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5 Keys to your ERP Integration Strategy

When I was putting up my Christmas lights this year I noticed something interesting. When I plugged a set of lights into another set of lights, they did not work. However, if I plugged them directly into the extension cord, they worked fine. The problem was not with the lights, but with the connector between the lights. They would work in parallel, but not in series.


Even with an ERP, there are always going to be multiple pieces to the puzzle
Even with an ERP, there are always going to be multiple pieces to the puzzle

This is similar to ERP integration points. You really have to look at each integration/connector as a separate system in and of itself. It has to be maintained and monitored on an ongoing basis. I once worked at a firm where we had a CRM that we wanted to integrate with our ERP system through a 3rd party integration tool. The ERP partner tried for months to get everything to work together without success. Ultimately, we had to abandon the integration, and any sales data required by the ERP was entered manually. Thankfully, that was a long time ago, and this is a much less likely outcome these days.


To help avoid these types of headaches, you would do well to keep these key points in mind:


Minimize, minimize, minimize.

The beauty of an ERP is that all of your data is stored in a central database. You should make every effort to take advantage of this architecture by ensuring that as much of your business operations are encompassed within your ERP as possible. This means you need to avoid the lure of point solutions that may be better than the corresponding module in your ERP. Unless the ERP module is very poor, or non-existent, you should always look to use the ERP functionality first.


Of course, there are certain areas where ERPs do not provide functionality. These areas often require highly specialized knowledge and a need to track specific government regulations. Areas that fall into this category include payroll, tax management, and CAD. Given this environment, it's not practical to think you can run 100% of your business through your ERP. 80-90% is a realistic goal.


Ultimately, the fewer integration points you have to manage, the easier it will be to maintain your ERP solution.

Understand the data

Part of your ongoing planning needs to be around managing your data. Data management is critical to your ERP, and will inform your data architecture. There are a wide range of levels of integration. Integration has two primary attributes: timing and direction. Timing may range from real-time to monthly. Timing often dictates the integration approach: a real-time integration may require a sophisticated custom integration. For a monthly integration, the typical approach would be to export the data out of the 3rd party solution and import it into the ERP via Excel.


Direction also plays a key role in the integration approach. Is this a bi-directional integration or uni-directional? Which way is the data flowing? Across the entire ERP there will often be a mix of data flows which vary in both timing and directionality.


Understanding your data needs and planning accordingly is critical to ensuring that your data management is in alignment with your overall ERP strategy.

Stay close to home

As stated above, your first position should always be to explore whether the functionality you require is available natively in your ERP. Often there will be an optional module that you can turn on and configure that will meet your new requirements. If that is not the case, you need to start exploring your options.


Your first stop should be to talk with your ERP partner. They can give you guidance on any pre-defined or certified integrations they have in particular sectors. The major vendors also have app stores or marketplaces associated with their solution. Some of the simpler apps can be purchased and automatically integrated with your ERP independently.


There will be cases where you need to integrate a specific solution with your ERP that does not have a pre-existing integration. In most cases, you can have either the 3rd party vendor or your ERP vendor do the integration for you. I would suggest you start with your ERP vendor since they have the "big picture" in mind when it comes to your ERP platform.


If you have staff that are comfortable with low code/no code environments, most of the vendors now offer development environments that allow you to create your own apps or utilities. You can capture functionality that was previously captured in an Excel spreadsheet like a freight calculator or an onboarding checklist. One of the most popular environments is Microsoft's power platform, which includes five tools (Power Apps, Power Automate, Power BI, Power Pages, and Copilot Studio). The nice thing about working in these types of environments is that its highly unlikely that the applications will break when the ERP is upgraded (this used to be a major issue with customizations). Also, the more apps that can be brought into the ERP ecosystem, the fewer the number of integrations that will be required, which is always a good thing.


Work with your ERP partner

Your ERP partner can be an invaluable source of resources and advice when it comes to integration. They can share their past experiences with different solutions and integration tools, and counsel you on the systems that work best with their ERP. Like most aspects of your ERP platform, you should always keep your ERP partner in the conversation.

Analytics can help!

Analytics packages are designed to pull in data from multiple sources. Leading BI tools like Tableau, Qlik, and Power BI come with many connectors. Power BI comes with over 160 connectors out of the box. You can pull data from many different places, transform it and consolidate it within your analytics package, and then load it into your ERP. These analytics tools can also build visualizations, dashboards, and key performance indicators.


Your integration strategy should always be an integral part of your overall data strategy. Keeping the data flowing through your ERP and through your organization will ensure that everybody has the information they need to be efficient and effective.




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