Syscom PLC's Sally Reynolds & Jonathan Smyth discuss system integration with supporting customer examples

Friday, 21 August 2009

Systems integration has long been a key driving force behind efficient operations and successful strategic planning within major corporations. As the enterprise resource planning ERP software market for small and medium sized companies has matured, the opportunity to secure effective collaboration and improved business intelligence through connecting the different areas of a business is becoming increasingly available to a wide range of organisations. No longer the domain of the corporate giant, today the advantages of business-wide integration are all but essential to remaining competitive for many companies, whatever their size.

A disparate situation

Many companies have spent considerable time and money developing and implementing IT software that meets a particular business need, such as an invoicing system or a sales order processing application. Often these will be crucial to the successful operation of a particular department, and thus to the business as a whole. However, because these systems were designed or chosen specifically for an individual need, they rarely communicate well with other IT systems and applications within the organisation. Working independently in a self-contained manner, such disparate systems provide limited opportunities for streamlining procedures and reducing costs because they are not part of a broad business IT architecture.

“In our experience, many businesses with disparate IT systems suffer from a wide dispersion of information, inefficient procedures and reduced collaborative productivity,” says Sally Reynolds, Marketing Manager of Syscom PLC. “Isolated information makes the use and analysis of data labour intensive, prevents the quick identification of trends in performance and limits business decision making. This limited insight into underlying problems can be a serious hindrance, as continued profitability often depends on understanding performance variables within a business. Inflexible independent systems can also enforce archaic, non-competitive inter-departmental procedures, constricting business efficiency with duplication of efforts. In addition, the lack of shared resource prevents individuals and departments communicating efficiently, reducing the productivity gains that inter-departmental collaboration can bring.”

An integrated solution

An ERP system is a company-wide computer software solution that can manage and coordinate all the resources, information and functions of a business from a single, shared database. Typically made up of modules with specialised functionality designed to support specific business activities – such as finance, production, warehousing, stock control and customer service – an ERP system uses a local area network to connect departments, share information and harmonise business operations. Many modern ERP systems offer modules for every aspect of a business, allowing for true end-to-end integration of all areas.

For many organisations the company-wide integration offered by today’s ERP solutions is a key driver for changing from their current IT systems. “The functionality offered by software applications is continually improving,” says Sally, “but this in itself does not always provide the impetus to seek a new system. Current functional capabilities are often considered ‘good enough’ in individual instances, particularly when weighed against the time and expense of technological change. It is when inter-departmental functions and business processes as a whole are evaluated that the need for a unified IT solution becomes apparent.”

The business benefits

Over the past 30 years Microsoft Gold Partner Syscom PLC has worked with companies to implement integrated business management solutions to help improve business decision making, efficient operations, enterprise-wide collaboration and competitive advantage. Product Specialist for Syscom PLC Jonathan Smyth explains the main benefits reported by customers who have unified their business through an integrated ERP solution.

Business insight

“Modern ERP systems, such as Microsoft Dynamics, enable all key data to be input into one central database” says Jonathan. “This makes a broad array of information readily available from all areas of the business, allowing for comprehensive reporting. Our customers are always delighted by the business insight this complete company view affords, which is of course crucial to effective business performance management and improved decision-making.”

Leisure and lifestyle clothing brand Weird Fish implemented Microsoft Dynamics AX after rapid expansion saw them outgrow their initial software and IT systems. A lack of integration, fragmented data, duplicated efforts and limited reporting capabilities were amongst their key business issues. “The system gives us real visibility into all areas of the business,” says Jon Goodwin, Financial Controller of Weird Fish.

“All information is ‘real-time’ and centralised,” says Jonathan. “Our customers no longer need to spend time on manual data transfer between disconnected systems – an inefficient and error-prone process that makes it difficult to guarantee the accuracy and completeness of required information as one set of data is always out of date. Weird Fish have found the ability to analyse data in a live environment crucial in meeting customer demands. What’s more, once the need for manual data transfer is eliminated staff can perform tasks that add value to the business, improving productivity.”

Efficient operations

Today’s competitive economic climate makes operational efficiency essential. “One of the major benefits of an integrated ERP system reported by our customers is the streamlining of business processes,” says Jonathan. “Many companies implemented systems at a time when the software available was rigid in functionality, obliging them to conform business processes to the software or customise a system significantly to meet company needs. As the requirements of their business changed and business processes evolved, the procedures imposed by legacy software systems constrict the ability of users to work efficiently. These systems are also often acquired through company mergers and acquisitions, giving rise to the same situation.”

Global providers of products and services to the natural gas and oil industries Weatherford International were one such company who found their legacy software no longer supported their rapid growth and went to market for a software solution that would offer them greater flexibility and tighter control of business processes. “We had been using our previous system for over 15 years,” says Martin Enstone, General Manager of Weatherford International’s UK site, “but this solution was becoming untenable as it had been highly customised over the years, much of which was undocumented. What had started as a simple off-the-shelf manufacturing system acquired over 1000 bespoke macros optimising its processes, including bespoke MRP.”

Most integrated ERP solutions today will offer some form of flexible rules-based process tools such as ‘workflow’, which allow companies to create custom processes based on their operations and change process flows within the system as their preferences and requirements evolve. “Importantly, because all aspects of the business are integrated, the scope for workflows within an ERP system such as Microsoft Dynamics AX can be broad,” explains Jonathan. “Electronic routing of documents, event notification and automated processes based on triggers can all function inter-departmentally, helping companies adhere to policies and make operational efficiencies.”

“The work-flow planning and task recorder functionality offered by Microsoft Dynamics AX is brilliant,” says Martin of Weatherford International, “particularly as we are IS9001 certified. The work flows help us ensure all our business operations are as streamlined and efficient as possible, which is vital for controlling costs, and the task recorder can be activated whenever we want to automatically track and record actions for a given business process. It then generates a step-by-step guide describing the process, including screen-shots, which we can use as a training document for new staff.”

Enterprise-wide integration also enables end-to-end automation of business processes, reducing transactional costs and order time. “The instruments we manufacture require many parts and we sub-contract about 80% of the component manufacture, such as production of circuit boards, so we have high number of invoices to process now that our business has grown – often around 50 invoices per day,” says Martin. “Microsoft Dynamics AX has helped automate this process and the integration across the modules means you can easily trace transactions to their origin as well as update customer records immediately. We can also verify and analyse transactions on demand to support internal or external audits, saving a lot of time and resources.”

Jonathan of Syscom PLC has also found the integration between Microsoft Dynamics and commonly used IT tools, such as Microsoft Office Excel and Outlook, can help businesses make the most of their existing IT infrastructure, creating a unified IT environment. “The tight integration has allowed us to use our existing technologies and applications more effectively,” says Bob Wiggins, Manufacturing Controller of Weatherford International. “With the click of a button we can export data into Microsoft Office Excel for further manipulation, for example. It works a treat!”

Enhanced communication and collaboration

An integrated solution can also help staff in different areas of an organisation work together more effectively. “Intranet, extranet and web applications can be supported across an enterprise within a single, integrated platform,” says Jonathan, “allowing for easy, enterprise-wide access to people, documents and information. Such unified communications are vital to ensuing staff have the information they need to work efficiently and to enabling effective collaboration throughout the business.”

Working from a single, integrated system has enabled Weird fish to communicate effectively across all departments, reducing duplication of efforts and enhancing collaboration throughout the business. “If a customer rings up to query an outstanding invoice we no longer have to jump between systems to get the information we need,” says Jon of Weird Fish, “we can now simply click on the invoice and drill down for more detailed information, giving the customer exactly what they need there and then. We use the alerts function to inform everyone in the company as things happen – for instance if a customer is placed on hold or if someone’s credit limit is altered. This improved collaboration will be crucial as we continue to grow.”

Weatherford International has similarly reported enhanced collaboration through Microsoft Dynamics AX. “Our recent acquisition of an Australian plant has also made it crucial to have a system in place capable of supporting global operations and communication,” says Bob of Weatherford. “Because Microsoft Dynamics AX is a fully integrated system it has enabled us to communicate effectively across departments and plants, reducing duplication of efforts and enhancing collaboration throughout the business here in the UK and overseas.”

Reduced total cost of ownership

In addition to improving customer interaction and saving money through increased efficiency and productivity, changing from disparate systems to an integrated ERP solution can lower ongoing system administration costs. “An integrated system can be easier to manage on a day-to-day basis than individual stand alone applications due to reduced complexity of maintenance,” says Jonathan. “Although integration between disparate systems can sometimes be achieved through the use of middle-ware software the challenge of maintaining several systems would still stand. Making the move to an integrated solution also leaves a company with only one system to upgrade as desired, rather than many.”

The bottom line

Of course integration is not an end in itself – the benefits of an integrated system are sought due to the ways they serve to make a business more profitable, competitive and efficient. Ultimately integration is valuable to a business because of its effect on the bottom line - effective customer interaction and strategic direction, for example, can increase revenue, and improved efficiency reduces costs. “We would advise anyone struggling with disparate systems to consider what an integrated ERP system can do for their business not merely in terms of the benefits it would bring to each area of the business, but the benefits brought about by the harmonisation of the business itself,” says Sally of Syscom. “As with many things, the whole is greater than the sum of its parts.”