As eCommerce businesses grow and become more complex, they will often accumulate a complex stack of software systems and platforms to help manage all the areas of their business. In addition to being hard to keep track of, having so many systems can mean increased redundancies and inefficiencies as different systems and departments perform overlapping tasks. Plus, siloed data can make a business miss out on key insights and connections.
ERPs solve this problem by creating a central platform for management and data collection from a variety of sources and business areas. A necessary part of using ERPs however, is ERP integration — integrating the ERP with other systems and platforms found throughout the company.
WHAT IS AN ERP?
Before we dive into ERP integration and the process of integrating your technology stack, let’s highlight the basics of ERPs. Enterprise Resource Planning (ERP) is a type of software that streamlines different business elements into one centralized system to simplify data collection and business management. From finance to inventory management to customer information – an ERP pulls all of the transactions, changes, and data into one place. In addition to letting you manage all the data and processes from a central place, ERPs are able to pull data insights from across a variety of platforms.
WHAT IS ERP INTEGRATION?
ERP integration refers to the process of connecting different software applications, systems, and data sources with the central ERP platform. Employee management systems like HRMs, inventory management and sales tracking systems, and customer information systems like CRMs are commonly integrated during the ERP integration process. You can also integrate data like customer lists, sales data, and inventory data to the ERP platform.
BENEFITS OF ERP INTEGRATION
ERP integration centralizes data collection, allows for automation of cross-platform processes, and provides collaborative insights for all departments within a company. The collaborative data of an ERP integration can provide a wide variety of benefits for businesses, including:
Increased Productivity: ERP integration allows your business to automate manual processes like reporting and data entry, improving efficiency and increasing productivity by reducing the time spent on operational tasks.
Centralized Data: The cross-platform and department data that ERP integration provides gives your business a better understanding of overall performance. It allows you to find insights that may span across multiple areas of the business that may not have been visible in a siloed-platform scenario. These insights can inform decision making and increase competitive advantage.
Improved Customer Experience: ERP integration streamlines the customer experience. By integrating customer data into the ERP system, your business can provide personalized experiences to individual customers, and streamline processes with auto-filled data.
CHALLENGES OF ERP INTEGRATIONS
Most eCommerce businesses agree that ERP integration is a central part of success in the current market. However, it can be a complex and difficult process to implement if you’re unprepared. Here are some of the common challenges to be prepared for if you’re setting up your ERP integration:
Cost: Because it is such a wide-reaching system, an ERP and the necessary labor of integrating it into your existing infrastructure can be a costly process. It’s important to weigh the benefits and needs of your company before starting on the process of ERP integration.
Difficulty: ERP integration is a complex process with a lot of moving parts. It takes time, skill, and other resources to implement an entire ERP system. However, once the system is set up, it should require minimal maintenance moving forward.
Data Security: Because ERP integration connects all of your business processes, it can put your company data at risk. Securing your data may require additional resources and systems that you may not have considered in the beginning.
ERP INTEGRATION METHODS
There are a variety of methods that can be used when approaching an ERP integration. In order to choose the approach that best aligns with your needs and goals, it’s important to understand each method. We’ve outlined some of the most common processes:
- Point-to-Point Integrations: This method involves creating direct connections between the ERP system and individual software applications or systems. While point-to-point integrations can be relatively straightforward to implement, they can lead to a complex network of integrations that are difficult to manage and maintain over time.
- Enterprise Service Bus (ESB): ESB acts as a middleware layer that facilitates communication and data exchange between various software applications and the ERP system. ESB provides a centralized platform for managing integrations, enabling easier scalability and flexibility in adding new integrations. However, implementing ESB can require significant upfront investment in infrastructure and expertise.
- Integration Platform as a Service (iPaaS): iPaaS solutions offer a cloud-based platform for integrating different systems and applications, including ERPs. iPaaS simplifies the integration process by providing pre-built connectors and tools for designing, deploying, and managing integrations. This approach is particularly suitable for businesses looking for a cost-effective and scalable solution for ERP integration.
Each integration method has its own set of benefits and considerations, and the choice depends on factors such as the complexity of the integration, scalability requirements, budget constraints, and existing IT infrastructure.
HOW TO PLAN A SUCCESSFUL ERP INTEGRATION
Integrating your ERP system with other software applications and systems can be a complex process, but there are several steps you can take to ensure a successful ERP integration:
Evaluate your current systems: Before integrating your ERP with other software applications, evaluate your current systems to identify potential compatibility issues or data discrepancies.
Identify integration goals: Determine what you hope to achieve with the ERP integration, such as streamlining processes or improving data accuracy.
Choose integration methods: Choose the ERP integration methods that best suit your needs and goals, such as point-to-point integration, middleware integration, or API integration.
Plan the integration process: Develop a detailed plan for the ERP integration process, including timelines, milestones, and contingency plans.
Test and validate: Before going live with the ERP integration, thoroughly test and validate the integration process to ensure compatibility and accuracy.
POST-INTEGRATION OPTIMIZATION
Completing the ERP integration process is just the beginning of your organization's digital transformation journey. To ensure long-term success and continued growth, it's essential to focus on post-integration optimization and evolution. Here's how you can harness the power of your ERP integration to drive ongoing improvement and innovation:
Continuous Monitoring and Performance Evaluation:
- Implement robust monitoring mechanisms to track the performance of your integrated ERP system in real time. Regularly assess key performance indicators (KPIs) to identify areas of strength and areas for improvement. Solicit feedback from end users to gain insights into their experiences and pain points.
Iterative Refinement and Process Optimization:
- Embrace a culture of improvement by continuously refining and optimizing your business processes. Leverage insights gathered from data analytics and user feedback to identify inefficiencies and bottlenecks. Experiment with new approaches and technologies to enhance productivity and streamline operations.
Adapt to Changing Business Needs:
- Stay agile and responsive to evolving business requirements by adapting your ERP system accordingly. Regularly review and update system configurations, workflows, and functionalities to align with shifting priorities and market dynamics. Engage with stakeholders to understand emerging needs and prioritize feature development accordingly.
Empower End Users Through Training and Support:
- Invest in ongoing training and support programs to empower end users to fully leverage the capabilities of your integrated ERP system. Provide access to resources, tutorials, and user forums to facilitate self-directed learning and troubleshooting. Foster a culture of user empowerment and collaboration to drive adoption and proficiency.
Harness Innovation and Emerging Technologies:
- Explore opportunities to harness emerging technologies and innovative solutions to enhance your integrated ERP system. Stay informed about industry trends and best practices, and actively seek out opportunities for strategic partnerships and collaborations. Experiment with cutting-edge technologies, such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) to unlock new insights and capabilities.
By embracing a proactive approach to post-integration optimization and evolution, you can unlock the full potential of your integrated ERP system and position your organization for sustained growth.
BEST PRACTICES FOR ERP INTEGRATION
Successfully integrating an Enterprise Resource Planning (ERP) system into your business infrastructure requires careful planning and execution. By following best practices, you can ensure a smoother integration process and maximize the benefits of your ERP implementation. Here are some key best practices to consider:
Thorough Planning and Assessment:
Before you start your ERP integration, conduct a comprehensive assessment of your current systems, processes, and organizational needs. Define clear objectives and expectations for the integration project, considering factors such as scalability, functionality requirements, and resource allocation.
Engage Stakeholders and Obtain Buy-In:
Involve key stakeholders from various departments early in the planning phase to gather input and ensure alignment with business goals. Secure buy-in from leadership and end users by communicating the benefits of ERP integration and addressing any concerns or resistance.
Choose the Right Integration Method:
Evaluate different integration methods such as point-to-point integration, middleware integration, or API integration, and select the approach that best fits your business requirements and technical capabilities. Consider factors like scalability, complexity, and ongoing maintenance as you make your decision.
Data Cleansing and Standardization:
Prior to integration, clean and standardize your data to ensure consistency and accuracy across systems. Address any duplicate, outdated, or incomplete data to prevent issues during the integration process and to maintain data integrity post-integration.
Prioritize Security and Compliance:
Implement robust security measures to protect sensitive data during and after integration. Ensure compliance with relevant regulations and standards, such as GDPR or HIPAA, by implementing encryption, access controls, and regular audits.
Phased Implementation and Testing:
- Break down the integration process into manageable phases and prioritize critical functionalities for implementation. Conduct thorough testing at each stage to identify and address any issues or bugs before proceeding to the next phase. Involve end users in user acceptance testing (UAT) to validate system functionality and usability.
Provide Comprehensive Training and Support:
- Invest in comprehensive training programs to ensure that employees understand how to use the integrated ERP system effectively. Provide ongoing support and resources to address any questions or challenges that might spring up after integration, improving user adoption and maximizing the system's value.
Monitor Performance and Continuous Improvement:
- Monitor the performance of your integrated ERP system regularly and gather feedback from users to identify areas of improvement. Continuously refine processes, optimize workflows, and leverage new features or updates to enhance system efficiency and effectiveness over time.
By following these best practices, you can navigate the complexities of ERP integration more effectively, minimize risks, and achieve successful outcomes that drive business growth and innovation.
Conclusion
ERP integration can provide significant benefits for businesses by streamlining operations, improving data accuracy, and enabling better decision making. While there are some challenges associated with ERP integration, careful planning and implementation can help businesses overcome them to achieve their integration goals. With the right integration methods and software applications, businesses can achieve a truly unified and efficient operations platform.
NUORDER INTEGRATES WITH YOUR ERP
NuORDER is a leading cloud-based B2B eCommerce platform that offers a range of solutions for wholesale buyers and sellers, including order management, inventory management, and catalog management. NuORDER integrates with a variety of ERP systems including SAP, NetSuite, Microsoft Dynamics, and Oracle to provide a seamless experience for its users. With NuORDER, businesses can automate their sales processes, reduce manual data entry, and provide a better customer experience. It’s an essential tool for any wholesale business looking to streamline operations, improve processes, and grow sales. That’s why hundreds of our clients have recommended us to take business results to new heights.
