According to Director and Co-Founder for PaySpace, Warren van Wyk, in the decentralized technology era, ERPs can remain the central pillar of business systems by effectively integrating other software.
He advises on “How can you prevent integration mistakes that result in costly failures?”
The challenge of integrating ERP and cloud services
This scenario is especially pertinent to the adoption of cloud technology. Cloud platforms enable enterprises to access powerful services at lower costs and with greater control, all without the need for significant capital expenditure. Despite ERPs integrating cloud into their framework, they remain essentially singular systems that prioritize centralization. Cloud services, on the other hand, are inherently decentralized and distributed.
Director and Co- Founder for PaySpace notes that “Integrating an ERP and cloud services is not a simple task because they are fundamentally different. ERPs use modules to add extra functionality, while cloud platforms are not modules. They are independent software not designed to conveniently slot into an ERP environment. Both are complex in different ways—that’s why integration can be challenging.”
As a result, when companies attempt to integrate cloud services with their ERP systems, they may encounter significant and costly issues.
Winning with ERP and cloud integration
What are the common issues encountered in ERP integrations? It’s common to encounter integrations that fail to generate value, don’t engage users effectively, or introduce irrelevant data into the broader system. There are two primary pitfalls: preparation and data.
Preparation issues arise when the parties involved in the integration fail to conduct sufficient planning and collaboration. They may underestimate the complexity of the ERP system, concentrate solely on technical aspects, and overlook business alignment, stakeholder involvement, and user requirements. The key concern isn’t just about integrating an ERP with a cloud service but ensuring that the integration achieves the expected outcomes and empowers users effectively.
Certain issues pertain to data. While simple integrations typically involve transferring a restricted amount of information between systems, an ERP functions within a data ecosystem, demanding that integrated services nourish this ecosystem. However, disparate systems often employ distinct data formats, necessitating thorough (and frequently customized) data testing and comparison to ensure the coherence and reliability of data streams. The integration endeavor must establish a comprehensive comprehension of both platforms, discerning the distinctions in their data and devising strategies to bridge these gaps. Numerous ERP integrations falter due to assumptions regarding data compatibility.
“The distinction between failure and success frequently hinges on the integration partner,” van Wyk asserts.
“When integrating with a complex system such as an ERP, things will go wrong. The biggest mistake is often to rely on an inexperienced partner or a partner that wants to follow a standard integration roadmap. Here’s the telltale sign: if you have meetings with them and they don’t ask you lots of uncomfortable questions, they are not on the right track. They have to do their homework.” he concludes
ERP’s complexity and risks
ERP projects are typically known for their complexity and riskiness. Integrating cloud platforms into an ERP exacerbates these challenges. However, the advantages are substantial, merging the reliability of your ERP with the advancements of cloud services. Success or failure hinges on specifics: preparation, collaboration, and data integrity. When an ERP integration project adheres to these principles, it becomes a victory for all involved.
