Enterprise Resource Planning (ERP) system is the backbone of every business that processes the immense amount of data reliable and transparently. It involves supply chain operations, project management, compliance, accounting, procurement and risk management.
You might have come across that the many businesses in the world are functioning seamlessly as all the data is updated in real-time (I remained surprised for several minutes during my industrial visit). Not only this, but the continuous communication between departments also identified the crucial errors and spotted the limitations of any processes are taking place.
Therefore, companies have everything they need for setting the perfect conditions for business growth. But where does blockchain integration fall into a picture?
Blockchain and Business
In trying to learn more about blockchain, you've probably come across like this: “blockchain is a distributed, decentralized, public ledger, etc." The good news is that blockchain is easier to understand than that definition sounds.
'Blocks' on the blockchain are made up of the digital pieces of information while 'Chain' is the database. Once the information is stored in a block, it is further verified and a hash is assigned. After the hashing process, that particular block is added to the blockchain.
'Originally, blockchain was developed as a public and open-sourced platform. But, when it was applied for digital systems of business, became capable enough to create an unalterable and manipulation-proof data for the companies.
With the new model of Blockchain and ERP, all participants have access to all relevant information in real-time and can communicate via secured communication. The best example will be, a manufacturer can see the actual requirements of customers and what they feel after purchase rather than having limited information from sellers. This will allow them to be proactive on supply & demand, avoid the inventory shortages, enhance the internal system, etc.
In addition to this, the other benefits are:
- Immutability of transactions - transactions can no longer be deleted, modified or even reversed.
- Increased transparency from top-to-botom in the supply chain management system.
- Track shipping packages more efficiently and accurately than ever.
- Optimize the intercompany transactions with security.
- Real-time traceability of products to easily monitor the journey from the manufacturing unit to end customers.
Furthermore, blockchain has made its persistent place in cyber-security and fraud prevention too. According to the media report, in 2016, it was used within the U.S. election where it provided an unhackable electronic system for counting votes. Many of the famous online gaming and betting platforms have already initialized blockchain technology that offers instant and secured transactions to its global customers..
We have figured out certain points which can affect the implementation of blockchain into ERP. For instance, there are many types of ERP software available in the market. Not every one of them is flexible enough to blockchain integration due to their respective development environments. Some can adapt rapidly while others may need time-taking tweaks or even involves third-party for integration.
Also, there is a possibility where companies might using one or more ERP systems in their single digital environment. Successfully connecting and integrating all these systems may become very challenging.
Fortune 500 and the global SMEs and MSMEs are now gearing up to blend blockchain technology into its ERP system as they realize its impact. Unified ecosystem and full control over the resources are the primary reasons for the growth of companies. This is where the blockchain persuaded.
Emipro Technologies (P) Ltd. has been designing, implementing and customizing the Odoo ERP for over a decade to global businesses. You can also contact us on Skype or drop an email at email@example.com for a free demo of solutions and consultation.