ERP Integration | The Importance of ERP System Integration

ERP Integration | The Importance of ERP System Integration
The Importance of ERP System Integration
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What Is ERP and What Is Integration?

Enterprise resource planning software is a tool that is commonly used by businesses of all sizes to streamline and automate business functions. This could include components such as accounting, distribution and human resources. One of the main appeals of ERP software is that it operates as a centralized data hub for a variety of workflows, which makes it easier to share data insights across departments. ERP systems also automate processes across departments that typically need to be completed manually. For example, an ERP could take information from a sales order and automatically send its relevant financial data to your company’s accounting program.

Integration is a way of connecting ERP software to other systems to ensure that consistent information is shared while also automating workflows. It is useful because it affects relationships between ERP software and other vendor systems so that businesses can customize and select the specific tools they want to have in their solutions. For example, ERP Integration is simply connecting and synchronising your ERP software with other business applications such as eCommerce (front-end), CRM (Customer Relationship Management), EDI (Electronic Data Interchange), marketing tools such as analytics, and other databases and data points that your business operates with.

ERP, or enterprise resource planning, is a term that describes the back-end functions that drive a business, but it’s ERP system integration with the rest of your IT stack that’s critical to achieving enhanced organisational outcomes.

Having a general understanding of an ERP’s purpose will help businesses understand the different ERP deployments and help better design ERP system integration.

Whether you should use an on-premise ERP or a cloud ERP depends on your IT resources and specific business needs, but there are benefits and challenges to using both.

An ERP system automates business processes to make the organisation more efficient and provides better visibility into those processes. But to reap the full complement of ERP benefits, businesses must integrate their ERP system with the rest of their systems and applications.

While integration is a critical component of any ERP deployment and strategy, elegant ERP system integration strategies still elude many organisations.

Benefits of ERP Integration

Centralised data

Having all of your data in one accessible location can significantly improve internal workflows. For example, your accounting team wouldn’t have to reach out to the sales team every month for an updated record of revenue made. Ultimately, having data available in a centralised location helps to facilitate business processes and reduces the amount of time that employees spend waiting on people in different departments to provide them with information necessary to complete important tasks.

Automated processes

The more automation, the better. ERP integrations can streamline processes across various departments and workflows. This reduces the amount of manual input required and the time that it takes for tasks to be completed.

Workflow visualisation

Higher visualisation of the tasks and workflows of your business goes hand-in-hand with data centralisation. Additionally, integration with a tool such as project management software can allow employees to see what their peers are working on. This can be beneficial when requesting feedback from a fellow employee or assigning a priority level to tasks. For example, if you need a standard report from a manager, but see that they are working on a direct request from the CEO, you might downgrade the severity level of your inquiry accordingly.

Reduction in human error

Because ERP system integration can increase the amount of automation that occurs along business workflows, there is an opportunity to reduce human error. Typos and emails sent to the wrong client can negatively impact your business, so automation is a huge benefit. The amount of human error that occurs every day is incredible, so a reduction in this rate could give your company a competitive edge.

More time for labour-intensive projects

When you reduce the amount of time spent on tasks such as data entry, you free up employee time for other duties. Because of the wide range of processes that can be automated, your employees will now have more time for essential tasks that require human input, therefore improving productivity.

YGL Beyond ERP provides a full suite of ERP connectors to integrate data across your ecosystem and reduce the complexity of end-to-end integration. 

Request a demo today and discover how these out-of-the-box adapters expedite the ERP on boarding process and deliver robust integration capabilities designed for you to better leverage your critical ERP applications.

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