What is ERP system integration and how does it work?

person looking at data on laptop

Benefits of ERP system integration

Investing in a modern ERP system will help your business compete in the digital age via faster and more intelligent tools and processes. Here are the main reasons why so many organizations are placing increasing emphasis on ERP system integration.

Superior data synchronization

When separate business applications remain unconnected, they turn into data silos — where information is collected but not effectively managed or utilized toward a common goal. In other words, more data silos mean more inaccurate and redundant information, which ultimately stifles business innovation and scalability.

Streamlined internal processes

ERP system integrations help automate workflows, enabling teams to work smarter, not harder. Without this, data must be manually transferred from one system to another, which adds complexity and uses up significant time and resources.

Enhanced customer experiences

Being able to automatically share information and trigger tasks between systems allows you to improve the customer experience in a variety of ways. First of all, you can reduce bottlenecks in the order fulfillment process by ensuring that all departments — whether it be sales, accounting, or shipping and logistics — have the information they need to complete their share of the work.

Key ERP system integrations

Determining which software applications should be connected to your business’ ERP system will depend on a variety of factors. For most organizations, these are the most important integrations to build out and maintain:

  • eCommerce: For businesses that sell products online, syncing their ERP and eCommerce platform plays a crucial role in delivering positive customer experiences. This enables real-time order updates for the customer, as well as reliable inventory monitoring — so that, for instance, sold items are not displayed as in-stock to live online shoppers.
  • Human resources (HR): HR departments deal with a high volume of information related to employee management, documentation, onboarding, and training. Effective ERP integration with HR tools and processes leads to smoother workflows and more accurate data reporting in this domain.

How ERP system integration works

Integrating different technologies with your business’ ERP system can be a long and complicated process. With a digital transformation partner like Codal, you can rely on a team of technical experts to choose the right tools and integration methods, based on your organization’s unique goals and requirements.

  • Enterprise Service Bus (ESB): ESB software provides an architecture that allows data from systems with different programming languages to be translated into one consistent format. Unlike iPaaS, ESB solutions are intended for on-premise ERP systems, making them less ideal for lean startups with a wide variety of third-party applications.
  • Point-to-point integrations: This is a simple method where a specific integration is built out between two systems, such as a business’ ERP and CRM. While this may be the most straightforward and necessary solution in certain situations, it’s not the most scalable approach, since the middleware can only be used to synchronize data between those two systems.
  • Training: What new processes will be implemented as you roll out the new middleware? And how will you train your team and new employees to ensure maximum efficiency moving forward?
  • Security: What kind of security measures do your third-party vendors take to safeguard business and client information? Are there any data security concerns associated with connecting certain applications?
  • Custom integrations: What pre-built integrations does your ERP system offer? And what middleware will you need to develop from scratch?
  • Budget: How much of your budget can be allocated to ERP system integration? And what is your expected ROI?

Team up with Codal for cutting-edge ERP system integration

When it comes to ERP system integration, there are many tools and processes available. So how do you know which approach is right for your business? Planning, executing, and maintaining ERP system integrations require significant time, resources, and technical expertise. And that’s where Codal comes in.

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Codal Inc.

Codal Inc.

A digital solutions partner with a data-driven approach that empowers companies at the intersection of UX design, development, & business.