Businesses in various industries increasingly adopt technologies and carry out digital transformation. In such circumstances, data plays a significant role in modern companies’ success. Enterprise resource planning systems (ERPs) are data-driven as well.
This software becomes an ideal target for cybercriminals as it combines all necessary business data: finance, marketing, production, sales, and more. According to Forbes, hackers can access 93% of corporate networks, making ERP consultants critical in solving these issues.
Forbes also stated that in 2021 the average number of cyber attacks per company increased by 15.1% compared to the previous year. It seems that cybercriminals do not plan to stop there, targeting ERP systems.
It would help if you had an effective security strategy for your enterprise resource planning system to avoid this harmful involvement due to data leakage or hacking. In this article, we will discuss this in more detail and share the role of ERP consulting in this process.
What Is ERP Software?
Enterprise resource planning software is a type of software that is needed to manage a company’s business processes. Basic capabilities include accounting, procurement, supply chain, project, and risk management.
ERP can offer a wider range of functionality. For example, this software can track your company’s overall productivity, plan your budget, or generate reports on your business’s financial performance.
Therefore, ERP systems work with large amounts of data. They combine them and ensure their effective exchange between different company divisions. This software also eliminates the problem of data duplication and is a universal source of business information.
It is also necessary to know that ERP systems can be deployed on-premises and in the cloud. More businesses are choosing the cloud as a more cost-effective solution and an opportunity for easier scaling. Yet, with the transition of the ERP system to the cloud environment, there are new risks associated with data security.
Growing Number of Cyberattacks Against Business-Critical ERP Applications
Cybersecurity for ERP systems is critical, at least because such software is used by many companies worldwide.
The prevalence of ERP systems is evidenced by a stable annual 10% increase in this market. If in 2020, the global market for enterprise resource planning software was about $44 billion, in 2030, it will reach more than $117 billion.
See which industries are already using ERP systems in their processes in the chart below:
Due to the widespread implementation of ERP systems in businesses, data security is becoming even more critical. About 27% of companies worry about data leakage when implementing ERP software. According to another study, about two-thirds of firms experienced data breaches from ERP systems such as SAP and Oracle in 2019.
With this in mind, we want to explain why implementing ERP system security is essential.
Why Do You Need an ERP Cybersecurity Strategy?
Let’s look at the main reasons ERP companies should take care of the data security of their business-critical software.
Digital Transformation Carries Risks
Digitizing data and many business processes is a great solution for companies. It significantly increases the efficiency and productivity of enterprises and allows for the automation of many operations.
However, along with these benefits, there are risks of data leakage. So, taking care of security from the beginning of the digitalization of services is necessary instead of waiting for the full ERP system deployment.
Traditional Security Measures at a Wrong Level
Companies that run an ERP system to manage their internal business operations often take care of security using traditional measures. These are, for example, firewalls or vulnerability scanners. These tools are certainly important, but they operate at a different level than is needed for business-critical software.
Neglecting Security Measures
ERP software requires constant updates and improvements. Any errors or gaps in the system can lead to irreparable consequences and data breaches. To avoid such involvement, companies should not neglect data security and eliminate all vulnerabilities in the software before cybercriminals get to it.
The Role of an ERP Consultant in Security Strategy Implementation
ERP consultants cope with a large number of responsibilities. They not only deploy the software but also do so in compliance with high-security standards. These experts also study clients’ needs, performing some conversion rate optimization consultant duties. They will help integrate ERP projects with the infrastructure of your business.
Let’s see what security challenges ERP consultants face:
- Poor administration. Consultants oversee the company’s security and data access policy and monitor compliance with these requirements.
- Access control. ERP experts will determine each employee’s access level to the data, which will help increase cybersecurity.
- Shared responsibility in the cloud ERP system. Security issues may arise since security responsibilities are divided between the cloud service provider and the business. The consultant ensures that these two parties implement appropriate security standards.
- Frequent updates to ERP software. Regular updates require constant supervision so as not to miss any errors and deficiencies. The consultant will pay attention to all vulnerabilities caused by the software updates.
How exactly will an ERP consultant deal with a system’s vulnerability to malicious attacks? Let’s figure this out.
- Launching vulnerability management software. An ERP expert can detect threats to your system thanks to specialized software. This software will monitor hazards related to ERP system configurations, user code, settings, etc. Thanks to pre-arranged measures, an ERP consultant will be able to protect your ERP system.
- Conducting security testing during the development process. An ERP consultant will perform security checks during your ERP system development. As a result, this expert will solve issues before your software’s deployment.
- Monitoring internal and external threats. An ERP expert will constantly monitor your system after its deployment and look for potential vulnerabilities. Such vulnerabilities could include misuse, unauthorized changes to ERP software, or other indicators of cyberattacks. As a result, the consultant will anticipate threats and take immediate action to address them.
The problem of data security is relevant for any software: from buy now pay later app development to deployment of ERP system. It is a blow to reputation and causes financial damage. Data breaches affect a large number of businesses, and this can have irreparable consequences for companies.
To avoid such negative outcomes, you must take care of your ERP system’s security. There are various effective methods and measures for this, in particular, special software for detecting vulnerabilities or constant monitoring of internal and external threats. So, remember to consider ERP security to protect your business.