Still Using Multiple ERP Systems? Here’s Why It’s Time to Consolidate Your Fragmented Financial Data

Despite how much modern cloud-based enterprise resource planning (ERP) systems have evolved in recent years, many companies still operate under a traditional model where processes are siloed across multiple platforms. As a result of this data fragmentation, they miss out on a unified, cohesive view of the business and — unless they have an army of people to make up for the lack of integration — often suffer delays to their financial reporting, slowing down business decisions. While there are significant time and cost reasons for maintaining legacy software systems, leaders cannot ignore the inefficiencies these systems embed in a company’s processes. For those organizations without the financial resources to embark on ERP platform consolidation just yet, solutions that can bridge the gap are required.?

Multiple Systems Hold Companies Back

A modern ERP system is a sophisticated infrastructure of software, tools, and technology that serves as an organization’s system of record for all resources and commitments. With a single system connecting everything a business does — supply chain, human resources, procurement, and finance — leaders can see and control resources in one place. This single source of truth allows for integrated management. A contemporary ERP, if used properly, can significantly improve business outcomes.??

But for companies lagging behind, it can take years and many millions of dollars to consolidate their data into a single system, depending on the number of ERP systems an enterprise has in place. This kind of timeframe for data integration puts a strain on the people who rely on ERP data, as they turn into long-term project managers for the ERP platform integration.?

Expertise is also required to maintain multiple platforms, with each platform having its own nuances. Members of the finance team, who are the heaviest ERP system users, have to know how to navigate the company’s various ERP systems. Cloud technology has also made ERPs more accessible, increasing the number and types of users. In this scenario, it takes time for ERP system users to extract and make sense of all the fragmented data. The near real-time benefit provided by a single, consolidated ERP system thus does not exist. The company loses effectiveness, such as with its ability to manage its various commitments and its resources. However, full consolidation is not the only option to address these challenges.

A Fast and Affordable Alternative

Many organizations are caught in the Catch-22 of needing to integrate into one ERP system in order to operate the business at the desired speed but cannot allocate the millions of dollars or the bandwidth of the many people required to achieve this. Some inherit multiple systems from mergers or acquisitions and require a solution that addresses the data fragmentation while minimizing disruptions. In other instances, decentralized decision-making along with the expanded universe of cloud-based solutions means that data is stored across too many platforms. The reality is consolidation is a necessity, not a choice.?

This is where our state-of-the-art ERP data consolidation platform comes in as the savior. This platform is designed to integrate and consolidate data from different ERP systems within an organization.

Robotic process automation-based (RPA) data extraction and integration allows for the creation of a centralized repository where information is stored and updated in real-time. This helps create uniformity and ensures the organization follows standardized practices. The platform’s real-time reporting capabilities provide executives and decision-makers with insights into the organization’s performance in near real-time.

Our XBP platform is designed to scale with the organization’s growth, accommodating an increasing volume of data and users. It provides customization options to tailor the ERP system to the specific needs of the organization. It also negates the requirement of multiple-user license fees on multiple ERP platforms as a single user can access the consolidated data on the platform.?

There are a number of signs that an enterprise is getting bogged down by data fragmentation and will benefit from this innovative approach to data consolidation across its existing ERP systems:?

• Compliance and quality control challenges.
• Lack of real-time business insights.
• Workarounds and manual processes dominate, resulting in errors.
• Difficulty accessing and applying data hinders productivity.

Professionals at every level know where these kinds of issues can lead — an inability to compete and grow well and in the worst-case scenario, going out of business. We observed similar problems after expanding as a result of acquisitions and inheriting the ERP systems of our targets. That’s why our solution, which emerged from our own practical need, has already been tested in a complex environment. With the evolution of ERP systems to include not just financial data but also human capital and sales performance data, this initiative equips business leaders with a unified view of their business and the tools to continuously unlock business value.?

To Move Forward, Leave Silos Behind

Today, companies that rely on multiple ERP systems are falling behind in understanding how they are performing and, subsequently, how to plan resource allocation and investments. Data fragmentation creates inefficiencies that only put an additional burden on employees and the business at large. Consolidating to a single ERP system may appear daunting, but modernization can only be delayed for so long, and bridging solutions that integrate data are available. Use either path to modernize, but ditch the silos that jeopardize decision-making.?

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