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ERP systems maximize their benefits through integration. What are the benefits of linking and what are the challenges in implementation?

Table of Contents:

• What are ERP integrations?
• What is ERP integration for?
• Best practices in ERP integration: a practical example
• Benefits of ERP integration

When we talk about ERP software, we refer to programs designed for enterprise resource planning. In this article we will examine the relevance of the integration processes of these systems commonly used in companies, businesses and organizations.

What are ERP integrations?

It is wise to start by reinforcing the following notion: ERP software does not, on its own, provide the desirable combination of efficiency, organization and productivity. The key is ERP integration, which establishes connections with other programs, environments and processes, as we will explain below.

The linkage is essential in times when the proliferation of information puts companies in a dilemma: data is relevant for growth and improvement, but it is necessary to manage it in an adequate, organized and unified way. In such a scenario, ERP integration emerges as a necessary solution.

What is ERP integration for?

As a kickoff to answer the question posed in this section, ERP systems integration is used to integrate various tasks and areas, such as the following:

• Production control.
• Distribution.
• Logistics.
• Inventory.
• Billing.
• Accounting.
• Sales and supply chain management.
• Deliveries and payments.

However, the applications of these systems are not limited to aspects such as accounting and inventory: they are also applied in more “flexible” areas. For example, ERP integration for human resources management has become commonplace.

Why is integration key? He thinks that for the efficient implementation of ERP software, it must cover various aspects that explain the activity of the companies, that speak of their interests and particularities.

• The context of application.
• The regional context.
• The industry context.

The impact of ERP integration on business processes is established according to these dimensions. For example, a system to manage an e-commerce platform must consider not only that business area, but also the region in which it operates and its specific industry.

As we pointed out earlier in How to Tell Good Stories and Sell, even if you have an ERP, these systems strive to be broad, wide-ranging, i.e., all-encompassing.

“Faced with this ‘umbrella’ approach to ERP solutions, in recent years a set of applications has emerged that seek to complement their functions, integrating easily and efficiently. Some are available as cloud services, and others are installed directly in the company’s infrastructure (…) The most important thing is that they have a specialized point solution approach, which does only one thing, but does it very well,” we explained.

Best practices in ERP integration: a practical example

A good example of efficiency and integration applied to ERP systems is RPA, which stands for “robotic process automation”. These are technologies that automate business processes through the use of bots that handle specific tasks and free human agents from repetitive actions. In this way, they help to increase productivity and profitability.

With regard to the use of PAR, there are three fundamental axes:

• Repetitive tasks, such as data management.
• Tasks that operate with large volumes of information.
• Multi-system operations: software that interacts with applications, websites, user portals and other tools, emulating human action.

Having said that, let’s return to the path of this article by detailing how to measure the success of ERP integration. Let’s note that ERP systems handle information efficiently, but when trying to reconcile data with external information sources (spreadsheets, bank reports, third-party services, etc.) they run into complexities and possible errors.

In such a scenario, an RPA specialized in reconciliation easily automates all the steps in the reconciliation process, taking those external sources, and identifying any differences.

Benefits of ERP integration

ERP integration platforms, when efficiently implemented by specialists such as Conciliac, provide the following advantages:

• More dynamism: these are solutions that streamline processes.
• More specialization: tasks are divided according to profiles.
• Intuitive use: with easy-to-use graphical interfaces.
• Increased productivity: adequate record-keeping for information review and auditing; in addition, these systems operate 24×7.
• Lower costs: including all these benefits in an ERP would be costly and complex, while doing it through RPA is simpler and more accessible.

In short, the unification of processes is key in the use of business management systems. The challenges in ERP integration consist precisely in being comprehensive and integral in this step.

It is true that business planning software usually integrates different functions, from sales management, invoicing, etcetera. However, what happens when other tools become relevant, which are also part of the core of the business, such as CRM or e-commerce management applications? This is where the importance of ERP integration emerges, which allows to work in a coordinated way, to move away from stagnant processes and, together, to achieve better business results.