Wednesday, 6 December 2017
Integration can be done by moving data from one system to another, and storing them there for later use.
Integration is basically about getting two IT systems to interoperate, where data and/or logic in one system is needed in the other system.
An integrated solution establishes a secure and reliable connection between the two systems so that they can share data and offer flexible tools to manage the process.
Integration can be done by moving data from one system to another, and storing them there for later use (Batch). More complex scenarios might require direct requests (Live) from the ecommerce to the ERP system, when data and/or logic are needed. Typical examples include if the ecommerce looks up quantity in stock before confirming delivery to a customer etc.
There are several good reasons for integrating your ecommerce with your ERP system. Most important is, of course, generating more revenue through your online channel and optimizing your operational costs.
Main advantages are that you can:
One of the main savings with integration is of course to optimize the resources spent with typically daily tasks like:
Integration will partly or fully eliminate the daily tasks associated with tasks mentioned above. So one key questions should be “Is the investment in integration worth it?’
The following is a simple ROI calculation where average costs for handling product changes, orders and customer queries are multiplied with the daily number of occurrences, and an estimated improvement per cent in efficiency is used to calculate the gain.
In this example with the listed assumptions there is a saving of 221,190 EUR every year. The ROI calculation only focuses at the cost savings and not the additional revenue many companies see from ecommerce.
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Continue reading up on this series here:
Part 2- Integration methods
Part 3- What data to integrate?