although there are lots of reasons for that, most of them boil down to one thing: compartmentalization and data siloing. Big businesses now combine all of their data to form a better big-picture view of their operations. Small businesses, however, more frequently use multiple analytics tools to handle multiple data streams.

To break away from that model, small businesses need to find cost-effective ways of integrating their data. The first step to doing that is choosing the right integration platform as a service (iPaaS) provider for their needs. Here are five critical questions they should ask to make sure to choose the right solution.

What Kind of Data Are You Working With?

Although it seems obvious, the first question to ask before selecting an iPaaS solution is what kinds of data the business wishes to integrate. This will serve as a capability roadmap to guide your search. Common data types many small businesses should consider include:

• Email marketing data
• Website analytics
• Social engagement statistics
• Historical and current sales data
• Point-of-sale data
• Customer service statistics and data

With a complete inventory of existing data sources complete, a picture of the capabilities you'll need in an iPaaS solution should emerge.

Is There Compatibility With Existing Systems?

The next question to ask is how much work would need to go into connecting existing software and infrastructure to the potential iPaaS solution. It's important to try and select an iPaaS solution that works natively with your business's existing major data sources. So, if you're looking for customer service insights, you'd need an iPaaS that can ingest your cloud contact center statistics and interaction data, as well as things like your total time to resolution (TTR) and support outcomes data from your support dashboard.

If no iPaaS platform offers the needed integrations, the next thing to do is to look into how easy it is to create custom integrations and what the costs would be for doing so. This will provide a better idea of what kind of budget you'll need to begin using a given iPaaS. This is also key to choosing a solution that can adapt to the business's future needs without too much difficulty.

Are There Any Industry-Specific Data Concerns?

Next, you'll need to consider any regulatory responsibilities your business has, related to the data you're going to pass through the iPaaS. So, if your customer data includes financial information or other personally identifiable information (PII), you'll want an iPaaS geared toward protecting that type of data. If you're working with customers covered by regulations like GDPR, you'll need a platform that can certify their compliance with it. The same logic applies to regulatory requirements imposed by HIPPA, CCPA, and an array of new regulations that will soon go into effect.

Who's Going To Use Your IPaaS Solution?

So far, the questions here have dealt primarily with the technical aspects of choosing an iPaaS solution. However, it's also necessary to think about who's going to use the system once it's in operation. Will you have an analytics or data team who has ultimate responsibility for configuring and manipulating the system? Or, will a wider swath of employees interact directly with it?

In the former case, you may wish to prioritize flexibility and advanced functionality as you choose your iPaaS solution. Having trained and knowledgeable data experts managing your solution will allow you to maximize its utility. In the latter case, you'd be better served prioritizing ease of use, instead. For example, many iPaaS solutions offer things like drag-and-drop workflow creation. Others require far more coding knowledge to operate. So, it's critical to understand the needs of your end users and include them in the decision-making process, too.

Are You Willing To Pay For Advanced Features?

The final question to ask before selecting an iPaaS solution is if you're willing to pay extra to have access to advanced features. For small businesses, this is a question to think long and hard about. Due to budgetary constraints, it's often a tough sell to spend more upfront for features the business may not need immediately. However, not doing so could impose serious constraints on the business if it grows or its needs change.

Right now, one of the most important feature differentiators in the iPaaS space is the inclusion of AI-powered tools. Leading platforms are already adding things like self-healing data connections that use generative AI to find and fix data links without user intervention. They also make modifying configurations and adding new data sources easier, faster, and more accessible. The trouble is that it's often necessary to pay a premium to gain access to such functionality since it's still nowhere near a standard feature.

Making The Call

The bottom line is that multiple practical considerations must go into the iPaaS selection equation for small businesses. However, it also requires a bit of forward-looking thinking to avoid ending up with a solution the business will outgrow too quickly. Fortunately, going through a careful, deliberative process should enable any small business to make a solid selection that works for them now and into the future. And since the variety of data small businesses have to work with will only continue to grow, it's a decision that most will need to make shortly, whether they're prepared or not.