Blockchain and ERP: Empowering Businesses with Efficiency

ERPs are used by many businesses to manage their organizational process. The world is moving forward with trends. The existing systems need to be optimized for it. Blockchain is a thriving technology that has landed feet in various industries. The list would not be complete without ERP. Blockchain’s integration with ERP takes it to the next level by providing more security, efficiency, and transparency.

What is an ERP?

ERP or Enterprise Resource Planning is software that enhances business operations and manages day-to-day activities like accounting, procurement, risk management, project management, supply chains, and more. It can be used for boosting the organization’s performance. The ERP suite may include performance management, planning, budgeting, predictive analytics, and financial reports. These will help you easily plan and strategize your business. ERP is fully centralized so it is possible to have many issues. This is where blockchain integration comes in.

Some common issues with ERP

The ERP will not work as you expected if you don’t plan the operations. It takes more time to configure and fails to offer maximum productivity sometimes.
ERP is not flexible to adapt to changes. It can’t offer the specific features your company needs every time.
Implementing and maintaining the ERP could cost more.
It’s not transparent and there are more trust issues.
ERP is centralized so there is more chance for data manipulation. The decrease in data quality may include human error which leads to poor data maintenance.

Benefits of Integrating Blockchain and ERP

Blockchain has more benefits for the ERP and another digital environments of an organization. Here are the benefits integrating blockchain will give to ERP.

Transparency in Supply Chains

Tracking the supply chain process is more accessible now with blockchain technology. It gives a transparent view of every process. It tracks all the processes in real time and solves the difficulties in the supply chain. Moreover, it provides real-time reports about your products like where it is at the moment and what their quality is.

Building Trust & Collaboration among parties

The Data is visible to anyone that is to all the participants. Thus promoting trust among the participants. There is no possibility for illegal activities in the network so the company can fully trust the system.

User Identity Authentication and Verification

Blockchain provides digital certificates for all members so the organization can authenticate and verify the member’s identities. This aspect is specifically useful for auditing and eliminating vulnerable entries. Every identity and transaction record is stored on the immutable blockchain. So it helps track every action that takes place at any time.

Automate Business Processes and Payments

One of the main aspects of Blockchain is Smart Contracts. Smart Contracts are programs that run on the blockchain executed in self according to conditions. It processes the transactions. Using smart contracts will be beneficial for faster business processes. You can automate huge manual tasks using multiple smart contracts. Thus, many ERP processes can be automated with the help of blockchain.

Data Privacy and Security

Blockchain offers a higher level of security. It will prevent data breaches, and unauthorized access, and also detect loopholes. It provides authenticated access for members and privacy to their information.

Safe Digital Transactions

Though the ERPs provide transactions it’s much more secure when compared to the blockchain. A transaction can get hacked and all are managed in a centralized server. Blockchain for an ERP is a game changer in this circumstance. The security in the blockchain is very high. Hackers can’t hack the system.

High Data Quality

Integrating Blockchain in ERP will let you build an immutable data system. No one can edit or delete the data once it is submitted to the ledger. This will avoid tampering and give accurate data with high quality.

Build a Robust System Model

Blockchain technology will never replace the ERP; instead, it only adds additional benefits to the system. It will build a flexible and robust system. Many enterprises’ blockchain platforms are available like Hyperledger, R3 Corda, Ethereum, Quorum, Ripple, etc., You can build an architecture based on your requirements.