What is a third-party application?
A third-party application is software developed by an external provider, not the original system vendor. It enhances core systems with added features—like reporting tools, payment gateways, or logistics platforms. These apps are often integrated via APIs or plugins to extend system capabilities without rebuilding from scratch.
Common examples of third-party applications
- Reporting and analytics tools
- Payment gateways
- Accounting and invoicing software
- Logistics and shipping platforms
- CRM, marketing, or customer support tools
How third-party applications are integrated
- APIs for direct data exchange and automation
- Plugins or extensions installed on the main platform
- Webhooks or scheduled data syncs
- No-code automation tools (like Make, Zapier, IFTTT) that connect systems through triggers and actions without writing code
Examples of third-party applications in real life
1. ERP + Power BI
Scenario: A company uses an ERP system (like SAP, Oracle, or Ragic to manage operations.
Third-party app: Power BI
Integration: ERP data is connected to Power BI to generate dashboards and analytics without building a reporting system inside the ERP.
2. E-commerce platform + Stripe
Scenario: An online store runs on Shopify.
Third-party app: Stripe
Integration: Stripe processes payments and reports transactions to Shopify automatically, so the store doesn’t need to build its own payment system.
Benefits of using third-party applications
- Faster implementation compared to building features from scratch
- Access to specialized functionality maintained by dedicated providers
- Flexibility to choose tools that fit specific business needs
- Lower upfront development cost
Limitations of third-party applications
- Dependence on external vendors for updates and support
- Potential integration complexity or maintenance overhead
- Data consistency and security considerations
- Limited control over feature direction or customization
