Highlights & Statistics
- The global cloud-based ERP software market is projected to reach $44.22 billion by 2025, with a compound annual growth rate (CAGR) of 8.3% from 2020 to 2025.
- Approximately 79% of organizations have either partially or fully adopted cloud-based ERP solutions.
- On average, organizations can reduce their IT costs by 21% by moving to the cloud.
- Cloud-based ERP systems enable organizations to easily scale up or down their computing resources based on demand, allowing for flexible growth and cost optimization.
- Cloud-based ERP systems provide anytime, anywhere access to enterprise data, improving productivity and decision-making.
- 94% of businesses experienced improved security after migrating to the cloud.
- Cloud ERP projects are completed 20% faster on average compared to on-premises systems.
What is cloud ERP integration?
The process of linking a cloud-based ERP (Enterprise Resource Planning) system with other software applications or systems within an organisation is referred to as cloud ERP integration. It allows for the smooth transfer of data and information between systems, increasing efficiency and production.
In practise, cloud ERP integration entails connecting the ERP system to other critical business systems like Customer Relationship Management (CRM), Human Resources (HR), Supply Chain Management (SCM), e-commerce platforms, and others. This interface enables data synchronisation, real-time changes, and process automation across multiple departments and functions.
For example, let's consider a company that uses a cloud-based ERP system and a separate CRM system. By integrating these two systems, customer information can be shared and updated in real-time between the ERP and CRM platforms. When a sales representative enters a new order in the ERP system, the customer's information and order details are automatically updated in the CRM system, providing a holistic view of the customer's history and enabling better customer service.
Benefits of Cloud ERP Integration
- Data Accuracy and Consistency: Integration eliminates the need for manual data entry as well as the danger of errors that might occur when data is transferred across systems. It ensures that data across all integrated systems is consistent and up to date.
- Streamlined Business Processes: Integration allows for process automation, removing redundant operations and minimising manual work. This simplifies operations, increases efficiency, and speeds up decision-making.
- Real-time Visibility and Reporting: Real-time data is easily accessible for reporting and analysis with connected systems. This enables businesses to make data-driven decisions and acquire meaningful insights into numerous parts of their operations.
- Improved Customer Experience: Integration enables a consolidated view of customer data, allowing for improved customer service and personalised experiences. Customer information, such as order history or support conversations, may be retrieved quickly, resulting in higher customer satisfaction.
- Increased Efficiency and Cost Savings: Integration helps organisations optimise their resources, decrease operational expenses, and enhance overall efficiency by removing manual data entry, minimising errors, and automating procedures.
- Scalability and Flexibility: Cloud ERP connection allows for the addition or removal of applications and systems as business needs change. It promotes scalability, allowing businesses to adapt and develop without disturbing existing operations.
Overall, cloud ERP integration connects various systems and apps, allowing for smooth data exchange, faster procedures, and better business outcomes. It improves cooperation, efficiency, and decision-making, giving you a competitive advantage in today's fast-paced corporate environment.
Factors that determine Cloud ERP Integration Costs
The cost of cloud ERP integration might vary depending on a number of factors. The following are some major elements that influence cloud ERP integration costs:
- Integration Complexity: The cost is heavily influenced by the complexity of integrating various systems and applications. If the integration involves numerous systems, customizations, or complicated data mappings, the time, resources, and knowledge required may be more, resulting in increased costs.
- Number of Systems to Integrate: The higher the cost, the more systems that must be integrated. To ensure a flawless flow of data between the linked systems, each additional system requires configuration, mapping, and testing.
- Data Volume and Complexity: Costs can be influenced by the volume and complexity of the data being integrated. Handling huge data quantities or complicated data structures may necessitate more data mapping, transformation, and validation operations, resulting in higher integration costs.
- Customization and Configuration Requirements: If customization or configuration is required to align the functionalities of the connected systems, additional expenditures may be incurred. Customization may entail the creation of connections, APIs, or middleware to simplify data interchange between systems.
- Integration Approach and Tools: The integration approach chosen, as well as the tools or middleware used, might have an impact on the cost. Some businesses may choose pre-built integration solutions or cloud integration platforms, but others may require custom-built solutions. The expenses of licencing, implementing, and maintaining these tools or platforms should be considered.
- experience and Resources: Integration expenses can be influenced by the availability and experience of integration professionals or consultants. Hiring outside specialists or consulting services for integration design, development, and implementation may increase overall costs.
- Data Security and Compliance Requirements: Additional steps may be required to maintain data security and compliance if the interconnected systems deal with sensitive data or have specific compliance requirements (such as GDPR or HIPAA). These safeguards may include encryption, access controls, or compliance checks, all of which might raise integration costs.
- Ongoing Support and Maintenance: Integration is a continuous process that requires ongoing support and maintenance. expenses for monitoring, troubleshooting, updates, and future changes or upgrades to the integration can provide a more realistic estimate of total integration expenses.
It's crucial to remember that the expenses indicated above are only guidelines; actual costs will vary depending on the individual needs and circumstances of each organisation. To acquire a detailed cost estimate specific to your organization's needs, engage with integration experts or service providers.
