Maintain traceability throughout the enterprise:

Maintain traceability throughout the enterprise:

When a large company implements an ERP system they typically have a dedicated internal team focused on making sure every component of the business system is customized, configured and integrated with all the unique business needs of the company. While this approach can deliver the expected result, this process requires extensive internal resources, significant external implementation consultants and includes a high risk of failure.

For most mid-sized companies this type of implementation is not an option…the costs would be too high, the implementation would take too long and the risk of failure could literally put a company out of business. Yet the cost of doing nothing or implementing multiple stand alone point solutions presents its own series of costs, challenges and risks.

One method mid-sized companies have selected is to use a hybrid of a broad and deep ERP with an open architecture for integration. Most mid-market ERP systems will offer a fully integrated solution to manage; Engineering, Sales, Operations, Materials, Shipping and Financials. Yet trying to be all things to all people is impossible…so as companies look to integrate all aspect of their organization in a common platform it is necessary to be able to integrate seamlessly.

Some of the more common examples of where companies may look to integrate with their ERP system include:
1) Design & Engineering - CAD (Computer Aided Design) PDM (Product Data Management) or PLM (Product Lifecycle Management)
2) Sales – CRM, Web store, Customer Portal or Forecast Management tools
3) Supply Chain Management- Supplier Management, Supplier Portal or Collaboration

If business functions are not addressed by the ERP system then a point solution needs to be added. These systems must be able to solve the specific business pain and interface with the ERP. Integration requires both; load/unload data, and transaction updates that will not corrupt the database.

The best options for mid-sized companies are solutions that are fully integrated from the ERP vendor. These are almost always the lowest cost solution, easiest to maintain and quickest to implement.

If functions are required that can only be addressed with 3rd party add-on applications then it must interface with the ERP. This option is more expensive (buying separate system), requires more maintenance (because the interface needs to be updated as the software is updated) and takes longer to implement (because of the additional complexity of creating specification, writing interface, and implementing).

The worst solution is a series of non-integrated systems. These are expensive (users are purchasing multiple applications, database, hardware, report writers, etc.), labor intensive to maintain (the same data is maintained in multiple locations & each system will have to be updated separately) and time consuming (with multiple point solutions a company will almost always be in the mode of upgrading, maintaining or trouble shooting problems). The worst part is the systems will eventually get out of sync and the data will be wrong in most of the systems.