4 ERP integrations to improve your business performance

4-ERP-integrations-to-improve-your-business-performance

4-ERP-integrations-to-improve-your-business-performance

Developing and configuring enterprise resource planning systems is not easy. Still, more and more companies implement ERPs. Thus, organizations improve operational efficiency and achieve advanced transparency required for stable business growth. According to the Software Path 2022 ERP Report, most organizations (over 30% of the survey’s respondents) implement ERPs to support business growth.

However, enterprises do not always make the most out of their ERPs, missing the opportunity to become even more competitive. In particular, those who aim to increase business effectiveness can integrate ERPs with other corporate systems, thus building more robust and powerful digital ecosystems. Making use of connected worker platforms may help in easing the process.

This article covers four types of ERP integrations. Supported with ERP advisory, an enterprise may scale workflow automation and foster data management, resulting in enhanced business performance and profitability.

 

Ecommerce

If an ERP adopter uses a website, mobile app, or other digital channels to sell its products and services, this may be the case for ERP ecommerce integration. Here are some considerations on how such an integration, which involves the unification of the front and back offices, may benefit the business.

First, since the integration synchronizes data between ERP and ecommerce, it enables enterprises to automatically update and adjust inventory data across all of their digital channels. This way, organizations can ensure that none of their customers purchase an item that is actually not in stock, which typically results in decreased customer satisfaction.

Moreover, considering the synchronization works both ways, any purchase is immediately reflected in the ERP system, which makes it duly recorded for an inventory audit. Thus, members of the sourcing and procurement teams are able to replenish stocks of a particular product on time and therefore make sure that it remains available to customers.

In addition, if integrated with an ERP, a site or app can access ERP data to notify customers about the status of their orders and their current shipping location across the supply chain, even in real time. For example, if some product is delivered with a delay, an app may automatically send a notification to a customer to inform them about the date postponement. Thus, by providing accurate and relevant information to customers, an enterprise may improve their satisfaction and streamline brand loyalty.

 

HR

Although the HR department’s work does not directly correlate to making profits, it still cannot be underestimated. After all, it is the HR team’s job to provide organizations with relevant talent, enabling businesses to achieve their strategic goals and ensure that employees receive their compensation and are satisfied.

ERP and HR management software integration allows enterprises to optimize and automate the above tasks. For example, HR team members can access ERP data to understand the enterprises’ needs in terms of operational efficiency. With this information, HR specialists can timely hire or train employees who can best fit organizations’ requirements.

In addition, an integration enables human resources specialists to access supply chain data – for instance, information about the workloads of manufacturing or warehouse management departments. Further, HR teams can rely on this data to optimize certain employees’ work schedules, improving specific business workflows and operations.

 

CRM

An enterprise can ensure stable growth and prosperity with a robust CRM system in its tech stack. After all, CRMs collect data about customer contacts, purchases, and preferences, as well as their financial information, which is required for providing high-quality and personalized service.

By integrating ERP and CRM, an enterprise can make this data available to all organization’s departments, enabling disparate teams’ members to work together on meeting customer requirements. In particular, members of the sourcing and procurement departments can access data on customer purchases and locations to timely prevent shortages of goods or optimize the delivery process, thereby increasing customer satisfaction.

Vice versa, ERP data becomes accessible to sales and marketing teams. From now on, sales reps can check complete inventory data and product prices via the CRM interface right in the middle of customer communication, enabling them to provide more accurate services and better meet customer demand.

 

Business intelligence (BI)

Considering that ERP software systems connect disparate work processes, they accumulate vast amounts of data. So, an ERP can fulfill a role of a unified source of truth, enabling more relevant and data-based business decisions. In particular, developers can integrate ERPs with corporate BI systems, thus allowing the use of artificial intelligence (AI) and machine learning (ML) for the continuous analysis of ERP data (including the data from business systems connected to an ERP).

In practice, such integration allows employees to analyze corporate internal processes’ data to optimize them and eliminate bottlenecks. Moreover, an AI-powered BI solution can provide recommendations via the ERP interface. This way, any enterprise department can continuously generate data-based insights and use them to increase efficiency and productivity without wasting time on manual data gathering.

Among other things, BI integrated with an ERP can be used for predicting customer expectations and demand. Thus, enterprise employees can rely on historical ERP-related data while creating new services and products, ensuring that the latter will fit the market. In turn, sourcing departments can purchase exactly those materials required by the customer demand, thus decreasing overall business costs.

 

Final thoughts

Although the ERP implementation is a very complex and labor-consuming task, the game is worth the candle. After all, ERPs allow enterprises to unify different business functions and streamline data management, enabling organizations to improve their performance and service quality.

The most ambitious and future-oriented ERP adopters can go even further by integrating their ERP software solutions with other parts of digital business ecosystems. In particular, developers can integrate the ERP with other corporate software solutions related to ecommerce, human resources, business intelligence, and CRM, helping organizations become even more effective and competitive.

Reendex

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