While there are many benefits to integrating your ERP system with your other enterprise software, there are also major risks. Whether you have an existing ERP system and want to integrate it with a new application, or you’re integrating a new ERP system with some of your legacy systems, you must prepare for ERP integration challenges.
Based on our software expert witness experience, we’ve compiled the most common ERP system integration challenges, and we’re sharing them with you so you can ensure a successful system integration.
What is ERP Integration?
At its core, ERP integration bridges your organization’s software systems, establishing a unified data ecosystem. By fostering a cohesive environment, ERP integration paves the way for efficient data access and sharing.
For example, if your accounting team needs data from your sales team, they can obtain it from the ERP system instead of dealing with various other systems.
Contemplating litigation?
We have multiple software expert witnesses available for provision of reports, depositions, and testimonies.
5 ERP Integration Challenges
1. Mastering Data Migration
When attempting to integrate your systems, data duplication or deletion is always a risk.
Many processes and workflows are highly sensitive to even small changes. An accidental modification of data could cause a domino effect throughout your organization.
Because the data migration process can disrupt your business processes, it is important to ensure a robust data validation and reconciliation process.
2. Navigating Increased Complexity
Attempting to integrate ERP software with a variety of other systems can be complex because successful integration requires a deep understanding of all your organization’s business operations.
Before you even attempt an ERP integration project, you need to take the time to understand your business processes across departments.
This cross-departmental complexity also means you need strong executive buy-in, especially when you consider the cross-departmental nature of emerging technologies like IoT.
3. Facilitating Effective User Training
Due to the increased complexity of integrated systems, problems can sometimes arise from a lack of training. Many software projects fail due to a lack of user adoption, and ERP integration projects are no exception.
One of the best ways to increase user adoption throughout your organization is to provide customized training that accounts for the impact of process changes on each individual employee.
4. Establishing Strong Security
Your ERP system consolidates all your organization’s vital data. This provides benefits but also increases the risks of a security breach.
ERP integration means you are connecting a variety of data sources to your system. Each of these interconnected devices could be compromised and used as a foothold to gain unauthorized access to your data.
You need to keep security in mind when working on the connections that make up the overall integration. We recommend implementing security devices and best practices, such as multi-factor authentication.
5. Accessing Real-Time Data
In the past, ERP data was primarily generated by batch processing. In batch processing, data is collected until a certain threshold is reached. Once reached, data is processed as a batch at a specific time.
While this may have been useful in the past, organizations now have an increased number of downstream systems that require data. Many of these systems require real-time data. Real-time data processing transmits data constantly and requires data flow automation features that are not standard across all ERP systems.
This is why it is vital to understand your organization’s needs before beginning ERP selection. If real-time processing is required for your workflows, you will need to invest in an ERP solution that supports this.
Incorporating AI Into ERP for Enhanced Real-Time Processing
The evolution from batch processing to real-time data accessibility is not just a shift in technology but a transformative move towards intelligent enterprise management. Artificial intelligence (AI) plays a pivotal role, with its ability to anticipate, analyze, and act upon data in ways previously unimaginable.
By integrating AI in ERP systems, businesses can harness the power of smart automation, predictive analytics, and natural language processing to streamline operations and make more informed decisions.
AI algorithms can predict demand fluctuations, optimize inventory levels, and identify potential supply chain disruptions before they impact a business.
Moreover, AI can automate routine tasks and complex workflows, freeing up human resources to focus on strategic initiatives.
Paving the Way for Successful Integration
The best way to overcome these ERP integration challenges is engaging the right experts. Our ERP implementation consultants can illuminate the path to a successful integration, helping you understand your data needs. For a personalized consultation, contact us below.
