What is ERP (Enterprise Resource Planning)?
Enterprise Resource Planning (ERP) software streamlines business processes by coordinating data flow across an organization. It provides a single source of truth and optimizes operations.
They are used to manage everyday business activities such as finance functions, compliance, risk management, retail, supply chain and HR.
How To Extract Data from ERP Systems
Integrate API Endpoints
One way to extract data from ERP systems is by connecting your database to an API management platform.
From there, you can define and test your API endpoints with an external tool.
Lastly, you will integrate the API endpoints in order to get the data from the ERP system.
Use Extract, Transform and Load (ETL) Tools
Another way is by connecting your ETL tool to your ERP system’s database.
Once connected, you must tell the program what information you want to pull out before converting it into a format other systems can use.
Then you can put all that converted data into a database.
READ MORE: What are the Different Data Warehouse Types?
Get Help with ERP Systems
As you might have gathered from the overview above, managing Enterprise Resource Planning data is no easy task.
That’s why so many PE firms seek help for their portcos in this area. Private and public companies often seek outside support, too.
Here are the primary hurdles we hear about on scoping calls where a client needs help extracting data from their ERP:
- Lack of internal expertise: This is a common challenge when extracting data from enterprise resource planning (ERP) systems. Outsourcing to a third-party service provider offers access to domain experts with the knowledge and skills to efficiently extract data.
- Time constraints: Outsourcing offers a faster turnaround and allows companies to focus on core business functions rather than data extraction, which can be a time-consuming process.
- Complexity: Extracting data can be complex, especially if the data is spread across different modules or systems. Experienced service providers who specialize in data extraction can provide a more efficient solution and ensure that the information is accurate and reliable.
- Cost: Investing in the necessary hardware and software to extract data from an ERP system can be expensive. By outsourcing the project, companies only pay for the services they need.
- Need for specialized tools: Companies may not have access to the necessary specialized tools and software. These same tools will be part of a third-party service provider’s day-to-day toolkit.
- Data accuracy concerns: Extracting data from an ERP system requires a high level of accuracy to ensure that the data is reliable and can be used for reporting or analysis. If you leave this to chance, you may end up making important decisions based on faulty data.
- Need for customized data extraction: Companies may require customized data extraction from their ERP system, which may not be possible with existing in-house resources. Outsourcing to a third-party provider can provide customized solutions that meet the specific needs of the company.
- Compliance and regulatory requirements: The data extraction may be subject to specific regulations or industry standards. Companies may not have the in-house expertise to ensure that the process meets these standards, and can benefit from the provider’s knowledge of industry-specific regulations and standards. This helps minimize the risk of regulatory violations, legal penalties and reputation damage.
- Scalability: As a company grows, the amount of data generated by an ERP system may increase, and the data extraction process can become more unwieldy. There may become a point when companies don’t have the resources to handle the volume of data generated by their ERP system. Third-party providers can offer scalable solutions that can handle larger data volumes and provide ongoing support as the company grows.
If you’re ready to extract data from your ERP system, we’re here to connect you with a niche-specific, expertly vetted service provider.
We know the resource you need for your specific situation before we ever jump on a scoping call, and we’ll introduce you to two or three best-fit solutions in less than one business day.
Contact us now to meet BluWave-grade solutions to your biggest technology challenges.
