The post-modern model of integrating ERP (Enterprise Resource Planning) Business Management System has increasingly become a reality within companies. However, its application requires an unprecedented level of system integration between different programs, most of which are in Software as a Service models, from the English SaaS (Software as a Service).

However, effectively integrating legacy systems between a Cloud ERP and any external services requires much more than just APIs. 

Large companies are able to afford the very high costs of their integrations and the high maintenance costs. This model, however, is unrealistic for the small and medium-sized enterprise (SME) market.  

However, once aware of the importance of integrating legacy systems for the activity of companies of any size , it is necessary to identify a viable solution for this, and know that it exists. Learn more below!

Read too:

iPaaS: What It Is, How It Works, and Why Consider the Investment

Why integrate legacy systems?

1- Greater dynamism in the informational flow

Sectors that are very close and need to be in contact are directly benefited by this integration of legacy systems. For example, inventory and purchasing need to communicate effectively so that both can work together .

In addition, the purchasing sector needs to know exactly which products are available, which are out of stock and which are about to run out, in order to anticipate the acquisition and not run out. The flow and demands of the stock, in turn, already depend on the sales sector.

Thus, we have interdependent sectors that need to be aware of each other's updates , in order to meet or even anticipate needs, ensuring the harmonious functioning of the company with the demands of customers.

That is, integrating systems allows access to information about the company's activities in real time , providing all sectors with fundamental knowledge to function more efficiently.

2- Error reduction

The absence of real-time communication of data from different sectors, especially those that are directly interconnected, leaves the company vulnerable and prone to making mistakes. 

In this context, activities are carried out based on guesswork or using outdated information, which ends up resulting in a burden for the business.

The integration of systems eliminates this bottleneck, providing managers with a global view of the enterprise based on data , in addition to reducing errors and rework, it also allows for the implementation of process improvements.

3- Eliminates data repetition

Working with duplicate data is a problem for the company, as it represents rework for the teams. This happens more frequently when each sector works in isolation.  

More than avoiding rework, integrating systems provides greater security to processes , avoiding major complications that duplication of data can cause, such as issuing duplicate invoices for the same purchase and, worse, with different data.

4- Increases process control and performance gain

Having integrated systems also allows managers to more accurately observe and monitor the processes of their sectors and the company as a whole, which speeds up problem solving , in addition to reducing the risk of wear and tear and penalties with the inspection bodies for avoidable mistakes.

4 Examples of the Impact of Systems Integration by Niche

Integrating ERP systems brings general benefits that can be reflected differently in the variety of sectors in which SMEs operate. Below we will offer a more practical view of the impacts of this measure on specific areas of activity.

1. Industry

The industrial sector is, without a doubt, one of the sectors that most benefits from the integration of systems, because in addition to the benefits for management, the fluid communication of data favors, for example, a more effective prevention of accidents and the monitoring of the performance of machines.

In addition, integration promotes better decision-making, reducing losses and increasing results. Otherwise, the factory may have time-consuming processes with bureaucratic steps that can be eliminated with a complete ERP system.

For example, the acquisition of inputs for the construction of a certain product may take longer if the purchasing sector does not know the demand in advance. This delays deliveries and can compromise the entire production chain.

2. Retail

Retail is an area that usually has a large volume of processes, with daily sales and management of employees, suppliers and customers. This all implies increased attention to the entire process.

Integrating systems in these establishments helps in the organization and dynamism of the work routine , favoring the improvement of the services offered to the client, which is very important in a market as competitive as the retail one.

This integration also provides means to deal with essential actions, such as strategies to release products from stock, preventing them from becoming stranded or even losing the minimum properties to be sold.

The constant flow of entry and exit of products in retail makes them one of the sectors that most need to have their sectors connected, as any failure in communication can result in excess or lack of product in stock, causing losses .

3. Agribusiness

A sector that deals with living, perishable and sensitive products such as agribusiness cannot do without an efficient communication flow. In this field, the time spent matters a lot, as delays and mistakes can result in a significant loss of investment in products and processes.

An integrated system will allow the manager a total view of agricultural activities , in the field or in the pasture, until delivery. Apart from that, productivity in agribusiness can be optimized from the automation of repetitive and operational tasks by the ERP , leaving the team more dedicated to solving more complex problems or proposing measures that increase profitability.

Integration also contributes to more effective inventory control , aligning production demand and material movement. Thus, the company is able to calculate and make the best decision on how to meet inventory needs in periods of lower harvest of the product it supplies, for example.

4. Logistics

Logistics companies have a great challenge in synchronizing the different sectors they manage so that their deliveries happen as planned. The integration of systems promotes greater clarity in the execution of the supply and distribution chain , by allowing the visualization of the entire process, in addition to allowing the automation of steps to speed up actions.

Integrating systems also facilitates warehouse control, both with regard to receipt and storage and movement of goods to other warehouses or to the end customer, favoring compliance with delivery deadlines.

Less errors and more productivity also implies cost reduction , either by eliminating physical paperwork, reducing rework or preventing the loss of goods. With these optimizations, the business gains even more competitiveness, giving greater reliability to the brand.

iPaaS: the solution to integrate systems in SMEs

As we have seen, as the company digitizes its services and products, there is a need to integrate them so that management remains agile and efficient. 

Thus, it is common for companies to acquire the ERP system and look for APIs that can connect it to their programs already in use , such as finance, CRM, marketing, logistics, among others.

Read too:

What is API: main benefits and how it works

However, unlike large corporations, even though SMEs need to integrate their different systems, they generally do not have the same technical and financial structure to bear the high costs that this type of process requires.

iPaaS (Integration Platform as a Service) is a technology that works on the composite ERP model , avoiding the customization overload of this system and relieving the integration process in terms of time and costs.

A Gartner survey states that by 2023, companies that adopt this model will surpass their competitors in the speed of deployment of new resources, that is, in technological innovation .

The Integra.Sky , Sky's iPaas. One, for example, makes it possible to automate the work routine and centralize the management of all business systems in a simple and safe way.

This integration platform consists of a set of automated tools, which eliminates the need to produce complex and expensive APIs , in addition to offering replicability and marketplace functions, making it a differentiated solution for SMEs.

Integra.Sky Integra.Sky a friendly interface and a very intuitive structure, which guarantees security, agility, cost reduction and freedom to choose the best software for your company, even for users who are new to this technology. In the following video you can learn more about Sky.One's Sky.One !

We hope that this text has helped you to better understand the importance of integrating systems in your small or medium-sized business and offered an interesting solution to optimize your business processes.

Now, how about deepening your knowledge about this integration technology that will favor the success of your enterprise? 

I want to know more about integration!


Written by

Sky.One Team

This content was produced by SkyOne's team of cloud and digital transformation experts.