Integration of the ERP system with blockchain technology: is it worth it?
Each company that offers various types of products or services has a system that allows it to manage not only the customer and orders base but other processes related to conducting business as well. The ERP (Enterprise Resource Planning) system covers all aspects of the company's operation: from accounting and monitoring employee activity to interactions with suppliers and manufacturers. The integration of the ERP system with blockchain technology allows to further improve processes in companies as well as relations with external entities.
Increased data security
One of the biggest advantages of blockchain technology is data protection. Companies implementing ERP systems store a lot of information about processes inside the enterprise as well as about clients and business partners. Some data may be sensitive and therefore require additional security measures. In addition, numerous employees usually have access to the ERP system, which can create a risk of data leaks, especially when wireless devices are used for work in the system.
Blockchain technology allows eliminating the threats and tracking of any changes, so errors in stored data can be avoided as well as reporting issues. Blockchain implementation provides an additional level of security and improves process management.
Implementation of smart contracts
With the help of blockchain, processes inside the ERP system can be even more automated. The use of so-called smart contracts enables the self-realization of business agreements concluded without the participation of third parties. ERP systems constantly process various types of interactions between the company and other entities (e.g. suppliers or accountants), whose management requires time and employee involvement. Blockchain allows the contract to be performed behind the scenes while ensuring its regularity.
Risk elimination for payments
A characteristic feature of blockchain technology is the need to approve information by all network members, which makes changing data or outlines extremely complicated. Thus, the payments via ERP in blockchain are carried out successfully and without any errors.
Besides, the technology allows for full automation of payments, eliminating the need for employee participation. This reduces the risk of making mistakes when entering data or delaying the transaction.
Authentication of user identities
The ERP system ensures not only the effective management of processes occurring within the company but also relations between several entities. Each of them may have a different level of permissions, which limit access to selected data sets. Implementation of system users' identities simplifies access management and allows monitoring their activity.
In addition, customers can also have an identity in the system along with the products or services assigned to them. Due to this, order processing and after-sales customer service are improved.
Increase transparency
The use of intelligent contracts and user identities increases the transparency of all activities inside the system and the data stored there. Such activities not only improve reporting and analyzing information, but also strengthen trust between entities connected by one system. Any change, except that it must be approved by users, is also permanently registered in the blockchain, and therefore visible to authorized persons. Thus, all attempts to manipulate data or processes are noticed by all network members.
