Enterprise Resource Planning System Integration

systems would have a severe impact on the day-to-day activities of business.

Disparate Legacy Systems

According to Dash, National Sales Head (India) of Ramco ERP solutions, disparate legacy systems are systems that perform data processing as usually individual systems without having any interaction or data exchange with other similar systems. Hence each system will have a separate unique database. These systems are not integrated. Therefore there is always inconsistency in data entry like integrity issues and duplication of data.

Importance of Integration

In order to remain competitive and sustain development, an integrated enterprise system is a necessity for fast growing organizations. Insufficient information availability will lead to loss of time, money and energy resulting in poor decision making. Improving the visibility and maximizing the quality of information are the key notions for top management for improving their business.

Most of the business executives admit that integrating key functions and processes is the key for maximizing profits. The returns of an actively pursued integrated business strategy can be significant and failure to do so would be catastrophic. As the business develops, the legacy systems do not extemporize along with the growth of the company. Consequently, they would become obsolete leading to performance and stability issues. Hence it is better to migrate to an integrated ERP system as earlier as possible.

Issues Due to Lack of Integration

There are several issues that an organization would face because of lack of integration among the services and applications they use. Some of them are discussed as follows:

· The non-integrated applications using different languages and technologies, residing on different platforms result in isolated functionality and multiple instances of the same data.

· Lack of application integration leads to redundant activities, inefficient response to customers and greater cost expenditures.

· Non-integrated legacy systems usually run on obsolete hardware systems which are slow and expensive to maintain.

· Documentation and understanding of legacy system details are often absent and tracing faults would lead to time consumption and needless expense.

· Difficultness in extending and lack of clean interfaces in legacy systems make it tough to integrate with other systems.

ERP Systems on Integration Issues

ERP systems are built on a single comprehensive database in order to share data across the whole enterprise. ERP system integration inside the organization can be assumed to be complete and comprehensive. Also, integration with outside world is pretty much straight forward nowadays with the help of web-based technologies like Electronic Data Interchange (EDI), Service-oriented architecture (SoA), Application Programming Interface (API), Blackberry server etc.