This comprehensive guide to ERP integration is a must-read if you’re planning to connect additional software to your ERP system.
You’ll learn how ERP integration could benefit your business, along with its challenges, methods and best practices.
What is an ERP integration?
ERP integration connects an enterprise resource planning system with other software, applications or databases. It facilitates communication and data exchange between functions, so you can manage your entire business from one system.
For example, you can integrate accounts payable automation software TRAILD with MYOB Acumatica. This allows you to automate data capture, invoice validation and approval workflows, so there’s less manual work for your finance personnel. This integration helps streamline your accounts payable processes while keeping your accounting software up to date.
Why is ERP integration important?
ERP integration is important because it centralises and standardises your business data, so you have one source of truth. This means you don’t need to jump between systems, but can access the data you need on your dashboard. This is key to increasing efficiency, providing managers visibility and control and empowering decision-making.
Benefits of ERP integration
ERP integration can benefit all business areas, from financial management to customer relationship management. Summarised below are five key benefits:
Data accuracy
An integrated ERP system improves data accuracy as you don’t need to enter it multiple times into different systems. Instead, an integrated ERP will pull data from one part of your system to another. This reduces the risk of data errors or inconsistencies and enables you to generate faster, more accurate reports.
Increased efficiency
ERP integration can increase efficiency by automating business processes. When data can flow through your company’s systems, you can automate tasks and activities in response to trigger events. This helps reduce lead times, eliminate manual tasks and free employees to focus on more valuable work.
Streamlined processes
ERP integration streamlines processes in all business areas, including order fulfilment, invoicing, inventory management and more. This is because you don’t need to update multiple systems or manage workflows outside your system.
Enhanced visibility
With an integrated ERP system, you’ll have better visibility. Real-time data updates let managers see the company’s financial position, sales figures and other critical business functions. This empowers them to make faster, smarter decisions.
Tip: Use MYOB Acumatica to see real-time data from across your business on your dashboard.
MYOB Acumatica also comes with built-in reporting and business intelligence tools. Analyse real-time trends, find customer insights, dig into inventory turnover and more. If you need even more detailed reporting, choose from our curated BI integrations.
Scalability
Look for an ERP that can grow with your business and be flexible enough to meet your changing needs. Good platforms allow you to add features, users and third-party integrations as your business grows and evolves, future-proofing your ERP investment.
MYOB Acumatica is designed to scale with your business. Pay only for the functions you need and add more as your requirements grow. There’s also an extensive range of third-party integrations available on the MYOB App Marketplace.
ERP integration methods
There are various ERP integration methods that may be available to you, depending on what software you’re currently using:
Integration PaaS (platform as a service)
Integration PaaS (iPaaS) is a cloud-based platform that lets you quickly integrate your applications, data and processes across different systems and environments. It allows you to connect on-premise and cloud-based applications easily. iPaaS platforms usually cost less to use than others because they require little to no coding.
Point-to-point integration
Point-to-point integration uses custom code to connect two software systems. It’s effective if you need to connect only a small number of systems. However, as the number of integrations grows, organisations may struggle to manage the complexity of point-to-point integration.
Enterprise service bus (ESB)
Enterprise Service Bus (ESB) enables apps to share data through a common platform. It’s beneficial for complex, large-scale integrations. Implementing and maintaining an ESB can be expensive, though, because of the infrastructure and the need for experts to manage it.
Native integration
Native integration is when your ERP system connects with specific external apps through built-in APIs. This method allows real-time data synchronisation between your ERP and other applications, ensuring accurate and timely updates across platforms. It’s simple and low-cost for users — the software apps have a built-in integration with specific systems or platforms.
Tip: With MYOB Acumatica, you can extend your system's power with app integrations already available on the App Marketplace.
Best practices for ERP integration
Follow these best practices for ERP integration:
Create an ERP integration plan
Create an ERP integration plan. This can help ensure you decide your integration approach and stay on schedule and within budget. Clearly define your business requirements and how you need your system to work.
When implementing MYOB Acumatica, MYOB or one of our trusted partners will work with you to design and build a solution that meets your needs.
Ensure security is front of mind
Ensure security is front of mind when planning ERP integration. Be aware that as you increase your number of integrations, your potential attack surface grows too. Look for platforms and providers with strong cybersecurity credentials.
Use good data management practices
Use good data management practices such as cleaning and formatting your data to eliminate duplicate records, mistakes and redundancies. The better the quality of your data, the more benefits you’ll reap from your new ERP integration.
Identify and understand integration requirements
Identify and understand your integration requirements before selecting an ERP system. Get input from stakeholders on what they need to do their jobs effectively. Then, overlay this information onto your organisation’s current and future requirements.
ERP integration challenges
Potential security risks
A higher number of ERP integrations may increase your cyber security risk. This is because with more integrations, there are more entry points for malicious actors to exploit. Each integration needs to be properly secured to mitigate cybersecurity risk.
Tip: Look for a platform that complies with international data security standards, such as MYOB Acumatica.
Compatibility issues between ERP and software
Compatibility issues between ERP and other software can cause significant disruptions. Look for an open ERP platform with an extensive app marketplace to keep data flowing smoothly across all business units.
ERP integrations can be complex and costly
ERP integrations can be complex and costly unless integrations between your platforms have already been developed.
ERP integration FAQs
What are the costs associated with an ERP integration?
The costs associated with ERP integration include:
Software license fees (including renewals)
Implementation and integration
System upgrade and maintenance
Data storage charges
User onboarding and training
What is an ERP integration strategy?
An ERP integration strategy is having a process in place for connecting your ERP with other applications. It includes the following stages: needs assessment, planning, implementation, testing and maintenance.
What is an example of an ERP integration?
Imagine you run a chain of coffeehouses. When you opened your first location, you could manage your business using a few software solutions. Now that you have 10 sites, that’s becoming unmanageable.
Implementing an ERP system makes it much easier to track inventory, roster and pay employees and do your accounting. Integrating your ERP with your POS system further enhances your efficiency, as this brings your sales data directly into your ERP.
Integrate business growth
ERP integration is often essential to getting full value out of your ERP system. With an open, cloud-based ERP like MYOB Acumatica, integration doesn’t have to be complex or expensive either. There are hundreds of integrations already available on MYOB’s App Marketplace.
For specialist requirements, you can also work with MYOB or one of our implementation partners to design and build the enterprise solution and integrations that are right for you.
Take your business to the next level – speak to an expert today.
Disclaimer: Information provided in this article is of a general nature and does not consider your personal situation. It does not constitute legal, financial, or other professional advice and should not be relied upon as a statement of law, policy or advice. You should consider whether this information is appropriate to your needs and, if necessary, seek independent advice. This information is only accurate at the time of publication. Although every effort has been made to verify the accuracy of the information contained on this webpage, MYOB disclaims, to the extent permitted by law, all liability for the information contained on this webpage or any loss or damage suffered by any person directly or indirectly through relying on this information.