Blockchain ERP-In today’s digital age, blockchain has been expanding beyond what we call as cryptocurrencies. The technology, with its traits of immutability, decentralization, and transparency, is entering different business verticals and processes and overhauling the whole. One such area where the technology is making a difference is ERP software. How, and why do ERP systems need to consider blockchain? Let’s find out the answers to all these questions in this blog – beginning with what exactly blockchain is.
What is Blockchain?
Blockchain, in layman’s terms, is defined as a chain of blocks containing information along with the hash address of the preceding block. This concept prevents intruders to make any change in the information stored in block while keeping the hash address constant and thus, avoid the fragility at a block level, maintain transparency, and more. On the business side, it’s an exchange network for transferring value from peer to peer. It is a mechanism that authorized a transaction and makes it valid from the legal perspective, without involving middlemen. So, what does this have to do with ERP software?
4 Common Challenges Faced by ERP Systems
Improper requirement analysis
The foremost challenge faced by the enterprises is to keep a real-time record of non-availability of particular resources. They find it tough to remain updated with which resource is unavailable or about to become extinct, which eventually affects the operations and reduces the productivity level.
Hassle of Identity Verification
Various enterprises go with BYOD (bring-your-own-device) and cloud storage options. This empowers users to enter into the ERP ecosystem from their own devices and enterprises’ management team struggling with figuring out which device is associated with an authorized member, further resulting in higher risk in terms of identity verification.
Data Breach Risks
As you can depict from the last pointer, the unauthorized access can increase the risk of data breaches even when the best of security tools and practices are introduced into the ERP system.
Lack of Communication
Last but not least, various parties work independently in an ERP environment. They do not interact with each other, which many times, make them end up working for the same cause individually rather than utilizing that time and effort into something more productive. And in the worst case scenario, face disputes and litigation.