Benefits of Integrating EC Sites with Core Systems | Practical Tips for Business Innovation and Management Support
Hello! This is NA×NA.
From the perspective of an EC vendor, we accurately grasp industry trends and challenges to provide optimal information. We support EC operations, from launching EC sites (online shops) to increasing sales and improving customer satisfaction.
We strive to deliver accurate information by leveraging our knowledge across a wide range of fields and industries, not just the EC industry!
For those considering integrating an EC site with a core system, you may have questions such as, "Is integration with a core system really necessary?" or "What specific integration methods are available?"
In this article, we will explain the overview of core systems, the necessity of core system integration, and the process leading up to implementation.
What is a Core System?
A core system is a system that supports a company's core business operations.
Core business operations are those essential to a company's survival and growth, including sales management, inventory management, production management, accounting management, human resources and payroll management, and customer management.
Core systems play a role in improving a company's operational efficiency and productivity by streamlining and automating these core business operations, thereby supporting management decision-making.
Difference from ERP
One system often confused with a core system is "ERP (Enterprise Resource Planning)."
ERP is a system that centrally manages all resources a company possesses, such as human resources, materials, and capital, covering the company's entire business operations. While core systems refer to independent systems for each department or purpose, such as sales management or inventory management, ERP can be distinguished as a system that integrates multiple core business operations.
Main Types of Core Systems
Sales Management System: A system that handles product orders, shipping, inventory management, sales management, etc.
Inventory Management System: A system that handles product receiving, shipping, tracking inventory status, etc.
Production Management System: A system that handles manufacturing process management, procurement of raw materials and parts, production planning, etc.
Accounting Management System: A system that handles the management of accounting information such as sales, purchases, and expenses, as well as the creation of financial statements.
Human Resources and Payroll Management System: A system that handles the management of personnel information, payroll calculation, attendance management, etc.
Customer Management System: A system that handles the management of customer information, support for sales activities, etc.
The systems and functions implemented in a core system vary depending on the company's size and industry. In recent years, cloud-based core systems have also become widespread, allowing for lower implementation and operational costs compared to on-premises systems.
For those who want to know more about ERP, please see the following article.
Benefits of Implementing a Core System
There are various benefits to integrating a core system with an e-commerce site.
Streamlining operations, improving customer satisfaction, and visualizing management are key factors that enhance overall corporate productivity and competitiveness, supporting sustainable growth.
Operational Efficiency
By introducing a core system, unified data management becomes possible. Since product information, customer data, and order history are managed on a single platform, duplicate entries and input errors can be prevented.
For example, when inventory levels or prices are changed, they are automatically updated across the entire system, allowing operations to proceed based on the latest information at all times. Furthermore, as business processes become automated, the system handles routine tasks such as order processing, inventory management, and sales aggregation automatically.
This reduces the risk of errors that employees might make during manual work and significantly shortens task completion times. Additionally, real-time information sharing becomes possible, allowing for instant awareness of inventory status and sales data, which enables quick responses to sudden stockouts or spikes in sales.
Improving Customer Satisfaction
Utilizing a core system enables the provision of accurate information to customers. When customers order products online, they can check inventory information and delivery status in real-time, reducing the risk of over-ordering or delays and allowing them to shop with peace of mind.
Furthermore, personalized services can be provided based on a customer's purchase and browsing history. For example, by automatically recommending products related to past purchases or suggesting special campaigns, you can capture customer interest and increase engagement.
Moreover, rapid responses ensure immediate handling of order processing and customer inquiries. Customers are satisfied when issues are resolved quickly, which can lead to repeat purchases and increased trust.
Visualization of Management
Introducing a core system advances the visualization of corporate management indicators. Important data such as sales, profits, and inventory turnover rates are displayed on a dashboard in real-time, allowing management to grasp the company's situation at all times.
This makes it possible to identify trends where sales increase during specific periods based on past sales data, enabling timely inventory ordering and the implementation of marketing strategies.
Also, the automatic creation of income statements and balance sheets becomes possible, significantly reducing the burden of accounting tasks. Since the system automatically aggregates financial data to create monthly or quarterly financial reports, management can obtain accurate financial information quickly and make faster, more precise decisions.
Points to Consider When Implementing a Core System
Security
Because core systems handle data that is extremely important to a company, such as customer information, financial data, and inventory information, advanced security measures are essential.
If this information is accessed unauthorized or leaked, it can lead to a loss of corporate credibility, legal issues, and economic losses.
Specific security measures include the following:
Data encryption
Access Control Management
Multi-Factor Authentication (MFA)
Firewalls and IDS/IPS (Intrusion Detection/Prevention Systems)
Regular Application of Security Patches
For those who want to learn more about security measures, please see the following article.
Data Migration
Data migration is the process of moving information from an existing system to a new core system, which requires careful planning and execution.
If data loss or inconsistencies occur, it can not only hinder business operations but also potentially prevent the achievement of the system implementation goals, such as improved operational efficiency and accuracy.
Specific points are as follows:
Formulation of a migration plan
Data cleansing
Test migration
Production migration
Post-migration verification
Securing backups
Project Management
Implementing a core system is a major project, and creating a solid project plan is the key to success.
It is necessary to clarify the implementation schedule, budget, and personnel in charge, and to secure appropriate resources. Also, since system implementation always involves risks, risk management is important.
For example, you should consider countermeasures in advance to prepare for risks such as system trouble, implementation delays, or budget overruns. Furthermore, system implementation is not just an issue for the IT department; collaboration with management and each department is essential.
Smooth communication with stakeholders is required to share progress regularly and to seek solutions early if problems occur.
Operations After Implementation
The operational structure after system implementation is also extremely important. It is necessary to establish an educational framework to teach employees how to operate the system and to conduct training.
When a new system is introduced, it may take time for employees to become proficient, so ensure that a robust support system is in place to respond quickly to questions and issues.
Furthermore, regarding the support structure, it is important to establish a system that can respond promptly to system troubles or functional changes.
After implementation, it is required to periodically evaluate whether the system is operating as expected, identify areas for improvement as needed, and strive for effective utilization of the system.
By firmly grasping these points and implementing the core system in a planned manner, you can maximize long-term effects and achieve improvements in operational efficiency and strengthening of competitiveness.
How to Choose a Core System
Clarify the Purpose of Implementation
Before implementing a core system, it is most important to clarify the purpose.
For example, whether you are aiming for operational efficiency, seeking to improve data accuracy, or utilizing it to support management decisions, the required system specifications differ depending on the purpose.
Once the purpose is clear, you can narrow down the necessary functions and priorities, enabling the selection of the optimal system. It is also important to concretely set the effects expected from the implementation.
Select a System That Meets Your Company's Needs
When selecting a core system, it is extremely important to choose a system that matches your company's size and industry.
For example, since small-scale companies and large-scale companies require different functions, it is necessary to choose a system suitable for your scale.
It is also required to select a system that supports the specific needs of each industry (such as manufacturing, distribution, service, etc.). It is also important to receive proposals from multiple vendors and compare and examine functions, prices, and support structures.
Depending on the system, there are cases where the price is low but support is thin, or conversely, it is expensive but has excessive functions.
There are times when system customization is performed as needed, but in that case, it is important to consider additional costs and the time required for customization in advance.
Quote Comparison and Utilization of Demos and Trials
In selecting a core system, in order to choose the optimal system, it is important to obtain quotes from multiple vendors and carefully compare and examine prices, functions, and support structures.
When obtaining quotes, clarify the conditions so that comparisons can be made under the same criteria, and evaluate each vendor's proposal fairly.
Furthermore, utilizing demos and trials is effective for choosing a system that suits your company by actually operating the system.
In a trial, by testing operations using scenarios tailored to your company's business, you can confirm the usability and functional suitability in actual operation, allowing you to proceed with system selection more reliably.
Summary
A core system is an important system that supports a company's core business operations (sales, inventory, accounting, human resources, etc.), realizing business efficiency and productivity improvements.
Benefits of implementation include centralized data management, business automation, and real-time information sharing, which lead to improved customer satisfaction and greater management visibility. When implementing, planning for security measures and data migration is important.
For system selection, it is required to choose one that fits your company's scale and industry, compare quotes from multiple vendors, and select a system based on actual operation through demos and trials.