ERP system integration tops leaders’ business app priorities

ERP system integration might not be the buzz phrase landing in your inbox every day. But while AI and cyber security understandably grab the business technology headlines, research from Thinc reveals that greater connection between systems is top of many leaders’ agendas.

We recently asked 650 business and IT decision makers at SMEs in the UK to tell us what their organisation’s success criteria is when reviewing their core enterprise resource planning (ERP) or finance solution. We learned that, for half of these organisations, data integration – the capability of the ERP to connect with software such as CRM, HR management, marketing tools and ecommerce platforms – is a priority.

This focus also seems to increase in line with organisation size, reflecting the greater complexity that comes as they grow. At the smaller end of the SME scale, ERP system integration is a priority for 43%. For mid-size SMEs, this grows to 49%, and for the largest, to 53%.

How interest in ERP system integration reflects national needs

This trend, we believe, reflects developments in the operating environment for the UK’s SMEs. Across all sectors, the cost of labour is making it harder to add more people to manage strain or enable growth. This is leading businesses to seek innovative and tech-led ways to maintain productivity, such as investing in AI tools.

“With employment costs increasing, business leaders are under pressure to deliver more with less,” says Dominic Ball, Managing Director and Co-owner at Thinc. “We’re seeing a clear pivot away from traditional hiring towards smarter, integrated systems that allow SMEs to grow without increasing headcount.

“For small and midsize organisations in the UK, we’ve observed a real drive towards using systems and automation to manage the repeatable mundane low-value tasks in the business, allowing their staff to focus on high-value activities.”

ERP system integration: the first step to automation

Setting up systems to speak to each other is about more than just streamlining the management and availability of data. If two separate systems are integrated, then it becomes possible to automate many of the processes that might have previously relied on one or more users working across each system.

“So much time is lost through manual processes, taking the data from one place to another. Better integration of systems is the key to taking these processes and automating them, freeing up people to focus on what matters,” explains Ball.

This is something we see regularly at Thinc. We speak with many businesses that rely on two or more systems – often a core business solution such as Sage 200, Sage Intacct or SAP Business One, alongside logistical, CRM or other industry-specific solutions – with multiple delays created from siloed data.

“We are constantly encountering customers that are double-entering data in two systems,” says Chris Haddock, Thinc’s Head of Development and SI Practice. “They’ll be entering information into, for example, a service system and then they’ll pull off a report and key the invoice data into the ERP system.

“That might take somebody a day, it could be two days. If you average that over a month, you could be talking over a week’s worth of work just rekeying invoicing data.”

Our research shows that organisations are increasingly identifying these slow processes as productivity killers. The second most common answer to our question showed that 42% of SMEs regard process efficiency as a priority when evaluating an ERP, automating and reducing manual processes to improve productivity.

Looking for ERP system integration for your organisation?

If you’re looking to streamline and automate working processes in your business, ERP system integration can bring real benefits. At Thinc, we have the business knowhow and tech expertise to help you amplify your potential.

Our partnerships with best-in-class solutions such as BPA Platform and TrueCommerce, plus our own development expertise in the leading ERPs, mean we can quickly build the connections our clients need.

If you’d like a conversation about ERP system integration, let us know when you’d like us to call.

Want to know more about our research into IT needs among midmarket businesses? Read our blogs:

• Thinc survey reveals where leaders differ on tech advice
• Business automation explained: the productivity boost hiding in the AI hype
• Why do SMEs seek independent IT services? Leaders speak out
• Full report: Solving the UK’s tech productivity puzzle