Compoze Labs Blog | App Development, Data Engineering & AI Trends

5 Common Data Integration Challenges & How to Overcome Them

Written by Jeff Rogers | Feb 14, 2025 3:00:00 PM

It’s hard to imagine running a business without relying on data in some way. Yet many organizations still struggle with disjointed systems, outdated technology, and incomplete analytics. When your data is stuck in silos or tied up in legacy systems, it slows down decision-making, wastes resources, and can even lead to missed opportunities.

As data landscapes grow more complex, data integration challenges become everyone’s concern, not just IT’s. Whether you’re dealing with legacy system integration, modernizing for AI, or juggling complex partner exchanges, the ability to connect your information sources can spell the difference between staying ahead of the competition or falling behind.

Let’s walk through five common data integration hurdles and talk about practical ways to overcome them.

1. Legacy System Constraints

The Problem

Many organizations have been around long enough to accumulate a patchwork of old technologies. Creating new products or services often gets bogged down by outdated architecture and poor access to historical data. This can also limit how quickly you can adapt to new opportunities, especially when your core systems aren’t easily upgradable.

The Real Impact

  • Slowed product development
  • Higher risk of data inconsistencies
  • Stunted innovation and agility

The Solution: Strategic Modernization

A phased modernization approach lets you gradually update your legacy systems without bringing the whole operation to a standstill. Common tactics include:

  • Data abstraction layers: Add a modern “wrapper” around your older systems, so new services can access the data without directly overhauling the legacy code.
  • Incremental migration: Move select parts of your system to the cloud, especially high-impact workloads, while maintaining essential on-prem operations.

The key is minimal disruption. By focusing on the most critical data paths first, you can continue running daily operations while slowly modernizing the infrastructure underneath.

2. Cross-System Data Access & Insights

The Problem

Even if you’ve got some newer systems in the mix, you might still struggle to connect them all effectively. Disparate tools and platforms can hold data hostage in separate silos, and your business users might wait days or even weeks for the information they need.

The Real Impact

  • Inability to get real-time insights
  • Lost opportunities for faster decision-making
  • Higher likelihood of duplication or contradiction in data sets

The Solution: Unified Data Platforms

Today’s data integration solutions focus on seamlessly blending operational and analytical data. Here’s how:

  • Enterprise data management: Bring your data together across systems to support cross-functional views and provide rich data capabilities to leaders.
  • Hybrid cloud setups: If some data is on-prem and some is in the cloud, consider a hybrid approach that securely bridges the two.
  • Self-service analytics: Equip employees with user-friendly dashboards so they can grab insights themselves instead of waiting on IT.

The ultimate goal: Everyone gets the right data at the right time, and your decision-makers can act confidently on up-to-date information.

3. AI & Analytics Readiness

The Problem

Organizations eager to jump into artificial intelligence or advanced analytics often discover their data isn’t quite “AI-ready.” Maybe it’s incomplete, inconsistent, or just not structured in a way that machine learning models can digest.

The Real Impact

  • AI initiatives that never get off the ground
  • Decision information is less accurate, so AI models can’t be trusted.
  • Wasted investment in cutting-edge tools that can’t perform without proper data foundations

The Solution: AI-Optimized Data Architecture

Before you feed data into a machine learning pipeline, make sure it’s well-organized and of high quality. Focus on:

  • Data cleansing: Remove duplicates, correct errors, and ensure consistent formatting.
  • Feature engineering: Pre-process data to highlight relevant attributes for your AI models.
  • Metadata management: Keep clear documentation about what each data set represents, so your models don’t get confused by ambiguities.

Proper data modernization efforts set the stage for advanced analytics. It’s much easier to build accurate AI models when your data is structured, trustworthy, and readily accessible.

4. B2B Data Exchange & Integration

The Problem

If your business depends on partners, suppliers, or customers sharing data in real time, you’re likely dealing with an array of formats, connection methods, and compliance requirements. EDI, APIs, and even old-school FTP can all come into play, each with their own quirks and version controls.

The Real Impact

  • Delays in order processing or inventory updates
  • Communication gaps leading to inaccurate shipments, billing errors, or missed SLAs
  • Difficulty scaling as you add more partners to your network

The Solution: Modern Integration Patterns

It’s time to upgrade from your calling, emailing, and file-based business processes. Some of the leading strategies include: 

  • API and EDI management: Set up a robust platform that handles versioning, security, and data mapping across multiple formats.
  • Modern Data Platforms: Build a “data marketplace” to allow business partners to access the right data, when they need it.
  • Optimize Business Partner Support: Let’s face it, some business partners are more strategic than others. Prioritizing and setting clear guidelines across different partner tiers will ensure support teams’ time drives more value.

When done right, an integrated partner ecosystem can move data swiftly and securely—strengthening relationships and opening new opportunities for collaboration.

5. Data Governance & Compliance

The Problem

Data governance tends to be brushed aside until something goes wrong—like a data leak or audit failure. The reality is that security, privacy, and regulatory mandates (GDPR, HIPAA, etc.) loom larger every day. Without a consistent governance framework, you risk major fines and reputational damage.

The Real Impact

  • Higher vulnerability to cyber threats
  • Potential legal and financial penalties
  • Loss of customer trust and brand reputation

The Solution: Built-In Governance Frameworks

Make governance a core part of your data integration strategy from the start. Consider:

  • Automated compliance controls: Use software that logs data usage, enforces access controls, and maintains audit trails.
  • Data stewardship roles: Assign responsible individuals to ensure data accuracy and compliance within each department.
  • Encryption and masking: Protect sensitive data, both at rest and in transit, to reduce breach risks.

A strong governance framework protects your data, your customers, and your bottom line. It’s not just a technical necessity—it’s a vital part of building trust in your organization’s data practices.

Final Thoughts

At the end of the day, data integration challenges are about much more than technical hiccups; they’re about missed business opportunities and strategic blind spots. Your data should be your most powerful asset, helping fuel decisions, enabling innovation, and differentiating you from competitors.

Tackling these challenges takes both vision and execution: a roadmap that aligns with business goals and the right tools to get you there. Sometimes, it helps to partner with experts who know how to navigate the technical pitfalls while keeping an eye on what really matters: driving measurable value for your organization.