Blockchain integration into enterprise ERP systems will not only encourage a seamless connectivity but also increase effectiveness of the ERP system communications.
FREMONT, CA: The integration of blockchain into ERP systems is expected to change many multi-company processes significantly in the near future. However, to do so, blockchain solutions must prove beneficial to a broad network of organizations; they have to be industrialized, flexible, and scalable. The integration, although not happening at present, is a logical step, which is frequently overlooked.
Several companies treat blockchain as a supplement to existing systems and a new method to exchange information with multiple recipients, but the scope for innovation stops there. It is a major reason for the blockchain platform falling short.
A much simpler approach with quicker reaction and more value are to plug the blockchain into the ERP system and utilize the company’s existing business logic, data, and process controls. In the case of disintegration between ERP and blockchain platform, a continuous resource investment will keep the two aligned. The likelihood of introducing error increases, causing a challenge in synchronization and heightening of risks in businesses.
The organization’s boundaries have limited the view of processes; for example, the procure-to-pay is viewed as “end-to-end” with the components of the process outside of the enterprises’ control being taken for granted. The new scope for procure-to-pay process spans multiple entity boundaries, and it spans from and until ERP systems with blockchain integrating enterprises. An entirely seamless, end-to-end multi-enterprise process begins within a single company’s ERP system, shifts through the blockchain, and ends in subsequent companies’ ERP systems.
Blockchain solutions are exceptionally disciplined in how they handle assets and can reduce inventory miscalculation. When blockchain in asset management is linked with SAP-Integrated Business Planning, the enterprise gains an accurate description of the inventory all over the extended supply chain and therefore, receives a precise forecast to drive production on its own.
The deep integration of enterprise ERP systems and the altered description of operations across boundaries can assist the provision of a holistic advantage of blockchain platforms. The comprehensive benefits of having a set of facts and shared processes across what was limited boundary historically can be leveraged.
Blockchain enables a divided process and a single set of facts in areas that cross venture boundaries. Companies need to revisit a new point-to-point model, where a business mechanism originates in one company and ends in another to materialize transformational benefits to the fullest.