The benefits of an ERP application is limited unless it is seamlessly integrated with other information systems.
Organizations face many challenges in ERP integration - the challenges of integrating various functional ERP modules,
2) the challenge of integration with other e-business software applications, and 3) the challenge of integration with legacy systems.
The success of ERP implementation is the success of ERP integration.
Integration of ERP Modules
Packaged ERP software consists of many functional modules (production planning, inventory control, financial and HR). Organizations tend to install
modules from the same ERP vendors in the initial ERP implementation. Not all companies will purchase all ERP modules from a single ERP vendor
(SAP, Oracle, PeopleSoft etc.). The implementation of ERP systems could last many years. The integration of ERP modules could be either
the integration of modules from different vendors, or the different versions of the modules from the same vendor.
Integration of E-Business Applications
E-business practice is the combination of strategies, technologies and processes to electronically coordinate both internal and external business processes,
and manage enterprise-wide resources. E-business software systems generally fall into four categories: Enterprise Resource Planning (ERP), Customer
Relationship Management (CRM), Supply Chain Management (SCM) and Knowledge Management (KM). To get the most out of ERP systems, ERP should be tightly
integrated with other e-business software - Supply Chain systems, CRM, knowledge management, B2B exchange and ecommerce storefront on the Internet.
Integration with Legacy Systems
Over the years, legacy systems have accumulated vast amount of data vital to the survival, operations, and expansion of corporations and non-profit
organizations. Integration of ERP systems with legacy systems is more complex than the integration of ERP modules and Integration of e-business
Applications. It routinely requires the installation of third-party interface software for the communication between ERP software systems and legacy
systems. Second generation ERP systems use relational database management systems (RDBMS) to store enterprise data. Data conversion from legacy systems
to RDBMS is a often a time-consuming and tedious process. While most interface software provides API for ERP to access legacy systems, some vendors
offer integration module that automates or accelerates the transformation of legacy application logic and data into reusable components with XML, SOAP,
J2EE and .NET interfaces.
Related Topics
Benefits of ERP Systems
ERP Implementation Methodologies
Critical Successful Factors of ERP Implementation
The Differences between ERP Systems and Ecommerce Applications
Cost of ERP - What does ERP really cost?
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