How can you best mitigate risks when integrating an ERP system with other business applications?

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Integrating an ERP system with other business applications can bring many benefits, such as improved data quality, streamlined workflows, and enhanced visibility. However, it can also pose significant risks, such as data loss, compatibility issues, security breaches, and cost overruns. To avoid these pitfalls and ensure a successful integration, you need to follow some best practices and mitigate the potential challenges. Here are some tips on how to do that.

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David Fernandez Cavero

Managing Director, EY Global Energy Solutions Lead Architect

1 Assess your needs

Before you start integrating your ERP system with other applications, you need to have a clear understanding of your business goals, processes, and requirements. This will help you identify the scope, objectives, and priorities of the integration project, as well as the expected outcomes and benefits. You also need to evaluate the current state of your IT infrastructure, data sources, and application portfolio, and determine the gaps, redundancies, and opportunities for improvement. By conducting a thorough needs assessment, you can define the scope and specifications of the integration project, and avoid unnecessary complexity and confusion.

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David Fernandez Cavero

Managing Director, EY Global Energy Solutions Lead Architect
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Do not let yourself by anchored to the past by legacy applications. When considering a transformation no single application should be spared from a thorough, objective and independent analysis. There cannot be any 'sacred cows'. This might be politically difficult to pull off in the organisation but it is the only way to ensure the value of the entire transformation can be maximised and the objectives met

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2 Choose the right approach

There are different ways to integrate your ERP system with other applications, depending on your needs, budget, and timeline. Some of the common approaches are point-to-point integration, hub-and-spoke integration, enterprise service bus (ESB) integration, and cloud-based integration. Each approach has its own advantages and disadvantages, and you need to weigh them carefully before making a decision. You also need to consider the type, frequency, and volume of data exchange, the level of customization and flexibility, the security and compliance requirements, and the scalability and maintenance costs. By choosing the right approach, you can optimize the performance, functionality, and reliability of the integration.

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3 Involve the stakeholders

Integrating your ERP system with other applications is not only a technical task, but also a business and organizational one. It affects various aspects of your operations, such as workflows, roles, responsibilities, and policies. Therefore, you need to involve the relevant stakeholders from the start, and communicate with them regularly throughout the project. The stakeholders include the end-users, managers, IT staff, vendors, and consultants. You need to solicit their input, feedback, and approval, and address their concerns and expectations. By involving the stakeholders, you can ensure the alignment, collaboration, and support of the integration project.

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David Fernandez Cavero

Managing Director, EY Global Energy Solutions Lead Architect
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Stakeholder management must always go beyond the usual package of communication management + training that some organisations are used to. Key stakeholders (more on this definition later) must be involved from the early design stages so they can explain their needs and expectations and ensure they can be aligned with IT goals. This is no trivial task and it involves a fine balance between architecture design and expectations management. It is critical to first define who these key stakeholders really are, as involving every department lead would just cause analysis paralysis and prevent effective decision-making (or any decisions being made at all!). A selective and well-informed approach to who must have a say in design is the key.

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4 Test and validate

Before you launch the integration project, you need to test and validate the functionality, compatibility, and security of the ERP system and the other applications. You need to perform various types of testing, such as unit testing, integration testing, system testing, user acceptance testing, and performance testing. You also need to verify the accuracy, completeness, and consistency of the data transfer and synchronization. You should use realistic scenarios, data sets, and environments, and document the results and issues. By testing and validating the integration project, you can identify and resolve any errors, glitches, or vulnerabilities.

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5 Monitor and evaluate

After you launch the integration project, you need to monitor and evaluate its performance, impact, and outcomes. You need to use appropriate tools and metrics to track the data flow, application status, user behavior, and business results. You also need to collect and analyze feedback from the stakeholders, and identify any problems, gaps, or opportunities for improvement. You should review and report the findings and insights, and make adjustments and enhancements as needed. By monitoring and evaluating the integration project, you can ensure its quality, efficiency, and effectiveness.

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David Fernandez Cavero

Managing Director, EY Global Energy Solutions Lead Architect
举报内容
What does a project being successful mean? For some people it will just be going live on time and on budget, but that is simplistic and forgets completely the value angle. We must really look at what the project really delivered. Success KPIs and OKRs must be defined and agreed in the early stages so that there is a clear benchmark against which to measure success. Organisations embark on transformations looking to achieve different objectives, e.g. process efficiencies, create scalability, achieve cost reductions, deploy new capabilities, improve customer service... All of these can and should be measured and monitored to determine whether success has been achieved or whether adjustments (or flat out course corrections!) are still required

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6 Train and support

Integrating your ERP system with other applications can change the way you and your employees work, and require new skills and knowledge. Therefore, you need to provide adequate training and support to the end-users, managers, and IT staff. You need to explain the benefits, features, and functions of the integration project, and demonstrate how to use it. You also need to provide manuals, guides, tutorials, and FAQs, and offer helpdesk, hotline, and online support. By training and supporting the integration project, you can facilitate its adoption, usage, and satisfaction.

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David Fernandez Cavero

Managing Director, EY Global Energy Solutions Lead Architect
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There have been multiple cases of appropriately designed systems not just failing to improve the company's operations but directly throwing them in disarray due to users being unable to effectively operate the new system. No matter how much the systems have been designed to improve operations, if the actual users are unable to execute their tasks in the new system the project will not be a success. That is why early stakeholder management is essential. You can create 'ambassadors' for the new solution that will help not only design the system but also make sure it will be understood, and usable, even before we reach training phase. Training materials/events should just be the last activity in an extensive transformation plan

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How can you best mitigate risks when integrating an ERP system with other business applications?

1

2

3

4

5

6

7

1 Assess your needs

2 Choose the right approach

3 Involve the stakeholders

4 Test and validate

5 Monitor and evaluate

6 Train and support

7 Here’s what else to consider

Enterprise Resource Planning (ERP)

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How can you best mitigate risks when integrating an ERP system with other business applications?

1

2

3

4

5

6

7

1 Assess your needs

2 Choose the right approach

3 Involve the stakeholders

4 Test and validate

5 Monitor and evaluate

6 Train and support

7 Here’s what else to consider

Enterprise Resource Planning (ERP)

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